H.F. _____ 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 20.6, subsection 3, Code 2011, is amended 11 to read as follows: 12 3. Establish minimum qualifications for arbitrators and 13 mediators, establish procedures for appointing, maintaining, 14 and removing from a list persons representative of the public 15 to be available to serve as arbitrators and mediators, and 16 establish compensation rates for arbitrators and mediators. 17 However, the board shall not establish compensation rates for 18 private mediators. The board may charge the parties involved 19 in an impasse a reasonable fee to cover any cost to the board 20 associated with the duties provided in this subsection, 21 including the training of arbitrators and mediators. 22 Sec. 3. Section 20.8, Code 2011, is amended by adding the 23 following new subsection: 24 NEW SUBSECTION . 5. Declare themselves a free agent 25 employee. 26 Sec. 4. Section 20.9, Code 2011, is amended to read as 27 follows: 28 20.9 Scope of negotiations. 29 1. The public employer and the employee organization 30 shall meet at reasonable times, including meetings reasonably 31 in advance of the public employer’s budget-making process, 32 to negotiate in good faith with respect to wages, hours, 33 vacations, insurance, holidays, leaves of absence, shift 34 differentials, overtime compensation, supplemental pay, 35 -1- LSB 2310YC (6) 84 je/rj 1/ 11

H.F. _____ seniority, transfer procedures, job classifications, health and 1 safety matters, evaluation procedures, procedures for staff 2 reduction, in-service training , and other matters mutually 3 agreed upon. Negotiations shall also include terms authorizing 4 dues checkoff for members of the employee organization and 5 grievance procedures for resolving any questions arising under 6 the agreement, which shall be embodied in a written agreement 7 and signed by the parties. If an agreement provides for dues 8 checkoff, a member’s dues may be checked off only upon the 9 member’s written request and the member may terminate the dues 10 checkoff at any time by giving thirty days’ written notice. 11 Such obligation to negotiate in good faith does not compel 12 either party to agree to a proposal or make a concession. 13 2. Nothing in this section shall diminish the authority 14 and power of the department of administrative services, board 15 of regents’ merit system, Iowa public broadcasting board’s 16 merit system, or any civil service commission established by 17 constitutional provision, statute, charter , or special act to 18 recruit employees , ; prepare, conduct , and grade examinations , ; 19 or rate candidates in order of their relative scores for 20 certification for appointment or promotion or for other matters 21 of classification, reclassification , or appeal rights in the 22 classified service of the public employer served. 23 3. All retirement systems The following subjects shall be 24 excluded from the scope of negotiations . : 25 a. All retirement systems. 26 b. The terms and source of health insurance or any other 27 insurance. 28 c. Any requirement that a public employer pay more than 29 seventy percent of the cost of a health insurance plan 30 established pursuant to chapter 509A which the public employer 31 provides for a public employee and other persons covered 32 through the public employee. 33 d. Restrictions or limitations on outsourcing. 34 e. Any restriction on the right of a public employer to 35 -2- LSB 2310YC (6) 84 je/rj 2/ 11

H.F. _____ consider any factor which the employer may lawfully consider 1 in a layoff. 2 Sec. 5. Section 20.20, Code 2011, is amended to read as 3 follows: 4 20.20 Mediation. 5 1. In the absence of an impasse agreement negotiated 6 pursuant to section 20.19 or the failure of either party 7 to utilize its procedures, one hundred twenty days prior 8 to the certified budget submission date, or one hundred 9 twenty days prior to May 31 of the year when the collective 10 bargaining agreement is to become effective if public employees 11 represented by the employee organization are teachers licensed 12 under chapter 272 and the public employer is a school district 13 or area education agency, the board shall, upon the request of 14 either party, appoint an impartial and disinterested person to 15 act as mediator. 16 2. If the public employer is a community college, and in the 17 absence of an impasse agreement negotiated pursuant to section 18 20.19 or the failure of either party to utilize its procedures, 19 one hundred twenty days prior to May 31 of the year when the 20 collective bargaining agreement is to become effective, the 21 board, upon the request of either party, shall appoint an 22 impartial and disinterested person to act as mediator. 23 3. If the public employer is not subject to the budget 24 certification requirements of section 24.17 or other applicable 25 sections and in the absence of an impasse agreement negotiated 26 pursuant to section 20.19 , or the failure of either party to 27 utilize its procedures, one hundred twenty days prior to the 28 date the next fiscal or budget year of the public employer 29 commences, the board, upon the request of either party, shall 30 appoint an impartial and disinterested person to act as a 31 mediator. 32 4. It shall be the function of the mediator to bring the 33 parties together to effectuate a settlement of the dispute, but 34 the mediator may shall not compel the parties to agree. 35 -3- LSB 2310YC (6) 84 je/rj 3/ 11

