2009 - 2010 LEGISLATURE
September 25, 2009 - Introduced by Representatives Gottlieb, Nygren, Lothian,
Strachota, Vos, LeMahieu, Honadel, A. Ott
and J. Ott. Referred to
Committee on Labor.
AB450,1,3 1An Act to renumber 111.70 (1) (a); to amend 111.70 (4) (cm) 6. am., 111.70 (4)
2(cm) 6. b. and 111.70 (4) (cm) 7.; and to create 111.70 (1) (ag) of the statutes;
3relating to: final offer limits under the Municipal Employment Relations Act.
Analysis by the Legislative Reference Bureau
The Municipal Employment Relations Act does not currently limit collective
bargaining agreements to any specific maximum expenditures or increases in
expenditures. This bill prohibits any final offer that is submitted to the Wisconsin
Employment Relations Commission for interest arbitration from requiring the
annual expenditure for compensation and fringe benefits per employee to be more
than the amount spent in the previous year increased by the allowable percentage
increase in available revenue, as defined in the bill, if the employer is subject to
limitations on available revenue under state law.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB450, s. 1 4Section 1. 111.70 (1) (a) of the statutes is renumbered 111.70 (1) (ar).
AB450, s. 2 5Section 2. 111.70 (1) (ag) of the statutes is created to read:
1111.70 (1) (ag) 1. Except as provided in subds. 2. and 3., if the employer is a
2municipal employer, "available revenue" means the sum of the allowable property
3tax levy and payments received under ss. 86.30 and 86.32 and subch. I of ch. 79.
AB450,2,54 2. If the employer is a school district, "available revenue" has the same meaning
5as "revenue" in s. 121.90 (1m).
AB450,2,76 3. If the employer is a technical college district, "available revenue" means the
7sum of the allowable property tax levy and payments received under s. 38.28.
AB450, s. 3 8Section 3. 111.70 (4) (cm) 6. am. of the statutes is amended to read:
AB450,4,109 111.70 (4) (cm) 6. am. Upon receipt of a petition to initiate arbitration, the
10commission shall make an investigation, with or without a formal hearing, to
11determine whether arbitration should be commenced. If in determining whether an
12impasse exists the commission finds that the procedures set forth in this paragraph
13have not been complied with and such compliance would tend to result in a
14settlement, it may order such compliance before ordering arbitration. The validity
15of any arbitration award or collective bargaining agreement shall not be affected by
16failure to comply with such procedures. Prior to the close of the investigation each
17party shall submit in writing to the commission its single final offer containing its
18final proposals on all issues in dispute that are subject to interest arbitration under
19this subdivision or under subd. 5s. in collective bargaining units to which subd. 5s.
20applies. If, under state law, the municipal employer is subject to limitations on
21available revenue, a final offer may not require the expenditure for compensation
22and fringe benefits per employee in any year of the contract to be more than the
23amount expended in the previous year increased by the allowable percentage
24increase in available revenue. If the commission determines that a final offer
25requires greater expenditure, the commission shall return the offer to the party and

1the party shall revise it before submitting it again.
If a party fails to submit a single,
2ultimate final offer, the commission shall close the investigation based on the last
3written position of the party. If the last written position requires greater expenditure
4than permitted under this subd. 6. am., the commission shall consider that the party
5failed to submit an offer.
The municipal employer may not submit a qualified
6economic offer under subd. 5s. after the close of the investigation. Such final Final
7offers may include only mandatory subjects of bargaining, except that a permissive
8subject of bargaining may be included by a party if the other party does not object
9and shall then be treated as a mandatory subject. No later than such time, the
10parties shall also submit to the commission a stipulation, in writing, with respect to
11all matters which are agreed upon for inclusion in the new or amended collective
12bargaining agreement. The commission, after receiving a report from its
13investigator and determining that arbitration should be commenced, shall issue an
14order requiring arbitration and immediately submit to the parties a list of 7
15arbitrators. Upon receipt of such list, the parties shall alternately strike names until
16a single name is left, who shall be appointed as arbitrator. The petitioning party shall
17notify the commission in writing of the identity of the arbitrator selected. Upon
18receipt of such notice, the commission shall formally appoint the arbitrator and
19submit to him or her the final offers of the parties. The final offers shall be considered
20public documents and shall be available from the commission. In lieu of a single
21arbitrator and upon request of both parties, the commission shall appoint a tripartite
22arbitration panel consisting of one member selected by each of the parties and a
23neutral person designated by the commission who shall serve as a chairperson. An
24arbitration panel has the same powers and duties as provided in this section for any
25other appointed arbitrator, and all arbitration decisions by such panel shall be

1determined by majority vote. In lieu of selection of the arbitrator by the parties and
2upon request of both parties, the commission shall establish a procedure for
3randomly selecting names of arbitrators. Under the procedure, the commission shall
4submit a list of 7 arbitrators to the parties. Each party shall strike one name from
5the list. From the remaining 5 names, the commission shall randomly appoint an
6arbitrator. Unless both parties to an arbitration proceeding otherwise agree in
7writing, every individual whose name is submitted by the commission for
8appointment as an arbitrator shall be a resident of this state at the time of
9submission and every individual who is designated as an arbitration panel
10chairperson shall be a resident of this state at the time of designation.
AB450, s. 4 11Section 4. 111.70 (4) (cm) 6. b. of the statutes is amended to read:
AB450,4,2312 111.70 (4) (cm) 6. b. The arbitrator shall, within 10 days of his or her
13appointment, establish a date and place for the conduct of the arbitration hearing.
14Upon petition of at least 5 citizens of the jurisdiction served by the municipal
15employer, filed within 10 days after the date on which the arbitrator is appointed, the
16arbitrator shall hold a public hearing in the jurisdiction for the purpose of providing
17the opportunity to both parties to explain or present supporting arguments for their
18positions and to members of the public to offer their comments and suggestions. The
19final offers of the parties, as transmitted by the commission to the arbitrator, shall
20serve as the basis for continued negotiations, if any, between the parties with respect
21to the issues in dispute. At any time prior to the arbitration hearing, either party,
22with the consent of the other party, and subject to the expenditure limit in subd. 6.
may modify its final offer in writing.
AB450, s. 5 24Section 5. 111.70 (4) (cm) 7. of the statutes is amended to read:
1111.70 (4) (cm) 7. `Factor Factors given greatest weight.' In making any
2decision under the arbitration procedures authorized by this paragraph, the
3arbitrator or arbitration panel shall consider and shall give the greatest weight to
4the expenditure limit in subd. 6. am. and any state law or directive lawfully issued
5by a state legislative or administrative officer, body or agency which places
6limitations on expenditures that may be made or revenues that may be collected by
7a municipal employer. The arbitrator or arbitration panel shall give an accounting
8of the consideration of this factor these factors in the arbitrator's or panel's decision.
AB450, s. 6 9Section 6. Initial applicability.
AB450,5,1310 (1) This act first applies to petitions for arbitration that relate to collective
11bargaining agreements that cover periods beginning on or after July 1, 2010, and
12that are filed under section 111.70 (4) (cm) 6. of the statutes, as affected by this act,
13on the effective date of this subsection.
AB450,5,1414 (End)