LRBs0440/1
CH/RC/MS/JK/PG:cjs:pg
2005 - 2006 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO 2005 ASSEMBLY BILL 857
January 13, 2006 - Offered by Representative Gottlieb.
AB857-ASA1,1,3 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.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB857-ASA1, s. 1 4Section 1. 111.70 (1) (a) of the statutes is renumbered 111.70 (1) (ar).
AB857-ASA1, s. 2 5Section 2. 111.70 (1) (ag) of the statutes is created to read:
AB857-ASA1,1,86 111.70 (1) (ag) 1. Except as provided in subds. 2. and 3., if the employer is a
7municipal employer, "available revenue" means the sum of the allowable property
8tax levy and payments received under ss. 86.30 and 86.32 and subch. I of ch.79.
AB857-ASA1,1,109 2. If the employer is a school district, "available revenue" has the same meaning
10as "revenue" in s. 121.90 (1m).
AB857-ASA1,1,1211 3. If the employer is a technical college district, "available revenue" means the
12sum of the allowable property tax levy and payments received under s. 38.28.
AB857-ASA1, s. 3
1Section 3. 111.70 (4) (cm) 6. am. of the statutes is amended to read:
AB857-ASA1,4,32 111.70 (4) (cm) 6. am. Upon receipt of a petition to initiate arbitration, the
3commission shall make an investigation, with or without a formal hearing, to
4determine whether arbitration should be commenced. If in determining whether an
5impasse exists the commission finds that the procedures set forth in this paragraph
6have not been complied with and such compliance would tend to result in a
7settlement, it may order such compliance before ordering arbitration. The validity
8of any arbitration award or collective bargaining agreement shall not be affected by
9failure to comply with such procedures. Prior to the close of the investigation each
10party shall submit in writing to the commission its single final offer containing its
11final proposals on all issues in dispute that are subject to interest arbitration under
12this subdivision or under subd. 5s. in collective bargaining units to which subd. 5s.
13applies. If, under state law, the municipal employer is subject to limitations on
14available revenue, a final offer may not require the expenditure for compensation
15and fringe benefits per employee in any year of the contract to be more than the
16amount expended in the previous year increased by the allowable percentage
17increase in available revenue. If the commission determines that a final offer
18requires greater expenditure, the commission shall return the offer to the party and
19the party shall revise it before submitting it again.
If a party fails to submit a single,
20ultimate final offer, the commission shall close the investigation based on the last
21written position of the party. If the last written position requires greater expenditure
22than permitted under this subd. 6. am., the party is considered to have not submitted
23an offer.
The municipal employer may not submit a qualified economic offer under
24subd. 5s. after the close of the investigation. Such final Final offers may include only
25mandatory subjects of bargaining, except that a permissive subject of bargaining

1may be included by a party if the other party does not object and shall then be treated
2as a mandatory subject. No later than such time, the parties shall also submit to the
3commission a stipulation, in writing, with respect to all matters which are agreed
4upon for inclusion in the new or amended collective bargaining agreement. The
5commission, after receiving a report from its investigator and determining that
6arbitration should be commenced, shall issue an order requiring arbitration and
7immediately submit to the parties a list of 7 arbitrators. Upon receipt of such list,
8the parties shall alternately strike names until a single name is left, who shall be
9appointed as arbitrator. The petitioning party shall notify the commission in writing
10of the identity of the arbitrator selected. Upon receipt of such notice, the commission
11shall formally appoint the arbitrator and submit to him or her the final offers of the
12parties. The final offers shall be considered public documents and shall be available
13from the commission. In lieu of a single arbitrator and upon request of both parties,
14the commission shall appoint a tripartite arbitration panel consisting of one member
15selected by each of the parties and a neutral person designated by the commission
16who shall serve as a chairperson. An arbitration panel has the same powers and
17duties as provided in this section for any other appointed arbitrator, and all
18arbitration decisions by such panel shall be determined by majority vote. In lieu of
19selection of the arbitrator by the parties and upon request of both parties, the
20commission shall establish a procedure for randomly selecting names of arbitrators.
21Under the procedure, the commission shall submit a list of 7 arbitrators to the
22parties. Each party shall strike one name from the list. From the remaining 5
23names, the commission shall randomly appoint an arbitrator. Unless both parties
24to an arbitration proceeding otherwise agree in writing, every individual whose
25name is submitted by the commission for appointment as an arbitrator shall be a

1resident of this state at the time of submission and every individual who is
2designated as an arbitration panel chairperson shall be a resident of this state at the
3time of designation.
AB857-ASA1, s. 4 4Section 4. 111.70 (4) (cm) 6. b. of the statutes is amended to read:
AB857-ASA1,4,165 111.70 (4) (cm) 6. b. The arbitrator shall, within 10 days of his or her
6appointment, establish a date and place for the conduct of the arbitration hearing.
7Upon petition of at least 5 citizens of the jurisdiction served by the municipal
8employer, filed within 10 days after the date on which the arbitrator is appointed, the
9arbitrator shall hold a public hearing in the jurisdiction for the purpose of providing
10the opportunity to both parties to explain or present supporting arguments for their
11positions and to members of the public to offer their comments and suggestions. The
12final offers of the parties, as transmitted by the commission to the arbitrator, shall
13serve as the basis for continued negotiations, if any, between the parties with respect
14to the issues in dispute. At any time prior to the arbitration hearing, either party,
15with the consent of the other party, and subject to the expenditure limit in subd. 6.
16am.,
may modify its final offer in writing.
AB857-ASA1, s. 5 17Section 5. 111.70 (4) (cm) 7. of the statutes is amended to read:
AB857-ASA1,4,2518 111.70 (4) (cm) 7. `Factor Factors given greatest weight.' In making any
19decision under the arbitration procedures authorized by this paragraph, the
20arbitrator or arbitration panel shall consider and shall give the greatest weight to
21the expenditure limit in subd. 6. am. and any state law or directive lawfully issued
22by a state legislative or administrative officer, body or agency which places
23limitations on expenditures that may be made or revenues that may be collected by
24a municipal employer. The arbitrator or arbitration panel shall give an accounting
25of the consideration of this factor these factors in the arbitrator's or panel's decision.
AB857-ASA1, s. 6
1Section 6. Initial applicability.
AB857-ASA1,5,52 (1) The treatment of section 111.70 (4) (cm) 6. am. of the statutes first applies
3to petitions for arbitration that relate to collective bargaining agreements that cover
4periods beginning on or after July 1, 2006, and that are filed under section 111.70 (4)
5(cm) 6. of the statutes, as affected by this act, on the effective date of this subsection.
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