BILL REQ. #:  S-3953.2 

Read first time 01/20/2006.   Referred to Committee on Labor, Commerce, Research & Development.

     AN ACT Relating to providing for public disclosure of public sector unions' finances; amending RCW 28B.52.045, 41.80.100, 41.56.122, 41.59.100, 41.76.045, and 47.64.160; adding a new section to chapter 28B.52 RCW; adding a new section to chapter 41.80 RCW; adding a new section to chapter 41.56 RCW; adding a new section to chapter 41.59 RCW; adding a new section to chapter 41.76 RCW; adding a new section to chapter 47.64 RCW; and providing an effective date.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1   RCW 28B.52.045 and 1987 c 314 s 8 are each amended to read as follows:
     (1) Upon filing with the employer the voluntary written authorization of a bargaining unit employee under this chapter, the employee organization which is the exclusive bargaining representative of the bargaining unit shall have the right to have deducted from the salary of the bargaining unit employee the periodic dues and initiation fees uniformly required as a condition of acquiring or retaining membership in the exclusive bargaining representative. Such employee authorization shall not be irrevocable for a period of more than one year. Such dues and fees shall be deducted from the pay of all employees who have given authorization for such deduction, and shall be transmitted by the employer to the employee organization or to the depository designated by the employee organization.
     (2) A collective bargaining agreement may include union security provisions, but not a closed shop. If an agency shop or other union security provision is agreed to((,)): (a) The employer shall enforce any such provision by deductions from the salary of bargaining unit employees affected thereby and shall transmit such funds to the employee organization or to the depository designated by the employee organization; and (b) the exclusive bargaining representative must act in accordance with section 2 of this act.
     (3) An employee who is covered by a union security provision and who asserts a right of nonassociation based on bona fide religious tenets or teachings of a church or religious body of which such employee is a member shall pay to a nonreligious charity or other charitable organization an amount of money equivalent to the periodic dues and initiation fees uniformly required as a condition of acquiring or retaining membership in the exclusive bargaining representative. The charity shall be agreed upon by the employee and the employee organization to which such employee would otherwise pay the dues and fees. The employee shall furnish written proof that such payments have been made. If the employee and the employee organization do not reach agreement on such matter, the commission shall designate the charitable organization.

NEW SECTION.  Sec. 2   A new section is added to chapter 28B.52 RCW to read as follows:
     (1) If an agency shop or other union security provision is agreed to, the exclusive bargaining representative must annually, not more than ninety days after the end of its fiscal year, provide financial disclosure information to all members of the bargaining unit and to the general public by filing with the commission a report containing the following information, detailed by functional spending categories, that accurately discloses its financial condition and operations for the preceding fiscal year:
     (a) Assets and liabilities at the beginning and end of the fiscal year;
     (b) Salary, the cost of fringe benefits, allowances, and other direct or indirect disbursements to each officer of the local, the exclusive bargaining representative, and the support staff, as well as all contributions to state or national affiliates and any official or employee thereof;
     (c) All income received or the value of services furnished to an exclusive bargaining representative by either a parent affiliated labor organization or by any other labor organization on behalf of the exclusive bargaining representative;
     (d) An itemization of the total amount spent by the exclusive bargaining representative for:
     (i) Contract negotiation and administration;
     (ii) Organizing activities;
     (iii) Strike activities;
     (iv) Litigation, specifying the matters and cases involved;
     (v) Public relations activities;
     (vi) Political activities;
     (vii) Activities attempting to influence the passage or defeat of federal, state, or local legislation or the content or enforcement of federal, state, or local regulations or policies;
     (viii) Voter education and issue advocacy activities;
     (ix) Training activities for each officer of the exclusive bargaining representative or employee organization support staff; and
     (x) Conference, convention, and travel activities engaged in by the exclusive bargaining representative;
     (e) The percentage of the exclusive bargaining representative's total expenditures that were spent for each of the activities described in (d)(i) through (x) of this subsection;
     (f) The names, addresses, and activities of any of the law firms, public relations firms, or lobbyists whose services are used by the exclusive bargaining representative for any activity described in (d)(iv) through (x) of this subsection;
     (g) A list of political candidates, political organizations, charitable organizations, nonprofit organizations, and community organizations to which the exclusive bargaining representative contributed financial or in-kind assistance and the dollar amount of such assistance; and
     (h) The name and address of any political action committees with which the exclusive bargaining representative is affiliated or to whom it provides contributions, the total amount of contributions to such committees, the candidates or causes to which such committees provided any financial assistance, and the amount provided to each such candidate or cause.