H.F. _____ 5. The board shall, whenever possible, appoint a mediator 1 from within the board’s staff, from the federal mediation and 2 conciliation service, or as otherwise provided by federal law. 3 If such an appointment is not possible, the board shall appoint 4 a private mediator pursuant to section 20.6, subsection 3. All 5 costs associated with the services of a private mediator shall 6 be shared equally by the parties. The parties may agree to a 7 maximum compensation rate for a private mediator. The parties 8 may agree to a maximum number of hours for the length of the 9 mediation. 10 Sec. 6. Section 20.22, subsections 3, 6, 7, 9, 10, and 11, 11 Code 2011, are amended to read as follows: 12 3. The submission of the impasse items to the arbitrator 13 shall be limited to those items upon which the parties have not 14 reached agreement. With However, with respect to each such 15 item, the arbitrator’s award shall not be restricted to the 16 final offers on each impasse item submitted by the parties to 17 the arbitrator. 18 6. From the time the board notifies the arbitrator of the 19 selection of the arbitrator until such time as the arbitrator’s 20 selection decision on each impasse item is made, there shall be 21 no discussion concerning recommendations for settlement of the 22 dispute by the arbitrator with parties other than those who are 23 direct parties to the dispute. 24 7. The arbitrator shall consider, in addition to any other 25 relevant factors, the following factors: 26 a. Past collective bargaining contracts between the parties 27 including the bargaining that led up to such contracts. 28 b. a. Comparison of wages, benefits, hours , and conditions 29 of employment of the involved public employees with those 30 of other public employees , including public employees not 31 represented by an employee organization, and with private 32 sector employees doing comparable work, giving consideration to 33 factors peculiar to the area and the classifications involved. 34 In considering this comparison, the arbitrator shall strive to 35 -4- LSB 2310YC (6) 84 je/rj 4/ 11

H.F. _____ maintain parity in wages, benefits, hours, and conditions of 1 employment between the public sector and the private sector for 2 comparable types of work. 3 c. b. The interests and welfare of the public, the ability 4 of the public employer to finance economic adjustments , and the 5 effect of such adjustments on the normal standard of services. 6 d. The power of the public employer to levy taxes and 7 appropriate funds for the conduct of its operations. 8 c. Efficiency of the public employer in its ability to carry 9 out any of its functions. 10 d. An increase in any tax. 11 e. A decrease in the provision by the public employer of any 12 service. 13 9. The arbitrator shall select render a decision within 14 fifteen days after the hearing the most reasonable offer, in 15 the arbitrator’s judgment, of the final offers on consisting 16 of final terms for each impasse item submitted by the parties. 17 The arbitrator may select one of the final offers on each 18 impasse item submitted by the parties or the arbitrator may 19 make an award which does not go beyond the terms of a final 20 offer for any impasse item submitted by the parties. 21 10. The selections decisions by the arbitrator and 22 items agreed upon by the public employer and the employee 23 organization, shall be deemed to be the collective bargaining 24 agreement between the parties. 25 11. The determination decisions of the arbitrator shall be 26 final and binding subject to the provisions of section 20.17, 27 subsection 6 and section 20.22A . The arbitrator shall give 28 written explanation for the arbitrator’s selections decision 29 regarding the final terms for each impasse item and inform the 30 parties of the decision. 31 Sec. 7. NEW SECTION . 20.22A Ratification of state employee 32 agreements. 33 1. Prior to a collective bargaining agreement entered into 34 by an employee organization representing state employees, 35 -5- LSB 2310YC (6) 84 je/rj 5/ 11

