Regular Session 2017-2018 House Bill 2747 P.N. 4313

PRINTER'S NO. 4313

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

2747

Session of

2018

INTRODUCED BY DUSH, OCTOBER 22, 2018

REFERRED TO COMMITTEE ON LABOR AND INDUSTRY, OCTOBER 22, 2018

AN ACT

Amending the act of July 23, 1970 (P.L.563, No.195), entitled

"An act establishing rights in public employes to organize

and bargain collectively through selected representatives;

defining public employes to include employes of nonprofit

organizations and institutions; providing compulsory

mediation and fact-finding, for collective bargaining

impasses; providing arbitration for certain public employes

for collective bargaining impasses; defining the scope of

collective bargaining; establishing unfair employe and

employer practices; prohibiting strikes for certain public

employes; permitting strikes under limited conditions;

providing penalties for violations; and establishing

procedures for implementation," in employee rights, providing

for right to participate in elections or referendums, for

right to assemble with members of employee organizations, for

rate of dues or initiation fees, for right to initiate legal

actions, for disciplinary measures imposed on members of

employee organizations, for election officers in employee

organizations, for remedial measures for invalid elections,

for duties of members and agents of employee organizations,

for constitution and bylaws and reports and for penalties.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. The act of July 23, 1970 (P.L.563, No.195), known

as the Public Employe Relations Act, is amended by adding

sections to read:

Section 402. In accordance with the rules of an employe

organization's constitution or bylaws, a member of an employe

organization shall have equal rights and privileges within the

employe organization to:

(1) Nominate candidates in an election of the employe

organization.

(2) Vote in elections or referendums of the employe

organization.

(3) Attend membership meetings and participate in the

deliberations and voting upon the business of the membership

meetings.

Section 403. (a) A member of an employe organization may

meet and assemble freely with other members of the employe

organization and may express views, arguments or opinions on any

of the following:

(1) Candidates in an election of the employe organization.

(2) Business properly before the membership meeting in

accordance with the employe organization's rules pertaining to

the conduct of membership meetings.

(b) Nothing in this section shall be construed to impair the

right of an employe organization to adopt and enforce reasonable

rules of conduct for the employe organization to prohibit a

member from interfering with the employe organization's

performance or legal or contractual obligations.

Section 404. (a) The rate of dues or initiation fees

payable by members of a local employe organization shall not be

increased and a general or special assessment shall not be

imposed on the members except by any of the following:

(1) A majority vote by secret ballot of the members in good

standing at a general or special membership meeting after

reasonable notice of the intention to vote upon the question.

(2) A majority vote by secret ballot of the members in good

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standing voting in a membership referendum.

(b) The rate of dues or initiation fees payable by members

of a Statewide employe organization shall not be increased and a

general or special assessment shall not be imposed on the

members except by a majority vote by secret ballot of the

members in good standing of the Statewide employe organization

voting in a membership referendum.

Section 405. (a) An employe organization shall not prevent

or limit the right of a member of the employe organization to

institute an action in court or a proceeding before an

administrative agency, regardless of whether or not the employe

organization or the employe organization's officers are named as

defendants or respondents in the action or proceeding. An

employe organization may require that a member of the employe

organization use reasonable hearing procedures within the

employe organization before instituting an action in court or a

proceeding before an administrative agency. The reasonable

hearing procedures under this subsection shall not exceed a

four-month period.

(b) An employe organization shall not prevent or limit the

right of a member of an employe organization to appear as a

witness in any judicial, administrative or legislative

proceeding or to petition the General Assembly or communicate

with a member of the General Assembly.

not directly or indirectly finance, encourage or participate in

any judicial, administrative or legislative proceeding.

Section 406. Except for the nonpayment of dues to an employe

organization, a member of an employe organization shall not be

fined, suspended, expelled or otherwise disciplined by the

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employe organization unless the employe organization provides

the member with all of the following:

(1) S pecific written charges.

(2) A reasonable time for the member to prepare the member's

defense.

(3) A full and fair hearing.

