1.2relating to public sector labor relations; specifying factors that must be
1.3considered in interest arbitration; amending Minnesota Statutes 2010, section
1.4179A.16, subdivision 7.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6    Section 1. Minnesota Statutes 2010, section 179A.16, subdivision 7, is amended to
1.7read:
1.8    Subd. 7. Decision by the arbitrator or panel. (a) The decision must be issued by
1.9the arbitrator or a majority vote of the panel. The decision must resolve the issues in
1.10dispute between the parties as submitted by the commissioner. For principals and assistant
1.11principals, the arbitrator or panel is restricted to selecting between the final offers of the
1.12parties on each impasse item. For other employees, if the parties agree in writing, the
1.13arbitrator or panel is restricted to selecting between the final offers of the parties on each
1.14impasse item, or the final offer of one or the other parties in its entirety. In considering a
1.15dispute and issuing its decision, the arbitrator or panel shall consider the statutory rights
1.16and obligations of public employers to efficiently manage and conduct their operations
1.17within the legal limitations surrounding the financing of these operations.
1.18(b) An arbitrator must give substantial weight to the following issues and evidence
1.19presented by a public employer in determining an interest arbitration award:
1.20(1) decreases in local government aid under sections 477A.011 to 477A.014, market
1.21value homestead credit reimbursement under section 273.1384, or other significant
1.22declines in revenue experienced by the public employer in the year immediately prior to or
1.23during the contract year being considered; and
2.1(2) the general economic condition of the city, including its ability to raise revenues,
2.2and property tax burdens on property owners.
2.3(c) When establishing "ability to pay" by a public employer, an arbitrator must
2.4not consider budgetary reserves.
2.5(d) An arbitrator must not grant a general increase or external market adjustment
2.6greater than voluntarily negotiated by another exclusive representative within the same
2.7public employer for the same contract period.
2.8 The decision is final and binding on all parties.
2.9The arbitrator or panel shall render its decision within 30 days from the date that
2.10all arbitration proceedings have concluded. The arbitrator or panel may not request that
2.11the parties waive their right to have the decision rendered within 30 days, unless the
2.12commissioner grants an extension of the deadline. The commissioner shall remove from
2.13the roster for six months the name of any arbitrator who does not render the decision
2.14within 30 days or within the extension granted by the commissioner. The commissioner
2.15shall adopt rules establishing criteria to be followed in determining whether an extension
2.16should be granted. The decision must be for the period stated in the decision, except that
2.17decisions determining contracts for teacher units are effective to the end of the contract
2.18period determined by section 179A.20.
2.19The arbitrator or panel shall send its decision to the commissioner, the appropriate
2.20representative of the public employer, and the employees. If any issues submitted to
2.21arbitration are settled voluntarily before the arbitrator or panel issues a decision, the
2.22arbitrator or panel shall report the settlement to the commissioner.
2.23The parties may, at any time before or after issuance of a decision of the arbitrator
2.24or panel, agree upon terms and conditions of employment regardless of the terms and
2.25conditions of employment determined by the decision. The parties shall, if so agreeing,
2.26execute a written contract or memorandum of contract.
2.27EFFECTIVE DATE.This section is effective ......., 2011.