By: Muñoz H.B. No. 2170

A BILL TO BE ENTITLED

AN ACT

relating to sheriff's department civil service systems in certain counties.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter B, Chapter 158, Local Government Code, is amended by adding Section 158.0375 to read as follows:

Sec. 158.0375. HEARING EXAMINERS. (a) The written notice for a promotional bypass, demotion, or notice of disciplinary action, as applicable, issued to an employee must state that in an appeal of a termination, a suspension, a promotional bypass, or a recommended demotion, the appealing employee may elect to appeal to an independent third-party hearing examiner instead of to the commission. The notice must also state that if the employee elects to appeal to a hearing examiner, the employee waives all rights to appeal to a district court except as provided by Subsection (j).

(b) To appeal to a hearing examiner under Subsection (a), the appealing employee must submit to the commission a written request as part of an original notice of appeal stating the employee's election to appeal to a hearing examiner.

(c) The hearing examiner's decision is final and binding on all parties. If the employee elects to appeal to a hearing examiner, the employee waives all rights to appeal to a district court except as provided by Subsection (j).

(d) In an appeal to a hearing examiner, the parties shall first attempt to agree on the selection of an impartial hearing examiner. If the parties do not agree on the selection of a hearing examiner on or within 10 days after the date the appeal is filed, the commission shall immediately request a list of seven qualified neutral arbitrators from the American Arbitration Association or the Federal Mediation and Conciliation Service, or their successors in function. The parties may agree on one of the seven neutral arbitrators on the list. If the parties do not agree within five working days after the date they received the list, each party or the party's designee shall alternate striking a name from the list and the name remaining is the hearing examiner. The parties or their designees shall agree on a date for the hearing.

(e) The hearing must begin as soon as the hearing examiner can be scheduled. If the hearing examiner cannot begin the hearing within 45 calendar days after the date of selection of the hearing examiner, the employee may, within two days after learning of that fact, require the selection of a new hearing examiner using the procedure prescribed by Subsection (d).

(f) In each hearing conducted under this section, the hearing examiner has the same duties and powers as the commission, including the power to issue subpoenas.

(g) In a hearing conducted under this section, the parties may agree to an expedited hearing procedure. Unless otherwise agreed by the parties, in an expedited procedure the hearing examiner shall render a decision on the appeal within 10 days after the date the hearing ended.

(h) In an appeal that does not involve an expedited hearing procedure, the hearing examiner shall make a reasonable effort to render a decision on the appeal within 30 days after the date the hearing ends or the briefs are filed. The hearing examiner's inability to meet the time requirements imposed by this section does not affect the hearing examiner's jurisdiction, the validity of the adverse employment action, or the hearing examiner's final decision. The hearing examiner may uphold, reduce, or overturn the adverse employment action.

(i) The hearing examiner's fees and expenses are shared equally by the appealing employee and by the department. The costs of a witness are paid by the party who calls the witness.

(j) A district court may hear an appeal of a hearing examiner's award only on the grounds that the hearing examiner was without jurisdiction or exceeded the hearing examiner's jurisdiction or that the order was procured by fraud, collusion, or other unlawful means or the decision was arbitrary or capricious. An appeal under this subsection is under the substantial evidence rule, and the judgment of the district court is appealable as in other civil cases. An appeal must:

(1) be brought in the district court having jurisdiction in the county in which the department is located;

(2) be filed with the district court with proper jurisdiction not later than the 45th day after the date the hearing examiner issued a final decision; and

(3) clearly state the basis for the appeal.

(k) The hearing examiner may not require evidence of lost compensation to award the employee compensation. If the adverse employment action is overturned or reduced, the employee is entitled to:

(1) full compensation for the actual time lost as a result of the adverse employment action at the rate of pay provided for the position or class of service the employee held before the adverse employment action; and

(2) restoration of or credit for any benefits lost as a result of the adverse employment action, including sick leave, vacation leave, and service credit in a retirement system.

(l) If a law requires a retirement system to make appropriate adjustments to a person's service credit or benefits with that system based on a judgment or order issued by the commission or a settlement agreement executed in connection with a complaint or grievance filed with the commission, such as Section 842.113, Government Code, that law applies to the final decision of a hearing examiner issued under this section or a settlement agreement executed in connection with an appeal filed with the hearing examiner in the same manner as that law applies to a judgment, order, or settlement agreement described by this subsection with respect to the commission.

(m) If an employee is entitled to restored benefits under Subsection (k), standard payroll deductions for retirement and other benefits must be made from the compensation paid and the county shall make any standard corresponding contributions to the retirement system or other applicable benefit systems.

(n) If the adverse employment action was a demotion and is overturned, the employee is entitled to the difference in compensation between the position the employee was demoted from and the position the employee held before the hearing examiner made a decision.

(o) If an employee is owed a monetary award for back pay after the final decision of the hearing examiner is rendered, the county shall, before the end of the second full pay period after the date the employee is reinstated, repay to the employee all wages lost as a result of the adverse employment action.

(p) If the county does not fully repay all lost wages to the employee as provided by Subsection (o), the county shall pay the employee an amount equal to the lost wages plus accrued interest. Interest under this subsection accrues beginning on the date of the employee's reinstatement at a rate equal to three percent plus the rate for court judgments under Chapter 304, Finance Code, that is in effect on the date of the employee's reinstatement.

SECTION 2. Section 158.0375, Local Government Code, as added by this Act, applies only to an adverse employment action taken on or after the effective date of this Act.

SECTION 3. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2025.