Section 407. (a) A S tatewide employe organization shall

elect the Statewide employe organization's officers not less

often than once every five years by secret ballot among the

members of the Statewide employe organization in good standing

or at a convention of delegates selected by secret ballot.

(b) A local employe organization shall elect the local

employe organization's officers not less often than once every

three years by secret ballot among the members of the local

employe organization in good standing.

office in an employe organization in the court of common pleas

of the jurisdiction where the employe organization maintains the

employe organization's principal office, the employe

organization and the employe organization's officers shall

comply with all of the following:

(1) A reasonable request by a candidate to distribute

campaign literature by mail or other means at the candidate's

expense in aid of the candidate's campaign to all members of the

employe organization in good standing.

(2) Refrain from discrimination in favor of or against a

candidate regarding the use of lists of members of the employe

organization or the distribution of campaign literature by mail

or other means to members of the employe organization on behalf

of a candidate, including the cost of the distribution.

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(3) Within thirty days before an election for an office in

the employe organization, authorize a candidate to conduct no

more than one inspection of a list containing the names and last

known addresses of all the members of the employe organization

who are subject to a collective bargaining agreement requiring

membership in the employe organization as a condition of

employment. The list shall be maintained and kept at the employe

organization's principal office by a designated official of the

employe organization.

(4) Adequate safeguards to ensure a fair election for an

office of the employe organization, including the right of a

candidate to have an observer at the polls and during the

counting of the ballots.

(d) An officer of a intermediate body, including a general

committee, system board, joint board or joint council, shall be

elected not less than once every four years by secret ballot

among the members of the employe organization in good standing

or by officers of the employe organization elected by secret

ballot who represent the members.

(e) For an election by secret ballot as required by this

section, the following apply:

(1) An employe organization shall provide a reasonable

opportunity for the nomination of candidates.

(2) A member of the employe organization in good standing

shall be eligible to be a candidate, hold office and vote for or

otherwise support a candidate without being subject to penalty,

discipline or improper interference or reprisal of any kind by

the employe organization or another member.

(3) Not less than fifteen days before an election for office

in an employe organization, the employe organization shall

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provide notice of the election via registered mail to a member

of the employe organization at the member's last known home

address. A member of the employe organization in good standing

shall be entitled to one vote.

(4) If a member of an employe organization has the member's

dues withheld by the member's employer for payment to the

employe organization pursuant to the member's voluntary

authorization as provided in a collective bargaining agreement,

the member shall not be declared ineligible to vote or be a

candidate for office in the employe organization by reason of an

alleged delay or default in the payment of dues.

(5) Votes cast by members of a local employe organization in

an election shall be separately counted and published. The

election official designated in the constitution and bylaws, or

the secretary of the board if no election official is

designated, shall preserve the ballots and other records

pertaining to the election for not less than one year. The

election shall be conducted in accordance with the constitution

and bylaws of the local employe organization insofar as the

constitution and bylaws are not inconsistent with the provisions

of this section.

(f) If officers are elected to an office of a Statewide

employe organization by a convention of delegates elected by

secret ballot, the convention shall be conducted in accordance

with the constitution and bylaws of the employe organization

insofar as the constitution and bylaws are not inconsistent with

the provisions of this section. The officials designated in the

constitution and bylaws, or the secretary of the board if no

official is designated, shall preserve for the credentials of

the delegate, minutes and other records of the convention

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pertaining to the election for no less than one year.

(g) Funds received by an employe organization by way of

dues, assessments or other levies and funds of a public employer

shall not be contributed or applied to promote a candidate in an

election for an office in the employe organization. Funds of an

employe organization may be utilized for notices, factual

statements of issues not involving a candidate and other

expenses necessary for the holding of an election for an office

in the employe organization.

(h) If the board, upon application of a member of a local

employe organization, finds after a hearing that the

constitution and bylaws of the local employe organization do not

provide an adequate procedure for the removal of an elected

officer guilty of serious misconduct, the officer may be removed

in accordance with the following:

(1) The local employe organization shall provide notice and

a hearing for the official regarding the allegation of

misconduct.

