HOUSE BILL No. 6226 June 18, 2002, Introduced by Rep. Palmer and referred to the Committee on Employment Relations, Training and Safety. A bill to amend 1947 PA 336, entitled "An act to prohibit strikes by certain public employees; to pro- vide review from disciplinary action with respect thereto; to provide for the mediation of grievances and the holding of elec- tions; to declare and protect the rights and privileges of public employees; and to prescribe means of enforcement and penalties for the violation of the provisions of this act," by amending sections 10 and 16 (MCL 423.210 and 423.216). THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 10. (1)It shall be unlawful for aA public employer 2 or an officer or agent of a public employer SHALL NOT DO ANY OF 3 THE FOLLOWING: 4 (a)to interfereINTERFERE with, restrain, or coerce 5 public employees in the exercise of their rights guaranteed in 6 section 9.;7 (b)to initiateINITIATE, create, dominate, contribute to, 8 or interfere with the formation or administration of any labor 07179'02 LAJ 2 1 organization.: Provided, ThatTHIS SUBDIVISION DOES NOT 2 PROHIBIT a public employershall not be prohibitedfrom permit- 3 ting employees to confer with it during working hours without 4 loss of time or pay.;5 (c)to discriminateDISCRIMINATE in regard tohire,6 HIRING OR terms or other conditions of employment in order to 7 encourage or discourage membership in a labor organization.:8Provided further, That nothing in this act or in any law of this9state shall preclude aA public employerfrom makingMAY MAKE 10 an agreement with an exclusive bargaining representativeas11defined inDESIGNATED OR SELECTED UNDER section 11 to require as 12 a condition of employment that all employees in the bargaining 13 unit pay to the exclusive bargaining representative a service fee 14 equivalent to the amount of dues uniformly required of members of 15 the exclusive bargaining representative.;16 (d)to discriminateDISCRIMINATE against a public employee 17 because he OR SHE has given testimony or instituted proceedings 18 under this act.; or19 (e)to refuseREFUSE to bargain collectively with the rep- 20 resentatives of its public employees, subject tothe provisions21ofsection 11. 22 (2)It is the purpose of this amendatory act to reaffirm23the continuing public policy of this state that the stability and24effectiveness of labor relations in the public sector require, if25such requirement isIF negotiated UNDER A COLLECTIVE BARGAINING 26 AGREEMENT withtheA public employer,thatall employees in 27 the bargaining unit shallshare fairly in the financial support07179'02 3 1of their exclusive bargaining representative by payingPAY to 2 the exclusive bargaining representative a service feewhich3 THAT may be equivalent to the amount of duesuniformlyrequired 4 of members of the exclusive bargaining representative. 5 (3) IF A PUBLIC EMPLOYER AGREES TO A SERVICE FEE UNDER SUB- 6 SECTION (2), THE EXCLUSIVE BARGAINING REPRESENTATIVE SHALL ANNU- 7 ALLY FILE WITH THE COMMISSION ALL OF THE FOLLOWING INFORMATION 8 FOR THE EXCLUSIVE BARGAINING REPRESENTATIVE WITHIN 90 DAYS OF THE 9 END OF THE EXCLUSIVE BARGAINING REPRESENTATIVE'S FISCAL YEAR: 10 (A) ALL ASSETS AND LIABILITIES AT THE BEGINNING AND END OF 11 THE FISCAL YEAR. 12 (B) THE SALARY, COST OF FRINGE BENEFITS, ALLOWANCES, AND ANY 13 OTHER DIRECT OR INDIRECT DISBURSEMENTS TO EACH OFFICER OF THE 14 EXCLUSIVE BARGAINING REPRESENTATIVE AND TO ANY EMPLOYEES OF THE 15 EXCLUSIVE BARGAINING REPRESENTATIVE. 16 (C) ALL CONTRIBUTIONS TO STATE OR NATIONAL AFFILIATES OF THE 17 EXCLUSIVE BARGAINING REPRESENTATIVE OR TO ANY OFFICER OF A STATE 18 OR NATIONAL AFFILIATE AND ANY EMPLOYEES OF A STATE OR NATIONAL 19 AFFILIATE. 20 (D) ALL INCOME RECEIVED BY AND THE VALUE OF ANY SERVICES 21 FURNISHED TO THE EXCLUSIVE BARGAINING REPRESENTATIVE BY ANY OF 22 THE FOLLOWING: 23 (i) A PARENT AFFILIATED LABOR ORGANIZATION. 