HF 501

1st Engrossment - 87th Legislature (2011 - 2012) Posted on 02/24/2011 03:10pm

A bill for an act
relating to public sector labor relations; specifying factors that must be
considered in interest arbitration; amending Minnesota Statutes 2010, section
179A.16, subdivision 7.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2010, section 179A.16, subdivision 7, is amended to
read:

Subd. 7.

Decision by the arbitrator or panel.

new text begin (a) new text end The decision must be issued by
the arbitrator or a majority vote of the panel. The decision must resolve the issues in
dispute between the parties as submitted by the commissioner. For principals and assistant
principals, the arbitrator or panel is restricted to selecting between the final offers of the
parties on each impasse item. For other employees, if the parties agree in writing, the
arbitrator or panel is restricted to selecting between the final offers of the parties on each
impasse item, or the final offer of one or the other parties in its entirety. In considering a
dispute and issuing its decision, the arbitrator or panel shall consider the statutory rights
and obligations of public employers to efficiently manage and conduct their operations
within the legal limitations surrounding the financing of these operations.

new text begin (b) An arbitrator must give substantial weight to the following issues and evidence
presented by a public employer in determining an interest arbitration award:
new text end

new text begin (1) decreases in local government aid under sections 477A.011 to 477A.014, market
value homestead credit reimbursement under section 273.1384, or other significant
declines in revenue experienced by the public employer in the year immediately prior to or
during the contract year being considered; and
new text end

new text begin (2) the general economic condition of the city, including its ability to raise revenues,
and property tax burdens on property owners.
new text end

new text begin (c) When establishing "ability to pay" by a public employer, an arbitrator must
not consider budgetary reserves.
new text end

new text begin (d) An arbitrator must not grant a general increase or external market adjustment
greater than voluntarily negotiated by another exclusive representative within the same
public employer for the same contract period.
new text end

The decision is final and binding on all parties.

The arbitrator or panel shall render its decision within 30 days from the date that
all arbitration proceedings have concluded. The arbitrator or panel may not request that
the parties waive their right to have the decision rendered within 30 days, unless the
commissioner grants an extension of the deadline. The commissioner shall remove from
the roster for six months the name of any arbitrator who does not render the decision
within 30 days or within the extension granted by the commissioner. The commissioner
shall adopt rules establishing criteria to be followed in determining whether an extension
should be granted. The decision must be for the period stated in the decision, except that
decisions determining contracts for teacher units are effective to the end of the contract
period determined by section 179A.20.

The arbitrator or panel shall send its decision to the commissioner, the appropriate
representative of the public employer, and the employees. If any issues submitted to
arbitration are settled voluntarily before the arbitrator or panel issues a decision, the
arbitrator or panel shall report the settlement to the commissioner.

The parties may, at any time before or after issuance of a decision of the arbitrator
or panel, agree upon terms and conditions of employment regardless of the terms and
conditions of employment determined by the decision. The parties shall, if so agreeing,
execute a written contract or memorandum of contract.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective ......., 2011.
new text end