Document: 402 U.S. 600 91 S.Ct. 1746 29 L.Ed.2d 206 NATIONAL LABOR RELATIONS BOARD, Petitioner,v.The NATURAL GAS UTILITY DISTRICT OF HAWKINS COUNTY, TENNESSEE. No. 785. Argued April 20, 1971. Decided June 1, Syllabus In this unfair labor practice proceeding under the Labor Management Relations Act respondent contended that it was not an 'employer' but came within 'political subdivision' exemption in § 2(2) of Act. The National Board (NLRB) had found met neither tests to which held limited, viz., entities are either (1) created directly by State, so as constitute governmental departments or administrative arms, (2) administered individuals who responsible public officials general electorate. Court Appeals upheld respondent's contention, viewing controlling a Tennessee Supreme decision construing State's Utility District Law been organized. A organized statute is "municipality' corporation,' has eminent domain powers, exempt from state, county, municipal taxation, and whose income its bonds federal tax. officers conduct District's business receive nominal compensation, appointed official, subject removal statutory procedures applicable officials. Held: 1. Federal, rather than law governs determination whether entity State meaning NLRB v. Randolph Electric Membership Corp., 343 F.2d 60. Pp. 602—604. 2. While NLRB's construction term entitled great respect, there no 'warrant record' 'no reasonable basis law' for conclusion political subdivision. light all factors present here, including fact (thus meeting even one used NLRB), comes coverage exemption. 604 609. 427 312, affirmed. Dominick L. Manoli, Washington, D.C., petitioner. Eugene Greener, Jr., Memphis, Tenn., respondent. Mr. Justice BRENNAN delivered opinion Court. 1 Upon petition Plumbers Steamfitters Local 102, ordered representation election be among pipefitters employed respondent, Natural Gas Hawkins County, Tennessee, 167 N.L.R.B. 691 (1967). proceeding, objected Board's jurisdiction on sole ground Act, amended 1947, 61 Stat. 137, U.S.C. 152(2).1 When Union won certified bargaining representative pipefitters, refused comply with certification ad recognize bargain Union. An resulted entered cease-and-desist order against findings violation §§ 8(a)(1) 8(a)(5) 158(a)(1) 158(a)(5). 170 1409 (1968). Respondent continued noncompliance sought enforcement Sixth Circuit. Enforcement refused, court holding subdivision,' contended. 312 (1970). We granted certiorari, 400 990, 457, 27 L.Ed. 435 (1971). affirm. 2 Tennessee's 1937, Tenn.Code Ann. 6—2601 6—2627 (1955). First Suburban Water McCanless, 177 Tenn. 128, 146 S.W.id 948 (1941), utility district operation state purpose. 'was importance question subdivision state' binding Board.' F.2d, at 315. Board, other hand, 'while such declarations interpretations given careful consideration * *, they necessarily controlling.' N.L.R.B., 691. disagree agree Board. determination, 2(2), therefore Act.2 3 Fourth Circuit dealt 60 (1965), where determined 2(2). adopt correct what said 62—63 case: 4 'There are, course, instances application certain statutes may depend law. 5 'But controlled will Congress. absence plain indication contrary, however, assumed when Congress enacts does intend make dependent Jerome United States, 318 101, 104, 63 483, 87 640 (1943). 6 'The argument electric corporations fails persuade us intended result contend. Furthermore, ignores teachings congressional purpose enacting national laws. Hearst Publications, 322 111, 123, 64 851, 857, 88 1170 (1944), 'employee' Wagner saying: 7 "Both terms purposes statute, well legislative history, show mind patchwork plan securing freedom employees' organization collective bargaining. legislation, agency, solve problem scale. Nothing statute's background, indicates scope limited varying local conceptions, judicial, accordance whatever different standards respective states see fit ths disposition unrelated, problems.' 8 'Thus, clear actual operations characteristics (respondents) we must look deciding sufficient support subdivisions' Act.' 9 turn then identification governing defined Act's history disclose explicitly considered meaning. reveal, enacted except cognizance relations federal, governments, since govermental employees did usually enjoy right strike.3 purpose, according Brief, p. 11, 'has subdivisions arms government, electorate.' 10 broad is, respect. Electric, supra, 62. This case however require decide 'the characteristics' feature limitations qualify exemption, think face erred reading own test. Employer nor State-appointed elected officials.' 