81R24149 MCK-F By: Chavez, Rose H.B. No. 4388 Substitute the following for H.B. No. 4388: By: Chavez C.S.H.B. No. 4388 A BILL TO BE ENTITLED AN ACT relating to veteran's employment preferences. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Chapter 657, Government Code, is amended by designating Sections 657.001 through 657.009 as Subchapter A and adding a heading for Subchapter A to read as follows: SUBCHAPTER A. GENERAL PROVISIONS SECTION 2. Section 657.001, Government Code, is amended by amending Subdivision (2) and adding Subdivisions (3) and (4) to read as follows: (2) "Minimum qualifications" means the experience and education to perform the essential tasks of a job identified in the posting for the job. (3) "Public entity" means: (A) a state agency, including: (i) a [public] department, commission, board, authority, office, or other agency in the executive branch of state government created by the constitution or a statute of this state; or (ii) a university system or an institution of higher education as defined by Section 61.003, Education Code; or (B) a county, municipality, or district, a district or other authority created under Section 52, Article III, or Section 59, Article XVI, Texas Constitution, or any other political subdivision of this state. (4) "Public work of this state" means a project that is the subject of a public work contract with a governmental entity to which Chapter 2253 applies. SECTION 3. Subchapter A, Chapter 657, Government Code, as added by this Act, is amended by adding Section 657.0015 to read as follows: Sec. 657.0015. EXCEPTIONS. This chapter does not apply to: (1) appointments made by the governor; or (2) the employment of: (A) a head of a division or department in a state office or agency headed by a single elected state official; or (B) a person who advises or reports directly to an elected state official. SECTION 4. Sections 657.002(a) and (b), Government Code, are amended to read as follows: (a) A veteran qualifies for a veteran's employment preference if the veteran: (1) served in the military for not less than 90 consecutive days during a national emergency declared in accordance with federal law or was discharged from military service for an established service-connected disability; (2) was honorably discharged from military service; and (3) meets the minimum qualifications for the position [is competent]. (b) A veteran's surviving spouse who has not remarried or an orphan of a veteran qualifies for a veteran's employment preference if: (1) the veteran was killed while on active duty; (2) the veteran served in the military for not less than 90 consecutive days during a national emergency declared in accordance with federal law; and (3) the spouse or orphan meets the minimum qualifications for the position [is competent]. SECTION 5. Sections 657.003(a) and (b), Government Code, are amended to read as follows: (a) An individual who qualifies for a veteran's employment preference is entitled to a preference in employment with or appointment to a public entity or for a public work of this state over other applicants for the same position who do not have [a] greater qualifications for the position [qualification]. (b) An individual who has an established service-connected disability and is entitled to a veteran's employment preference is entitled to preference for employment or appointment in a position [for which a competitive examination is not held] over all other applicants for the same position who are without a service-connected disability and who do not have [a] greater qualifications for the position [qualification]. SECTION 6. Section 657.005(a), Government Code, is amended to read as follows: (a) The individual whose duty is to appoint or employ an applicant for a position with a public entity or public work of this state or an officer or the chief administrator of the entity or work who receives an application for appointment or employment by an individual entitled to a veteran's employment preference, before appointing or employing any individual, shall investigate the qualifications of the applicant for the position. If the applicant is of good moral character and can perform the duties of the position and no other applicant for the position has greater qualifications than the applicant entitled to a veteran's employment preference, the officer, chief executive, or individual whose duty is to appoint or employ shall appoint or employ the applicant for the position. SECTION 7. Section 657.007(b), Government Code, is amended to read as follows: (b) The preference granted under this section applies only to the extent that a reduction in workforce by an employing public entity involves other employees of the same [a similar type or] classification. SECTION 8. Section 657.008, Government Code, is amended to read as follows: Sec. 657.008. REPORTING REQUIREMENTS. (a) A state agency [public entity] shall file quarterly with the comptroller a report that states: (1) any measures taken by the state agency during the quarter to inform individuals entitled to a hiring preference under this chapter of their rights under this chapter; (2) the appeals process available through the state agency to an individual entitled to a hiring preference