BILL REQ. #:  H-2228.2 

READ FIRST TIME 03/05/03.   

     AN ACT Relating to employers that use public funds to encourage or discourage unionization; adding a new section to chapter 28B.10 RCW; adding a new section to chapter 39.04 RCW; adding a new section to chapter 39.29 RCW; adding a new section to chapter 43.19 RCW; adding a new section to chapter 47.28 RCW; adding a new chapter to Title 49 RCW; creating new sections; prescribing penalties; providing an effective date; and declaring an emergency.

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

NEW SECTION.  Sec. 1   (1) The legislature finds that it is the policy of this state not to interfere with an employee's choice about whether to join or be represented by an employee organization. For this reason, the state should not subsidize efforts by an employer to encourage or discourage unionization.
     (2) It is the intent of the legislature to prohibit an employer from using state funds and facilities for the purpose of influencing employees to support or oppose unionization and to prohibit an employer from seeking to influence employees to support or oppose unionization while these employees are performing work on a state contract.

NEW SECTION.  Sec. 2   The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Employee organization" means an organization of any kind in which employees participate and which exists for the purpose, in whole or in part, of collective bargaining with employers.
     (2) "Employer" means: (a) A person, firm, corporation, partnership, business trust, legal representative, or other business entity that engages in a business, industry, profession, or activity in this state; and (b) the state or a public agency.
     (3) "Encourage or discourage unionization" means an attempt by an employer to influence the decision of its employees in this state or the employees of its subcontractors regarding whether to: (a) Support or oppose an employee organization that represents or seeks to represent those employees for the purpose of collective bargaining; or (b) become a member of an employee organization.
     (4) "Public agency" means political subdivisions of the state and any municipal corporation or quasi-municipal corporation.
     (5) "State" means the state of Washington.
     (6) "State contractor" means an employer that receives state funds for providing services pursuant to a written contract with: (a) The state; or (b) a public agency of the state that is using state funds to fund, in whole or in part, a service contract of more than fifty thousand dollars.
     (7) "State funds" means moneys appropriated by the state for any purpose, whether from the state treasury or from moneys in the custody of the state treasurer. "State funds" includes moneys appropriated by the state and transferred to a public agency only if the funds are used by the public agency to fund, in whole or in part, a service contract of more than fifty thousand dollars.
     (8) "State property" means any property or facility owned or leased by the state.

NEW SECTION.  Sec. 3   (1)(a)(i) A state contractor that receives state funds of more than fifty thousand dollars under a contract with the state may not use those funds to encourage or discourage unionization during the term of the contract, including any extensions or renewals of the contract. The dollar threshold in this subsection (1)(a)(i) does not limit the application of other provisions of this chapter that restrict the use of state funds. All contracts of more than fifty thousand dollars awarded by the state must contain the prohibition stated in this subsection.
     (ii) State funds may not be used to reimburse a state contractor for costs incurred to encourage or discourage unionization. A request for reimbursement from state funds by a state contractor must include a certification that the contractor is not seeking reimbursement for costs incurred to encourage or discourage unionization.
     (iii) A state contractor may not encourage or discourage unionization by employees who are performing work on a service contract, including a public works contract, for the state.
     (b) A state contractor subject to this subsection that makes expenditures to encourage or discourage unionization must maintain records sufficient to show that state funds have not been used for those expenditures and that no reimbursement from state funds has been sought for these costs. The state contractor must provide those records to the attorney general on request.
     (2)(a) A recipient of a grant of state funds, including state funds disbursed as a grant by any public agency of the state, may not use the funds to encourage or discourage unionization.
     (b) For purposes of this subsection, the recipient of a grant of state funds must account for the funds as follows:
     (i) State funds designated by the grantor for use for a specific expenditure of the recipient shall be accounted for as allocated to that expenditure.
     (ii) State funds that are not designated as described in (b)(i) of this subsection shall be allocated on a pro rata basis to all expenditures by the recipient that support the program for which the grant is made.
     (c) Before disbursement of a grant of state funds, the recipient must certify to the state that none of the funds will be used to encourage or discourage unionization.
     (d) A grant recipient that makes expenditures to encourage or discourage unionization must maintain records sufficient to show that state funds have not been used for those expenditures. The grant recipient must provide those records to the attorney general on request.
     (3) A public employer receiving state funds may not use any of the funds to encourage or discourage unionization.
     (4)(a) A private employer receiving state funds of more than ten thousand dollars in a calendar year on account of its participation in a state program may not use any of the funds to encourage or discourage unionization.
     (b) As a condition of participating in the state program under which the employer will receive state funds of more than ten thousand dollars in a calendar year, the private employer must certify to the state that none of the funds will be used to encourage or discourage unionization.
     (c) A private employer subject to this subsection that makes expenditures to encourage or discourage unionization must maintain records sufficient to show that state funds have not been used for those expenditures. The private employer must provide those records to the attorney general on request.
     (5) An employer who derives revenue from state property and who uses that property through a lease, concession contract, or other agreement with the state may not encourage or discourage unionization by his or her employees who are employed on or in relation to that state property.
     (6) Each contract for the payment of state funds to an employer must contain a clause requiring the employer to comply with this chapter.
     (7) For the purposes of this section:
     (a) Expenses, including legal and consulting fees and salaries of supervisors and employees, incurred for research for, or preparation, planning, or coordination of, or carrying out, an activity to encourage or discourage unionization, shall be treated as paid or incurred for that activity.
     (b) To account for expenditures, if state funds and other funds are commingled, any expenditures to encourage or discourage unionization must be allocated between state funds and other funds on a pro rata basis.