691—692 (footnotes omitted). But test 'State-appointed Rather, alternative 'administered electorate' (emphasis added), makes crystal Commissioners county judge, proceedings instance Governor, prosecutor, private citizens. Therefore, 'actual administration, 'exists essentially venture, insufficient identity relationship Tennessee,' 691, 'reasonable law.' 131, 861, (1944). 11 nearly 270 districts established 1937. Under residents create provide wide range services furnishing water, sewers, sewage disposal, police protection, fire garbage collection, street lighting, parks, recreational facilities distribution natural gas. 6—2608 (Supp. 1970). Acting 38 owners real property submitted 1957 County requesting incorporation distribute gas specified portion county. after required hearing making 'public convenience necessity requires creation district,' economically sound desirable,' 6—2604 (Supp.1970), establishing District. judge's were appealable appellate courts any party 'having interest subject-matter.' 6—2606 12 To carry out functions, only powers corporation, 6—2610 (1955), also 'all necessary requisite accomplishment created, capable being delegated legislature.' 2612 delegation includes power domain, exercise entities. 6—2611 operated nonprofit basis, declared 'a 'municipality' corporation perpetuity corporate name same shall body politic perpetual succession, without levy collect taxes.' 6—2607 (Supp.1970). revenue exempted taxes, similarly inheritance, transfer, estate taxes. 6—2626 13 records records' open inspection. 6—2615 publish annual statement newspaper circulation, showing financial condition, earnings, method setting rates. 6—2617 commissioners hear protest rates filed 30 days publication hearing, written reasonableness 6—2618 commissioners' challenged court, prescribed statute. Ibid. 14 initially appointed, persons nominated petition, official. serve four-year terms4 and, contrary finding reserves 'power remove otherwise discipline those Employer's operations,' 692, General Ouster Law, provides removing office misfeasance nonfeasance. 8—2701 et seq. (1955); 138, S.W.2d, 952. Proceedings initiated attorney general, ten 8—2708, 2709, 8—2710 vacancy occurs, judge appoints new commissioner if remaining two cannot upon replacement. 2614 large counties, vacancies filled popular election. generally empowered business. They have subpoena witnesses administer oaths investigating affairs, 6—2616(5) compensation. Plainly, beholden official their appointment, officials, 'individuals 15 circumstances, itself recognized authority weighs favor New Jersey Turnpike Authority, 33 L.R.R.M. 1528 (1954). noted exercised units. And further extremely grant Tenn.Code. 6—2612 requirement automatic 'decision' accorded users betoken private, instrumentality. compensation suggest character 16 Moreover, finds treatment Income tax, obligation 26 103. Social Security benefits provided through voluntary mandatory 42 418. 17 (the commissioners) (an judge)' together mentioned satisfies Accordingly, Appeals' judgment denying 18 Affirmed. 19 STEWART, dissenting. 20 I employer amended, 152(2). concluding 21 determining followed settled policy weighing relevant factors, particular emphasis here circumstances 'created State' officials' 'autonomous day-to-day affairs.' On side, gave less weight characterization arm taxes conferral domain. 22 approach seems wholly acceptable me, inasmuch tax attributes peculiar discernible impact relations. Attributes would implicate policy, payment wages funds restrictions strike, here. 23 points provisions available inspection, hold hearings findings. These 'betoken instrumentality.' question, instrumentality, State. hardly go issue. 24 our function weigh facts de novo displace evaluation own. made reasoned violence reverse remand instructions enforce order. Section 152(2), provides: person acting agent employer, indirectly, include States owned Government Federal Reserve Bank, thereof, association operating hospital, part net earnings inures benefit shareholder individual, Railway time time, (other employer), anyone capacity officer organization.' agrees brief Court, 13, controlling. See 78 Cong.Rec. 10351 seq.; Hearings Disputes before House Committee Labor, 74th Cong., 1st Sess., 179; 93 6441 (Sen. Taft). C. Rhyne, Unions Municipal Employee 436—437 (1946); Vogel, What About Rights Public Employee?, Lab.L.J. 604, 612—615 (1950). initial staggered, two-year term, three-year term.

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