Provides, with respect to institutions of higher education only, if the parties to a collective bargaining agreement have not reached agreement by October 1st, and they have engaged the mediation or fact-finding services of the public employment relations commission, the governor shall submit a request for funds equivalent to the employer's last pre-October 1 offer. If the eventual settlement exceeds the request for funds, the governor shall submit a supplementary request for the balance to the legislature in conjunction with the governor's supplementary budget request for the following legislative session.

Provides in the case of a bargaining unit of employees in which the exclusive bargaining representative is certified during or after the conclusion of a legislative session, the legislature may act upon the compensation and fringe benefit provisions of the unit's initial collective bargaining agreement if those provisions are agreed upon and submitted to the office of financial management and legislative budget committees prior to final legislative action on the budget or supplementary budget by the sitting legislature or the succeeding legislature as the case may be.