Amends and adds to existing law to establish provisions regarding the prohibition of taxpayer funding of government unions.

LEGISLATURE OF THE STATE OF IDAHO Sixty-eighth Legislature Second Regular Session - 2026 IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 601 BY COMMERCE AND HUMAN RESOURCES COMMITTEE AN ACT1 RELATING TO COLLECTIVE BARGAINING; AMENDING TITLE 44, IDAHO CODE, BY THE2 ADDITION OF A NEW CHAPTER 28, TITLE 44, IDAHO CODE, TO PROVIDE A DECLA-3 RATION OF POLICY, TO DEFINE TERMS, TO ESTABLISH PROVISIONS REGARDING4 THE PROHIBITION OF TAXPAYER FUNDING OF GOVERNMENT UNIONS, TO PROVIDE5 FOR ENFORCEMENT AND PENALTIES, AND TO PROVIDE FOR APPLICATION; AMENDING6 SECTION 33-513, IDAHO CODE, TO REMOVE A PROVISION REGARDING ATTEN-7 DANCE AT CERTAIN MEETINGS OF THE STATE TEACHERS ASSOCIATION AND TO MAKE8 TECHNICAL CORRECTIONS; AMENDING SECTION 33-1271, IDAHO CODE, TO RE-9 VISE PROVISIONS REGARDING SCHOOL DISTRICTS, PROFESSIONAL EMPLOYEES,10 AND NEGOTIATION AGREEMENTS; AMENDING SECTION 33-1275, IDAHO CODE, TO11 PROHIBIT TAXPAYER FUNDING OF LOCAL EDUCATION ORGANIZATIONS; PROVIDING12 SEVERABILITY; PROVIDING APPLICABILITY; AND DECLARING AN EMERGENCY AND13 PROVIDING AN EFFECTIVE DATE.14

Be It Enacted by the Legislature of the State of Idaho:15

SECTION 1. That Title 44, Idaho Code, be, and the same is hereby amended16 by the addition thereto of a NEW CHAPTER, to be known and designated as Chap-17 ter 28, Title 44, Idaho Code, and to read as follows:18 CHAPTER 2819 GOVERNMENT UNIONS20 44-2801. DECLARATION OF POLICY. The legislature of the state of Idaho21 finds and declares that:22 (1) Public employees are free to form and join membership organiza-23 tions, professional associations, labor unions, or similar organizations of24 their own choosing to advance their mutual interests.25 (2) Unlike private sector labor relations, collective bargaining be-26 tween government entities and labor unions representing public employees is27 an inherently political process with significant implications for the size,28 cost, operations, transparency, and accountability of government.29 (3) The operation of state and local government in Idaho is to be deter-30 mined by the people through their elected representatives rather than by un-31 elected private interests, and therefore, no public employer should autho-32 rize or engage in collective bargaining with labor organizations represent-33 ing government employees unless the legislature finds collective bargaining34 in that instance to be in the public interest and expressly authorizes it by35 statute.36 (4) To advance the existing policy of the state of Idaho that special37 interests be prevented from unduly influencing governmental action and that38 governmental functions and policies reflect, to the maximum extent possi-39 ble, the public interest, public funds and taxpayer-funded facilities, sys-40

2 tems, and resources should not be used to preferentially aid or subsidize,1 directly or indirectly, the operations or advocacy of government unions.2 44-2802. DEFINITIONS. As used in this chapter:3 (1) "Affiliate" means any membership organization affiliated with a4 government union or with which a government union is affiliated.5 (2) "Collective bargaining agreement" means:6 (a) A written agreement negotiated between a public employer and gov-7 ernment union that addresses public employee compensation, benefits,8 or other terms or conditions of employment; or9 (b) A negotiated agreement governed by sections 33-1271 through10 33-1276, Idaho Code.11 (3) "Government union" means:12 (a) An organization of any kind, agency, or employee representation13 committee or union that exists for the purpose, in whole or in part, of14 dealing with public employers concerning public employee compensation,15 benefits, or other terms or conditions of employment; or16 (b) A local education organization as defined in section 33-1272, Idaho17 Code.18 (4) "Government union activities" means activities undertaken at the19 direction of, on behalf of, or to advance the purposes of a government union20 or its affiliate by:21 (a) Supporting or opposing any candidate for federal, state, or local22 public office;23 (b) Influencing the passage or defeat of any federal or state legisla-24 tion, federal or state regulation, local ordinance, or any ballot mea-25 sure;26 (c) Promoting or soliciting membership or participation in, or finan-27 cial support of, a government union or its affiliate;28 (d) Seeking to become the exclusive representative of a unit of public29 employees for the purposes of collective bargaining;30 (e) Participating in the administration, business, or internal gover-31 nance of a government union or its affiliate;32 (f) Preparing, conducting, or attending government union or affili-33 ate events, conferences, conventions, meetings, or trainings, unless34 such training is directly related to the performance of public employ-35 ees' job duties;36 (g) Distributing government union or affiliate communications;37 (h) Representing or speaking on behalf of a government union or its af-38 filiate in any setting, venue, or procedure in which the public employer39 is not a participant;40 (i) Preparing, filing, or pursuing grievances;41 (j) Representing public employees in investigatory interviews, disci-42 plinary proceedings, or appeals, up to and including termination, or43 other administrative or legal proceedings;44 (k) Engaging in collective bargaining and any related mediation or ar-45 bitration;46 (l) Administering a collective bargaining agreement; or47 (m) Participating in labor-management committees.48 (5) "Public employee" means:49

