LRB-3576/1
CMH&TKK:kjf:jf
2009 - 2010 LEGISLATURE
April 2, 2010 - Introduced by Representatives Davis, Strachota, Brooks, Honadel,
Kestell, Kleefisch, Knodl, LeMahieu, Lothian, Townsend
and Vos. Referred
to Committee on Education.
AB919,1,8 1An Act to renumber 120.12 (24); to renumber and amend 111.70 (4) (cm) 8m.;
2to amend 20.255 (2) (ac), 111.70 (1) (b), 111.70 (4) (cm) 6. a., 111.70 (4) (cm) 6.
3am., 111.70 (4) (d) 2. a. and 111.70 (4) (m) 6.; and to create 111.70 (1) (dm),
4111.70 (1) (mc), 111.70 (1) (ng), 111.70 (4) (cm) 5s., 111.70 (4) (cm) 8m. b.,
5118.245, 120.12 (24) (b) and 121.15 (3m) of the statutes; relating to: creating
6a qualified economic offer for school district professional employees in the
7arbitration process and school board selection of the group health benefits
8provider for school district employees.
Analysis by the Legislative Reference Bureau
Current law limits the increase in the total amount of revenue per pupil that
a school district may receive from general school aids and property taxes in any
school year (statewide per pupil revenue limit adjustment). For the 2009-10 and
2010-11 school years, no school district may increase its revenues per pupil to an
amount that exceeds the sum of $200 and the revenue increase allowed per pupil in
the previous school year. For the 2011-12 school year, no school district may increase
its revenues per pupil to an amount that exceeds the sum of $275 and the revenue
increase allowed per pupil in the previous school year. For the 2012-13 school year
and any school year thereafter, no school district may increase its revenues by an

amount that exceeds the amount of revenue increase allowed per pupil in the
previous school year increased by the percentage change in the consumer price index.
Under the Municipal Employment Relations Act (MERA), in local government
employment other than law enforcement and fire fighting employment, if a dispute
relating to the terms of a proposed collective bargaining agreement has not been
settled after a reasonable period of negotiation and after mediation by the Wisconsin
Employment Relations Commission (WERC), either party may petition WERC to
initiate compulsory, final, and binding arbitration with respect to any dispute
relating to wages, hours, and conditions of employment. An arbitrator must adopt
the final offer of one of the parties, which is then incorporated into the collective
bargaining agreement.
Under this bill, this process does not apply to a dispute over economic issues
involving a collective bargaining unit consisting of school district professional
employees if WERC determines that the school district has submitted a qualified
economic offer (QEO). A QEO consists of a proposal by a school district to its
represented employees to increase the average salary and fringe benefits by a certain
amount. The amount is the product that results from multiplying the average
amount the school district spends on salary and fringe benefits in the current school
year by the statewide per pupil revenue limit adjustment divided by the statewide
average base revenue per pupil, as calculated by the Department of Public
Instruction (DPI). To determine the statewide average base revenue per pupil, DPI
must first determine the base revenue per pupil for each school district by dividing
the sum of general school aids and property taxes received by the district by the
district's enrollment. DPI must certify the amount calculated as required in the bill
to WERC by January 1, 2011, and biennially thereafter. For the certification due to
WERC by January 1, 2011, the department must use $275 for the per pupil revenue
limit adjustment. This bill requires school district professional employees to be
placed in a collective bargaining unit that is separate from the units of other school
district employees and requires collective bargaining agreements covering school
district professional employees to be for a term of two years. The bill also creates a
cap on salary and fringe benefit annual increases for all nonrepresented school
district professional employees that results in the increases being identical to
represented school district professional employees.
Beginning in May 2011, and annually thereafter, this bill directs DPI, the
Department of Administration, and the Legislative Fiscal Bureau jointly to
determine the amount necessary to appropriate as general school aids in the
following fiscal year to pay for the following portion of public school costs:
1. For the 2011-12 school year, 65.28 percent.
2. For the 2012-13 school year, 65.56 percent.
3. For the 2013-14 school year, 65.84 percent.
4. For the 2014-15 school year, 66.12 percent.
5. For the 2015-16 school year, 66.40 percent.
6. For the 2016-17 school year, two-thirds.

