By: Lujan, Bumgarner, Ordaz, Manuel H.B. No. 3171       A BILL TO BE ENTITLED   AN ACT   relating to compensation and employment condition standards by   municipal charter or collective bargaining agreement and to impasse   resolution in collective bargaining with certain political   subdivisions.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 174.005, Local Government Code, is   amended to read as follows:          Sec. 174.005.  PREEMPTION OF OTHER LAW.  Except as provided   by this chapter, this [This] chapter preempts all contrary local   ordinances, executive orders, legislation, or rules adopted by the   state or by a political subdivision or agent of the state, including   a personnel board, civil service commission, or home-rule   municipality.          SECTION 2.  Section 174.022(b), Local Government Code, is   amended to read as follows:          (b)  If an arbitration award or other impasse resolution is   rendered as provided by Subchapter E or E-1, the public employer   involved is considered to be in compliance with the requirements of   Section 174.021 as to the conditions of employment provided by the   award for the duration of the collective bargaining period to which   the award applies.          SECTION 3.  The heading to Subchapter E, Chapter 174, Local   Government Code, is amended to read as follows:   SUBCHAPTER E.  MEDIATION; IMPASSE RESOLUTION [ARBITRATION]          SECTION 4.  Section 174.153(a), Local Government Code, is   amended to read as follows:          (a)  Except as provided by Sections [Section] 174.1535 and   174.165 and Subchapter E-1, a public employer or an association   that is a bargaining agent may request the appointment of an   arbitration board if:                (1)  the parties:                      (A)  reach an impasse in collective bargaining; or                      (B)  are unable to settle after the appropriate   lawmaking body fails to approve a contract reached through   collective bargaining;                (2)  the parties made every reasonable effort,   including mediation, to settle the dispute through good-faith   collective bargaining; and                (3)  the public employer or association gives written   notice to the other party, specifying the issue in dispute.          SECTION 5.  Section 174.156(b), Local Government Code, is   amended to read as follows:          (b)  Except as provided by Section 174.165 or Subchapter E-1,   an [An] arbitration board shall render an award in accordance with   the requirements of Section 174.021.  In settling disputes relating   to compensation, hours, and other conditions of employment, the   board shall consider:                (1)  hazards of employment;                (2)  physical qualifications;                (3)  educational qualifications;                (4)  mental qualifications;                (5)  job training;                (6)  skills; and                (7)  other factors.          SECTION 6.  Section 174.163, Local Government Code, is   amended to read as follows:          Sec. 174.163.  COMPULSORY ARBITRATION NOT REQUIRED;   EXCEPTIONS.  Except as provided by Section 174.165 or Subchapter   E-1, this [This] chapter does not require compulsory arbitration.          SECTION 7.  Subchapter E, Chapter 174, Local Government   Code, is amended by adding Section 174.165 to read as follows:          Sec. 174.165.  OTHER IMPASSE RESOLUTION FOR FIRE FIGHTERS   UNDER MUNICIPAL CHARTER OR COLLECTIVE BARGAINING AGREEMENT.  (a)     Except as provided by Subsection (b), this section applies only to:                (1)  except as provided by Subdivision (2), if a   municipality has a charter that provides for the resolution of an   impasse in a collective bargaining process governed by this chapter   involving a public employer of the municipality and an association   that is a bargaining agent for employees of the public employer,   that public employer and bargaining agent; or                (2)  if a collective bargaining agreement under this   chapter is in effect and provides for the resolution of an impasse   in a collective bargaining process governed by this chapter   involving a public employer of a political subdivision and an   association that is the bargaining agent for the fire fighters of   the public employer, that public employer and bargaining agent.          (b)  This section does not apply to a municipality or   association to which Subchapter E-1 applies.          (c)  A public employer and an association that is a   bargaining agent for fire fighters shall submit to the impasse   resolution mechanism contained in the charter or agreement   described by Subsection (a), as applicable, if the parties:                (1)  reach an impasse in collective bargaining; or                (2)  are unable to settle after the 61st day after the   date the appropriate lawmaking body fails to approve a contract   reached through collective bargaining.          (d)  A provision of this subchapter relating to arbitration   does not apply to the impasse resolution mechanism described by   Subsection (c), unless the charter or agreement described by   Subsection (a), as applicable, specifically provides otherwise.  To   the extent of any conflict, the charter or agreement, as   applicable, prevails over any provision of this subchapter.          SECTION 8.  Chapter 174, Local Government Code, is amended   by adding Subchapter E-1 to read as follows:   SUBCHAPTER E-1.  