By Oakley                                             H.B. No. 1412
       74R835 PEP-F
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to certain fire and police arbitration procedures.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Subchapter E, Chapter 174, Local Government Code,
    1-5  is amended by adding Section 174.1501 to read as follows:
    1-6        Sec. 174.1501.  DEFINITION.  In this subchapter, "last best
    1-7  offer" means the terms and offers contained in a party's
    1-8  arbitration statement under Section 174.156(b).
    1-9        SECTION 2.  Section 174.156(b), Local Government Code, is
   1-10  amended to read as follows:
   1-11        (b)  Not later than the seventh day before the date of the
   1-12  hearing, each party shall submit to the other party and to the
   1-13  arbitration board a written statement, intended to be that party's
   1-14  last best offer, listing:
   1-15              (1)  all resolved contract terms;
   1-16              (2)  all unresolved contract terms; and
   1-17              (3)  the party's final offer on the unresolved contract
   1-18  issues <An arbitration board shall render an award in accordance
   1-19  with the requirements of Section 174.021.  In settling disputes
   1-20  relating to compensation, hours, and other conditions of
   1-21  employment, the board shall consider:>
   1-22              <(1)  hazards of employment;>
   1-23              <(2)  physical qualifications;>
   1-24              <(3)  educational qualifications;>
    2-1              <(4)  mental qualifications;>
    2-2              <(5)  job training;>
    2-3              <(6)  skills; and>
    2-4              <(7)  other factors>.
    2-5        SECTION 3.  Section 174.158, Local Government Code, is
    2-6  amended to read as follows:
    2-7        Sec. 174.158.  ARBITRATION AWARD.  (a)  Not later than the
    2-8  seventh day after the date the hearing is concluded, a majority of
    2-9  the arbitration board members shall select one of the two last best
   2-10  offers as the contract of the parties.  The arbitration board may
   2-11  not modify the last best offer of a party <the 10th day after the
   2-12  end of the hearing, an arbitration board shall:>
   2-13              <(1)  make written findings; and>
   2-14              <(2)  render a written award on the issues presented to
   2-15  the board>.
   2-16        (b)  The board shall mail or otherwise deliver to the public
   2-17  employer and the association a copy of the selected offer <A copy
   2-18  of the findings and award shall be mailed or delivered to the
   2-19  public employer and the association>.
   2-20        (c)  An increase in compensation awarded by an arbitration
   2-21  board or by an election under this subchapter may take effect only
   2-22  at the beginning of the next fiscal year after the date of the
   2-23  award, unless <.>
   2-24        <(d)  If> a new fiscal year begins after the initiation of
   2-25  arbitration procedures under this subchapter.  If a new fiscal year
   2-26  begins after the initiation of arbitration procedures, (<Subsection
   2-27  (c) does not apply and> an increase in compensation may be
    3-1  retroactive to the beginning of the fiscal year.
    3-2        SECTION 4.  Section 174.159, Local Government Code, is
    3-3  amended to read as follows:
    3-4        Sec. 174.159.  EFFECT OF AWARD; MUNICIPAL ELECTION.  (a)  If
    3-5  the public employer's last best offer is not selected by the
    3-6  arbitration board, the public employer may request the governing
    3-7  body to submit the parties' last best offers to the voters of the
    3-8  municipality for their selection.
    3-9        (b)  In making a request for an election, the public employer
   3-10  shall:
   3-11              (1)  file the request with the clerk of the
   3-12  municipality not later than the 10th day after the date of the
   3-13  arbitration board's decision; and
   3-14              (2)  mail or otherwise deliver written notice of the
   3-15  filing to the association.
   3-16        (c)  If a request for an election is not timely filed, the
   3-17  board's decision is final, and the last best offer the board
   3-18  selected is the agreement of the parties.
   3-19        (d)  On receiving an election request under Subsection (a),
   3-20  the clerk shall notify the governing body of the request.  The
   3-21  governing body shall provide for submission of the parties' last
   3-22  best offers at the next municipal general election or at a special
   3-23  election the governing body may order for that purpose.
   3-24        (e)  The ballot for an election under Subsection (a) shall:
   3-25              (1)  inform the voters that they must choose either the
   3-26  last best offer of the public employer or the last best offer of
   3-27  the association; and
    4-1              (2)  clearly state the issues in dispute and, if a
    4-2  disputed issue concerns the public employer's financial
    4-3  obligations:
    4-4                    (A)  the total dollar amount of the offer from
    4-5  each party; and
    4-6                    (B)  the percentage of increase or decrease each
    4-7  party's offer has over or under the parties' preceding contract.
    4-8        (f)  The last best offer that receives a majority of votes
    4-9  received at the election becomes the agreement of the parties <If a
   4-10  majority decision of an arbitration board is supported by
   4-11  competent, material, and substantial evidence on the whole record,
   4-12  the decision:>
   4-13              <(1)  is final and binding on the parties; and>
   4-14              <(2)  may be enforced by either party or the
   4-15  arbitration board in a district court for the judicial district in
   4-16  which a majority of the affected employees reside>.
   4-17        SECTION 5.  The changes in law made by this Act relating to
   4-18  arbitration procedures under Subchapter E, Chapter 174, Local
   4-19  Government Code, apply only to contract negotiations begun on or
   4-20  after the effective date of this Act.  Contract negotiations that
   4-21  began before the effective date of this Act are governed by the law
   4-22  in effect when the negotiations began, and that law is continued in
   4-23  effect for that purpose.
   4-24        SECTION 6.  This Act takes effect September 1, 1995.
   4-25        SECTION 7.  The importance of this legislation and the
   4-26  crowded condition of the calendars in both houses create an
   4-27  emergency and an imperative public necessity that the
    5-1  constitutional rule requiring bills to be read on three several
    5-2  days in each house be suspended, and this rule is hereby suspended.