(2) The members of the local employe organization in good

standing shall vote on the removal of the officer by secret

ballot conducted in accordance with the local employe

organization's constitution and bylaws insofar as the

constitution and bylaws are not inconsistent with the provisions

of this act.

(i) The board shall promulgate regulations prescribing the

minimum standards and procedures for determining the adequacy of

the removal procedures under subsection (h).

(j) Except as other provided under this act, an employe

organization shall not be required to conduct the elections of

officers with greater frequency or in a different manner than is

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required by the employe organization's constitution and bylaws,

except as otherwise provided by this title. Nothing in this act

shall be construed to affect the existing rights and remedies to

enforce the constitution and bylaws of the employe organization

with respect to the election of officers.

Section 408. (a) A member of an employe organization who

has exhausted the remedies available under the constitution and

bylaws of the employe organization or invoked the remedies

without obtaining a final decision within ninety days after the

invocation may file a complaint with the board alleging a

violation of section 407. The member of the employe organization

must file a complaint with the board within thirty days after

exhausting the remedies available under the constitution and

bylaws of the employe organization or ninety days has expired

since failing to obtain a final decision. An election challenged

under this section shall be presumed valid pending a final

decision on the election. The affairs of the employe

organization shall be conducted by the officers elected or as

prescribed by the employe organization's constitution and bylaws

during the board's investigation of the complaint.

(b) The board shall investigate a complaint under subsection

(a). If the board finds probable cause to believe that a

violation of this act has occurred and has not been remedied,

the board shall, within one hundred twenty days after the filing

of the complaint under subsection (a), bring a civil action

against the employe organization in the court of competent

jurisdiction where the employe organization maintains the

employe organization's principal office to invalidate the

election, direct the conduct of a new election or hearing or

require a vote upon the removal of officers under the

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supervision of the board in accordance with this act. The court

shall have power to take such action as the court deems proper

to preserve the assets of the employe organization.

that an election has not been held within the time prescribed by

section 407 or a violation of section 407 may have affected the

outcome of an election, the court shall order the election void

and direct the conduct of a new election under supervision of

the board in conformity with the constitution and bylaws of the

employe organization as practicable. After the new election is

conducted, the secretary of the board shall promptly certify to

the court the names of the individuals elected and the court

shall enter a decree declaring the individuals to be officers of

the employe organization. If the court orders the removal of an

officer guilty of serious misconduct under section 407(h), the

secretary of the board shall certify the results of the vote and

the court shall enter a decree declaring whether the officer has

been removed from the employe organization.

(d) A court order directing an election, dismissing a

complaint, or designating officers of an employe organization

under subsection (c) shall be appealable in the same manner as

the final judgment in a civil action. An order directing an

election under subsection (c) shall not be stayed pending

appeal. The rights and remedies for challenging an election

already conducted shall be exclusive to the court of competent

jurisdiction.

Section 409. (a) An employe organization shall adopt a

constitution and bylaws. The employe organization shall file a

copy of the constitution and bylaws with the board and a report

signed by the employe organization's president and secretary or

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corresponding principal officers. The report shall contain all

of the following information:

(1) The name of the employe organization.

(2) The employe organization's mailing address and any other

address where the employe organization maintains the employe

organization's principal office or keeps records required under

this act.

(3) The name and title of the employe organization's

officers.

(4) Initiation fees required from a new or transferred

member of the employe organization.

(5) Regular dues or fees or other periodic payments required

to remain a member of the employe organization.

(6) Detailed statements or references which specify the

employe organization's procedures regarding all of the

following:

(i) The qualifications for membership in the employe

organization or restrictions on membership in the employe

organization.

(ii) Levy of assessments by the employe organization.

(iii) Participation in insurance or other benefit plans.

(iv) Disbursements of the employe organization's funds.

(v) Audits of the employe organization.

(vi) Regular and special meetings conducted by the employe

organization.

(vii) Election, appointment or selection of the employe

organization's officers or other organizations comprised of the

employe organization's officers, including how officers are

elected, appointed or selected.

(viii) Discipline or removal of the employe organization's

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members, agents and officers for breach of trust.

