SB1355 - 512R

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 23-361.02, Arizona Revised Statutes, is amended to read:

START_STATUTE23-361.02. Paycheck deductions; authorization; definition

A. For deductions after October 1, ~~2011~~ 2014, a public ~~or private~~ employer in this state shall not deduct any third‑party payment from an employee's paycheck ~~for political purposes~~ unless the employee annually biennially provides advance express written or electronic authorization to the employer for the deduction.

B. If a deduction is made from an employee's paycheck for multiple purposes after October 1, 2011, the employer shall obtain a statement from each entity to which the deductions are paid that indicates the payment is not used for political purposes or a statement that indicates the maximum percentage of the payment that is used for political purposes. The employer shall not deduct any payment beyond that specified for nonpolitical purposes without the annual written or electronic permission of the employee.

C. B. ~~Within ninety days after the effective date of this section,~~ The attorney general shall adopt rules that describe the acceptable forms of employee authorization and entity statements under this section.

D. If an employer knowingly deducts payments in violation of subsection A of this section or an entity provides an inaccurate statement under this section, the respective employer or entity is subject to a civil penalty of at least ten thousand dollars for each violation. The attorney general shall impose and collect the civil penalties under this subsection and shall deposit, pursuant to sections 35‑146 and 35‑147, all civil penalties collected pursuant to this section in the state general fund.

E. C. This section does not apply to any of the following:

~~1. A single deduction for nonpolitical purposes.~~

~~2. Deductions for savings or charitable contributions.~~

3. 1. Deductions for employee health care insurance premiums, ~~retiree or~~ recoupment of welfare benefits or retiree benefits pursuant to a pension or other benefit plan that is established to provide employees or their families with insurance or retirement benefits as an element of public employee compensation.

4. 2. Deductions for state, local or federal taxes.

5. 3. Deductions for contributions to a separate segregated fund pursuant to 2 United States Code section 441b(b) or section 16‑920, subsection A, paragraph 3.

6. 4. Any deduction otherwise required by law.

5. Dues to a labor organization that are paid in compliance with section 23-1421.

6. Deductions for employer-subsidized public transportation programs.

F. D. If an employee has authorized a deduction from the employee's paycheck under this section and the employee resigns membership in the association or organization for which the deduction was authorized, the employee's authorization for the deduction is rescinded upon the employer's receipt from the employee of written notice of the resignation. The employer shall have one pay period to process the rescission.

G. E. This section does not preempt any federal law.

H. For the purposes of this section, employee does not include any public safety employee, including a peace officer, firefighter, corrections officer, probation officer or surveillance officer, who is employed by this state or a political subdivision of this state.

I. For the purposes of this section, "political purposes" means supporting or opposing any candidate for public office, political party, referendum, initiative, political issue advocacy, political action committee or other similar group.

F. For the purposes of this section, "public employer" means any entity that primarily relies on tax revenues to sustain its operations. END_STATUTE

Sec. 2. Title 23, chapter 8, Arizona Revised Statutes, is amended by adding article 7, to read:

ARTICLE 7. LABOR ORGANIZATION DUES

START_STATUTE23-1421. Labor organization dues; public employees; political purposes; definitions

A. A labor organization may not use any part of the dues or fees that it receives from a public employee for political purposes, unless it allows each person paying the dues or fees to opt in biennially with advance express written or electronic consent to allow the labor organization to use these segregated monies for political purposes.

B. If any portion of labor organization dues or fees received from a public employee is used for political purposes, the labor organization shall identify the amount of the dues or fees that is used for political purposes and shall separately account for and segregate these monies. The labor organization shall annually report to its members the expenditures of these monies by types of candidates, legislation or issues and political party.

C. Any portion of the dues or fees received from a public employee that is not identified as being used for political purposes may not be used for political purposes.

D. For the purposes of this section:

1. "Political purposes" means any of the following:

(a) Any activity to support or oppose a candidate for public office, a ballot proposition or legislation.

(b) Any activity to rank or rate any candidate for public office.

2. "Public employee" means an individual who is employed by a public employer.

3. "Public employer" means any entity that primarily relies on tax revenues to sustain its operations. END_STATUTE

Sec. 3. Short title

This act may be cited as the "Protect Arizona Employees' Paychecks Act".

Sec. 4. Severability

If any provision of this act or its application to any person or circumstance is held invalid, the invalidity shall not affect other provisions or applications of this act that can be given effect without the invalid provision or application, and to this end the provisions of this act are severable.

Sec. 5. Emergency

This act is an emergency measure that is necessary to preserve the public peace, health or safety and is operative immediately as provided by law.