H.F. 525 Section 1. Section 20.3, Code 2011, is amended by adding the 1 following new subsections: 2 NEW SUBSECTION . 1A. “Bargaining unit” means only those 3 employees in a particular class of employees who have not 4 declared themselves a free agent employee. 5 NEW SUBSECTION . 4A. “Free agent employee” means a public 6 employee who has signed a release declaring that the employee 7 rejects representation by an employee organization and that the 8 employee understands that signing the release waives any claim 9 or right to representation by that employee organization. 10 Sec. 2. Section 20.8, Code 2011, is amended by adding the 11 following new subsection: 12 NEW SUBSECTION . 5. Declare themselves a free agent 13 employee. 14 Sec. 3. Section 20.9, Code 2011, is amended to read as 15 follows: 16 20.9 Scope of negotiations. 17 1. The public employer and the employee organization 18 shall meet at reasonable times, including meetings reasonably 19 in advance of the public employer’s budget-making process, 20 to negotiate in good faith with respect to wages, hours, 21 vacations, insurance, holidays, leaves of absence, shift 22 differentials, overtime compensation, supplemental pay, 23 seniority, transfer procedures, job classifications, health and 24 safety matters, evaluation procedures, procedures for staff 25 reduction, in-service training , and other matters mutually 26 agreed upon. Negotiations shall also include terms authorizing 27 dues checkoff for members of the employee organization and 28 grievance procedures for resolving any questions arising under 29 the agreement, which shall be embodied in a written agreement 30 and signed by the parties. If an agreement provides for dues 31 checkoff, a member’s dues may be checked off only upon the 32 member’s written request and the member may terminate the dues 33 checkoff at any time by giving thirty days’ written notice. 34 Such obligation to negotiate in good faith does not compel 35 -1- LSB 2310HV (3) 84 je/rj 1/ 5

H.F. 525 either party to agree to a proposal or make a concession. 1 2. Nothing in this section shall diminish the authority 2 and power of the department of administrative services, board 3 of regents’ merit system, Iowa public broadcasting board’s 4 merit system, or any civil service commission established by 5 constitutional provision, statute, charter , or special act to 6 recruit employees , ; prepare, conduct , and grade examinations , ; 7 or rate candidates in order of their relative scores for 8 certification for appointment or promotion or for other matters 9 of classification, reclassification , or appeal rights in the 10 classified service of the public employer served. 11 3. All retirement systems The following subjects shall be 12 excluded from the scope of negotiations . : 13 a. All retirement systems. 14 b. Health insurance or any other insurance. 15 c. Restrictions or limitations on outsourcing. 16 d. Any restriction on the right of a public employer to 17 consider any factor which the employer may lawfully consider 18 in a layoff. 19 Sec. 4. Section 20.22, subsections 3, 6, 7, 9, 10, and 11, 20 Code 2011, are amended to read as follows: 21 3. The submission of the impasse items to the arbitrator 22 shall be limited to those items upon which the parties have not 23 reached agreement. With However, with respect to each such 24 item, the arbitrator’s award shall not be restricted to the 25 final offers on each impasse item submitted by the parties to 26 the arbitrator. 27 6. From the time the board notifies the arbitrator of the 28 selection of the arbitrator until such time as the arbitrator’s 29 selection decision on each impasse item is made, there shall be 30 no discussion concerning recommendations for settlement of the 31 dispute by the arbitrator with parties other than those who are 32 direct parties to the dispute. 33 7. The arbitrator shall consider, and may consider 34 additional information presented by either party, in addition 35 -2- LSB 2310HV (3) 84 je/rj 2/ 5