The bill directs the Joint Committee on Finance to determine the amount
appropriated as general school aids for the 2012-13 fiscal year and biennially
thereafter.
Current law requires each school board, prior to the selection of any group
health care benefits provider for school district employees, to solicit sealed bids for
the provision of the benefits. Current law also authorizes a school board to offer its
employees a health care coverage plan through a program offered by the Group
Insurance Board (GIB).
This bill directs the school board to select the group health care benefits
provider that is the lowest qualified responsible bidder unless the school board offers
its employees a health care coverage plan through a program offered by the GIB.
The bill provides that the selection of the provider and the impact of that
selection on the wages, hours, or conditions of employment are prohibited subjects
of collective bargaining.
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:
AB919, s. 1 1Section 1. 20.255 (2) (ac) of the statutes, as affected by 2009 Wisconsin Act 28,
2is amended to read:
AB919,3,83 20.255 (2) (ac) General equalization aids. The amounts in the schedule A sum
4sufficient
for the payment of educational aids under ss. 121.08, 121.09, 121.095,
5121.105, 121.137 and subch. VI of ch. 121 equal to $4,652,500,000 in the 2010-11
6fiscal year, equal to the amount determined by law in the 2011-12 fiscal year and
7biennially thereafter, and equal to the amount determined by the joint committee on
8finance under s. 121.15 (3m) (c) in the 2012-13 fiscal year and biennially thereafter
.
AB919, s. 2 9Section 2. 111.70 (1) (b) of the statutes, as affected by 2009 Wisconsin Act 28,
10is amended to read:
AB919,4,211 111.70 (1) (b) "Collective bargaining unit" means a unit consisting of municipal
12employees who are school district professional employees or of municipal employees

1who are not school district professional employees that is determined by the
2commission to be appropriate for the purpose of collective bargaining.
AB919, s. 3 3Section 3. 111.70 (1) (dm) of the statutes is created to read:
AB919,4,164 111.70 (1) (dm) "Economic issue" means salaries, overtime pay, sick leave,
5payments in lieu of sick leave usage, vacations, clothing allowances in excess of the
6actual cost of clothing, length-of-service credit, continuing education credit, shift
7premium pay, longevity pay, extra duty pay, performance bonuses, health insurance,
8life insurance, dental insurance, disability insurance, vision insurance, long-term
9care insurance, worker's compensation and unemployment insurance, social
10security benefits, vacation pay, holiday pay, lead worker pay, temporary assignment
11pay, retirement contributions, supplemental retirement benefits, severance or other
12separation pay, hazardous duty pay, certification or license payment, limitations on
13layoffs that create a new or increased financial liability on the employer, and
14contracting or subcontracting of work that would otherwise be performed by
15municipal employees in the collective bargaining unit with which there is a labor
16dispute.
AB919, s. 4 17Section 4. 111.70 (1) (mc) of the statutes is created to read:
AB919,4,2418 111.70 (1) (mc) 1. "Qualified economic offer" means an offer made to a labor
19organization by a municipal employer to increase in each year that is covered by the
20collective bargaining agreement being negotiated the salary and fringe benefits of
21the represented municipal employees in an amount that is at least equal to the
22product of the percentage determined by the department of public instruction under
23s. 118.245 (3) multiplied by the average amount spent by the school district on school
24district professional employees' salary and fringe benefits in the existing school year.
AB919, s. 5 25Section 5. 111.70 (1) (ng) of the statutes is created to read:
AB919,5,2
1111.70 (1) (ng) "School district professional employee" means a school district
2employee who is a professional employee.
AB919, s. 6 3Section 6. 111.70 (4) (cm) 5s. of the statutes is created to read:
AB919,6,124 111.70 (4) (cm) 5s. `Issues subject to arbitration.' In a collective bargaining unit
5consisting of school district professional employees, the municipal employer or the
6labor organization may petition the commission to determine whether the municipal
7employer has submitted a qualified economic offer. If the commission finds that the
8municipal employer has submitted a qualified economic offer, it shall determine
9whether a deadlock exists between the parties with respect to all economic issues.
10If the municipal employer submits a qualified economic offer, no economic issues,
11except the impact of contracting out or subcontracting work that would otherwise be
12performed by municipal employees in the collective bargaining unit, is subject to
13interest arbitration under subd. 6. for that period. In such a collective bargaining
14unit, noneconomic issues are subject to interest arbitration after the parties have
15reached agreement and stipulate to agreement on all economic issues concerning the
16wages, hours, or conditions of employment of the school district professional
17employees in the unit for that period. In such a collective bargaining unit, if the
18commission finds that the municipal employer has submitted a qualified economic
19offer and that a deadlock exists between the parties with respect to all economic
20issues, the municipal employer may implement the qualified economic offer. On the
2190th day prior to expiration of the period included within the qualified economic
22offer, if no agreement exists on that day, the parties are considered to have stipulated
23to include in a new or revised collective bargaining agreement all provisions of any
24predecessor collective bargaining agreement concerning economic issues, or all
25provisions of any existing collective bargaining agreement concerning economic

