S.B. No. 777 amends the Local Government Code to establish new standards for compensation and employment conditions for municipal employees, particularly focusing on collective bargaining agreements and impasse resolution processes. The bill introduces provisions that clarify the preemption of local laws by state law regarding employment conditions, ensuring that any arbitration awards or impasse resolutions are compliant with the requirements set forth in the legislation. Notably, it modifies the language around arbitration, replacing "arbitration" with "impasse resolution" in certain contexts, and adds a new section that specifically addresses impasse resolution mechanisms for fire fighters under municipal charters or collective bargaining agreements.

Additionally, the bill creates a new subchapter that outlines binding interest arbitration for municipalities with populations between 950,000 and 1,050,000, detailing the process for selecting arbitrators and the criteria for arbitration awards. It emphasizes that the arbitration process must consider various factors, including the history of collective bargaining, prevailing compensation in comparable municipalities, and the financial impact on taxpayers. The changes made by this Act validate existing impasse resolution provisions and apply to ongoing collective bargaining negotiations, while also ensuring that prior agreements are not subject to challenge based on the new law. The Act is set to take effect immediately upon receiving a two-thirds vote or on September 1, 2025, if not.

Statutes affected:
Introduced: Local Government Code 174.005, Local Government Code 174.021, Local Government Code 174.153, Local Government Code 174.1535, Local Government Code 174.156, Local Government Code 174.158, Local Government Code 174.163 (Local Government Code 174)
Senate Committee Report: Local Government Code 174.005, Local Government Code 174.022, Local Government Code 174.153, Local Government Code 174.156, Local Government Code 174.163 (Local Government Code 174)
Engrossed: Local Government Code 174.005, Local Government Code 174.022, Local Government Code 174.153, Local Government Code 174.156, Local Government Code 174.163 (Local Government Code 174)
House Committee Report: Local Government Code 174.005, Local Government Code 174.022, Local Government Code 174.153, Local Government Code 174.156, Local Government Code 174.163 (Local Government Code 174)
Enrolled: Local Government Code 174.005, Local Government Code 174.022, Local Government Code 174.153, Local Government Code 174.156, Local Government Code 174.163 (Local Government Code 174)