PETITION OF:

SECTION 1. Section fifty-six of chapter seven of the General Laws is hereby amended by striking the entire text thereof and substituting the following:—
§ 56. Ensuring proper expenditure of and accounting for public funds; prohibiting expenditures for influencing employees with public funds
                (a) The General Court finds and declares to be the policy of the commonwealth that (1) sound fiscal management, protection of taxpayers, and proper use of the commonwealth’s resources require vigilance to ensure that funds appropriated or granted by the commonwealth for or in connection with the purchase of goods and services, the performance of public contracts or public works, and the provision of services for or on behalf of the commonwealth or its citizens, are ultimately expended solely for the purposes for which they were appropriated or granted; that public agencies, and vendors and suppliers to, contractors with, and grantees of the commonwealth, perform their functions in the most economical and efficient manner, consistent with the requirements of law and public policy; and that subsidized projects are conducted so as to fulfill the goals and objectives which led to the commonwealth’s involvement therein; and (2) when public funds are diverted from their intended use for the purchase of goods and services, the performance of public contracts or public works, the provision of services, or the completion of subsidized projects, and such funds are instead used to exert or to attempt to exert influence on employees as described herein, (A) such diversion in the use of public funds tends to cause interruptions in the supply or impairments in the quality of such goods and services, the performance of such contracts or public works, the provision of such services, and the completion of such subsidized projects; (B) the fiscal and proprietary interests of the commonwealth are adversely affected; (C) the commonwealth is compelled to subsidize partisan positions on controversial questions concerning employee representation; and (D) the scarce resources of the commonwealth are misused.
                (b) The following words and phrases as used in this section fifty-six shall have the following meaning unless the context clearly requires otherwise:—
                “Attorney general”, the attorney general of the commonwealth.

                “The commonwealth” or “commonwealth”, includes the state of Massachusetts and any agency, office, officer, department, division, board, commission, authority, instrumentality, or political subdivision thereof; any corporation, entity, or body created by state law; and, any individual designated by or with authority to act for the commonwealth or any of its subordinate units as defined herein.
                “Employee”, any individual employed by a publicly funded employer, including but not limited to any individual engaged in performing work, providing services, or fulfilling contracts that are, in whole or in part, directly or indirectly, paid for, financed, derived, or subsidized by, with, or from public funds, and any individual employed by any employer in connection with a subsidized project.
                “Employee influence activity”, any activity, effort, or attempt by a publicly funded employer (1) to influence one or more of its employees with respect to their supporting or opposing unionization or a labor organization that represents or seeks to represent some or all of its employees; (2) to encourage or discourage any employee from joining or refraining from joining a labor organization that represents or seeks to represent some or all of its employees; (3) to encourage or discourage any employee from forming, assisting or participating in or refraining from forming, assisting, or participating in any effort by a labor organization that represents or seeks to represent some or all of its employees, or any other form of employee self-organization or any activity in which one or more employees participate for the purpose of mutual aid or protection; or (4) to assist, encourage, discourage, or deter any effort by its employees to obtain representation by a labor organization, or any effort by a labor organization to obtain the right to represent some or all of its employees. The conduct of a meeting with one or more employees during working hours at any location, or at any time in a location where work is conducted or services performed, shall be deemed to be an employee influence activity, if such meeting is conducted for the purpose of or in connection with an employee influence activity. “Employee influence activity” does not include otherwise lawful activities in connection with addressing grievances; negotiating or administering a collective bargaining agreement; performing any action required by federal or state law or by a collective bargaining agreement; or negotiating, entering into, or carrying out any other agreement with a labor organization, not assisted, dominated, or interfered with by the employer, including but not limited to a voluntary recognition agreement with such a labor organization; informing employees, in a manner truthful and not misleading, of their rights and of the publicly funded employer’s rights and obligations under this or any other law; or obtaining legal counsel with respect to compliance with this or any other law or with respect to any legal or administrative proceeding to which the publicly funded employer is or is likely to be a party. If any applicable law permits or requires a publicly funded employer to allow, on a non-discriminatory basis, the use of bulletin boards, email, or other facilities normally used for communication with or by employees, by any employee, labor organization, group of employees, or bona fide employee organization, not assisted, dominated, or interfered with by the employer, for discussion of issues related to unionization or collective bargaining, whether in favor, opposed, or undecided; or if any applicable law permits or requires a publicly funded employer to allow, on a non-discriminatory basis, access to its facilities or property by any employee, labor organization, group of employees, or bona fide employee organization, not assisted, dominated, or interfered with by the employer, then such allowance of use or access to facilities or property shall not be deemed an employee influence activity or expenditure.
                “Employee influence expenditure”, any cost or expense made or incurred, directly or indirectly, by a publicly funded employer, where such expense is made or incurred (1) for or in connection with any employee influence activity, or for or in connection with an activity which the publicly funded employer knows or reasonably should know constitutes an employee influence activity; (2) to train managers, supervisors, or other personnel regarding methods or techniques of or related to employee influence activities; (3) to hire, retain, pay the salary of or any other compensation to, or to defray any expenses of any individual, corporation, unincorporated association, partnership, firm, consultancy or other entity, or any individual acting for or on behalf of such individual, corporation, unincorporated association, partnership, firm, consultancy, or other entity, for performing research, planning, advising, preparing, coordinating, carrying out, or engaging in employee influence activities or in connection with an employee influence activity, or for training managers, supervisors, or other employees and agents of the publicly funded employer to engage in an employee influence activity. Any cost to a publicly funded employer associated with or occasioned by employee influence expenditures, including but not limited to the pro rata share of administrative, accounting, and legal costs attributable to considering, planning, preparing, training for, carrying out, or engaging in an employee influence activity, and the pro rata share of managerial, administrative, or supervisory salaries and compensation attributable to considering, planning, preparing, training for, carrying out, or engaging in an employee influence activity, shall be deemed to be an employee influence expenditure.

