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F I S C A L I M P A C T R E P O R T

SPONSOR Ezzell

DATE TYPED 2/24/2005 HB 909

SHORT TITLE Right to Work Act

SB

ANALYST Dunbar

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

NFI

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Labor (DOL)

NM Department of Corrections (NMDOT)

NM Public Education Department (NMPED)

Administrative Office of the Courts (AOC)

SUMMARY

Synopsis of Bill

Synopsis: HB 909 enacts the “Right to Work Act” as follows:

Section 2: States that it is the public policy of New Mexico that all persons shall have and shall

be protected in the exercise of the right, freely and without fear of penalty or reprisal, to form,

join or assist labor organizations or to refrain from any such activities.

Section 3: Defines “labor organization.”

Section 4: Provides that a person shall not be required, as a condition of employment, to become

or remain a member of a labor organization or to pay any dues, fees, assessments or other

charges of any kind to a labor organization.

Section 5: Provides that an employer shall not require a person to be recommended or approved

by, or to be cleared through, a labor organization as a condition of or continuation of employ-

House Bill 909- Page 2

ment.

Section 6: Prohibits any agreement, understanding or practice between an employer and a labor

organization that is in violation of the Act.

Section 7: Provides that an employer shall not deduct from wages, earnings or compensation of

an employee any union dues, fees, assessments or other charges to be held for or paid to a labor

organization, unless the employee has authorized the deduction in writing.

Section 8: Requires the attorney general (AG) and every district attorney (DA) to investigate

complaints of violation of the Act and to prosecute a person suspected of violating the Act.

Section 9: Authorizes the AG or a DA to bring an action in district court for injunctive or other

appropriate relief, if an investigation provides good cause to believe that a person is violating or

will violate a provision of the Act.

Section 10: Provides that violation of the Act is a misdemeanor, and that a conviction will carry a

fine of $1,000 or less or a sentence of 90 days or less in jail or both.

Section 11: Provides that the provisions of the Act shall not apply to any contract or agreement

in force on the effective date of the Act, but shall apply to a renewal or extension of the contract

or agreement, or to a new contract or agreement entered into after the effective date of the Act.

Section 12: The Act contains a severability clause.

Significant Issues

The bill prohibits employers from deducting union dues or fair share fees without the employee’s

permissions. Enforcement of the act is a duty of either the Attorney general or the District At-

torney. Jurisdiction is where the violation took place, or Santa Fe County. Violation of the act is

a misdemeanor.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

Conflicts with current Collective Bargaining Act.

OTHER SUBSTANTIVE ISSUES

NMPED notes that the National Labor Relations Act (NLRA) does not cover the state or its po-

litical subdivisions. Section 164(b) of the NLRA provides that “Nothing in this subchapter shall

be construed as authorizing the execution or application of agreements requiring membership in

a labor organization as a condition of employment in any State or Territory in which such execu-

tion or application is prohibited by State or Territorial law.” Approximately 21 states have en-

acted right-to-work laws.

Public employee collective bargaining in New Mexico is governed by the Public Employee Bar-

gaining Act [10-7E-1 to 10-7E-26 NMSA 1978], which guarantees public employees “the right

to organize and bargain collectively with their employers, to promote harmonious and coopera-

tive relationships between public employers and public employees and to protect the public in-

House Bill 909- Page 3

terest by ensuring, at all times, the orderly operation and functioning of the state and its political

subdivisions.” The agreements negotiated pursuant to the Public Employee Bargaining Act may

contain “fair share” provisions.

BD/yr:lg