     (2) The report required in subsection (1) of this section must be prepared by an auditing organization, independent of the exclusive bargaining representative, using generally accepted auditing standards and generally accepted accounting principles, that ensures the accuracy and veracity of the information provided by the exclusive bargaining representative. All expenditures must be reported as either germane to collective bargaining, contract administration, or grievance processing, or not so related.
     (3) The exclusive bargaining representative must disclose information to all members of the bargaining unit and to the general public by filing with the commission a report signed by its president and secretary or corresponding principal officers, and containing the following information:
     (a) The name of the labor organization, its mailing address, and any other address at which it maintains its principal office or at which it keeps records;
     (b) The name and title of each of its officers;
     (c) The initiation fee or fees required from a new or transferred member;
     (d) The regular dues or fees or other periodic payments required to remain a member of the reporting labor organization; and
     (e) Detailed statements regarding the provisions made and procedures followed with respect to each of the following:
     (i) Qualifications for, or restrictions on, membership;
     (ii) Levying of assessments;
     (iii) Participating in insurance or other benefit plans;
     (iv) Authorization for disbursement of funds of the labor organization;
     (v) Audit of financial transaction of the labor organization;
     (vi) The calling of regular and special meetings;
     (vii) The selection of officers and stewards;
     (viii) Discipline or removal of officers or agents;
     (ix) Imposition of fines, suspensions, and expulsions of members, including the grounds for such action and any provision made for notice, hearing, judgment, and appeal;
     (x) Authorization for bargaining demands; and
     (xi) Ratification of contract terms.
     (4) Any change in the information required by subsection (3) of this section must be reported to the commission at the time the exclusive bargaining representative files with the commission the annual financial report required in subsection (1) of this section.
     (5) If, on a petition filed by the employer or any member of the bargaining unit before expiration of the applicable union security provision, the commission finds that an exclusive bargaining representative has violated this subsection by failing or refusing to prepare the reports as required in subsection (1) or (2) of this section or by preparing an incomplete or inaccurate report, the commission shall order the refund of all membership dues or agency shop fees to members of the bargaining unit for the period covered by the report. On finding a second violation by the exclusive bargaining representative, the commission shall also order an employee election in the affected bargaining unit to determine whether the employee organization will continue to be the exclusive bargaining representative of the bargaining unit. The election shall be conducted upon the expiration of the existing collective bargaining agreement covering the affected bargaining unit.

Sec. 3   RCW 41.80.100 and 2002 c 354 s 311 are each amended to read as follows:
     (1) A collective bargaining agreement may contain a union security provision requiring as a condition of employment the payment, no later than the thirtieth day following the beginning of employment or July 1, 2004, whichever is later, of an agency shop fee to the employee organization that is the exclusive bargaining representative for the bargaining unit in which the employee is employed. The amount of the fee shall be equal to the amount required to become a member in good standing of the employee organization. Each employee organization shall establish a procedure by which any employee so requesting may pay a representation fee no greater than the part of the membership fee that represents a pro rata share of expenditures for purposes germane to the collective bargaining process, to contract administration, or to pursuing matters affecting wages, hours, and other conditions of employment.
     (2) An employee who is covered by a union security provision and who asserts a right of nonassociation based on bona fide religious tenets, or teachings of a church or religious body of which the employee is a member, shall, as a condition of employment, make payments to the employee organization, for purposes within the program of the employee organization as designated by the employee that would be in harmony with his or her individual conscience. The amount of the payments shall be equal to the periodic dues and fees uniformly required as a condition of acquiring or retaining membership in the employee organization minus any included monthly premiums for insurance programs sponsored by the employee organization. The employee shall not be a member of the employee organization but is entitled to all the representation rights of a member of the employee organization.
     (3) Upon filing with the employer the written authorization of a bargaining unit employee under this chapter, the employee organization that is the exclusive bargaining representative of the bargaining unit shall have the exclusive right to have deducted from the salary of the employee an amount equal to the fees and dues uniformly required as a condition of acquiring or retaining membership in the employee organization. The fees and dues shall be deducted each pay period from the pay of all employees who have given authorization for the deduction and shall be transmitted by the employer as provided for by agreement between the employer and the employee organization.
     (4) Employee organizations that before July 1, 2004, were entitled to the benefits of this section shall continue to be entitled to these benefits.
     (5) If a union security provision is agreed to, the exclusive bargaining representative must act in accordance with section 4 of this act.