“Employer,” any individual, corporation, unincorporated association, partnership, institution, trustee, trustee in bankruptcy, receiver, government agency or body, or other legal entity or association, or any director, officer, or managerial employee acting as an agent for such individual, corporation, unincorporated association, partnership, institution, trustee, trustee in bankruptcy, receiver, government agency or body, or other legal entity or association, other than the commonwealth, that employs at least one person in the commonwealth.

                “Prohibited expenditure”, any employee influence expenditure made by a publicly funded employer which is defrayed with or for which reimbursement is sought from, public funds, in whole or in part.
                “Publicly funded employer”, the commonwealth or any employer that receives public funds, whether through payment, grant, allocation, reimbursement, or subsidy, for supplying goods or services to the commonwealth, for the performance of public works pursuant to contract with the commonwealth, for or in connection with the provision of services to or on behalf of the commonwealth or its citizens, or for the performance of any contract with the commonwealth, or any employer that benefits from a subsidy in connection with any subsidized project.
                “Public funds”, the revenues of the commonwealth from whatever source derived (including but without limitation to fees and tolls charged for the use of public facilities), and any money drawn from the accounts or treasury or any special fund or trust fund of the commonwealth or any of its subordinate units and political subdivisions as provided herein, insofar as such revenues and moneys are appropriated, expended, paid over, granted, transferred, or contributed to any other person or entity for the purpose of supplying goods or services to the commonwealth, for the performance of public works pursuant to contract with the commonwealth, for or in connection with the provision of services to or on behalf of the commonwealth or its citizens, for or in connection with the performance of any contract with the commonwealth, or for or in connection with any subsidized project.

“State auditor”, the auditor of the commonwealth.
“Subsidized project”, any contract, arrangement, agreement, or development project in which the commonwealth involves itself as an owner, borrower, creditor, lender, lessor, guarantor, pledger, investor, or contributor, or in connection with which the commonwealth grants any form of tax accommodation or other subsidy as a component of such contract, arrangement, agreement, or development project.