3 (a) An employee of a public employer; or1 (b) A professional employee as defined in section 33-1272, Idaho Code.2 (6)(a) "Public employer" means:3 (i) The state of Idaho or an agency, commission, or other govern-4 mental body of the state; or5 (ii) A county, municipality, school district, including a spe-6 cially chartered district, highway district, planning and zoning7 commission, or any other political subdivision or local govern-8 mental body of the state of Idaho.9 (b) "Public employer" does not include:10 (i) A corporate authority as defined in section 44-1801, Idaho11 Code; or12 (ii) A city that is governed by title 50, Idaho Code.13 (7) "Representational activities" means those activities specified in14 subsection (4)(i) through (m) of this section.15 44-2803. TAXPAYER FUNDING OF GOVERNMENT UNIONS PROHIBITED. (1) No16 public employer, its agents, or representatives may use or authorize the use17 of taxpayer funds to promote government unions by:18 (a) Deducting dues, fees, assessments, fines, or contributions from19 the pay of a public employee on behalf of a government union or its af-20 filiate;21 (b) Increasing a public employee's compensation with the intent that22 the additional compensation, or a part of it, be used to pay government23 union or affiliate dues, fees, assessments, fines, or contributions;24 (c) Providing more personal or contact information of a public employee25 to a government union or its affiliate than the public employer is re-26 quired to disclose pursuant to chapter 1, title 74, Idaho Code, unless27 the public employer receives written authorization from the public em-28 ployee to disclose additional information;29 (d) Requiring or coercing a public employee to meet, communicate, lis-30 ten to, or otherwise interact with a government union or its affiliate;31 (e) Distributing communications or membership solicitations on behalf32 of a government union or its affiliate;33 (f) Contributing public funds to, or expending public funds on behalf34 of, a government union or its affiliate; or35 (g) Except as provided by sections 33-1216 and 33-1279, Idaho Code, and36 except as otherwise provided by this section, providing any form of com-37 pensation or paid leave to a public employee, directly or indirectly,38 for the purpose of engaging in government union activities.39 (2) If provided by a collective bargaining agreement between a public40 employer and a government union:41 (a) A public employee may be granted time off without pay or benefits to42 engage in government union activities, and a government union may com-43 pensate a public employee for engaging in government union activities.44 (b) A public employee may use compensated personal leave, whether the45 public employee's own leave or leave voluntarily donated by other pub-46 lic employees, to engage in government union activities if:47