24 (ii) ANY OTHER LABOR ORGANIZATION ON BEHALF OF THE EXCLUSIVE 25 BARGAINING REPRESENTATIVE. 07179'02 4 1 (E) THE TOTAL AMOUNT SPENT BY THE EXCLUSIVE BARGAINING 2 REPRESENTATIVE AND THE PERCENTAGE OF TOTAL EXPENDITURES FOR ALL 3 OF THE FOLLOWING: 4 (i) CONTRACT NEGOTIATION AND ADMINISTRATION. 5 (ii) ORGANIZING ACTIVITIES. 6 (iii) STRIKE ACTIVITIES. 7 (iv) LITIGATION, SPECIFYING THE MATTERS AND CASES INVOLVED 8 AND THE NAME, ADDRESS, AND ACTIVITIES OF ANY ATTORNEY, LAW FIRM, 9 LOBBYING FIRM, PUBLIC RELATIONS FIRM, OR OTHER PERSON RETAINED. 10 (v) PUBLIC RELATIONS ACTIVITIES, SPECIFYING THE NAME, 11 ADDRESS, AND ACTIVITIES OF ANY ATTORNEY, LAW FIRM, LOBBYING FIRM, 12 PUBLIC RELATIONS FIRM, OR OTHER PERSON RETAINED. 13 (vi) POLITICAL ACTIVITIES, INCLUDING, BUT NOT LIMITED TO, 14 CONTRIBUTIONS TO POLITICAL CAMPAIGNS, CONTRIBUTIONS TO REFERENDUM 15 OR INITIATIVE CAMPAIGNS, AND EXPRESS ADVOCACY ON BEHALF OF OR IN 16 OPPOSITION TO ANY CANDIDATE FOR ELECTION, REFERENDUM, OR 17 INITIATIVE. 18 (vii) ACTIVITIES INTENDED TO INFLUENCE FEDERAL, STATE, OR 19 LOCAL LEGISLATION, REGULATIONS, OR POLICIES, SPECIFYING THE NAME, 20 ADDRESS, AND ACTIVITIES OF ANY ATTORNEY, LAW FIRM, LOBBYING FIRM, 21 PUBLIC RELATIONS FIRM, OR OTHER PERSON RETAINED. 22 (viii) ISSUE ADVOCACY, VOTER EDUCATION, VOTER REGISTRATION, 23 AND ACTIVITIES INTENDED TO INCREASE VOTER TURNOUT. 24 (ix) TRAINING ACTIVITIES FOR THE EXCLUSIVE BARGAINING 25 REPRESENTATIVE'S OFFICERS OR EMPLOYEES. 07179'02 5 1 (x) CONFERENCE, CONVENTION, AND TRAVEL ACTIVITIES ENGAGED IN 2 BY THE EXCLUSIVE BARGAINING REPRESENTATIVE'S OFFICERS OR 3 EMPLOYEES. 4 (F) A LIST OF ANY POLITICAL CANDIDATES AND POLITICAL, CHARI- 5 TABLE, NONPROFIT, OR COMMUNITY ORGANIZATIONS TO WHICH THE EXCLU- 6 SIVE BARGAINING REPRESENTATIVE CONTRIBUTED FINANCIAL ASSISTANCE 7 OR PROVIDED OTHER ASSISTANCE AND THE AMOUNT CONTRIBUTED OR THE 8 FAIR MARKET VALUE OF THE ASSISTANCE PROVIDED. 9 (G) THE NAME AND ADDRESS OF ANY POLITICAL ACTION COMMITTEE 10 WITH WHICH THE EXCLUSIVE BARGAINING REPRESENTATIVE IS AFFILIATED 11 OR TO WHICH IT PROVIDED A CONTRIBUTION, SPECIFYING THE TOTAL 12 AMOUNT OF ANY CONTRIBUTION MADE, THE CANDIDATES OR ISSUES TO 13 WHICH THE COMMITTEE PROVIDED FINANCIAL ASSISTANCE, AND THE AMOUNT 14 OF FINANCIAL ASSISTANCE THE COMMITTEE PROVIDED FOR THOSE CANDI- 15 DATES OR ISSUES. 16 (4) THE REPORT REQUIRED UNDER SUBSECTION (3) SHALL BE PRE- 17 PARED BY AN INDEPENDENT CERTIFIED PUBLIC ACCOUNTING FIRM, USING 18 GENERALLY ACCEPTED AUDITING STANDARDS AND GENERALLY ACCEPTED 19 ACCOUNTING PRINCIPLES. THE INDEPENDENT CERTIFIED PUBLIC ACCOUNT- 20 ING FIRM SHALL REPORT EXPENDITURES OR PORTIONS OF EXPENDITURES OF 21 THE EXCLUSIVE BARGAINING REPRESENTATIVE AS EITHER GERMANE OR NON- 22 GERMANE TO COLLECTIVE BARGAINING, CONTRACT ADMINISTRATION, OR 23 GRIEVANCE PROCESSING. 24 (5) ALL UNION FINANCIAL RECORDS MAINTAINED BY THE EXCLUSIVE 25 BARGAINING REPRESENTATIVE UNDER SUBSECTION (3) SHALL BE MAIN- 26 TAINED IN COMPLIANCE WITH GENERALLY APPROVED ACCOUNTING 27 PRINCIPLES. 07179'02 6 1 (6)(3) It shall be unlawful for aA labor organization or 2 its agents SHALL NOT DO ANY OF THE FOLLOWING: 3 (a)to restrainRESTRAIN or coerce EITHER OF THE 4 FOLLOWING: 5 (i)publicPUBLIC employees in the exercise oftheTHEIR 6 rights guaranteed in section 9.: Provided, That this subdivi-7sion shallTHIS SUBPARAGRAPH DOES not impair the right of a 8 labor organization to prescribe its own rules with respect to the 9 acquisition or retention of membershiptherein; orIN THE 10 ORGANIZATION. 11 (ii)aA public employer in the selection of its represen- 12 tatives for thepurposesPURPOSE of collective bargaining or 13 the adjustment of grievances.;14 (b)to causeCAUSE or attempt to cause a public employer 15 to discriminate against a public employee in violation of 16subdivision (c) ofsubsection(1); or(1)(C). 