H.F. _____ pursuant to the decision of an arbitrator under section 20.22, 1 becoming final and binding, the agreement must be ratified 2 through the enactment of a bill which appropriates funds in 3 an amount necessary to fund the agreement, subject to the 4 provisions of section 20.17, subsection 6. 5 2. A bill ratifying a collective bargaining agreement 6 and appropriating funds in an amount necessary to fund the 7 agreement shall not be enacted if the terms of the agreement 8 cannot be supported by the state budget without new taxation 9 or without a decrease in the provision by the public employer 10 of services. 11 3. The decisions of an arbitrator pursuant to section 20.22, 12 subsections 11 and 12, provide notice to the general assembly 13 of the final terms of the collective bargaining agreement. 14 4. The general assembly shall, within thirty days after 15 the notification, consider a bill ratifying the collective 16 bargaining agreement and appropriating funds in an amount 17 necessary to fund the agreement. If the bill is enacted, the 18 collective bargaining agreement becomes final and binding. The 19 agreement does not become effective until the bill is enacted. 20 5. If the bill ratifying the collective bargaining 21 agreement and appropriating funds in an amount necessary to 22 fund the agreement fails to be approved by a constitutional 23 majority in either the senate or the house of representatives, 24 the secretary of the senate or the chief clerk of the house, as 25 the case may be, shall, within seven days after the date the 26 bill failed to be approved, transmit to the governor and the 27 employee organization representing state employees covered by 28 the proposed agreement information which the senate or house 29 may direct by resolution regarding reasons why the bill was not 30 approved. 31 6. If the governor vetoes a bill or the appropriation 32 in a bill ratifying a collective bargaining agreement, 33 or fails to approve a bill submitted to the governor for 34 approval during or after the last three days of a session 35 -6- LSB 2310YC (6) 84 je/rj 6/ 11

H.F. _____ of the general assembly, the governor shall, within seven 1 days after the bill or appropriation is vetoed or the bill 2 fails to be approved, transmit to the employee organization 3 representing state employees covered by the proposed agreement 4 information regarding reasons why the bill or appropriation 5 was vetoed or the bill was not approved. The applicable 6 public employer, employee organization, and any fact-finder, 7 mediator, or arbitrator, shall, to the extent the reasons are 8 consistent with this chapter, take into account the reasons 9 for not enacting the bill or the appropriation in any further 10 renegotiating of the collective bargaining agreement. 11 7. If a bill ratifying the collective bargaining agreement 12 and appropriating funds in an amount necessary to fund the 13 agreement fails to be enacted, the board, in consultation with 14 the applicable public employer and employee organization, 15 shall establish an expedited timetable for renegotiating the 16 collective bargaining agreement, including time schedules for 17 fact-finding and arbitration, if necessary. 18 Sec. 8. APPLICABILITY. This Act applies to collective 19 bargaining agreements entered into on or after the effective 20 date of this Act. 21 EXPLANATION 22 This bill relates to public employee collective bargaining 23 agreements. 24 The bill provides that a public employee has the right 25 to declare oneself a free agent employee, meaning a public 26 employee who has signed a release declaring that the employee 27 rejects representation by an employee organization and that 28 the employee understands that signing the release waives any 29 claim or right to representation by that organization. The 30 bill specifies that for the purposes of collective bargaining, 31 a bargaining unit only consists of employees in a particular 32 class of employees who have not declared themselves free agent 33 employees. 34 The bill excludes certain subjects from the scope of 35 -7- LSB 2310YC (6) 84 je/rj 7/ 11

H.F. _____ negotiations for public employee collective bargaining 1 agreements, including the terms and source of health insurance 2 or any other insurance, any requirement that a public employer 3 pay more than 70 percent of the cost of a health insurance 4 plan established pursuant to Code chapter 509A which the 5 public employer provides for a public employee and other 6 persons covered through the public employee, restrictions or 7 limitations on outsourcing, and any restriction on the right of 8 a public employer to consider any factor which the employer may 9 lawfully consider in a layoff. 10 The bill authorizes the public employment relations board 11 to charge the parties involved in an impasse in negotiations 12 for a collective bargaining agreement a reasonable fee to 13 cover any cost to the board associated with duties relating 14 to establishing minimum qualifications for arbitrators and 15 mediators; establishing procedures for appointing, maintaining, 16 and removing from a list persons representative of the 17 public available to serve as arbitrators and mediators; and 18 establishing compensation rates for arbitrators and mediators, 19 including the training of arbitrators and mediators. The 20 bill specifies that the board cannot establish compensation 21 rates for private mediators. The bill requires the board to 22 appoint a mediator for a public employee collective bargaining 23 agreement from within the board’s staff, from the federal 24 mediation and conciliation service, or as otherwise provided 25 by federal law whenever possible. If such an appointment 26 is not possible, the board is required to appoint a private 27 mediator. The bill specifies that all costs associated with 28 the services of a private mediator will be shared equally by 29 the parties. The bill provides that the parties may agree to 30 a maximum compensation rate for a private mediator and to a 31 maximum number of hours for the length of the mediation. 32 The bill provides that the final decision of an arbitrator 33 for a public employee collective bargaining agreement is not 34 limited to each party’s final offer for each impasse item, 35 -8- LSB 2310YC (6) 84 je/rj 8/ 11