NEW SECTION.  Sec. 4   A new section is added to chapter 41.80 RCW to read as follows:
     (1) If a union security provision is agreed to, the exclusive bargaining representative must annually, not more than ninety days after the end of its fiscal year, provide financial disclosure information to all members of the bargaining unit and to the general public by filing with the commission a report containing the following information, detailed by functional spending categories, that accurately discloses its financial condition and operations for the preceding fiscal year:
     (a) Assets and liabilities at the beginning and end of the fiscal year;
     (b) Salary, the cost of fringe benefits, allowances, and other direct or indirect disbursements to each officer of the local, the exclusive bargaining representative, and the support staff, as well as all contributions to state or national affiliates and any official or employee thereof;
     (c) All income received or the value of services furnished to an exclusive bargaining representative by either a parent affiliated labor organization or by any other labor organization on behalf of the exclusive bargaining representative;
     (d) An itemization of the total amount spent by the exclusive bargaining representative for:
     (i) Contract negotiation and administration;
     (ii) Organizing activities;
     (iii) Strike activities;
     (iv) Litigation, specifying the matters and cases involved;
     (v) Public relations activities;
     (vi) Political activities;
     (vii) Activities attempting to influence the passage or defeat of federal, state, or local legislation or the content or enforcement of federal, state, or local regulations or policies;
     (viii) Voter education and issue advocacy activities;
     (ix) Training activities for each officer of the exclusive bargaining representative or employee organization support staff; and
     (x) Conference, convention, and travel activities engaged in by the exclusive bargaining representative;
     (e) The percentage of the exclusive bargaining representative's total expenditures that were spent for each of the activities described in (d)(i) through (x) of this subsection;
     (f) The names, addresses, and activities of any of the law firms, public relations firms, or lobbyists whose services are used by the exclusive bargaining representative for any activity described in (d)(iv) through (x) of this subsection;
     (g) A list of political candidates, political organizations, charitable organizations, nonprofit organizations, and community organizations to which the exclusive bargaining representative contributed financial or in-kind assistance and the dollar amount of such assistance; and
     (h) The name and address of any political action committees with which the exclusive bargaining representative is affiliated or to whom it provides contributions, the total amount of contributions to such committees, the candidates or causes to which such committees provided any financial assistance, and the amount provided to each such candidate or cause.
     (2) The report required in subsection (1) of this section must be prepared by an auditing organization, independent of the exclusive bargaining representative, using generally accepted auditing standards and generally accepted accounting principles, that ensures the accuracy and veracity of the information provided by the exclusive bargaining representative. All expenditures must be reported as either germane to collective bargaining, contract administration, or grievance processing, or not so related.
     (3) The exclusive bargaining representative must disclose information to all members of the bargaining unit and to the general public by filing with the commission a report signed by its president and secretary or corresponding principal officers, and containing the following information:
     (a) The name of the labor organization, its mailing address, and any other address at which it maintains its principal office or at which it keeps records;
     (b) The name and title of each of its officers;
     (c) The initiation fee or fees required from a new or transferred member;
     (d) The regular dues or fees or other periodic payments required to remain a member of the reporting labor organization; and
     (e) Detailed statements regarding the provisions made and procedures followed with respect to each of the following:
     (i) Qualifications for, or restrictions on, membership;
     (ii) Levying of assessments;
     (iii) Participating in insurance or other benefit plans;
     (iv) Authorization for disbursement of funds of the labor organization;
     (v) Audit of financial transaction of the labor organization;
     (vi) The calling of regular and special meetings;
     (vii) The selection of officers and stewards;
     (viii) Discipline or removal of officers or agents;
     (ix) Imposition of fines, suspensions, and expulsions of members, including the grounds for such action and any provision made for notice, hearing, judgment, and appeal;
     (x) Authorization for bargaining demands; and
     (xi) Ratification of contract terms.
     (4) Any change in the information required by subsection (3) of this section must be reported to the commission at the time the exclusive bargaining representative files with the commission the annual financial report required in subsection (1) of this section.
     (5) If, on a petition filed by the employer or any member of the bargaining unit before expiration of the applicable union security provision, the commission finds that an exclusive bargaining representative has violated this subsection by failing or refusing to prepare the reports as required in subsection (1) or (2) of this section or by preparing an incomplete or inaccurate report, the commission shall order the refund of all membership dues or agency shop fees to members of the bargaining unit for the period covered by the report. On finding a second violation by the exclusive bargaining representative, the commission shall also order an employee election in the affected bargaining unit to determine whether the employee organization will continue to be the exclusive bargaining representative of the bargaining unit. The election shall be conducted upon the expiration of the existing collective bargaining agreement covering the affected bargaining unit.