17 (c)to refuseREFUSE to bargain collectively with a public 18 employer,provided itIF THE LABOR ORGANIZATION, SUBJECT TO 19 SECTION 11, is the representative of the public employer's 20 employees.subject to section 11.21 (D) FAIL OR REFUSE TO PREPARE THE REPORT REQUIRED UNDER SUB- 22 SECTION (3). 23 Sec. 16. (1) Violations ofthe provisions ofsection 10 24shall be deemed to beARE unfair labor practices AND, EXCEPT AS 25 OTHERWISE PROVIDED IN SUBSECTION (2) FOR A VIOLATION OF SECTION 26 10(3), ARE remediable by the commission in the following manner: 07179'02 7 1 (a)WheneverIF it is charged thatanyA person has 2 engaged in or is engaging inany suchAN unfair labor practice, 3 the commission,or any agent designated by the commissionfor4such purposes,may issue and cause to be served upon the person 5 a complaint stating the chargesin that respect,and containing 6 a notice of hearing before the commission,ora commissioner, 7thereof,orbeforea designated agent, at a placetherein8fixedSTATED IN THE NOTICE OF HEARING, not less than 5 days 9 after theserving of thecomplaint IS SERVED.NoEXCEPT AS 10 OTHERWISE PROVIDED IN THIS SUBDIVISION, A complaint shallissue11 NOT BE ISSUED based upon any unfair labor practiceoccurring12 THAT OCCURS more than 6 monthsprior to the filing ofBEFORE 13 the charge IS FILED with the commission andthe service ofa 14 copythereof uponSERVED ON the person against whom the charge 15 is made., unless theIF A person aggrievedtherebyBY AN 16 UNFAIR LABOR PRACTICE was prevented from filingtheA charge by 17 reason of service in the armed forces,in which eventthe 18 6-month period shall be computed from the day of his OR HER 19 discharge.AnyA complaint may be amended by the commissioner, 20orAN agent conducting the hearing, or the commission, at any 21 timeprior to the issuance ofBEFORE an order basedthereon22 ON THE COMPLAINT IS ISSUED. The person upon whom the complaint 23 is served may file an answer to the original or amended complaint 24 and appear in person or otherwise and give testimony at the place 25 and time fixed in the complaint. In the discretion of the 26 commissioner,orAN agent conducting the hearing, or the 27 commission, any other person may be allowed to intervene in the 07179'02 8 1 proceeding and to present testimony.AnyA proceeding shall be 2 conducted pursuant to chapter 4 ofAct No. 306 of the Public3Acts of 1969, as amended, being sections 24.271 to 24.287 of the4Michigan Compiled LawsTHE ADMINISTRATIVE PROCEDURES ACT OF 5 1969, 1969 PA 306, MCL 24.271 TO 24.287. 6 (b)The testimonyTESTIMONY taken by the commissioner, 7 agent, orthecommission shall be reduced to writing and filed 8 with the commission. Thereafter, the commission, upon notice, 9 may take further testimony or hear argument. If, upon the pre- 10 ponderance of the testimony taken, the commission is of the opin- 11 ion thatanyA person named in the complaint has engaged in or 12 is engaging in the unfair labor practice CHARGED, thenitTHE 13 COMMISSION shall state its findings of fact andshallissue and 14 cause to be served on the person an order requiring him OR HER to 15 cease and desist from the unfair labor practice,and to take 16suchaffirmative action, including reinstatement of employees 17 with or without back pay,as willTO effectuate the policies of 18 this act. The order mayfurtherALSO require the person 19 CHARGED to make reports from time to time showing the extent to 20 which he OR SHE has complied with the order. If, upon the pre- 21 ponderance of the testimony taken, the commission isnotof the 22 opinion that the person named in the complaint has NOT engaged in 23 or is NOT engaging in the unfair labor practice CHARGED,then24 the commission shall state its findings of fact and shall issue 25 an order dismissing the complaint.NoAN order of the commis- 26 sion shall NOT require the reinstatement of any individual as an 27 employee who has been suspended or discharged, or