ARBITRATION IN CERTAIN MUNICIPALITIES          Sec. 174.181.  APPLICABILITY OF SUBCHAPTER.  This subchapter   applies only to:                (1)  a municipality with a population of more than   950,000 and less than 1,050,000; and                (2)  an association that is a bargaining agent for the   employees of a fire department of a municipality described by   Subdivision (1).          Sec. 174.182.  BINDING INTEREST ARBITRATION. (a)  A   municipality and an association that is a bargaining agent shall   submit to binding interest arbitration as provided by this   subchapter if the parties have reached an impasse as defined by   Section 174.152.          (b)  The municipality or the association that is a bargaining   agent may request arbitration after the party provides written   notice to the other party specifying the issues in dispute.          (c)  If a party requests arbitration under this section, the   parties shall submit all issues in dispute to arbitration not later   than the 45th day after the date the other party received the   requesting party's written arbitration request.          Sec. 174.183.  ARBITRATION BOARD. (a) Not later than the   fifth day after the date the original written request to arbitrate   is received, each party shall:                (1)  select one arbitrator; and                (2)  immediately notify the other party in writing of   the name and contact information of the arbitrator selected.          (b)  Not later than the 10th day after the date arbitrators   are selected under Subsection (a), the arbitrators shall attempt to   select a third, neutral arbitrator to form a three-person   arbitration board.          (c)  If the arbitrators are unable to agree on a third   arbitrator as provided by Subsection (b), the parties shall request   a nationwide list of nine qualified neutral arbitrators from the   American Arbitration Association.  The parties may agree on one of   the nine neutral arbitrators on the list.  If the parties do not   agree within five days after the date they receive the list, each   party shall alternate striking a name from the list, and the name   remaining is the third arbitrator.          (d)  The third arbitrator selected under this section   presides over the arbitration board.          (e)  A decision made by the arbitration board at any stage of   the arbitration process must be determined by majority vote of the   arbitrators on the board.          Sec. 174.184.  ARBITRATION PROCESS; JUDICIAL REVIEW.  (a)     Except as provided by this subchapter, Subchapter E does not apply   to arbitration conducted under this subchapter.  Arbitration under   this subchapter must be conducted in accordance with Sections   174.155, 174.157, 174.158, 174.159, 174.160, 174.161, 174.162, and   174.164.          (b)  An award of an arbitration board issued under this   subchapter may be reviewed by a district court in accordance with   Section 174.253.          Sec. 174.185.  ARBITRATION AWARD CONSIDERATIONS. In making   an award under this subchapter, the arbitration board may consider   only the following:                (1)  the history of collective bargaining agreements   and negotiations between the parties;                (2)  compensation and conditions of employment that   prevail in comparable public sector employment in other   municipalities;                (3)  the rate of increase or decrease in the cost of   living for the municipality's metropolitan area as determined by   the Consumer Price Index for Urban Wage Earners and Clerical   Workers (CPI-W), adjusted as necessary to account for housing and   tax costs in the metropolitan area and other relevant local   factors;                (4)  any of the following conditions of employment:                      (A)  hazards of employment;                      (B)  physical qualifications;                      (C)  educational qualifications;                      (D)  mental qualifications;                      (E)  job training;                      (F)  skills;                      (G)  employee morale; and                      (H)  any other factors with respect to a condition   of employment the arbitration board determines to be relevant to   the issues raised by the parties; and                (5)  revenues available to and contractual obligations   of the municipality and the impact of any arbitration ruling on the   taxpayers of the municipality.          SECTION 9.  (a) The change in law made by this Act validates   impasse resolution provisions provided in a municipal charter,   collective bargaining agreement, or arbitration award that are in   effect on the effective date of this Act, and applies to collective   bargaining negotiations in progress on the effective date of this   Act or started on or after the effective date of this Act.          (b)  A change in law made by this Act is not grounds to   challenge a collective bargaining agreement or arbitration award   that was entered into or awarded before the effective date of this   Act.          SECTION 10.  This Act takes effect immediately if it   receives a vote of two-thirds of all the members elected to each   house, as provided by Section 39, Article III, Texas Constitution.     If this Act does not receive the vote necessary for immediate   effect, this Act takes effect September 1, 2025.