(ix) Imposition of fines, suspensions and expulsions of the

employe organization's members, agents or officers, including

the grounds for the disciplinary actions, notice of disciplinary

actions, hearings on disciplinary actions, evidence standards

and appeal mechanisms.

(x) Bargaining demands and strikes.

(xi) Ratification of contract terms.

(b) If the information provided in the report under

subsection (a) changes before the employe organization files the

annual financial report under subsection (c), the change shall

be reported to the board at the time the employe organization

files the annual financial report under subsection (c).

report with the board signed by the employe organization's

president and treasurer or corresponding principal officers. The

annual financial report shall contain the necessary information

to accurately disclose the employe organization's financial

condition and operations for the preceding fiscal year,

including all of the following information:

(1) The assets and liabilities of the employe organization

at the beginning and end of the preceding fiscal year.

(2) The receipts of the employe organization and the sources

of the receipts.

(3) The salary, allowances and other direct or indirect

disbursements of the employe organization's funds, including

reimbursed expenses, for all of the following:

(i) The employe organization's officers.

(ii) The employe organization's employes who received more

than one thousand dollars ($1,000) during the preceding fiscal

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year in the aggregate from the employe organization or any other

labor organization affiliated with the employe organization or

affiliated with the same national or Statewide employe

organization as the employe organization.

(iii) Direct and indirect loans made to the employe

organization's members, agents or officers who received more

than ten thousand dollars ($10,000) in the aggregate during the

fiscal year and the statement of the purpose of the loans,

security for the loans and arrangements for repayment of loans.

(iv) Direct and indirect loans to business enterprises, the

statement of the purpose of the loans, security for the loans

and arrangements for the repayment of the loans.

(v) Other disbursements of funds made by the employe

organization and the purpose of the disbursements which impact

the employe organization's financial condition as the Secretary

of the Department of Labor and Industry may prescribe by

regulation.

(d) An employe organization shall make available the

information specified in a report required under this section to

the employe organization's members. If reasonable cause is shown

by an employe organization's member, the employe organization

and the employe organization's officers shall permit the member

to examine books, records and accounts necessary to verify the

information in a report required under this section. If the

employe organization fails to meet the requirements under this

subsection, a member of the employe organization may initiate an

action for appropriate equitable relief in the court of common

pleas where the employe organization's principal office is

located. In addition to a judgment awarded to a plaintiff in an

action under this subsection, the court may award reasonable

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attorney fees and the costs of the litigation to the plaintiff.

(e) The board shall make available the information specified

in a report required under this section on the Department of

Labor and Industry's publicly accessible Internet website.

Section 410. (a) An employe organization's members and

agents shall have the following duties:

(1) Use, manage, invest and expend assets in possession of

the employe organization solely for the benefit of the employe

organization and the employe organization's members in

accordance with the employe organization's constitution and

bylaws.

(2) Refrain from holding or acquiring any pecuniary or

personal interest which conflicts with the interests of the

employe organization.

(3) Deposit any funds in connection with transactions

conducted by an employe organization on behalf of the employe

organization.

(b) A general exculpatory provision in the constitution and

bylaws of an employe organization that contradicts the duties

required under subsection (a) shall be void.

to have violated the duties under subsection (a) and the employe

organization refuses or fails to file suit to recover damages or

other appropriate relief within a reasonable time after being

requested to file suit by a member of the employe organization,

the member may sue the alleged violator in a court of competent

jurisdiction to recover damages or other appropriate relief for

the benefit of the employe organization. No action may be

brought under this subsection unless the plaintiff obtains leave

of the court from a verified application and for good cause

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shown. The verified application may be made ex parte. The court

may allocate a reasonable part of the recovery in an action

under this subsection to pay the fees of the plaintiff's counsel

or compensate the plaintiff's expenses incurred in connection

with the suit.

(d) In addition to any other penalties provided by law, upon

conviction of a member or agent of an employe organization for

an offense involving the theft or other misappropriation of

assets, the penalties shall be as follows:

(1) Disqualification from membership in any employe

organization.

(2) If conviction is graded as a felony, termination from

current employment in a public office and disqualification from

employment in a public office in the future.

Section 2. This act shall take effect in 60 days.

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