the payment to 07179'02 9 1 him OR HER of any back pay, if the individual was suspended or 2 discharged for cause. If the evidence is presented before a com- 3 missioner OR AN EXAMINER of the commission,or before examiners4thereof,the commissioner,orexaminersEXAMINER shall 5 issue and cause to be served on the parties to the proceeding a 6 proposed report, together with a recommended order, which shall 7 be filed with the commission., and ifIF an exception TO THE 8 RECOMMENDED ORDER is not filed within 20 days after service 9thereof uponON the parties, or withinsuch furtherAN 10 ADDITIONAL periodasAUTHORIZED BY the commission,may11authorize,the recommended order shall become the order of the 12 commission andbecomeIS effective as prescribed in the order. 13 (c) Until the record in a case has been filed in a court, 14 the commission MAY at any time, upon reasonable notice and in 15suchTHE mannerasitdeemsCONSIDERS proper,maymodify 16 or set aside, in whole or in part, any finding or order made or 17 issued by it. 18 (d) The commission or any prevailing party may petition the 19 court of appeals for the enforcement of the order and for appro- 20 priate temporary relief or restraining order, and shall file in 21 the court the record in the proceedings. Upon the filing of the 22 petition, the court shall cause noticethereofOF THE PETITION 23 to be served upon the person, and thereupon shall haveAGAINST 24 WHOM ENFORCEMENT IS SOUGHT. AFTER NOTICE OF THE PETITION IS 25 SERVED, THE COURT HAS jurisdiction of the proceeding and shall 26 summarily grantsuchtemporary or permanent relief or A 27 restraining order,as it deems just and proper,enforcing, 07179'02 10 1 modifying, enforcing assomodified, or setting aside, in whole 2 or in part, the order of the commission.NoAN objection that 3 has not beenurged beforePRESENTED TO the commission,OR 4 its commissioner or agent,shall NOT be considered by the 5 court, unless the failure or neglect tourgePRESENT the objec- 6 tion is excused because of extraordinary circumstances. The 7 findings of the commission with respect to questions of fact, if 8 supported by competent, material, and substantial evidence on the 9 record considered as a whole,shall beARE conclusive. If 10 either party applies to the court for leave to present additional 11 evidence and shows to the satisfaction of the court that the 12 additional evidence is material and that there were reasonable 13 grounds for the failure to present it in the hearing before the 14 commission,OR its commissioner or agent, the court may order 15 the additional evidence to be taken before the commission,OR 16 its commissioner or agent,and to be made a part of the 17 record. The commission may modify its findings as to the facts, 18 or make new findings,by reasonBECAUSE of THE additional evi- 19 dencesotaken and filed., and itTHE COMMISSION shall file 20 the modifying or new findings, which findings with respect to 21 questions of fact, if supported by competent, material, and sub- 22 stantial evidence on the record considered as a whole,shall be23 ARE conclusive, and shall file its recommendations, if any,for24the modification or settingTO MODIFY OR SET asideofits 25 original order.Upon the filing of the record with it theTHE 26 COURT'S jurisdictionof the court shall beIS exclusive and its 27 judgment and decreeshall beIS final,except that the same07179'02 11 1shall besubject to review by the supreme court in accordance 2 with the general court rules. 