1issues if the parties have reopened negotiations under an existing agreement, as
2modified by the terms of the qualified economic offer and as otherwise modified by
3the parties. In such a collective bargaining unit, on and after that 90th day, a
4municipal employer that refuses to bargain collectively with respect to the terms of
5that stipulation, applicable to the 90-day period prior to expiration of the period
6included within the qualified economic offer, does not violate sub. (3) (a) 4. Any such
7unilateral implementation during the 90-day period prior to expiration of the period
8included within a qualified economic offer operates as a full, final, and complete
9settlement of all economic issues between the parties for the period included within
10the qualified economic offer. The failure of a labor organization to recognize the
11validity of a qualified economic offer does not affect the obligation of the municipal
12employer to submit economic issues to arbitration under subd. 6.
AB919, s. 7 13Section 7. 111.70 (4) (cm) 6. a. of the statutes, as affected by 2009 Wisconsin
14Act 28
, is amended to read:
AB919,7,515 111.70 (4) (cm) 6. a. If in any collective bargaining unit a dispute relating to one
16or more issues, qualifying for interest arbitration under subd. 5s. in a collective
17bargaining unit to which subd. 5s. applies,
has not been settled after a reasonable
18period of negotiation and after mediation by the commission under subd. 3. and other
19settlement procedures, if any, established by the parties have been exhausted, and
20the parties are deadlocked with respect to any dispute between them over wages,
21hours and conditions of employment to be included in a new collective bargaining
22agreement, either party, or the parties jointly, may petition the commission, in
23writing, to initiate compulsory, final and binding arbitration, as provided in this
24paragraph. At the time the petition is filed, the petitioning party shall submit in
25writing to the other party and the commission its preliminary final offer containing

1its latest proposals on all issues in dispute. Within 14 calendar days after the date
2of that submission, the other party shall submit in writing its preliminary final offer
3on all disputed issues to the petitioning party and the commission. If a petition is
4filed jointly, both parties shall exchange their preliminary final offers in writing and
5submit copies to the commission at the time the petition is filed.
AB919, s. 8 6Section 8. 111.70 (4) (cm) 6. am. of the statutes, as affected by 2009 Wisconsin
7Act 28
, is amended to read:
AB919,9,28 111.70 (4) (cm) 6. am. Upon receipt of a petition to initiate arbitration, the
9commission shall make an investigation, with or without a formal hearing, to
10determine whether arbitration should be commenced. If in determining whether an
11impasse exists the commission finds that the procedures set forth in this paragraph
12have not been complied with and such compliance would tend to result in a
13settlement, it may order such compliance before ordering arbitration. The validity
14of any arbitration award or collective bargaining agreement shall not be affected by
15failure to comply with such procedures. Prior to the close of the investigation each
16party shall submit in writing to the commission its single final offer containing its
17final proposals on all issues in dispute that are subject to interest arbitration under
18this subdivision or under subd. 5s. in collective bargaining units to which subd. 5s.
19applies
. If a party fails to submit a single, ultimate final offer, the commission shall
20close the investigation based on the last written position of the party. The municipal
21employer may not submit a qualified economic offer under subd. 5s. after the close
22of the investigation.
Such final offers may include only mandatory subjects of
23bargaining, except that a permissive subject of bargaining may be included by a
24party if the other party does not object and shall then be treated as a mandatory
25subject. No later than such time, the parties shall also submit to the commission a

1stipulation, in writing, with respect to all matters which are agreed upon for
2inclusion in the new or amended collective bargaining agreement. The commission,
3after receiving a report from its investigator and determining that arbitration should
4be commenced, shall issue an order requiring arbitration and immediately submit
5to the parties a list of 7 arbitrators. Upon receipt of such list, the parties shall
6alternately strike names until a single name is left, who shall be appointed as
7arbitrator. The petitioning party shall notify the commission in writing of the
8identity of the arbitrator selected. Upon receipt of such notice, the commission shall
9formally appoint the arbitrator and submit to him or her the final offers of the
10parties. The final offers shall be considered public documents and shall be available
11from the commission. In lieu of a single arbitrator and upon request of both parties,
12the commission shall appoint a tripartite arbitration panel consisting of one member
13selected by each of the parties and a neutral person designated by the commission
14who shall serve as a chairperson. An arbitration panel has the same powers and
15duties as provided in this section for any other appointed arbitrator, and all
16arbitration decisions by such panel shall be determined by majority vote. In lieu of
17selection of the arbitrator by the parties and upon request of both parties, the
18commission shall establish a procedure for randomly selecting names of arbitrators.
19Under the procedure, the commission shall submit a list of 7 arbitrators to the
20parties. Each party shall strike one name from the list. From the remaining 5
21names, the commission shall randomly appoint an arbitrator. Unless both parties
22to an arbitration proceeding otherwise agree in writing, every individual whose
23name is submitted by the commission for appointment as an arbitrator shall be a
24resident of this state at the time of submission and every individual who is