4 (i) The leave is accrued at the same rate by similarly situated1 public employees of the public employer without regard to member-2 ship or participation in a government union; and3 (ii) The public employee may freely choose how to use the leave.4 (c) A public employee may engage in representational activities while5 in a duty status without loss of pay or benefits if:6 (i) The government union reports to the public employer no less7 than twice per calendar year the amount of time, in increments8 rounded to the nearest quarter of an hour, spent on representa-9 tional activities each day by each public employee engaged in10 representational activities;11 (ii) The public employer calculates the pro rata value of compen-12 sation, including wages and benefits, paid or accruing to a pub-13 lic employee for time spent engaged in representational activi-14 ties and provides an invoice to the government union no less than15 twice per calendar year for the amounts so calculated; and16 (iii) Upon receipt of the invoice from the public employer, the17 government union remits full payment to the public employer within18 thirty (30) days.19 44-2804. ENFORCEMENT AND PENALTIES.20 (1)(a) A person who violates the provisions of section 44-2803, Idaho21 Code, shall be subject to a civil penalty not to exceed two hundred and22 fifty dollars ($250).23 (b) A person who knowingly violates the provisions of section 44-2803,24 Idaho Code, shall be subject to a civil penalty not to exceed one thou-25 sand five hundred dollars ($1,500).26 (c) A person who knowingly violates the provisions of section 44-2803,27 Idaho Code, and who has previously admitted to committing or has been28 previously determined to have committed a violation pursuant to para-29 graph (b) of this subsection shall be subject to a civil penalty not to30 exceed two thousand five hundred dollars ($2,500).31 (2) The attorney general or appropriate county prosecutor shall inves-32 tigate complaints regarding the violation of a provision of section 44-2803,33 Idaho Code, and shall ensure the effective enforcement of this section.34 44-2805. APPLICATION. Nothing in section 44-2803, Idaho Code, shall35 be construed to:36 (1) Authorize a public employer, who does not independently possess37 such authority, to engage in collective bargaining with a government union.38 (2) Limit the right of firefighters to collectively bargain as provided39 by chapter 18, title 44, Idaho Code.40 (3) Limit any right a city may possess to authorize and engage in col-41 lective bargaining pursuant to the provisions of title 50, Idaho Code.42 (4) Require a public employer to take actions that would violate the43 provisions of 49 U.S.C. 5333(b) or jeopardize its continued eligibility to44 receive federal transit administration funding.45

SECTION 2. That Section 33-513, Idaho Code, be, and the same is hereby46 amended to read as follows:47

5 33-513. PROFESSIONAL PERSONNEL. The board of trustees of each school1 district, including any specially chartered district, shall have the fol-2 lowing powers and duties:3 1. (1) To employ professional personnel, on written contract in a form4 approved by the state superintendent of public instruction, conditioned5 upon on a valid certificate being held by such professional personnel at the6 time of entering upon the duties thereunder. Should the board of trustees7 fail to enter into written contract for the employment of any such person,8 the state superintendent of public instruction shall withhold ensuing ap-9 portionments until such written contract be is entered into. When the board10 of trustees has delivered a proposed contract for the next ensuing year to11 any such person, such person shall have a period of time to be determined by12 the board of trustees in its discretion, but in no event less than ten (10)13 calendar days from the date the contract is delivered, in which to sign the14 contract and return it to the board. If the board of trustees does not make a15 determination as to how long the person has to sign and return the contract,16 the default time limit shall be twenty-one (21) calendar days after the con-17 tract is delivered to the person. Delivery of a contract may be made only18 in person or by certified mail, return receipt requested or electronically,19 return receipt requested. When delivery is made in person, delivery of the20 contract must be acknowledged by a signed receipt. When delivery is made21 by certified mail or electronically, delivery must be acknowledged by the22 return of the certified mail receipt or return electronic receipt from the23 person to whom the contract was sent. If the delivery is made electroni-24 cally, with return electronic receipt, and the district has not received a25 return of a signed contract and has not received an electronic read receipt26 from the employee, the district shall then resend the original electroni-27 cally delivered contract to the employee via certified mail, return receipt28 requested, and provide such individual with a new date for contract return.29 Should the person willfully refuse to acknowledge receipt of the contract or30 the contract is not signed and returned to the board in the designated period31 of time or if no designated period of time is set by the board, the default32 time, the board or its designee may declare the position vacant.33 (a) The board of trustees shall withhold the salary of any teacher who34 does not hold a teaching certificate valid in this state. It shall not35 contract to require any teacher to make up time spent in attending any36 meeting called by the state board of education or by the state superin-37 tendent of public instruction; nor while attending regularly scheduled38 official meetings of the state teachers association.39 (b) No contract shall be issued for the next ensuing year until such40 time as the employee's formal written performance evaluation has been41 completed.42 (c) If applicable student data relating to Idaho's standards achieve-43 ment test has not been received by the district within thirty (30) days44 of the deadline to complete the formal written performance evaluation45 for district employees, the school district or charter school shall46 utilize one (1) of the other objective measures of growth in student47 achievement as determined by the board of trustees or governing board,48 not including Idaho's standards achievement test, in order to complete49 the required student achievement component of performance evaluations.50