3 (e)AnyA party aggrieved by a final order of the commis- 4 sion granting or denying, in whole or in part, the relief sought 5 maywithin 20 days of such order as a matter of rightobtain a 6 review of the order in the court of appeals by filing in the 7 court WITHIN 20 DAYS OF THE ORDER a petitionprayingREQUESTING 8 that the order of the commission be modified or set aside.,9withA copy of the petition SHALL BE filed on the commission.,10and thereupon theTHE aggrieved party shall file in the court 11 the record in the proceeding, certified by the commission.Upon12the timely filing ofIF the petition IS TIMELY FILED, the court 13 shall proceed in the same manner as in the case of an application 14 by the commission undersubsectionSUBDIVISION (d), and shall 15 summarily grantto the commission or to any prevailing party16suchtemporary relief or A restraining order,as it deems just17and proper,enforcing, modifying, enforcing assomodified, or 18 setting aside in whole or in part the order of the commission. 19 The findings of the commission with respect to questions of fact, 20 if supported by competent, material, and substantial evidence on 21 the record considered as a whole,shall beARE conclusive. If 22 a timely petition for review is not filed under this subdivision 23 by an aggrieved party, it shall be conclusively presumed that the 24 commission's order is supported by competent, material, and sub- 25 stantial evidence on the record considered as a whole, and the 26 commission or any prevailing partyshall beIS entitled, upon 07179'02 12 1 application,therefor,to a summary order enforcing the 2 commission's order. 3 (f) The commencement of proceedings under subdivisions (d) 4 or (e) shall not, unless specifically ordered by the court, oper- 5 ate as a stay of the commission's order. 6 (g) Petitions filed undersubdivisionsSUBDIVISION (d) 7andOR (e) shall be heard expeditiously by the court,to which8presented,and for good cause shown shall take precedence over 9 all other civil matters except earlier matters of the same 10 character. 11 (h) The commission or any charging partyshall have power,12upon issuance of a complaint as provided inMAY, AFTER A COM- 13 PLAINT IS ISSUED UNDER subdivision (a),charging that any person14has engaged in or is engaging in an unfair labor practice, to15 petitionanyTHE circuit courtwithin any circuitwhere the 16 unfair labor practice in question is alleged to have occurred or 17 wheresuchTHE person CHARGED resides or exercises or may exer- 18 cise its governmental authority, for appropriate temporary relief 19 or A restraining order., in accordance with the general court20rules, and theTHE CIRCUIT courtshall haveHAS jurisdiction 21 to grant to the commission or any charging partysuchTHE tem- 22 porary relief or restraining orderasitdeems just and23 CONSIDERS proper. 24 (i) Forthe purpose ofall hearings and investigations, 25 which in the opinion of the commission are necessaryand proper26 for the exercise of the powers vested in it under this section, 27 the provisions of section 11 ofAct No. 176 of the Public Acts07179'02 13 1of 1939, as amended, being section 423.11 of the Michigan2Compiled Laws, shall be1939 PA 176, MCL 423.11, ARE applicable, 3 except that subpoenas may issueas provided in section 11with- 4 out regard to whether mediationshall haveHAS been 5 undertaken. 6 (j) The labor relations and mediation functions of this act 7 shall be separately administered by the commission. 8 (2) A FAILURE OR REFUSAL TO PROVIDE THE REPORT REQUIRED 9 UNDER SECTION 10(3) IS AN UNFAIR LABOR PRACTICE AND IS REMEDIABLE 10 BY THE COMMISSION IN THE FOLLOWING MANNER: 11 (A) FOR ANY FAILURE OR REFUSAL, THE COMMISSION SHALL ORDER 12 THE EXCLUSIVE BARGAINING REPRESENTATIVE TO REFUND ALL MEMBERSHIP 13 DUES OR SERVICE FEES TO EMPLOYEES OF THE BARGAINING UNIT FOR THE 14 PERIOD COVERED BY THE REPORT. 15 (B) FOR A SECOND FAILURE OR REFUSAL, THE COMMISSION SHALL 16 ORDER AN ELECTION IN THE BARGAINING UNIT AFFECTED PURSUANT TO 17 SECTION 12 AS TO WHETHER THE LABOR ORGANIZATION WILL CONTINUE TO 18 BE THE EXCLUSIVE BARGAINING REPRESENTATIVE FOR THE BARGAINING 19 UNIT AS PROVIDED IN SECTION 11. THE ELECTION SHALL BE CONDUCTED 20 UPON THE EXPIRATION OF ANY EXISTING COLLECTIVE BARGAINING 21 AGREEMENT. 07179'02 Final page. LAJ