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                                                      PRINTER'S NO. 3822

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2601 Session of 2004


        INTRODUCED BY SCHRODER, ADOLPH, ARMSTRONG, BALDWIN, BARD,
           BASTIAN, BIRMELIN, BOYD, CLYMER, CREIGHTON, DAILEY,
           DENLINGER, EGOLF, FAIRCHILD, FLEAGLE, FORCIER, GABIG,
           GILLESPIE, GRUCELA, HARPER, HARRIS, HERSHEY, HICKERNELL, LEH,
           LEWIS, MARSICO, METCALFE, R. MILLER, S. MILLER, NAILOR,
           REICHLEY, ROHRER, ROSS, SATHER, SAYLOR, SEMMEL, STABACK,
           STEIL, R. STEVENSON, T. STEVENSON, E. Z. TAYLOR, TRUE,
           TURZAI, VANCE, WATSON, WILT, YOUNGBLOOD AND ZUG, MAY 10, 2004

        REFERRED TO COMMITTEE ON LABOR RELATIONS, MAY 10, 2004

                                     AN ACT

     1  Providing for voluntary payroll deduction for political
     2     contributions, for regulation of labor organization political
     3     contributions, for enforcement and for penalties; and
     4     imposing powers and duties on the Department of State.

     5     The General Assembly of the Commonwealth of Pennsylvania
     6  hereby enacts as follows:
     7  Section 1.  Short title.
     8     This act shall be known and may be cited as the Voluntary
     9  Payroll Deduction for Political Contributions Act.
    10  Section 2.  Declaration of policy.
    11     The General Assembly finds and declares as follows:
    12         (1)  Political and ideological contributions that are
    13     taken from individuals without their knowledge and complete
    14     consent create the public perception that individuals play an
    15     insignificant role in the political process.
    16         (2)  It is a violation of an individual's basic

