SENATE LAW AND PUBLIC SAFETY COMMITTEE

STATEMENT TO

SENATE, No. 1412

STATE OF NEW JERSEY

DATED:  FEBRUARY 19, 2026

      The Senate Law and Public Safety Committee reports favorably Senate Bill No. 1412.

      As reported by the committee, Senate Bill No. 1412 makes several changes to the current law governing arbitration awards in disputes between public employers and their police and fire departments.

     Under current law, any time after a collective negotiation agreement between a public employer and a public police or fire department expires, either party may petition the New Jersey Public Employment Relations Commission (PERC) for arbitration.  Current law outlines the ways in which public employers are to negotiate these contractual disputes when the parties have reached impasse and are unable to resolve their dispute.

     This bill provides that both parties have a duty to exchange information including the written reports of any experts intended to be called as a witness by a party at the arbitration proceedings. The arbitrator is required to have the authority to set deadlines for the exchange of information. If a party fails to timely exchange information or the report of an expert, the bill allows the arbitrator to have discretion as to the evidence that is to be included in the record.

     The bill also establishes certain requirements for the public employer.  Under the bill, the public employer is required to provide prior to the commencement of the arbitration proceeding, the arbitrator and the employee representative with the following:

· a list of all unit members during the final year of the expired agreement, their salary guide steps during the final year of the expired agreement, and their anniversary date of hire, meaning the date or dates on which unit members advance on the guide;

· costs of increments and the specific dates on which they are paid;

· costs of any other base salary items and the specific dates on which they are paid;

· the total cost of all base salary items for the 12 months immediately preceding the first year of the new agreement; and

· a list of all unit members as of the last day of the year immediately preceding the new agreement, their step, and their rate of salary as of that same day. The employee representative is required to respond to the information provided by the public employer.

     Under current law, arbitrators selected to make determinations pertaining to these contractual disputes are employees of PERC.  The commission is required to take measures to assure the impartial, random selection of an arbitrator from its panel of arbitrators.  This bill provides that upon receipt of a petition for arbitration the commission is required to communicate to the parties the option to mutually select an arbitrator from the panel.  Under the bill, the parties would have three business days to notify the commission of the mutual selection.  If there is no mutual selection on the fourth business day, the bill requires the commission to randomly select an arbitrator without participation of either party. The bill also removes the requirement that arbitrators serving on the panel are required to demonstrate to the commission their professional qualification, knowledge and experience, in accordance with the criteria and rules adopted by the commission. 

     The bill also extends the time frame during which an arbitrator is required to render an opinion to 150 days of the commission’s assignment.  Current law requires an arbitrator or panel of arbitrators to render an opinion with 90 days of the commission’s assignment.  Under the bill, an arbitrator may request an extension and the commission chair or a designee may grant the extension if warranted.  The bill limits the extension time to 30 days cumulatively but in no case more than 180 days.  The bill also extends from 14 days to 21 days the amount of time that an aggrieved party may file an appeal under certain circumstances.  Under the bill, the parties would be required to meet within 10 days after the issuance of an award to complete the award’s implementation and resolve any issued to avoid filing of an appeal.

     The bill also increases the fees associated with the cost of arbitration that are equally shared by the parties.  Specifically the bill increases the cost of services provided by the arbitrator from $1,000 to $1,500 per day.  The total cost of services of an arbitrator would be increased from $10,000 to $15,000. 

     Finally, the bill repeals sections from current law that place a limitation on the amount that may be awarded during an arbitration proceeding and establish a Police and Fire Interest Arbitration Impact Task Force.            

      This bill was prefiled for introduction in the 2026-2027 session pending technical review.  As reported, the bill includes the changes required by technical review, which has been performed.