Sec. 5   RCW 41.56.122 and 1975 1st ex.s. c 296 s 22 are each amended to read as follows:
     (1) A collective bargaining agreement may:
     (((1))) (a) Contain union security provisions((: PROVIDED, That nothing in this section shall authorize)). However, the union security provision may not contain a closed shop provision((: PROVIDED FURTHER, That)). Agreements involving union security provisions must safeguard the right of nonassociation of public employees based on bona fide religious tenets or teachings of a church or religious body of which such public employee is a member. Such public employee shall pay an amount of money equivalent to regular union dues and initiation fee to a nonreligious charity or to another charitable organization mutually agreed upon by the public employee affected and the bargaining representative to which such public employee would otherwise pay the dues and initiation fee. The public employee shall furnish written proof that such payment has been made. If the public employee and the bargaining representative do not reach agreement on such matter, the commission shall designate the charitable organization. When there is a conflict between any collective bargaining agreement reached by a public employer and a bargaining representative on a union security provision and any charter, ordinance, rule, or regulation adopted by the public employer or its agents, including but not limited to, a civil service commission, the terms of the collective bargaining agreement shall prevail.
     (((2))) (b) Provide for binding arbitration of a labor dispute arising from the application or the interpretation of the matters contained in a collective bargaining agreement.
     (2) If a union security agreement is agreed to, the bargaining representative must act in accordance with section 6 of this act.

NEW SECTION.  Sec. 6   A new section is added to chapter 41.56 RCW to read as follows:
     (1) If a union security provision is agreed to, the bargaining representative must annually, not more than ninety days after the end of its fiscal year, provide financial disclosure information to all members of the bargaining unit and to the general public by filing with the commission a report containing the following information, detailed by functional spending categories, that accurately discloses its financial condition and operations for the preceding fiscal year:
     (a) Assets and liabilities at the beginning and end of the fiscal year;
     (b) Salary, the cost of fringe benefits, allowances, and other direct or indirect disbursements to each officer of the local, the bargaining representative, and the support staff, as well as all contributions to state or national affiliates and any official or employee thereof;
     (c) All income received or the value of services furnished to a bargaining representative by either a parent affiliated labor organization or by any other labor organization on behalf of the bargaining representative;
     (d) An itemization of the total amount spent by the bargaining representative for:
     (i) Contract negotiation and administration;
     (ii) Organizing activities;
     (iii) Strike activities;
     (iv) Litigation, specifying the matters and cases involved;
     (v) Public relations activities;
     (vi) Political activities;
     (vii) Activities attempting to influence the passage or defeat of federal, state, or local legislation or the content or enforcement of federal, state, or local regulations or policies;
     (viii) Voter education and issue advocacy activities;
     (ix) Training activities for each officer of the bargaining representative or employee organization support staff; and
     (x) Conference, convention, and travel activities engaged in by the bargaining representative;
     (e) The percentage of the bargaining representative's total expenditures that were spent for each of the activities described in (d)(i) through (x) of this subsection;
     (f) The names, addresses, and activities of any of the law firms, public relations firms, or lobbyists whose services are used by the bargaining representative for any activity described in (d)(iv) through (x) of this subsection;
     (g) A list of political candidates, political organizations, charitable organizations, nonprofit organizations, and community organizations to which the bargaining representative contributed financial or in-kind assistance and the dollar amount of such assistance; and
     (h) The name and address of any political action committees with which the bargaining representative is affiliated or to whom it provides contributions, the total amount of contributions to such committees, the candidates or causes to which such committees provided any financial assistance, and the amount provided to each such candidate or cause.
     (2) The report required in subsection (1) of this section must be prepared by an auditing organization, independent of the bargaining representative, using generally accepted auditing standards and generally accepted accounting principles, that ensures the accuracy and veracity of the information provided by the bargaining representative. All expenditures must be reported as either germane to collective bargaining, contract administration, or grievance processing, or not so related.
     (3) The bargaining representative must disclose information to all members of the bargaining unit and to the general public by filing with the commission a report signed by its president and secretary or corresponding principal officers, and containing the following information:
     (a) The name of the labor organization, its mailing address, and any other address at which it maintains its principal office or at which it keeps records;
     (b) The name and title of each of its officers;
     (c) The initiation fee or fees required from a new or transferred member;
     (d) The regular dues or fees or other periodic payments required to remain a member of the reporting labor organization; and
     (e) Detailed statements regarding the provisions made and procedures followed with respect to each of the following:
     (i) Qualifications for, or restrictions on, membership;
     (ii) Levying of assessments;
     (iii) Participating in insurance or other benefit plans;
     (iv) Authorization for disbursement of funds of the labor organization;
     (v) Audit of financial transaction of the labor organization;
     (vi) The calling of regular and special meetings;
     (vii) The selection of officers and stewards;
     (viii) Discipline or removal of officers or agents;
     (ix) Imposition of fines, suspensions, and expulsions of members, including the grounds for such action and any provision made for notice, hearing, judgment, and appeal;
     (x) Authorization for bargaining demands; and
     (xi) Ratification of contract terms.