1designated as an arbitration panel chairperson shall be a resident of this state at the
2time of designation.
AB919, s. 9 3Section 9. 111.70 (4) (cm) 8m. of the statutes is renumbered 111.70 (4) (cm) 8m.
4a. and amended to read:
AB919,9,135 111.70 (4) (cm) 8m. a. Except as provided in subd. 8m. b., except for the initial
6collective bargaining agreement between the parties, and except as the parties
7otherwise agree, every collective bargaining agreement covering municipal
8employees subject to this paragraph shall be for a term of 2 years, but in no case may
9a collective bargaining agreement for any collective bargaining unit consisting of
10municipal employees subject to this paragraph other than school district employees
11be for a term exceeding 3 years nor may a collective bargaining agreement for any
12collective bargaining unit consisting of school district employees subject to this
13paragraph be for a term exceeding 4 years.
AB919,9,19 14c. No arbitration award may contain a provision for reopening of negotiations
15during the term of a collective bargaining agreement, unless both parties agree to
16such a provision. The requirement for agreement by both parties does not apply to
17a provision for reopening of negotiations with respect to any portion of an agreement
18that is declared invalid by a court or administrative agency or rendered invalid by
19the enactment of a law or promulgation of a federal regulation.
AB919, s. 10 20Section 10. 111.70 (4) (cm) 8m. b. of the statutes is created to read:
AB919,9,2521 111.70 (4) (cm) 8m. b. Except for the initial collective bargaining agreement
22between the parties, every collective bargaining agreement covering school district
23professional employees shall be for a term of 2 years expiring on June 30 of the
24odd-numbered year. An initial collective bargaining agreement covering school
25district professional employees shall be for a term ending on June 30 of the first

1odd-numbered year following the effective date of the collective bargaining
2agreement.
AB919, s. 11 3Section 11. 111.70 (4) (d) 2. a. of the statutes, as affected by 2009 Wisconsin
4Act 28
, is amended to read:
AB919,11,115 111.70 (4) (d) 2. a. The commission shall determine the appropriate collective
6bargaining unit for the purpose of collective bargaining and shall whenever possible,
7unless otherwise required under this subchapter, avoid fragmentation by
8maintaining as few collective bargaining units as practicable in keeping with the size
9of the total municipal workforce. In making such a determination, the commission
10may decide whether, in a particular case, the municipal employees in the same or
11several departments, divisions, institutions, crafts, professions, or other
12occupational groupings constitute a collective bargaining unit. Before making its
13determination, the commission may provide an opportunity for the municipal
14employees concerned to determine, by secret ballot, whether they desire to be
15established as a separate collective bargaining unit. The commission shall not
16decide, however, that any group of municipal employees constitutes an appropriate
17collective bargaining unit if the group includes both municipal employees who are
18school district professional employees and municipal employees who are not school
19district professional employees.
The commission shall not decide , however, that any
20other group of municipal employees constitutes an appropriate collective bargaining
21unit if the group includes both professional employees and nonprofessional
22employees, unless a majority of the professional employees vote for inclusion in the
23unit. The commission shall not decide that any group of municipal employees
24constitutes an appropriate collective bargaining unit if the group includes both craft
25employees and noncraft employees unless a majority of the craft employees vote for

1inclusion in the unit. The commission shall place the professional employees who are
2assigned to perform any services at a charter school, as defined in s. 115.001 (1), in
3a separate collective bargaining unit from a unit that includes any other professional
4employees whenever at least 30% 30 percent of those professional employees request
5an election to be held to determine that issue and a majority of the professional
6employees at the charter school who cast votes in the election decide to be
7represented in a separate collective bargaining unit. Upon the expiration of any
8collective bargaining agreement in force, the commission shall combine into a single
9collective bargaining unit 2 or more collective bargaining units consisting of school
10district employees if a majority of the employees voting in each collective bargaining
11unit vote to combine. Any vote taken under this subsection shall be by secret ballot.
AB919, s. 12 12Section 12. 111.70 (4) (m) 6. of the statutes, as affected by 2009 Wisconsin Act
1328
, is amended to read:
AB919,11,1714 111.70 (4) (m) 6. Solicitation of sealed bids for the provision of group health care
15benefits for school district employees and selection of the group health care benefits
16provider,
as provided in s. 120.12 (24), and the impact of that selection on the wages,
17hours, or conditions of employment of the school district employees
.
AB919, s. 13 18Section 13. 118.245 of the statutes is created to read:
Loading...
Loading...