6 2. (2) In the case of school districts other than elementary school1 districts, to employ a superintendent of schools for a term not to exceed2 three (3) years, who shall be the executive officer of the board of trustees3 with such powers and duties as the board may prescribe. The superintendent4 shall also act as the authorized representative of the district whenever5 such is required, unless some other person shall be named by the board of6 trustees to act as its authorized representative. The board of trustees7 shall conduct an annual, written formal evaluation of the work of the su-8 perintendent of the district to be completed no later than June 1. The9 evaluation shall indicate the strengths and weaknesses of the superinten-10 dent's job performance in the year immediately preceding the evaluation and11 areas where improvement in the superintendent's job performance, in the view12 of the board of trustees, is called for.13 3. (3) To employ through written contract principals who shall hold a14 valid certificate appropriate to the position for which they are employed,15 who shall supervise the operation and management of the school in accordance16 with the policies established by the board of trustees and who shall be under17 the supervision of the superintendent.18 4. (4) To employ assistant superintendents and principals for a term19 not to exceed two (2) years. Service performed under such contract shall20 be included in meeting the provisions of section 33-515, Idaho Code, as a21 teacher and persons eligible for a renewable contract as a teacher shall re-22 tain such eligibility. The superintendent, the superintendent's designee,23 or in a school district that does not employ a superintendent, the board24 of trustees, shall conduct an annual, written evaluation of each such em-25 ployee's performance to be completed no later than June 1.26 5. (5) To suspend, grant leave of absence, place on probation or dis-27 charge certificated professional personnel for a material violation of any28 lawful rules or regulations of the board of trustees or of the state board of29 education, or for any conduct which that could constitute grounds for revo-30 cation of a teaching certificate. Any certificated professional employee,31 except the superintendent, may be discharged during a contract term under32 the following procedures:33 (a) The superintendent or any other duly authorized administrative of-34 ficer of the school district may recommend the discharge of any certifi-35 cated employee by filing with the board of trustees written notice spec-36 ifying the alleged reasons for discharge.37 (b) Upon receipt of such notice, the board, acting through its duly38 authorized administrative official, shall give the affected employee39 written notice of the allegations and the recommendation of discharge,40 along with written notice of a hearing before the board prior to any de-41 termination by the board of the truth of the allegations.42 (c) The hearing shall be scheduled to take place not less than six (6)43 days nor more than twenty-one (21) days after receipt of the notice by44 the employee. The date provided for the hearing may be changed by mutual45 consent.46 (d) The hearing shall be public unless the employee requests in writing47 that it be in executive session.48

7 (e) All testimony at the hearing shall be given under oath or affirma-1 tion. Any member of the board, or the clerk of the board, may administer2 oaths to witnesses or affirmations by witnesses.3 (f) The employee may be represented by legal counsel and/or by a repre-4 sentative of a local or state teachers association.5 (g) The chairman of the board or the designee of the chairman shall con-6 duct the hearing.7 (h) The board shall cause an electronic record of the hearing to be made8 or shall employ a competent reporter to take stenographic or stenotype9 notes of all the testimony at the hearing. A transcript of the hearing10 shall be provided at cost by the board upon request of the employee.11 (i) At the hearing, the superintendent or other duly authorized admin-12 istrative officer shall present evidence to substantiate the allega-13 tions contained in such notice.14 (j) The employee may produce evidence to refute the allegations. Any15 witness presented by the superintendent or by the employee shall be sub-16 ject to cross-examination. The board may also examine witnesses and be17 represented by counsel.18 (k) The affected employee may file written briefs and arguments with19 the board within three (3) days after the close of the hearing or such20 other time as may be agreed upon on by the affected employee and the21 board.22 (l) Within fifteen (15) days following the close of the hearing, the23 board shall determine and, acting through its duly authorized adminis-24 trative official, shall notify the employee in writing whether the evi-25 dence presented at the hearing established the truth of the allegations26 and whether the employee is to be retained, immediately discharged, or27 discharged upon termination of the current contract.28 (m) If the employee appeals the decision of the board of trustees to29 the district court, the district court may affirm the board's decision30 or set it aside and remand the matter to the board of trustees upon on31 the following grounds and shall not set the same aside for any other32 grounds:33 (i) That the findings of fact are not based upon on any substan-34 tial, competent evidence;35 (ii) That the board of trustees has acted without jurisdiction or36 in excess of its authority; or37 (iii) That the findings by the board of trustees as a matter of law38 do not support the decision.39 (n) The determination of the board of trustees shall be affirmed unless40 the court finds that the action of the board of trustees was:41 (i) In violation of constitutional or statutory provisions;42 (ii) In excess of the statutory authority of the board;43 (iii) Made upon on unlawful procedure; or44 (iv) Arbitrary, capricious or an abuse of discretion.45 (o) Record augmentation on appeal:46 (i) If, before the date set for any hearing at the district court,47 application is made to the court for leave to present additional48 evidence and it is shown to the satisfaction of the court that the49 additional evidence is material, relates to the validity of the50