     (4) Any change in the information required by subsection (3) of this section must be reported to the commission at the time the bargaining representative files with the commission the annual financial report required in subsection (1) of this section.
     (5) If, on a petition filed by the employer or any member of the bargaining unit before expiration of the applicable union security provision, the commission finds that a bargaining representative has violated this subsection by failing or refusing to prepare the reports as required in subsection (1) or (2) of this section or by preparing an incomplete or inaccurate report, the commission shall order the refund of all membership dues or agency shop fees to members of the bargaining unit for the period covered by the report. On finding a second violation by the bargaining representative, the commission shall also order an employee election in the affected bargaining unit to determine whether the employee organization will continue to be the bargaining representative of the bargaining unit. The election shall be conducted upon the expiration of the existing collective bargaining agreement covering the affected bargaining unit.

Sec. 7   RCW 41.59.100 and 1975 1st ex.s. c 288 s 11 are each amended to read as follows:
     A collective bargaining agreement may include union security provisions including an agency shop, but not a union or closed shop. If an agency shop provision is agreed to((,)): (1) The employer shall enforce it by deducting from the salary payments to members of the bargaining unit the dues required of membership in the bargaining representative, or, for nonmembers thereof, a fee equivalent to such dues; and (2) the exclusive bargaining representative must act in accordance with section 8 of this act. All union security provisions must safeguard the right of nonassociation of employees based on bona fide religious tenets or teachings of a church or religious body of which such employee is a member. Such employee shall pay an amount of money equivalent to regular dues and fees to a nonreligious charity or to another charitable organization mutually agreed upon by the employee affected and the bargaining representative to which such employee would otherwise pay the dues and fees. The employee shall furnish written proof that such payment has been made. If the employee and the bargaining representative do not reach agreement on such matter, the commission shall designate the charitable organization.

NEW SECTION.  Sec. 8   A new section is added to chapter 41.59 RCW to read as follows:
     (1) If an agency shop provision is agreed to, the exclusive bargaining representative must annually, not more than ninety days after the end of its fiscal year, provide financial disclosure information to all members of the bargaining unit and to the general public by filing with the commission a report containing the following information, detailed by functional spending categories, that accurately discloses its financial condition and operations for the preceding fiscal year:
     (a) Assets and liabilities at the beginning and end of the fiscal year;
     (b) Salary, the cost of fringe benefits, allowances, and other direct or indirect disbursements to each officer of the local, the exclusive bargaining representative, and the support staff, as well as all contributions to state or national affiliates and any official or employee thereof;
     (c) All income received or the value of services furnished to an exclusive bargaining representative by either a parent affiliated labor organization or by any other labor organization on behalf of the exclusive bargaining representative;
     (d) An itemization of the total amount spent by the exclusive bargaining representative for:
     (i) Contract negotiation and administration;
     (ii) Organizing activities;
     (iii) Strike activities;
     (iv) Litigation, specifying the matters and cases involved;
     (v) Public relations activities;
     (vi) Political activities;
     (vii) Activities attempting to influence the passage or defeat of federal, state, or local legislation or the content or enforcement of federal, state, or local regulations or policies;
     (viii) Voter education and issue advocacy activities;
     (ix) Training activities for each officer of the exclusive bargaining representative or employee organization support staff; and
     (x) Conference, convention, and travel activities engaged in by the exclusive bargaining representative;
     (e) The percentage of the exclusive bargaining representative's total expenditures that were spent for each of the activities described in (d)(i) through (x) of this subsection;
     (f) The names, addresses, and activities of any of the law firms, public relations firms, or lobbyists whose services are used by the exclusive bargaining representative for any activity described in (d)(iv) through (x) of this subsection;
     (g) A list of political candidates, political organizations, charitable organizations, nonprofit organizations, and community organizations to which the exclusive bargaining representative contributed financial or in-kind assistance and the dollar amount of such assistance; and
     (h) The name and address of any political action committees with which the exclusive bargaining representative is affiliated or to whom it provides contributions, the total amount of contributions to such committees, the candidates or causes to which such committees provided any financial assistance, and the amount provided to each such candidate or cause.
     (2) The report required in subsection (1) of this section must be prepared by an auditing organization, independent of the exclusive bargaining representative, using generally accepted auditing standards and generally accepted accounting principles, that ensures the accuracy and veracity of the information provided by the exclusive bargaining representative. All expenditures must be reported as either germane to collective bargaining, contract administration, or grievance processing, or not so related.