     1     constitutional rights to be required to contribute to
     2     political causes with which the individual disagrees.
     3         (3)  This act is intended to prohibit the use of moneys
     4     acquired from employee payroll deductions for the support of
     5     political causes espoused by employers, or employees'
     6     representative labor organizations, without the written
     7     consent of the employee.
     8         (4)  This act is also intended to prohibit the coercion,
     9     direct or indirect, of employees into donating portions of
    10     their wages or salaries to political causes with which they
    11     disagree.
    12         (5)  This act is not intended to inhibit the right of any
    13     individual to voluntarily donate to political or ideological
    14     causes espoused by the individual's employer or labor
    15     organization.
    16  Section 3.  Definitions.
    17     The following words and phrases when used in this act shall
    18  have the meanings given to them in this section unless the
    19  context clearly indicates otherwise:
    20     "Department."  The Department of State of the Commonwealth.
    21     "Employee."  A natural person who performs services for a
    22  public or private employer for valuable consideration.
    23     "Employer."  Includes a natural person, partnership, joint-
    24  stock company, corporation for profit, corporation not-for-
    25  profit, municipal corporation, the Commonwealth and any
    26  government agency established by it.
    27     "Fund."  A separate segregated fund established by a labor or
    28  business organization for political purposes according to the
    29  procedures and requirements of Federal and State election laws.
    30     "Labor organization."  An association or organization of
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     1  employees and an agency, employee representation committee or
     2  plan in which employees participate that exists, in whole or in
     3  part, to advocate the interests of public or private employees
     4  related to grievances, labor disputes, wages, rates of pay,
     5  hours of employment or conditions of work.
     6  Section 4.  Employee authorization for payroll deductions.
     7     (a)  Written authorization required.--
     8         (1)  No employer or other person responsible for the
     9     disbursement of moneys shall deduct any moneys from an
    10     employee's wages or salary for political purposes except upon
    11     the written authorization of the employee. This requirement
    12     shall include that portion of labor organization dues
    13     deductions that are used for political purposes. In order to
    14     be valid, the written authorization must have been received
    15     by the employer within the previous 12 months.
    16         (2)  The written authorization shall be provided on a
    17     form specified by the department, the sole purpose of which
    18     shall be to serve as documentation of the authorization. The
    19     form shall at a minimum contain the name of the individual
    20     granting the authorization, the organization to which the
    21     moneys are to be forwarded, the total amount of the deduction
    22     and the signature of the individual authorizing the political
    23     deduction.
    24         (3)  The form's title shall read, in at least 24-point
    25     boldface type, "Authorization for Payroll Deduction for
    26     Political Purposes" and shall state, in at least 14-point
    27     boldface type, the following immediately above the signature
    28     line:
    29         Signing this form authorizes a deduction
    30         from your paycheck of moneys to be used for
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     1         political contributions or expenditures.
     2         You are not obligated to sign this
     3         authorization. Your signature below
     4         is completely voluntary and
     5         cannot in any way affect your employment.
     6     (b)  Termination of authorization.--An employee may terminate
     7  the authorization granted in subsection (a) by providing a
     8  written request to do so to the employer. The employer shall
     9  terminate the political dues deduction by the next regular
    10  payday after the pay period the request is submitted.
    11     (c)  Waiver prohibited.--The conditions of this section may
    12  not be waived by the employee. Waiver of the authorization
    13  requirement shall not be a condition of employment or continued
    14  employment.
    15     (d)  Construction.--Nothing in this section shall prohibit an
    16  individual from making voluntary contributions to a fund or
    17  other political committee.
    18  Section 5.  Regulation of labor organization political
    19                 contributions.
    20     (a)  Fund for political purposes.--A labor organization may
    21  only expend moneys for lobbying, electoral and political
    22  activities not bearing upon the ratification or implementation
    23  of a collective bargaining agreement if the labor organization
    24  establishes a fund to be used for political purposes.
    25     (b)  Duties of labor organization.--The labor organization
    26  shall ensure that:
    27         (1)  Contributions to the fund are solicited
    28     independently from any other solicitations by the labor
    29     organization.
    30         (2)  Dues or other fees for membership in the labor
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     1     organizations are not used for political purposes,
     2     transferred to the separate fund or intermingled in any way
     3     with the fund moneys.
     4         (3)  The cost of administering the fund is paid from fund
     5     contributions and not from dues or other fees for membership
     6     in the labor organization.
     7  Section 6.  Additional protections.
     8     (a)  Source of contributions.--It is unlawful for an employer
     9  or labor organization to make a political contribution by using
    10  money or anything of value:
    11         (1)  Secured by physical force, job discrimination,
    12     membership discrimination or financial reprisals or threat of
    13     force, threat of job discrimination, threat of membership
    14     discrimination or threat of financial reprisals.
    15         (2)  From dues, fees or other moneys required as a
    16     condition of membership in a labor organization or as a
    17     condition of employment.
    18         (3)  Obtained in any commercial transaction.
    19     (b)  Solicitation of contributions.--At the time an employer
    20  or labor organization solicits money for a fund from an
    21  employee, it is unlawful for an employer or labor organization
    22  to fail to:
    23         (1)  Inform an employee of the fund's political purpose.
    24         (2)  Inform an employee of the employee's right to refuse
    25     to contribute without fear or reprisal.
    26     (c)  Reimbursement of contributions.--It is unlawful for an
    27  employer or labor organization to reimburse an employee or
    28  member for a contribution to the fund by providing a bonus,
    29  expense account, rebate of dues or other membership fees or any
    30  other form of direct or indirect compensation.
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     1     (d)  Increase of core fees.--It is unlawful for a labor
     2  organization to raise a member's core fees in lieu of that
     3  member not authorizing the deduction specified in section 4(a).
     4  Section 7.  Employer and labor organization responsibilities.
     5     (a)  Record of authorizations.--An employer or labor
     6  organization subject to this act shall maintain records that
     7  include a copy of each authorization obtained under section 4.
     8     (b)  Record of collections and transmittals to fund.--
     9  Employers and labor organizations shall maintain a record of
    10  moneys collected under section 4 and a record of the moneys that
    11  were transmitted to a fund.
    12     (c)  Department access to records.--Records shall be provided
    13  to the department within ten business days when requested in
    14  writing by the department.
    15     (d)  Copy of authorization for employee.--An employee shall
    16  be provided with a copy of the authorization submitted under
    17  section 4 when the form is submitted.
    18  Section 8.  Department enforcement and regulatory authority.
    19     The department shall enforce the provisions of this act and
    20  shall promulgate the necessary regulations to enforce this act.
    21  These regulations shall include procedures for employees to file
    22  allegations of violations of this act and procedures for the
    23  expeditious investigation and resolution of those alleged
    24  violations. The department shall refer apparent violations of
    25  this act to the Office of Attorney General for prosecution.
    26  Section 9.  Penalties.
    27     (a)  Employers.--An employer that violates the provisions of
    28  this act shall be subject to a maximum fine of up to $5000 for
    29  each violation.
    30     (b)  Labor organizations.--A labor organization that violates
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     1  the provisions of this act shall be subject to a maximum fine of
     2  up to $5000 for each violation.
     3  Section 10.  Severability.
     4     The provisions of this act are severable. If any provision of
     5  this act or its application to any person or circumstance is
     6  held invalid, the invalidity shall not affect other provisions
     7  or applications of this act which can be given effect without
     8  the invalid provision or application.
     9  Section 11.  Repeal.
    10     All acts and parts of acts are repealed insofar as they are
    11  inconsistent with this act.
    12  Section 12.  Effective date.
    13     This act shall take effect in 60 days.












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