H.F. _____ but that the final decision must not go beyond the terms of 1 either party’s final offer for each impasse item. The bill 2 strikes the requirement of an arbitrator to consider past 3 collective bargaining contracts between the parties including 4 the bargaining that led up to such contracts and to consider 5 the power of the public employer to levy taxes and appropriate 6 funds for the conduct of its operations as factors when 7 rendering a final decision. The bill adds additional factors 8 which an arbitrator must consider, including a comparison of 9 wages, benefits, hours, and conditions of employment of the 10 involved public employees with those of public employees not 11 represented by employment organizations and private-sector 12 employees doing comparable work. The bill requires an 13 arbitrator making that comparison to strive to maintain parity 14 in wages, benefits, hours, and conditions of employment between 15 the public sector and the private sector for comparable types 16 of work. The bill also requires an arbitrator to consider 17 as factors loss of efficiency by the public employer in its 18 ability to carry out any of its functions, an increase in any 19 tax, and a decrease in any service provided by the public 20 employer. 21 The bill sets out a procedure for the ratification of 22 collective bargaining agreements for state employees. Prior 23 to an agreement becoming final and binding, the bill provides 24 that an agreement entered into pursuant to the decision of an 25 arbitrator under Code section 20.22 is subject to the enactment 26 of a bill which ratifies the agreement and appropriates 27 funds in an amount necessary to fund the agreement. The 28 agreement remains subject to the provisions of Code section 29 20.17(6) which makes an arbitrator’s award invalid if its 30 implementation is inconsistent with a statutory limitation 31 relating to spending or would substantially impair or limit the 32 performance of any statutory duty by the public employer. The 33 bill provides that such a bill must not be enacted if the terms 34 of the collective bargaining agreement cannot be supported by 35 -9- LSB 2310YC (6) 84 je/rj 9/ 11

H.F. _____ the state budget without new taxation or without decreases in 1 services provided by the state employer. The bill requires 2 that the decision of and notification by an arbitrator of the 3 final terms of a collective bargaining agreement pursuant to 4 Code section 20.22(11) be served on the general assembly. 5 The bill directs the general assembly to consider a bill 6 ratifying the collective bargaining agreement and appropriating 7 funds in an amount necessary to fund the agreement within 30 8 days of receiving notice of the terms of the agreement. The 9 bill provides that if the bill regarding the agreement is 10 enacted, the agreement becomes final and binding. The bill 11 specifies that the agreement does not become effective until 12 the bill regarding the agreement is enacted. 13 The bill provides that if the bill ratifying the collective 14 bargaining agreement and appropriating funds in an amount 15 necessary to fund the agreement fails to be approved by a 16 constitutional majority in either the senate or the house of 17 representatives, the secretary of the senate or the chief 18 clerk of the house, as applicable, must transmit information 19 which the senate or house may direct by resolution regarding 20 reasons why the bill was not approved to the governor and the 21 employee organization representing state employees covered by 22 the proposed agreement within seven days after the bill fails 23 to be approved. The bill directs the governor, if the governor 24 vetoes the bill regarding the agreement or the appropriation 25 therein, or fails to approve the bill at the end of a 26 legislative session, to transmit to the employee organization 27 representing state employees covered by the proposed agreement 28 information regarding reasons why the bill or appropriation was 29 vetoed or the bill was not approved within seven days after 30 the bill or appropriation is vetoed or the bill fails to be 31 approved. The bill directs the applicable public employer, 32 employee organization, and any fact-finder, mediator, or 33 arbitrator, to the extent the reasons are consistent with 34 Code chapter 20, to take into account the reasons for not 35 -10- LSB 2310YC (6) 84 je/rj 10/ 11

H.F. _____ enacting the bill or the appropriation therein for any further 1 renegotiating of the collective bargaining agreement. 2 The bill directs the public employee relations board 3 to establish, in consultation with the applicable public 4 employer and employee organization, an expedited timetable for 5 renegotiating the collective bargaining agreement, including 6 time schedules for fact-finding and arbitration, if necessary, 7 if the bill ratifying the collective bargaining agreement 8 and appropriating funds in an amount necessary to fund the 9 agreement fails to be enacted. 10 The bill applies to collective bargaining agreements entered 11 into on or after the effective date of the bill. 12 -11- LSB 2310YC (6) 84 je/rj 11/ 11