8 board action and that there was good cause for failure to present1 it in the proceeding before the board, then the court may remand2 the matter to the board with direction that the board receive addi-3 tional evidence and conduct additional fact-finding;4 (ii) Any party desiring to augment the transcript or record may5 file a motion in the same manner and pursuant to the same procedure6 for augmentation of the record in appeals to the supreme court; and7 (iii) The board may modify its action by reason of the additional8 evidence and shall file any modifications, new findings or deci-9 sions with the reviewing court.10 6. (6) To grant an employee's request for voluntary leave of absence.11 The board of trustees may delegate ongoing authority to grant an employee's12 request for voluntary leave of absence to the district's superintendent or13 other designee. Upon the superintendent or designee's granting of an em-14 ployee's request for voluntary leave of absence, the board shall ratify or15 nullify the action at the next regularly scheduled board meeting.16 7. (7) To delegate to the superintendent or other designee the ongo-17 ing authority to place any employee on a period of involuntary leave of ab-18 sence should the superintendent or designee believe that such action is in19 the best interest of the district. Upon the superintendent or designee's ac-20 tion to place a certificated employee on a period of involuntary leave of ab-21 sence, the board shall ratify or nullify the action of the superintendent or22 designee at the next regularly scheduled meeting of the board or at a special23 meeting of the board should the next regularly scheduled meeting of the board24 not be within a period of twenty-one (21) days from the date of the action.25 (a) Where there is a criminal court order preventing the certificated26 employee from being in the presence of minors or students, preventing27 the employee from being in the presence of any other adult individual28 employed at the school or detaining the employee in prison or jail, the29 certificated employee's involuntary leave of absence shall be without30 pay due to the certificated employee's inability to perform the essen-31 tial functions of the employee's position. Without such a condition or32 situation, the involuntary leave of absence shall be with pay.33 (i) During the period of involuntary leave of absence without34 pay, the salary of the certificated employee will be maintained35 in a district-managed account. Should the certificated employee36 return to the district for active employment subsequent to the37 removal or dismissal of the court order, acquittal or adjudication38 of innocence, the district shall remit the salary funds, less the39 cost incurred by the district for the substitute hired to replace40 the certificated employee. Further, should the certificated em-41 ployee return to the district under the provisions established42 in this subsection, the district shall arrange to have the cer-43 tificated employee credited with the public employee retirement44 system of Idaho (PERSI) for the certificated employee's time away45 from work during the period of leave of absence.46 (ii) During the period of involuntary leave of absence, the dis-47 trict shall continue to pay the district's portion of monthly48 costs associated with the certificated employee's health insur-49 ance benefits. The assumption of this payment by the district50

9 shall not alter the certificated employee's financial obliga-1 tions, if any, under the policy.2 (b) Should there be dual court orders preventing more than one (1) em-3 ployee from being in the presence of one (1) or more other employees, all4 employees subject to the court order shall be excluded from the school5 pursuant to subsection 7.(a) of this section paragraph (a) of this sub-6 section.7 (c) If the period of involuntary leave of absence is due to the dis-8 trict's need to conduct an investigation into the conduct of the cer-9 tificated employee, and there are no related criminal investigation(s)10 and/or investigations or criminal charges of any nature pending, the11 administration shall complete its investigation within a period of12 sixty (60) working days. On or before the sixtieth working day, the13 administrative leave shall either cease and the certificated employee14 shall be returned to his position of employment or the administration15 shall advance a personnel recommendation to the board of trustees. If16 a recommendation is advanced, the involuntary leave of absence shall17 continue until such time as the district board has made its decision in18 regard to the personnel recommendation with such decision effectively19 concluding the involuntary leave of absence. If a related criminal20 investigation is occurring and/or or criminal charges are pending, the21 district shall not be bound to any limitation as to the duration of in-22 voluntary leave of absence. The timelines established in this section23 may be waived or modified by mutual agreement.24

