(1) If an agreement through collective bargaining has not been reached within six months of certification, or within six months of the expiration of the last collective bargaining agreement, the parties may agree in writing to continue to bargain for an additional month. Thereafter, they may agree in writing to continue bargaining on a month-to-month basis. If the parties have not entered a written agreement to extend bargaining, or final agreement to extend bargaining has expired, the parties must submit their dispute to interest arbitration. Each party must submit that party's last and final proposals upon which there exists an impasse. All impasse items must be submitted to arbitration. The arbitrator or arbitration panel is empowered to review the parties' final proposals and to consider mediator findings, if any, and to issue a decision on the submitted items along with the previously agreed items, such that a complete agreement is imposed through the arbitration. The arbitrator or arbitration panel is also empowered to consider evidence submitted by the parties concerning factors such as the employer's ability to meet the costs of a contract, employee compensation at comparable employers, and cost of living in the relevant geographic area in their decision-making process.(2)(a) If the parties cannot agree on the arbitrator or arbitration panel within five days of the expiration of the six-month period following certification or expiration of the previous agreement, or of the expiration of the final written extension of bargaining, the parties must apply to the commission or, if both parties agree, to the American arbitration association to provide a list of five qualified arbitrators from which the arbitrator must be chosen.(b) Each party must pay the fees and expenses of the arbitrator or arbitration panel, and the fees and expenses of the neutral chair must be shared equally between the parties.(3) In consultation with the parties, the arbitrator or arbitration panel shall promptly establish a date, time, and place for a hearing which may be no later than two months following the appointment of the arbitrator. The arbitrator or arbitration panel shall provide reasonable notice thereof to the parties to the dispute. The parties must exchange final positions in writing, with copies to the arbitrator or arbitration panel, with respect to every issue to be arbitrated, on a date mutually agreed upon, but in no event later than 10 working days before the date set for hearing. A hearing must be held, and each party must have the opportunity to present evidence and make arguments. The rules of evidence prevailing in judicial proceedings may be considered, but are not binding, and any oral testimony or documentary evidence or other data deemed relevant by the chair of the arbitration panel may be received in evidence. A recording of the proceedings must be taken. The arbitrator or arbitration panel has the power to administer oaths, require the attendance of witnesses, and require the production of such books, papers, contracts, agreements, and documents as may be deemed by the arbitrator to be material to a just determination of the issues in dispute. If any person refuses to obey a subpoena issued by the arbitrator or arbitration panel, or refuses to be sworn or to make an affirmation to testify, or any witness, party, or attorney for a party is guilty of any contempt while in attendance at any hearing held hereunder, the arbitrator may invoke the jurisdiction of the superior court in the county where the labor dispute exists, and the court has jurisdiction to issue an appropriate order. Any failure to obey the order may be punished by the court as a contempt thereof.(4) Within 30 days following the conclusion of the hearing, the arbitrator or arbitration panel shall make written findings of fact and a written determination of the issues in dispute, based on the evidence presented. A copy thereof must be served on each of the parties to the dispute. That determination is final and binding upon both parties, subject to review by the superior court upon the application of either party.(5) The superior court's scope of review is limited to whether:(a) The arbitrator or arbitration panel acted without, or in excess of, their powers;(b) The arbitration has proceeded in the manner required by law;(c) The order or decision of the arbitrator or arbitration panel was procured by fraud or was an abuse of discretion;(d) The decision of the arbitrator or arbitration panel was arbitrary or capricious; and(e) The arbitrator or arbitration panel's decision violated either of the parties' constitutional or statutory rights.[ 2026 c 130 s 15.]