(a) Grounds.--Within 40 days of transmission of notice under section 4,¹ any nonmember may challenge the fee based upon:

(b) Procedure.--Any objection under subsection (a) shall be made in writing to the exclusive representative and shall state whether the objection is made on the grounds set forth in subsection (a).

(c) Challenge to propriety of fee.--If a challenge is made under subsection (a)(1), the challenge shall be resolved, along with all similar challenges, by an impartial arbitrator, paid for by the exclusive representative and selected by the American Arbitration Association or the Federal Mediation and Conciliation Service pursuant to the Rules for Impartial Determination of Union Fees promulgated by the American Arbitration Association. This subsection does not preclude a constitutional challenge being filed in a court of competent jurisdiction.

(d) Challenge based upon religious grounds.--If a challenge is made under subsection (a)(2), the objector shall provide the exclusive representative with verification that the challenge is based on bona fide religious grounds. If the exclusive representative accepts the verification, the challenging nonmember shall pay the equivalent of the fair share fee to a nonreligious charity agreed upon by the nonmember and the exclusive representative. If the exclusive representative rejects the verification because it is not based on bona fide religious grounds, the challenging nonmember may challenge that determination within 40 days from receipt of notification.

(e) Escrow account.--If a challenge is made under subsection (a), the exclusive representative shall place each challenged fair share fee into an interest-bearing escrow account until the challenge is resolved by an arbitrator.