SECTION 3. That Section 33-1271, Idaho Code, be, and the same is hereby25 amended to read as follows:26 33-1271. SCHOOL DISTRICTS -- PROFESSIONAL EMPLOYEES -- NEGOTIATION27 AGREEMENTS. (1) The board of trustees of each school district, includ-28 ing specially chartered districts, or the designated representative(s)29 representatives of such district, is hereby empowered to and shall, upon30 its own initiative or upon the request of a local education organization31 representing a majority of the professional employees, enter into a nego-32 tiation agreement with the local education organization or the designated33 representative(s) representatives of such organization.34 (1) (2) The parties to such negotiations shall negotiate in good faith35 on those matters specified in any such negotiation agreement between the lo-36 cal board of trustees and the local education organization, unless otherwise37 prohibited by section 44-2803, Idaho Code, or any other applicable law.38 (2) (3) A request for negotiations may be initiated by either party to39 such negotiation agreement.40 (3) (4) Upon either party making a request for negotiations, the lo-41 cal education organization, upon board request, shall provide to the dis-42 trict written evidence establishing that the local education organization43 represents fifty percent (50%) plus one (1) of the professional employees44 for negotiations. If requested by the board, the local education organiza-45 tion shall establish this representative status on an annual basis, prior to46 the commencement of negotiations. In order to establish a local education47 organization's representative status, a local education organization must48 show that within the last two (2) years, fifty percent (50%) plus one (1) of49

10 the professional employees, as defined in section 33-1272, Idaho Code, in-1 dicated agreement to be represented by the local education organization for2 negotiation purposes. Evidence of fifty percent (50%) plus one (1) incon-3 sistent with this provision shall not be counted in the establishment of rep-4 resentative status.5 (4) (5) Accurate records or minutes of the proceedings shall be kept and6 shall be available for public inspection at the office of the affected school7 district during normal business hours.8 (5) (6) Joint ratification of all final offers of settlement shall be9 made in open meetings. Each party must provide written evidence confirming10 to the other that majority ratification has occurred.11

SECTION 4. That Section 33-1275, Idaho Code, be, and the same is hereby12 amended to read as follows:13 33-1275. TERMS OF AGREEMENTS. (1) All agreements, by any name or ti-14 tle, entered into pursuant to the provisions of this act, shall have a one15 (1) year duration of July 1 through June 30 of the ensuing fiscal year. The16 parties shall not have the authority to enter into any agreement negotiated17 under the provisions of this act that has any term that allows for such agree-18 ment or any provision of such agreement to be in any force or effect for mul-19 tiple years or indefinitely, or otherwise does not expire on its own terms on20 or before June 30 of the ensuing fiscal year.21 (2) Notwithstanding the provisions of subsection (1) of this section,22 upon mutual ratification, any item other than compensation and benefits as23 defined in subsection (3) of this section of any agreement entered into pur-24 suant to this act may have a nonrolling two (2) year duration with a desig-25 nated start date and end date. A second year term for any item not defined in26 subsection (3) of this section cannot be added, automatically or by mutual27 consent, back into the agreement after the expiration of the first year but28 rather may be addressed by the parties at the expiration of the end date of29 the two (2) year term.30 (3) For purposes of this section, "compensation" means salary and ben-31 efits for professional employees. "Benefits" means employee insurance,32 leave time and sick leave benefits.33 (4) No agreement by any name or title that is entered into pursuant to34 the provisions of this section or otherwise may require or permit a school35 district, including specially chartered districts, to use taxpayer funding36 to promote a local education organization or its affiliate in a manner pro-37 hibited by section 44-2803, Idaho Code. Any provision of an agreement in vi-38 olation of this subsection shall be null and void, contrary to public policy,39 and of no legal force or effect.40

SECTION 5. SEVERABILITY. The provisions of this act are hereby declared41 to be severable and if any provision of this act or the application of such42 provision to any person or circumstance is declared invalid for any reason,43 such declaration shall not affect the validity of the remaining portions of44 this act.45

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SECTION 6. APPLICABILITY. The provisions of this act shall apply to all1 contracts entered into or amended on or after July 1, 2026, and shall apply to2 any renewal or extension of any existing contract on or after that date.3

SECTION 7. An emergency existing therefor, which emergency is hereby4 declared to exist, this act shall be in full force and effect on and after5 July 1, 2026.6