SB 777

relating to compensation and employment condition standards by
municipal charter or collective bargaining agreement and to impasse
resolution in collective bargaining with certain political
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 174.005, Local Government Code, is
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
SECTION 2.  Section 174.021, Local Government Code, is
Sec. 174.021.  PREVAILING WAGE AND WORKING CONDITIONS
REQUIRED; EXCEPTION.  (a) Except as provided by Subsection (b), a
[A] political subdivision that employs fire fighters, police
officers, or both, shall provide those employees with compensation
and other conditions of employment that are:
(1)  substantially equal to compensation and other
conditions of employment that prevail in comparable employment in
(2)  based on prevailing private sector compensation
and conditions of employment in the labor market area in other jobs
that require the same or similar skills, ability, and training and
may be performed under the same or similar conditions.
(b)  A political subdivision that employs fire fighters is
considered to be in compliance with the requirements of Subsection
(a) if the political subdivision provides those fire fighters with
compensation and other conditions of employment that comply with
the standards for compensation and other conditions of employment
(1)  except as provided by Subdivision (2), if the
political subdivision is a municipality, the municipality's
(2)  if a collective bargaining agreement under this
chapter is in effect, that agreement.
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
(a)  Except as provided by Sections [Section] 174.1535 and
174.165, a public employer or an association that is a bargaining
agent may request the appointment of an arbitration board if:
(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
(2)  the parties made every reasonable effort,
including mediation, to settle the dispute through good-faith
(3)  the public employer or association gives written
notice to the other party, specifying the issue in dispute.
SECTION 5.  Section 174.1535(b), Local Government Code, is
(b)  Except as provided by Section 174.165, a [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.
SECTION 6.  Section 174.156(b), Local Government Code, is
(b)  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:
(3)  educational qualifications;
(7)  to the extent applicable, a municipality's charter
or a collective bargaining agreement; and
SECTION 7.  Section 174.158, Local Government Code, is
amended by adding Subsection (e) to read as follows:
(e)  An award rendered under this section must be made
effective for the period for which the public employer and the
association are bargaining.  The period may exceed one year.
SECTION 8.  Section 174.163, Local Government Code, is
Sec. 174.163.  COMPULSORY ARBITRATION NOT REQUIRED;
EXCEPTIONS.  Except as provided by Sections 174.1535 and 174.165,
this [This] chapter does not require compulsory arbitration.
SECTION 9.  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)
(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)  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.
(c)  A provision of this subchapter relating to arbitration
does not apply to the impasse resolution mechanism described by
Subsection (b), 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 10.  The change in law made by this Act applies only
to a municipal charter, collective bargaining agreement, or
arbitration award that is in effect on or after the effective date
SECTION 11.  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.