H.F. 525 to any other relevant factors, the following factors: 1 a. Past collective bargaining contracts between the parties 2 including the bargaining that led up to such contracts. 3 b. a. Comparison of wages, benefits, hours , and conditions 4 of employment of the involved public employees with those 5 of other public employees , including public employees not 6 represented by an employee organization, and with private 7 sector employees doing comparable work, giving consideration to 8 factors peculiar to the area and the classifications involved. 9 In considering this comparison, the arbitrator shall strive to 10 maintain parity in wages, benefits, hours, and conditions of 11 employment between the public sector and the private sector 12 for comparable types of work, and shall give consideration to 13 similar and equitable economic conditions where applicable. 14 c. b. The interests and welfare of the public, the ability 15 of the public employer to finance economic adjustments without 16 raising any tax, and the effect of such adjustments on the 17 normal standard of services. 18 d. The power of the public employer to levy taxes and 19 appropriate funds for the conduct of its operations. 20 c. Efficiency of the public employer in its ability to carry 21 out any of its functions. 22 9. The arbitrator shall select render a decision within 23 fifteen days after the hearing the most reasonable offer, in 24 the arbitrator’s judgment, of the final offers on consisting 25 of final terms for each impasse item submitted by the parties. 26 The arbitrator may select one of the final offers on each 27 impasse item submitted by the parties or the arbitrator may 28 make an award which does not go beyond the terms of a final 29 offer for any impasse item submitted by the parties. 30 10. The selections decisions by the arbitrator and 31 items agreed upon by the public employer and the employee 32 organization, shall be deemed to be the collective bargaining 33 agreement between the parties. 34 11. The determination decisions of the arbitrator shall be 35 -3- LSB 2310HV (3) 84 je/rj 3/ 5

H.F. 525 final and binding subject to the provisions of section 20.17, 1 subsection 6 . The arbitrator shall give written explanation 2 for the arbitrator’s selections decision regarding the final 3 terms for each impasse item and inform the parties of the 4 decision. 5 Sec. 5. APPLICABILITY. This Act applies to collective 6 bargaining agreements entered into on or after the effective 7 date of this Act. 8 EXPLANATION 9 This bill relates to public employee collective bargaining 10 agreements. 11 The bill provides that a public employee has the right 12 to declare oneself a free agent employee, meaning a public 13 employee who has signed a release declaring that the employee 14 rejects representation by an employee organization and that 15 the employee understands that signing the release waives any 16 claim or right to representation by that organization. The 17 bill specifies that for the purposes of collective bargaining, 18 a bargaining unit only consists of employees in a particular 19 class of employees who have not declared themselves free agent 20 employees. 21 The bill excludes certain subjects from the scope of 22 negotiations for public employee collective bargaining 23 agreements, including health insurance or any other insurance, 24 restrictions or limitations on outsourcing, and any restriction 25 on the right of a public employer to consider any factor which 26 the employer may lawfully consider in a layoff. 27 The bill provides that the final decision of an arbitrator 28 for a public employee collective bargaining agreement is not 29 limited to each party’s final offer for each impasse item, 30 but that the final decision must not go beyond the terms of 31 either party’s final offer for each impasse item. The bill 32 strikes the requirement of an arbitrator to consider past 33 collective bargaining contracts between the parties including 34 the bargaining that led up to such contracts and to consider 35 -4- LSB 2310HV (3) 84 je/rj 4/ 5

H.F. 525 the power of the public employer to levy taxes and appropriate 1 funds for the conduct of its operations as factors when 2 rendering a final decision. The bill adds additional factors 3 which an arbitrator must consider, including a comparison of 4 wages, benefits, hours, and conditions of employment of the 5 involved public employees with those of public employees not 6 represented by employment organizations and private-sector 7 employees doing comparable work, giving consideration to 8 similar and equitable economic conditions where applicable. 9 The bill requires an arbitrator making that comparison to 10 strive to maintain parity in wages, benefits, hours, and 11 conditions of employment between the public sector and the 12 private sector for comparable types of work. The bill requires 13 an arbitrator to consider the ability of the public employer to 14 finance economic adjustments without raising any tax. The bill 15 also requires an arbitrator to consider as a factor efficiency 16 by the public employer in its ability to carry out any of its 17 functions. The bill provides that the arbitrator may consider 18 additional information presented by either party. 19 The bill applies to collective bargaining agreements entered 20 into on or after the effective date of the bill. 21 -5- LSB 2310HV (3) 84 je/rj 5/ 5