     (3) The exclusive bargaining representative must disclose information to all members of the bargaining unit and to the general public by filing with the commission a report signed by its president and secretary or corresponding principal officers, and containing the following information:
     (a) The name of the labor organization, its mailing address, and any other address at which it maintains its principal office or at which it keeps records;
     (b) The name and title of each of its officers;
     (c) The initiation fee or fees required from a new or transferred member;
     (d) The regular dues or fees or other periodic payments required to remain a member of the reporting labor organization; and
     (e) Detailed statements regarding the provisions made and procedures followed with respect to each of the following:
     (i) Qualifications for, or restrictions on, membership;
     (ii) Levying of assessments;
     (iii) Participating in insurance or other benefit plans;
     (iv) Authorization for disbursement of funds of the labor organization;
     (v) Audit of financial transaction of the labor organization;
     (vi) The calling of regular and special meetings;
     (vii) The selection of officers and stewards;
     (viii) Discipline or removal of officers or agents;
     (ix) Imposition of fines, suspensions, and expulsions of members, including the grounds for such action and any provision made for notice, hearing, judgment, and appeal;
     (x) Authorization for bargaining demands; and
     (xi) Ratification of contract terms.
     (4) Any change in the information required by subsection (3) of this section must be reported to the commission at the time the exclusive bargaining representative files with the commission the annual financial report required in subsection (1) of this section.
     (5) If, on a petition filed by the employer or any member of the bargaining unit before expiration of the applicable union security provision, the commission finds that an exclusive bargaining representative has violated this subsection by failing or refusing to prepare the reports as required in subsection (1) or (2) of this section or by preparing an incomplete or inaccurate report, the commission shall order the refund of all membership dues or agency shop fees to members of the bargaining unit for the period covered by the report. On finding a second violation by the exclusive bargaining representative, the commission shall also order an employee election in the affected bargaining unit to determine whether the employee organization will continue to be the exclusive bargaining representative of the bargaining unit. The election shall be conducted upon the expiration of the existing collective bargaining agreement covering the affected bargaining unit.

Sec. 9   RCW 41.76.045 and 2002 c 356 s 12 are each amended to read as follows:
     (1) Upon filing with the employer the voluntary written authorization of a bargaining unit faculty member under this chapter, the employee organization which is the exclusive bargaining representative of the bargaining unit shall have the right to have deducted from the salary of the bargaining unit faculty member the periodic dues and initiation fees uniformly required as a condition of acquiring or retaining membership in the exclusive bargaining representative. Such employee authorization shall not be irrevocable for a period of more than one year. Such dues and fees shall be deducted from the pay of all faculty members who have given authorization for such deduction, and shall be transmitted by the employer to the employee organization or to the depository designated by the employee organization.
     (2) A collective bargaining agreement may include union security provisions, but not a closed shop. If an agency shop or other union security provision is agreed to((,)): (a) The employer shall enforce any such provision by deductions from the salary of bargaining unit faculty members affected thereby and shall transmit such funds to the employee organization or to the depository designated by the employee organization; and (b) the exclusive bargaining representative must act in accordance with section 10 of this act.
     (3) A faculty member who is covered by a union security provision and who asserts a right of nonassociation based on bona fide religious tenets or teachings of a church or religious body of which such faculty member is a member shall pay to a nonreligious charity or other charitable organization an amount of money equivalent to the periodic dues and initiation fees uniformly required as a condition of acquiring or retaining membership in the exclusive bargaining representative. The charity shall be agreed upon by the faculty member and the employee organization to which such faculty member would otherwise pay the dues and fees. The faculty member shall furnish written proof that such payments have been made. If the faculty member and the employee organization do not reach agreement on such matter, the dispute shall be submitted to the commission for determination.

