March 13, 2007, Introduced by Reps. Miller, Bennett, Meadows, Meisner, Hopgood and Gonzales and referred to the Committee on Commerce.
A bill to prohibit expenditures of state funds on activities
that interfere with or discourage unionization; and to prescribe
penalties.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. As used in this act:
(a) "Department" means the department of labor and economic
growth.
(b) "Interfere with or discourage unionization" includes, but
is not limited to, all of the following:
(i) A communication in any form that advocates, directly or by
implication, that an employee should vote against unionization.
(ii) Hiring or consulting persons to advise on means to deter
unionization or impede a labor organization that represents
employees from fulfilling its representation responsibilities.
(iii) Holding meetings to influence employees to refrain from
unionizing.
(iv) Planning or engaging in employee-supervisor activities to
deter the lawful activities of a labor organization.
(c) "Person" means an individual, partnership, corporation,
limited liability company, association, governmental entity, or
other legal entity.
(d) "Receive state funds" means to acquire state funds in any
form, including a grant, payment under contract, reimbursement, or
other direct payment, and includes a subcontractor's receipt of
payment for performance of any portion of a contract funded with
state funds.
(e) "State funds" means any money drawn from the state
treasury or other fund of the state, and any state resources,
including a good or service or the value of a good or service, that
is provided to a person.
(f) "Unionization" means the organization of employees for the
purpose of collective bargaining.
(g) "Use of state funds" means expenditure of state funds by a
person who receives state funds. The expenditure may be for any
purpose, including operating expenses, supplies, maintenance,
utilities, capital facilities, or equipment.
Sec. 2. (1) A person who receives state funds shall not use
state funds wholly or in part to interfere with or discourage
unionization by that person's employees or the employees of any
other employer.
(2) This section does not limit the right of an employer or
labor organization to engage in lawful activities relating to the
negotiation and enforcement of a collective bargaining agreement.
Sec. 3. The department shall promulgate rules in accordance
with the administrative procedures act of 1969, 1969 PA 306, MCL
24.201 to 24.328, to implement this act.
Sec. 4. (1) A person who receives state funds and who expends
any funds to interfere with or discourage unionization shall
maintain accurate and complete records of all expenditures. The
records shall be sufficient to demonstrate whether state funds have
been expended to interfere with or discourage unionization. If the
state designates state funds for a specific use or expenditure, the
person shall account for the specific use or expenditure. If the
state does not designate state funds for a specific use or
expenditure, the person shall allocate the funds on a pro rata
basis to all expenditures of the person that are related to the
purpose for which the state funds are received.
(2) A person subject to the record-keeping requirements of
subsection (1) shall prepare and submit to the department 4 times
per calendar year a quarterly report that specifies each
expenditure of state funds and each expenditure of funds that have
been used for the interference with or discouragement of
unionization. The person shall file each report within 30 days
after the end of each calendar quarter.
(3) The report required under subsection (2) shall include the
person's certification, under oath, that state funds were not
expended to interfere with or discourage unionization. A person who
provides a false certification under this subsection is guilty of
perjury.
(4) On its own initiative or in response to a complaint that
the department determines credible, the department may at any time
audit the records of a person subject to the certification
requirement of this section to ensure compliance with this act.
(5) The department shall certify a department determination
that a person has failed or refused to do any of the following:
(a) Comply with the record-keeping requirements of this act.
(b) Comply with the reporting requirements of this act.
(c) Provide the department with access to the person's records
for an audit under this act.
(6) A person who is subject to a certification described in
subsection (5) is ineligible to receive state funds until the
department certifies that the person is in full compliance with the
requirements described in subsection (5).
Sec. 5. (1) A person who knowingly authorizes an expenditure
of state funds in violation of this act is liable to the state for
civil damages equal to twice the amount of the expenditure, plus
attorney fees and costs.
(2) A taxpayer may bring a civil action on behalf of the state
to recover the damages described in subsection (1). If the taxpayer
prevails, he or she is entitled to 1/2 the amount recovered on
behalf of the state, plus his or her attorney fees.
(3) A person adjudicated to have violated section 2 is
ineligible to receive state funds for a period of 3 years after the
date the judgment against the person is entered.