“Subsidy,” any funds or resources, including the value of any credit, good-will, or tax accommodation contributed or extended by the commonwealth, directly or indirectly, in connection with a subsidized project.

Whenever the word “he” or “his” appears herein in reference to an official or individual, it shall mean “he or she” or “his or her”, as the case may be.
(c) The commonwealth shall not engage in any employee influence activity or make any prohibited expenditure. Notwithstanding any other provision of law, it shall be unlawful for a publicly funded employer to make any prohibited expenditure. The commonwealth shall not appropriate, pay, grant, or transfer public funds, or, with public funds, reimburse a vendor, supplier, grantee, contractor, or any other individual or entity, or contribute a subsidy in connection with any subsidized project, to defray costs arising from any employee influence activity. As a condition of receiving public funds or benefiting from a subsidy, a publicly funded employer other than the commonwealth shall certify to the commonwealth that it shall not make prohibited expenditures and that it shall otherwise comply with all requirements of this section. Nothing in this section shall be interpreted to limit in any way the right of a publicly funded employer other than the commonwealth to express any views to its employees or others, or to take any otherwise lawful action in the nature of an employee influence activity, so long as such expression is made or action conducted without utilizing public funds.

                (d) Publicly funded employers other than the commonwealth shall maintain records sufficient to show that no reimbursement is sought for employee influence expenditures, and that no public funds are, have been, or will be used for prohibited expenditures. Nothing in this section requires that such records be maintained in any particular form. Such records shall be made available for inspection to the state auditor or to the attorney general within ten business days of receipt of a request from the state auditor or the attorney general. The publicly funded employer shall certify the validity and accuracy of such records on request of the state auditor or the attorney general, or on the motion of any party to a civil action as provided in subsection (g).
                (e) Any citizen or taxpayer of the commonwealth who complains that a publicly funded employer has made or is making a prohibited expenditure may request the state auditor to investigate the matter. The state auditor shall commence an investigation if, in his opinion, the complainant’s allegations and supporting evidence, if accepted as true, provide reasonable cause to believe a violation of this section has occurred, is occurring, or is likely to occur. The state auditor shall issue reasonable regulations concerning the receipt and processing of complaints and investigations hereunder, which regulations shall, at a minimum, provide for prompt notice to the publicly funded employer against whom a complaint has been lodged or an investigation commenced, and for consultation with, receipt of evidence from, and opportunity to be heard by the complainant, the publicly funded employer, and any other party whom the state auditor believes has or may have relevant evidence or information in the matter. Within forty-five days, the state auditor shall prepare and deliver a report summarizing his investigations, findings, and conclusions to the complainant, the publicly funded employer, and the attorney general.
                (f) The attorney general shall promptly review the state auditor’s report and conduct such further investigation as he deems appropriate, on notice to the complainant and the publicly funded employer. The attorney general shall attempt to resolve the matter by agreement of the parties, provided that, if the attorney general has reasonable cause to believe that a prohibited expenditure was made or that prohibited expenditures continue to be made by a publicly funded employer other than the commonwealth, he shall require as a condition of any such resolution the cessation of prohibited expenditures and such restitution to the commonwealth as he in his reasonable discretion shall deem appropriate. The attorney general shall issue reasonable regulations pertaining to the procedures his office shall follow under this section.