NEW SECTION.  Sec. 10   A new section is added to chapter 41.76 RCW to read as follows:
     (1) If an agency shop or other union security provision is agreed to, the exclusive bargaining representative must annually, not more than ninety days after the end of its fiscal year, provide financial disclosure information to all members of the bargaining unit and to the general public by filing with the commission a report containing the following information, detailed by functional spending categories, that accurately discloses its financial condition and operations for the preceding fiscal year:
     (a) Assets and liabilities at the beginning and end of the fiscal year;
     (b) Salary, the cost of fringe benefits, allowances, and other direct or indirect disbursements to each officer of the local, the exclusive bargaining representative, and the support staff, as well as all contributions to state or national affiliates and any official or employee thereof;
     (c) All income received or the value of services furnished to an exclusive bargaining representative by either a parent affiliated labor organization or by any other labor organization on behalf of the exclusive bargaining representative;
     (d) An itemization of the total amount spent by the exclusive bargaining representative for:
     (i) Contract negotiation and administration;
     (ii) Organizing activities;
     (iii) Strike activities;
     (iv) Litigation, specifying the matters and cases involved;
     (v) Public relations activities;
     (vi) Political activities;
     (vii) Activities attempting to influence the passage or defeat of federal, state, or local legislation or the content or enforcement of federal, state, or local regulations or policies;
     (viii) Voter education and issue advocacy activities;
     (ix) Training activities for each officer of the exclusive bargaining representative or employee organization support staff; and
     (x) Conference, convention, and travel activities engaged in by the exclusive bargaining representative;
     (e) The percentage of the exclusive bargaining representative's total expenditures that were spent for each of the activities described in (d)(i) through (x) of this subsection;
     (f) The names, addresses, and activities of any of the law firms, public relations firms, or lobbyists whose services are used by the exclusive bargaining representative for any activity described in (d)(iv) through (x) of this subsection;
     (g) A list of political candidates, political organizations, charitable organizations, nonprofit organizations, and community organizations to which the exclusive bargaining representative contributed financial or in-kind assistance and the dollar amount of such assistance; and
     (h) The name and address of any political action committees with which the exclusive bargaining representative is affiliated or to whom it provides contributions, the total amount of contributions to such committees, the candidates or causes to which such committees provided any financial assistance, and the amount provided to each such candidate or cause.
     (2) The report required in subsection (1) of this section must be prepared by an auditing organization, independent of the exclusive bargaining representative, using generally accepted auditing standards and generally accepted accounting principles, that ensures the accuracy and veracity of the information provided by the exclusive bargaining representative. All expenditures must be reported as either germane to collective bargaining, contract administration, or grievance processing, or not so related.
     (3) The exclusive bargaining representative must disclose information to all members of the bargaining unit and to the general public by filing with the commission a report signed by its president and secretary or corresponding principal officers, and containing the following information:
     (a) The name of the labor organization, its mailing address, and any other address at which it maintains its principal office or at which it keeps records;
     (b) The name and title of each of its officers;
     (c) The initiation fee or fees required from a new or transferred member;
     (d) The regular dues or fees or other periodic payments required to remain a member of the reporting labor organization; and
     (e) Detailed statements regarding the provisions made and procedures followed with respect to each of the following:
     (i) Qualifications for, or restrictions on, membership;
     (ii) Levying of assessments;
     (iii) Participating in insurance or other benefit plans;
     (iv) Authorization for disbursement of funds of the labor organization;
     (v) Audit of financial transaction of the labor organization;
     (vi) The calling of regular and special meetings;
     (vii) The selection of officers and stewards;
     (viii) Discipline or removal of officers or agents;
     (ix) Imposition of fines, suspensions, and expulsions of members, including the grounds for such action and any provision made for notice, hearing, judgment, and appeal;
     (x) Authorization for bargaining demands; and
     (xi) Ratification of contract terms.
     (4) Any change in the information required by subsection (3) of this section must be reported to the commission at the time the exclusive bargaining representative files with the commission the annual financial report required in subsection (1) of this section.
     (5) If, on a petition filed by the employer or any member of the bargaining unit before expiration of the applicable union security provision, the commission finds that an exclusive bargaining representative has violated this subsection by failing or refusing to prepare the reports as required in subsection (1) or (2) of this section or by preparing an incomplete or inaccurate report, the commission shall order the refund of all membership dues or agency shop fees to members of the bargaining unit for the period covered by the report. On finding a second violation by the exclusive bargaining representative, the commission shall also order an employee election in the affected bargaining unit to determine whether the employee organization will continue to be the exclusive bargaining representative of the bargaining unit. The election shall be conducted upon the expiration of the existing collective bargaining agreement covering the affected bargaining unit.

Sec. 11   RCW 47.64.160 and 1983 c 15 s 7 are each amended to read as follows:
     A collective bargaining agreement may include union security provisions including an agency shop, but not a union or closed shop. If an agency shop provision is agreed to((,)): (1) The employer shall enforce it by deducting from the salary payments to members of the bargaining unit the dues required of membership in the bargaining representative, or, for nonmembers thereof, a fee equivalent to such dues; and (2) the bargaining representative must act in accordance with section 12 of this act. All union security provisions shall safeguard the right of nonassociation of employees based on bona fide religious tenets or teachings of a church or religious body of which such employee is a member. Such employee shall pay an amount of money equivalent to regular dues and fees to a nonreligious charity or to another charitable organization mutually agreed upon by the employee affected and the bargaining representative to which such employee would otherwise pay the dues and fees. The employee shall furnish written proof that such payment has been made. If the employee and the bargaining representative do not reach agreement on such matter, the commission shall designate the charitable organization.

