H 3274 General Bill, By Cato
 A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION
 41-7-75 SO AS TO REQUIRE THE DIRECTOR OF THE DEPARTMENT OF LABOR, LICENSING
 AND REGULATION TO ENSURE COMPLIANCE WITH THE PROVISIONS OF CHAPTER 7, TITLE 41
 CONCERNING "THE RIGHT TO WORK" AND TO AUTHORIZE CERTAIN POWERS AND IMPART
 DUTIES TO CARRY THIS OUT; BY ADDING SECTION 41-7-100 SO AS TO ESTABLISH
 PENALTIES FOR VIOLATIONS OF CHAPTER 7, TITLE 41 AND TO REQUIRE THE DIRECTOR TO
 PROMULGATE REGULATIONS ESTABLISHING PROCEDURES FOR ADMINISTRATIVE REVIEW OF
 PENALTIES ASSESSED; TO AMEND SECTION 41-7-30 RELATING TO PROHIBITING AN
 EMPLOYER FROM REQUIRING OR PROHIBITING MEMBERSHIP IN A LABOR ORGANIZATION AS A
 CONDITION OF EMPLOYMENT SO AS TO INCLUDE IN THE PROHIBITION AN AGREEMENT OR
 PRACTICE THAT HAS THE EFFECT OF REQUIRING SUCH MEMBERSHIP AND TO PROHIBIT A
 LABOR ORGANIZATION FROM INDUCING AN EMPLOYER TO VIOLATE THIS SECTION; TO AMEND
 SECTION 41-7-40 RELATING TO THE AUTHORITY TO DEDUCT LABOR ORGANIZATION
 MEMBERSHIP DUES FROM WAGES SO AS TO AUTHORIZE SUCH DEDUCTION IF AN EMPLOYEE
 VOLUNTARILY ENTERS A WRITTEN AGREEMENT AUTHORIZING THE DEDUCTION; TO AMEND
 SECTION 41-7-80 RELATING TO CRIMINAL PENALTIES SO AS TO INCREASE THE
 PENALTIES; AND TO AMEND SECTION 41-7-90 RELATING TO REMEDIES FOR VIOLATIONS OF
 RIGHTS SO AS TO CREATE A PRIVATE CAUSE OF ACTION ON BEHALF OF AN EMPLOYEE
 AGGRIEVED BY VIOLATIONS OF THIS CHAPTER.

   01/21/97  House  Introduced and read first time HJ-14
   01/21/97  House  Referred to Committee on Labor, Commerce and
                     Industry HJ-15
   05/01/97  House  Committee report: Favorable with amendment Labor,
                     Commerce and Industry HJ-1
   05/07/97  House  Debate adjourned until Thursday, May 8, 1997 HJ-52
   05/08/97  House  Debate adjourned until Tuesday, May 13, 1997 HJ-22
   05/13/97  House  Requests for debate-Rep(s). Stuart, Scott,
                     Inabinett, Lloyd, Breeland, Cobb-Hunter, Cato,
                     Meacham, Moody-Lawrence, Gourdine, J. Brown, J.
                     Smith, Limehouse, Tripp, Vaughn, Law, Sharpe,
                     Leach, Loftis, Seithel, Miller & Clyburn HJ-13
   05/21/97  House  Requests for debate removed-Rep(s). Inabinett HJ-32
   05/28/97  House  Debate adjourned until Thursday, May 29, 1997 HJ-64
   05/29/97  House  Debate adjourned until Tuesday, June 3, 1997 HJ-47
   06/03/97  House  Requests for debate removed-Rep(s). Scott & J.
                     Brown HJ-134
   06/04/97  House  Amended HJ-127
   06/04/97  House  Read second time HJ-137
   06/04/97  House  Roll call Yeas-80  Nays-21 HJ-137
   06/05/97  House  Read third time and sent to Senate HJ-109
   01/14/98  Senate Introduced and read first time SJ-40
   01/14/98  Senate Referred to Committee on Labor, Commerce and
                     Industry SJ-40
   02/26/98  Senate Committee report: Majority favorable with amend.,
                     minority unfavorable Labor, Commerce and
                     Industry SJ-16

COMMITTEE REPORT

February 26, 1998

H. 3274

S. Printed 2/26/98--S.

Read the first time January 14, 1998.

