S.B. No. 777 amends the Local Government Code to establish new standards for compensation and employment conditions by municipal charter or collective bargaining agreements, as well as to provide mechanisms for resolving impasses in collective bargaining for certain political subdivisions. Key changes include the preemption of local ordinances and rules that conflict with the provisions of this chapter, and the introduction of new language regarding arbitration and impasse resolution processes. Specifically, the bill clarifies that public employers are considered compliant with employment conditions set forth in arbitration awards during the collective bargaining period, and it introduces a new subchapter that outlines binding interest arbitration for municipalities with populations between 950,000 and 1,050,000.

Additionally, the bill validates existing impasse resolution provisions in municipal charters and collective bargaining agreements that are in effect on the bill's effective date, ensuring that ongoing negotiations are not disrupted. It also specifies that changes made by this Act cannot be used to challenge agreements or awards established prior to its effective date. The Act will take effect immediately upon receiving a two-thirds vote from both houses or on September 1, 2025, if such a vote is not achieved.

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)