SB777

SB777 changes how covered firefighter collective-bargaining disputes reach a binding resolution. It recognizes qualifying municipal-charter or collective-bargaining-agreement procedures and creates a separate arbitration system for municipalities with more than 950,000 but fewer than 1,050,000 residents and their fire-department bargaining associations. It is not a statewide requirement that every employment dispute go to arbitration. The bill became law without the governor’s signature June 20, 2025 and took effect September 1, 2025. Final act; History.

Outside that special population-based system, a covered public employer and firefighter bargaining agent must use the impasse procedure in the applicable charter or agreement when bargaining reaches an impasse, or when they remain unable to settle after the 61st day following the lawmaking body’s failure to approve a negotiated contract. An in-effect agreement providing that procedure takes the role specified in the act; otherwise the qualifying municipal charter applies. That procedure overrides conflicting provisions of the general arbitration subchapter unless the charter or agreement incorporates them. Chapter 174’s firefighter definition covers permanent paid employees, not the chief or volunteers. New Section 174.165; Firefighter definition.

In the population-based system, either party can trigger binding arbitration by written request identifying disputed issues. All disputed issues must be submitted within 45 days after receipt. Each side selects an arbitrator within five days after the original written request is received. Those arbitrators attempt to select a neutral third member; if they cannot, the parties use a nationwide list of nine qualified neutrals from the American Arbitration Association and, if necessary, alternate striking names. Decisions require a majority. The incorporated impasse definition generally concerns failure to settle every disputed issue before day 61 of bargaining, with written extensions of a definite period of no more than 15 days. Sections 174.181–174.183; Impasse definition.

The special board may consider only the listed categories: bargaining history; comparable public-sector compensation and conditions in other cities; local cost-of-living changes using the specified consumer-price index with adjustments; job conditions, qualifications, training, skills, morale and relevant related factors; and municipal revenues, obligations and taxpayer effects. Specified existing hearing, evidence, award, expense and enforcement rules still apply. District-court review is limited to jurisdiction, evidentiary support or fraud/collusion/similar unlawful means; asking for review does not automatically halt enforcement. Sections 174.184–174.185; Limited review grounds.

A qualifying award or other impasse resolution counts as compliance with the chapter’s compensation/working-condition standard for the covered bargaining period. The act validates impasse provisions in charters, agreements or awards already in effect on September 1, 2025 and covers negotiations in progress or started later. The law change itself cannot be used to challenge an agreement or award entered or issued before that date. Section 2 and transition in Section 9; General compensation standard.