NEW SECTION.  Sec. 12   A new section is added to chapter 47.64 RCW to read as follows:
     (1) If an agency shop provision is agreed to, the bargaining representative must annually, not more than ninety days after the end of its fiscal year, provide financial disclosure information to all members of the bargaining unit and to the general public by filing with the public employment relations commission a report containing the following information, detailed by functional spending categories, that accurately discloses its financial condition and operations for the preceding fiscal year:
     (a) Assets and liabilities at the beginning and end of the fiscal year;
     (b) Salary, the cost of fringe benefits, allowances, and other direct or indirect disbursements to each officer of the local, the bargaining representative, and the support staff, as well as all contributions to state or national affiliates and any official or employee thereof;
     (c) All income received or the value of services furnished to a bargaining representative by either a parent affiliated labor organization or by any other labor organization on behalf of the bargaining representative;
     (d) An itemization of the total amount spent by the bargaining representative for:
     (i) Contract negotiation and administration;
     (ii) Organizing activities;
     (iii) Strike activities;
     (iv) Litigation, specifying the matters and cases involved;
     (v) Public relations activities;
     (vi) Political activities;
     (vii) Activities attempting to influence the passage or defeat of federal, state, or local legislation or the content or enforcement of federal, state, or local regulations or policies;
     (viii) Voter education and issue advocacy activities;
     (ix) Training activities for each officer of the bargaining representative or employee organization support staff; and
     (x) Conference, convention, and travel activities engaged in by the bargaining representative;
     (e) The percentage of the bargaining representative's total expenditures that were spent for each of the activities described in (d)(i) through (x) of this subsection;
     (f) The names, addresses, and activities of any of the law firms, public relations firms, or lobbyists whose services are used by the bargaining representative for any activity described in (d)(iv) through (x) of this subsection;
     (g) A list of political candidates, political organizations, charitable organizations, nonprofit organizations, and community organizations to which the bargaining representative contributed financial or in-kind assistance and the dollar amount of such assistance; and
     (h) The name and address of any political action committees with which the bargaining representative is affiliated or to whom it provides contributions, the total amount of contributions to such committees, the candidates or causes to which such committees provided any financial assistance, and the amount provided to each such candidate or cause.
     (2) The report required in subsection (1) of this section must be prepared by an auditing organization, independent of the bargaining representative, using generally accepted auditing standards and generally accepted accounting principles, that ensures the accuracy and veracity of the information provided by the bargaining representative. All expenditures must be reported as either germane to collective bargaining, contract administration, or grievance processing, or not so related.
     (3) The bargaining representative must disclose information to all members of the bargaining unit and to the general public by filing with the commission a report signed by its president and secretary or corresponding principal officers, and containing the following information:
     (a) The name of the labor organization, its mailing address, and any other address at which it maintains its principal office or at which it keeps records;
     (b) The name and title of each of its officers;
     (c) The initiation fee or fees required from a new or transferred member;
     (d) The regular dues or fees or other periodic payments required to remain a member of the reporting labor organization; and
     (e) Detailed statements regarding the provisions made and procedures followed with respect to each of the following:
     (i) Qualifications for, or restrictions on, membership;
     (ii) Levying of assessments;
     (iii) Participating in insurance or other benefit plans;
     (iv) Authorization for disbursement of funds of the labor organization;
     (v) Audit of financial transaction of the labor organization;
     (vi) The calling of regular and special meetings;
     (vii) The selection of officers and stewards;
     (viii) Discipline or removal of officers or agents;
     (ix) Imposition of fines, suspensions, and expulsions of members, including the grounds for such action and any provision made for notice, hearing, judgment, and appeal;
     (x) Authorization for bargaining demands; and
     (xi) Ratification of contract terms.
     (4) Any change in the information required by subsection (3) of this section must be reported to the commission at the time the bargaining representative files with the commission the annual financial report required in subsection (1) of this section.
     (5) If, on a petition filed by the employer or any member of the bargaining unit before expiration of the applicable union security provision, the commission finds that a bargaining representative has violated this subsection by failing or refusing to prepare the reports as required in subsection (1) or (2) of this section or by preparing an incomplete or inaccurate report, the commission shall order the refund of all membership dues or agency shop fees to members of the bargaining unit for the period covered by the report. On finding a second violation by the bargaining representative, the commission shall also order an employee election in the affected bargaining unit to determine whether the employee organization will continue to be the bargaining representative of the bargaining unit. The election shall be conducted upon the expiration of the existing collective bargaining agreement covering the affected bargaining unit.

NEW SECTION.  Sec. 13   This act takes effect July 1, 2006.