To whom was referred a Bill (H. 3274), to amend the Code of Laws of South Carolina, 1976, by adding Section 41-7-75 so as to require the Director of the Department of Labor, Licensing and Regulation to ensure compliance with the provisions of Chapter 7, Title 41, etc., respectfully

That they have duly and carefully considered the same, and recommend that the same do pass with amendment:

Amend the bill, as and if amended, Section 41-7-75, page 3274-3, immediately after line 20, by inserting:

/(D) All expenses and costs incurred by the Department of Labor, Licensing and Regulation for implementation and enforcement of this chapter must be borne by the department. /

Amend the bill, as and if amended, by deleting SECTION 2, page 3274-3 of the bill and inserting:

/SECTION 2. The 1976 Code is amended by adding:

"Section 41-7-100. (A) A person who violates a provision of this chapter is subject to a civil fine, not to exceed $100.00 for each violation, to be imposed by the Director of the Department of Labor, Licensing and Regulation.

(B) A person fined pursuant to subsection (A) must be given notice of the fine by certified mail and must be given an opportunity to appeal the decision in accordance with the Administrative Procedures Act.

(C) The director shall promulgate regulations establishing procedures for administrative review of civil penalties assessed under this chapter.

(D) The department shall submit a written report annually to the Senate and House Labor, Commerce and Industry Committees, concerning the civil penalties imposed pursuant to this section, including violations committed, persons fined, and amounts of the fines."/

Amend the bill further, page 3274-4 by deleting SECTION 5 of the bill and inserting:

/SECTION 5. Section 41-7-90 of the 1976 Code is amended to read:

"Any A person whose rights are adversely affected by any a contract, agreement, assemblage, or other act or thing done or threatened to be done and declared to be unlawful or prohibited by this chapter shall have has the right to apply to any a court having general equity jurisdiction for appropriate relief. The court, in any such proceeding, may grant and issue such restraining, and other, orders as may be appropriate, including an injunction restraining and enjoining the performance, continuance, maintenance, or commission of any such contract, agreement, assemblage, act or thing, and may determine and award, as justice may require, any actual damages, costs, and attorneys' fees which have been sustained or incurred by any a party to the action, and, in the discretion of the court or jury, punitive damages in addition to the actual damages. The provisions of this section are cumulative and are in addition to all other remedies now or hereafter provided by law."/

Renumber sections to conform.

Amend title to conform.

Majority favorable. Minority unfavorable.

J. VERNE SMITH ROBERT FORD

For Majority. For Minority.

ESTIMATED FISCAL IMPACT ON GENERAL FUND EXPENDITURES IS:

The Department of Labor, Licensing and Regulation has indicated there will be no impact to department funds or to the General Fund of the State.

The South Carolina Department of Corrections does not have jurisdiction over offenders sentenced to ninety days or less.

Passage of this bill would have no impact on the South Carolina Department of Corrections.

The impact of increasing the penalty for violation of the provisions of the bill from a maximum of 30 days imprisonment to 90 days imprisonment would have a minimal impact on local government.

Approved By:

Michael L. Shealy

Office of State Budget

A BILL

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 41-7-75 SO AS TO REQUIRE THE DIRECTOR OF THE DEPARTMENT OF LABOR, LICENSING AND REGULATION TO ENSURE COMPLIANCE WITH THE PROVISIONS OF CHAPTER 7, TITLE 41 CONCERNING "THE RIGHT TO WORK" AND TO AUTHORIZE CERTAIN POWERS AND IMPART DUTIES TO CARRY THIS OUT; BY ADDING SECTION 41-7-100 SO AS TO ESTABLISH PENALTIES FOR VIOLATIONS OF CHAPTER 7, TITLE 41 AND TO REQUIRE THE DIRECTOR TO PROMULGATE REGULATIONS ESTABLISHING PROCEDURES FOR ADMINISTRATIVE REVIEW OF PENALTIES ASSESSED; TO AMEND SECTION 41-7-30 RELATING TO PROHIBITING AN EMPLOYER FROM REQUIRING OR PROHIBITING MEMBERSHIP IN A LABOR ORGANIZATION AS A CONDITION OF EMPLOYMENT SO AS TO INCLUDE IN THE PROHIBITION AN AGREEMENT OR PRACTICE THAT HAS THE EFFECT OF REQUIRING SUCH MEMBERSHIP AND TO PROHIBIT A LABOR ORGANIZATION FROM INDUCING AN EMPLOYER TO VIOLATE THIS SECTION; TO AMEND SECTION 41-7-40 RELATING TO THE AUTHORITY TO DEDUCT LABOR ORGANIZATION MEMBERSHIP DUES FROM WAGES SO AS TO AUTHORIZE SUCH DEDUCTION IF AN EMPLOYEE VOLUNTARILY ENTERS A WRITTEN AGREEMENT AUTHORIZING THE DEDUCTION; TO AMEND SECTION 41-7-80 RELATING TO CRIMINAL PENALTIES SO AS TO INCREASE THE PENALTIES; AND TO AMEND SECTION 41-7-90 RELATING TO REMEDIES FOR VIOLATIONS OF RIGHTS SO AS TO CREATE A PRIVATE CAUSE OF ACTION ON BEHALF OF AN EMPLOYEE AGGRIEVED BY VIOLATIONS OF THIS CHAPTER.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION 1. The 1976 Code is amended by adding:

