HB 4065

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