under this chapter who alleges that the state agency violated the individual's rights under this chapter; (3) the percentage of the total number of employees hired by the state agency [entity] during the reporting period who are persons entitled to a preference under this chapter; and (4) [(2)] the percentage of the total number of the agency's [entity's] employees who are persons entitled to a preference under this chapter[; and [(3) the number of complaints filed with the governing body of the entity under Section 657.010 during that quarter and the number of those complaints resolved by the governing body]. (b) The comptroller shall file annually with the legislature a report that compiles and analyzes information that the comptroller receives from state agencies [public entities] under Subsection (a). SECTION 9. Chapter 657, Government Code, is amended by adding Subchapters B and C to read as follows: SUBCHAPTER B. COMPLAINT TO PUBLIC ENTITY Sec. 657.051. COMPLAINT PROCEDURE. (a) An individual who is entitled to a veteran's employment preference under this chapter may appeal a hiring decision made by a public entity by filing a written complaint with the public entity not later than the 30th day after the date the individual receives notice of the hiring decision. (b) The individual must state in the complaint: (1) the name of the public entity; and (2) the allegations that form the basis of the complaint. Sec. 657.052. DECISION. (a) Not later than the 30th day after the date the public entity receives a complaint, the public entity shall issue a decision on the complaint and notify the applicant of the decision. (b) If the public entity determines that an individual should have been offered the position because of the preference granted under this chapter, the public entity shall offer to appoint or employ the applicant: (1) for the position; or (2) for the next similar position that becomes available for which the individual meets the minimum qualifications. Sec. 657.053. REQUEST FOR HEARING. If a state agency determines under Section 657.052 that the applicant is not entitled under this chapter to be appointed or employed for the position, the applicant may request a hearing under Subchapter C. SUBCHAPTER C. HEARING Sec. 657.101. COMPLAINT; HEARING. (a) An applicant for employment with a state agency who is entitled to a veteran's employment preference under this chapter may appeal the state agency's hiring decision after following the complaint procedure in Subchapter B by filing a request for a hearing with the state agency. (b) The applicant must request a hearing not later than the 30th day after the date the applicant receives notice of the decision issued under Section 657.052. (c) Not later than the 10th day after the date the state agency receives a request for a hearing, the state agency shall refer the case to the State Office of Administrative Hearings for a hearing. Sec. 657.102. HEARING PROCEDURES. (a) The State Office of Administrative Hearings shall conduct a hearing on the complaint not later than the 90th day after the date the office receives the complaint. An administrative law judge employed by the office shall conduct the hearing. (b) A hearing conducted under this subchapter is a contested case under Chapter 2001. Sec. 657.103. DECISION. (a) If the administrative law judge determines that the applicant should have been offered the position applied for because of the preference granted under this chapter, the individual responsible for making hiring decisions for the state agency shall: (1) offer to appoint or employ the applicant for the position; or (2) offer to appoint or employ the applicant for the next similar position that becomes available for which the applicant meets the minimum qualifications. (b) The administrative law judge shall render the final decision in the contested case. The decision of the administrative law judge is not subject to judicial review. Sec. 657.104. REPORT. The State Office of Administrative Hearings shall report to the governor, the comptroller, and the legislature the number of hearings requested under this subchapter. SECTION 10. Section 657.010, Government Code, is repealed. SECTION 11. The changes in law made by this Act to Chapter 657, Government Code, apply to an application for employment only if the application is submitted on or after the effective date of this Act. An application submitted before the effective date of this Act is governed by the law in effect at the time the application is submitted, and the former law is continued in effect for that purpose. SECTION 12. The changes in law made by this Act to Chapter 657, Government Code, apply only to a public work for which a public entity first advertises or otherwise solicits bids, proposals, offers, or qualifications to perform any portion of the work on or after the effective date of this Act. A public work for which a public entity first advertised or otherwise solicited bids, proposals, offers, or qualifications to perform any portion of the work before that date is governed by the law in effect when the first advertisement or solicitation was given, and the former law is continued in effect for that purpose. SECTION 13. This Act takes effect September 1, 2009.