NEW SECTION.  Sec. 4   (1) A person or entity is liable to the state for funds reimbursed for expenditures or expended in violation of section 3(1)(a) (i) or (ii), (2), or (4) of this act plus a civil penalty equal to twice the amount of those funds.
     (2) A public official who knowingly authorizes the use of state funds in violation of section 3(3) of this act is liable to the state for the amount of those funds.
     (3) A state contractor who violates section 3(1)(a)(iii) of this act is liable to the state for a civil penalty of one thousand dollars per employee per violation.
     (4) An employer who violates section 3(5) of this act is liable to the state for a civil penalty of one thousand dollars per employee per violation.
     (5) A taxpayer may bring a civil action in the name of the state seeking injunctive relief, civil penalties, and other appropriate equitable relief for a violation of this chapter. A prevailing plaintiff in an action under this subsection is entitled to recover reasonable attorneys' fees and costs.

NEW SECTION.  Sec. 5   This chapter does not apply to an activity performed or an expense incurred in connection with:
     (1) Addressing a grievance or negotiating or administering a collective bargaining agreement;
     (2) Allowing an employee organization or its representatives access to the employer's facilities or property;
     (3) Performing an activity required by federal or state law or by a collective bargaining agreement; or
     (4) Negotiating, entering into, or carrying out a voluntary recognition agreement with an employee organization.

NEW SECTION.  Sec. 6   A new section is added to chapter 28B.10 RCW to read as follows:
     All contracts entered into under this chapter on or after September 1, 2003, are subject to the requirements established under chapter 49.-- RCW (sections 1 through 5 of this act).

NEW SECTION.  Sec. 7   A new section is added to chapter 39.04 RCW to read as follows:
     All contracts entered into under this chapter on or after September 1, 2003, are subject to the requirements established under chapter 49.-- RCW (sections 1 through 5 of this act).

NEW SECTION.  Sec. 8   A new section is added to chapter 39.29 RCW to read as follows:
     All contracts entered into under this chapter on or after September 1, 2003, are subject to the requirements established under chapter 49.-- RCW (sections 1 through 5 of this act).

NEW SECTION.  Sec. 9   A new section is added to chapter 43.19 RCW to read as follows:
     All contracts entered into and purchases made, including leasing or renting, under this chapter on or after September 1, 2003, are subject to the requirements established under chapter 49.-- RCW (sections 1 through 5 of this act).

NEW SECTION.  Sec. 10   A new section is added to chapter 47.28 RCW to read as follows:
     All contracts entered into under this chapter on or after September 1, 2003, are subject to the requirements established under chapter 49.-- RCW (sections 1 through 5 of this act).

NEW SECTION.  Sec. 11   Sections 1 through 5 of this act constitute a new chapter in Title 49 RCW.

NEW SECTION.  Sec. 12   This act does not apply to expenditures or requests for reimbursements made before September 1, 2003, or to a grant or contract entered into before September 1, 2003, unless the grant or contract is modified, extended, or renewed on or after September 1, 2003.

NEW SECTION.  Sec. 13   If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION.  Sec. 14   If any part of this act is found to be in conflict with federal requirements that are a prescribed condition to the allocation of federal funds to the state, the conflicting part of this act is inoperative solely to the extent of the conflict and with respect to the agencies directly affected, and this finding does not affect the operation of the remainder of this act in its application to the agencies concerned. Rules adopted under this act must meet federal requirements that are a necessary condition to the receipt of federal funds by the state.

NEW SECTION.  Sec. 15   This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 2003.