(g) Where it is alleged that a publicly funded employer has engaged in a prohibited expenditure, a civil action for violation of this section may be brought in the superior court within three years of the alleged prohibited expenditure. If the attorney general is unable to bring about a resolution of a matter as provided in the preceding subsection (f), the attorney general may commence a civil action. If within forty-five days of receipt of the state auditor’s report, the attorney general does not initiate a civil action in regard to a complaint, the complainant or any other citizen or taxpayer of the commonwealth may commence a civil action under this section. If at any time thereafter the attorney general commences an action under this section, the right of the citizen or taxpayer to proceed with his separate action shall terminate. In this event, the citizen or taxpayer may, in the court’s discretion and for the assistance of the court, appear and participate in any proceedings connected with the attorney general’s action.
(h) For a violation of this section, the court shall order a publicly funded employer other than the commonwealth to cease and desist from such action and to reimburse the commonwealth in the amount of any prohibited expenditures plus interest, and an equal amount as liquidated damages. If the court finds that such publicly funded employer knowingly and willfully violated this section, it may order the publicly funded employer to pay, in addition to the above remedies, an additional sum equal to the amount of any prohibited expenditures plus interest. The court shall provide such other and further relief, legal and equitable, as shall in its discretion seem just and appropriate. Any monies recovered in an action under this section shall be deposited in the state treasury or, if the prohibited expenditure was made with funds derived from a political subdivision or independent authority or instrumentality of the commonwealth, in the appropriate account of such subdivision, authority, or instrumentality; provided that a plaintiff other than the attorney general in an action that results in a finding of a violation of this section may recover reasonable costs and attorneys fees. A citizen or taxpayer who commences an action later superseded by an action brought by the attorney general that results in a finding of a violation of this section may recover reasonable costs and attorneys fees incurred prior to the initiation of the attorney general’s action. For a violation of this section by the commonwealth, the court shall restrain any continuing violations, order the responsible parties to cease and desist from such violations, and provide for such other and further relief, legal and equitable, as the court in its discretion shall deem just and appropriate. If the court finds that an individual or individuals acting on behalf of or with the apparent authority of the commonwealth engaged in a knowing and willful violation of this section, it may in its discretion order the individual or individuals responsible to make restitution to the commonwealth of such portion of the amount of any prohibited expenditures as the court shall deem appropriate.

(i) The superior court shall have jurisdiction to restrain and enjoin violations of this section. If in an action under this section, the court finds that prohibited expenditures are occurring or are likely to occur or to continue to occur unless restrained, the court may grant temporary, preliminary, or permanent injunctive relief to prevent such prohibited expenditures. An action under this section shall not be deemed to concern, involve, or grow out of a labor dispute within the meaning of section twenty C of chapter one hundred and forty-nine or any other provision of law; and the provisions of section twenty-four of chapter one hundred and forty-nine, and section six of chapter two hundred and fourteen shall not apply to any proceeding under this section.

(j) In any action under this section, it shall be presumed that any expenditures in connection with an employee influence activity are prohibited expenditures, unless the publicly funded employer establishes by a preponderance of the evidence that, prior to engaging in such activity, the publicly funded employer made reasonable efforts to segregate its public funds from other revenue sources, and that the costs associated with such employee influence activity were entirely defrayed from revenues other than any public funds of which the publicly funded employer is a recipient, grantee, payee, or beneficiary. If a publicly funded employer commingles public funds and other revenue sources, any prohibited expenditure made by it shall be presumed to derive pro rata from public funds.
(k) Subsections (c), (d), (e), (f), (g), (h), (i), and (j) of this section shall not apply to expenditures, contracts, grants, or subsidies made prior to its effective date, unless such expenditures, contracts, grants, or subsidies were continued, extended, renewed, or modified after said effective date.

SECTION 2. If any section, subsection, sentence, clause, or phrase of this Act or of section fifty-six of chapter seven of the General Laws as amended by this Act, or any application of same, is held to be unconstitutional or invalid under the constitution and laws of the United States or of the state of Massachusetts by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions or other applications of this Act or of the said section fifty-six as amended. It is hereby declared that this Act and section fifty-six of chapter seven of the General Laws as amended by this Act, and each and every section, subsection, sentence, clause, or phrase therein not declared unconstitutional or otherwise invalid would have been passed without regard to whether any portion or application of the Act or the said section fifty-six as amended would subsequently be declared unconstitutional or otherwise invalid.