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A BILL TO BE ENTITLED
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AN ACT
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relating to binding arbitration in collective bargaining for |
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firefighters and police officers in certain political |
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subdivisions. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 174, Local Government Code, is amended |
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by adding Subchapter E-1 to read as follows: |
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SUBCHAPTER E-1. BINDING INTEREST ARBITRATION |
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Sec. 174.181. APPLICABILITY OF SUBCHAPTER. This subchapter |
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applies to a political subdivision that employs fire fighters, |
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police officers, or both except that this subchapter does not apply |
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to: |
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(1) a political subdivision that has adopted mandatory |
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binding interest arbitration or another mechanism to resolve |
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collective bargaining impasses through a referendum, municipal |
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charter amendment, or collective bargaining agreement before |
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January 1, 2025; or |
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(2) a municipality with a population of 1.9 million or |
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more unless this subchapter is adopted in an election held in the |
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municipality for that purpose under the procedures prescribed by |
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Subchapter C. |
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Sec. 174.182. CONFLICT OF LAWS. To the extent of a conflict |
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between this subchapter and another provision of this chapter, this |
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subchapter controls. |
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Sec. 174.183. BINDING INTEREST ARBITRATION REQUIRED. (a) |
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Instead of submitting to arbitration under Subchapter E, a public |
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employer and an association that is a bargaining agent shall submit |
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to binding interest arbitration if the parties: |
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(1) reach an impasse in collective bargaining; or |
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(2) are unable to settle after the 61st day after the |
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date the appropriate lawmaking body fails to approve a contract |
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reached through collective bargaining. |
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(b) The issues to be arbitrated are all matters the parties |
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are unable to resolve through collective bargaining and mediation |
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procedures required by this chapter. |
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Sec. 174.184. NOTICE REQUIREMENTS. (a) Each party shall |
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provide to the other party a written notice specifying each issue in |
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dispute for purposes of binding interest arbitration not later than |
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the fifth day after the later of: |
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(1) the date an impasse was reached under Section |
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174.152; |
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(2) the expiration of an extension period under |
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Section 174.152; or |
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(3) the expiration of the period described by Section |
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174.183(a)(2). |
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(b) Notice provided under Subsection (a) is considered sent |
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on the date the notice is placed in the mail, personally delivered, |
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or transmitted by e-mail or any other means of electronic transfer. |
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Sec. 174.185. SELECTION OF ARBITRATOR. Not later than the |
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fifth day after the date a party provides the notice required under |
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Section 174.184, the public employer shall immediately request a |
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list of seven qualified neutral arbitrators from the American |
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Arbitration Association or the Federal Mediation and Conciliation |
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Service, or a successor in function. The bargaining agent and the |
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municipality, or their designees, may agree on one of the seven |
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arbitrators on the list. If the parties do not select an arbitrator |
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before the sixth working day after the date the parties received the |
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list, each party or the party's designee shall alternate striking a |
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name from the list and the name remaining is the arbitrator. |
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Sec. 174.186. POWERS AND DUTIES OF ARBITRATOR. (a) The |
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arbitrator shall: |
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(1) call a hearing to be: |
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(A) held not later than the 10th day after the |
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date on which the arbitrator is selected; and |
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(B) ended not later than the 20th day after the |
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date the hearing begins; and |
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(2) notify the public employer and the association in |
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writing of the time and place of the hearing, not later than the |
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eighth day before the hearing. |
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(b) The arbitrator shall render an award in accordance with |
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the requirements of Section 174.021. In settling disputes relating |
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to compensation, hours, and other conditions of employment, the |
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arbitrator shall consider: |
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(1) hazards of employment; |
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(2) physical qualifications; |
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(3) educational qualifications; |
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(4) mental qualifications; |
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(5) job training; |
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(6) skills; and |
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(7) other factors. |
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(c) The rules of evidence applicable to judicial |
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proceedings are not binding in an arbitration hearing. The |
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arbitrator may: |
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(1) receive in evidence any documentary evidence or |
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other information the arbitrator considers relevant; |
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(2) administer oaths; and |
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(3) issue subpoenas to require: |
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(A) the attendance and testimony of witnesses; |
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and |
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(B) the production of books, records, and other |
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evidence relevant to an issue presented to the arbitrator for |
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determination. |
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Sec. 174.187. AWARD. (a) Not later than the 10th day after |
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the date of the end of the hearing, the arbitrator shall: |
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(1) make written findings; and |
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(2) render a written award on the issues presented to |
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the arbitrator. |
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(b) An increase in compensation awarded by the arbitrator |
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under this subchapter may take effect only at the beginning of the |
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next fiscal year after the date of the award. |
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Sec. 174.188. EFFECT OF AWARD. If a decision of the |
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arbitrator is supported by competent, material, and substantial |
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evidence on the whole record, the decision: |
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(1) is final and binding on the parties; and |
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(2) may be enforced by either party or the arbitrator |
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in a district court for the judicial district in which a majority of |
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the affected employees reside. |
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Sec. 174.189. BEGINNING OF NEW FISCAL YEAR. If a new fiscal |
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year begins after the initiation of arbitration procedures under |
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this subchapter but before an award is rendered or enforced: |
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(1) the dispute is not moot; |
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(2) the jurisdiction of the arbitrator is not |
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impaired; and |
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(3) the arbitration award is not impaired. |
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Sec. 174.190. EXTENSION OF PERIOD. A period specified by |
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Section 174.184 or 174.185 may be extended: |
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(1) by the written agreement of the parties for a |
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reasonable period; or |
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(2) by the arbitrator for good cause for one or more |
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periods that in the aggregate do not exceed 20 days. |
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Sec. 174.191. PAYMENT OF ARBITRATOR AND EXPENSES. (a) The |
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public employer and the association representing the employees |
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shall jointly pay in even proportions: |
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(1) the compensation of the arbitrator; and |
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(2) the stenographic and other expenses incurred by |
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the arbitrator in connection with the arbitration proceedings. |
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(b) If a party to arbitration requires a transcript of the |
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arbitration proceedings, the party shall pay the cost of the |
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transcript. |
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SECTION 2. Section 174.253, Local Government Code, is |
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amended to read as follows: |
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Sec. 174.253. JUDICIAL REVIEW OF ARBITRATION AWARD. (a) An |
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award of an arbitrator [arbitration board] may be reviewed by a |
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district court in a [for the] judicial district in which the |
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municipality is located only on the grounds that: |
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(1) the arbitrator [arbitration board] was without |
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jurisdiction; |
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(2) the arbitrator [arbitration board] exceeded the |
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arbitrator's [its] jurisdiction; |
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(3) the order is not supported by competent, material, |
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and substantial evidence on the whole record; or |
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(4) the order was obtained by fraud, collusion, or |
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similar unlawful means. |
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(b) The pendency of a review proceeding does not |
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automatically stay enforcement of the arbitrator's [arbitration |
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board's] order. |
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SECTION 3. The following provisions of the Local Government |
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Code are repealed: |
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(1) Section 174.153(c); |
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(2) Sections 174.154(b) and (c); |
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(3) Section 174.163; |
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(4) Sections 174.164(a) and (b); and |
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(5) Section 174.252. |
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SECTION 4. This Act takes effect September 1, 2025. |