Office of House Bill AnalysisH.B. 407
By: Hilderbran
Economic Development


Currently, labor unions are allowed to deduct union dues from members'
paychecks.  These dues may be used for numerous functions, including
political purposes.  At this time, union members are not required to
authorize these expenditures and do not have a means to object to these
expenditures. H.B. 407 prohibits labor unions from using member dues for
political purposes without the express authorization of the members.  This
bill requires unions to maintain records of expenditures for collective
bargaining and political purposes and requires employers to post notice of
employees' rights regarding collective bargaining agreements. 

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 


SECTION 1.  Amends Chapter 101, Labor Code, by adding Subchapter H, as


Sec. 101.401.  DEFINITIONS.  Defines "expenditure for a political purpose"
and "labor union." 

Sec. 101.402.  USE OF DUES FOR POLITICAL PURPOSES.  Prohibits a labor union
(union) from requiring a member to make an expenditure for a political
purpose (expenditure) as a condition of employment, contract, or
membership.  Prohibits a union from rewarding or penalizing a member
regarding the making of an expenditure.  Prohibits a union from using
member dues or other fees (member dues) to make an expenditure without
written consent from the member as provided by Section 101.403.  Requires a
union making an expenditure with member dues to maintain records in
compliance with Section 101.404. 

Sec. 101.403.  WRITTEN AUTHORIZATION.  Authorizes a member to provide
written authorization allowing a union to make an expenditure with member
dues.  Requires authorization to be voluntary, written, and executed prior
to making the expenditure. Establishes the requirements of the written
authorization, the length of validity(not more than one year), and
authorizes the revocation of authorization by the member. 

Sec. 101.404.  DUTY TO MAINTAIN RECORDS.  Requires a union making an
expenditure to maintain records with separate accounts for money spent for
collective bargaining and for money spent for a political purpose.
Requires a union to make available to members a detailed annual report
including information concerning the manner in which member dues are spent
for expenditures.  Requires a union to retain each written authorization
for 10 years from the date of execution. 

Sec. 101.405.  POSTED NOTICE.  Requires an employer with employees
represented by a collective bargaining agreement to conspicuously post in
the employer's business a notice  informing employees that a union
accepting dues from an employee must obtain prior, voluntary, written
authorization before using dues for a political purpose. 

Sec. 101.406.  LIABILITY.  Sets forth the type of relief available from a
union to an affected member for violation of this subchapter.  Prohibits
the commencement of an action under this section after two years from the
date a member knew or should have known a violation occurred.  Establishes
venue for filing suit. 

Sec. 101.407.  CIVIL PENALTY.  Provides that a union violating this
subchapter is liable for a civil penalty not to exceed $1,000 for each
violation.  Provides certain persons with authority to bring suit. Requires
the penalties recovered to be deposited in specific accounts depending on
the person bringing the suit. 

Sec. 101.408.  CRIMINAL OFFENSE.  Provides that a union officer commits a
Class B misdemeanor by violating this subchapter.   

SECTION 2.  Effective date: January 1, 2000.

SECTION 3.  Emergency clause.