"Section 41-7-75. (A) The Director of the South Carolina Department of Labor, Licensing and Regulation or his designee shall ensure compliance with this chapter and shall cooperate with an employee in the investigation and enforcement of a meritorious claim against an employer. Hearings may be held to satisfy the director as to the justice of any claim.

(B) The Director of the Department of Labor, Licensing and Regulation or his designee may enter a place of employment for the purpose of evaluating compliance with this chapter. Any effort of a person or entity to obstruct the director or his designee in the performance of duties under this chapter are a violation of this chapter and punishable accordingly.

(C) If the director or his designee is denied admission to a place of employment, a warrant may be obtained pursuant to Section 41-15-260."

SECTION 2. The 1976 Code is amended by adding:

"Section 41-7-100. (A) A person who violates the provisions of this chapter may be assessed by the Director of the Department of Labor, Licensing and Regulation a civil penalty of not more than one hundred dollars for each offense.

(B) The director shall promulgate regulations establishing procedures for administrative review of civil penalties assessed under this chapter."

SECTION 3. Section 41-7-30 of the 1976 Code is amended to read:

"Section 41-7-30. (A) It shall be is unlawful for any an employer to require an employee, as a condition of employment, or of continuance of employment to:

(1) To require any employee, as a condition of employment, or of continuance of employment, to be or become or remain a member or affiliate of any a labor organization or agency;

(2) To require any employee, as a condition of employment, or of continuance of employment, to abstain or refrain from membership in any a labor organization; or

(3) To require any employee, as a condition of employment, or of continuance of employment, to pay any fees, dues, assessments, or other charges or sums of money whatsoever to any a person or organization.

(B) It is unlawful for a person or a labor organization to directly or indirectly participate in an agreement, arrangement, or practice that has the effect of requiring, as a condition of employment, that an employee be, become, or remain a member of a labor organization or pay to a labor organization any dues, fees, or any other charges; such an agreement is unenforceable.

(C) It is unlawful for a person or a labor organization to induce, cause, or encourage an employer to violate a provision of this section."

SECTION 4. Section 41-7-40 of the 1976 Code is amended to read:

"Section 41-7-40. Nothing in this chapter shall preclude any precludes an employer from deducting from the wages of the employees and paying over to any a labor organization, or its authorized representative, membership dues in a labor organization; provided, that however, the employer has must have received from each employee, on whose account such the deductions are made, a written assignment which shall not only may be irrevocable for a period of more than one year, or beyond until the termination date of any applicable collective agreement or assignment, whichever occurs sooner."

SECTION 5. Section 41-7-90 of the 1976 Code is amended to read:

"Section 41-7-90. (A) A person who may be caused to be denied or denied employment or be deprived of continuation of employment through force, intimidation, obstruction, interference, or threat of these or in violation of this chapter is entitled to recover from the employer and from any other person, firm, corporation, or association by appropriate action in the courts of this State such damages as the person may have sustained by reason of the denial or deprivation of employment including, in the discretion of the court or jury, punitive damages in addition to the actual damages.

(B) Any A person whose rights are adversely affected by any a contract, agreement, assemblage, or other act or thing done or threatened to be done and declared to be unlawful or prohibited by this chapter shall have has the right to apply to any a court having general equity jurisdiction for appropriate relief. The court, in any such proceeding, may grant and issue such restraining, and other, orders as may be appropriate, including an injunction restraining and enjoining the performance, continuance, maintenance, or commission of any such contract, agreement, assemblage, act or thing, and may determine and award, as justice may require, any actual damages, costs, and attorneys' fees which have been sustained or incurred by any a party to the action, and, in the discretion of the court or jury, punitive damages in addition to the actual damages. The provisions of this section are cumulative and are in addition to all other remedies now or hereafter provided by law."

SECTION 6. This act takes effect upon approval by the Governor.