85R6972 AAF/JCG-D
	By: Johnson of Dallas	H.B. No. 1981

	A BILL TO BE ENTITLED
	AN ACT
	relating to the consideration of criminal history record
	information of applicants for public employment or an occupational
	license.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Chapter 656, Government Code, is amended by
	adding Subchapter E to read as follows:
	SUBCHAPTER E. CONSIDERATION OF CRIMINAL HISTORY RECORD INFORMATION
	Sec. 656.151.  DEFINITIONS. In this subchapter:
	(1)  "Applicant" means a person who has made an oral or
	written application with an employer, or has sent a resume or other
	correspondence to an employer, indicating an interest in
	employment.
	(2)  "Criminal history record information" has the
	meaning assigned by Section 411.082.
	(3)  "State agency" means an agency in any branch of
	state government.
	Sec. 656.152.  CRIMINAL HISTORY ON EMPLOYMENT APPLICATION.
	A state agency may not include a question regarding an applicant's
	criminal history record information on an initial employment
	application form.
	Sec. 656.153.  CONFIDENTIALITY OF CRIMINAL HISTORY RECORD
	INFORMATION. Notwithstanding Section 411.0765, an applicant's
	criminal history record information is confidential and may not be
	disclosed by a state agency.
	Sec. 656.154.  CONSIDERATION OF CRIMINAL HISTORY RECORD
	INFORMATION. (a) A state agency may inquire into or consider an
	applicant's criminal history record information after the agency
	has determined that the applicant is otherwise qualified and has
	conditionally offered the applicant employment.
	(b)  A state agency may not disqualify an applicant from
	employment because of a prior criminal conviction unless:
	(1)  the criminal conviction directly relates to the
	employment position sought by the applicant; or
	(2)  other law prohibits the applicant from employment
	because of the type of criminal conviction.
	(c)  A state agency may not consider in the criminal history
	record information or disqualify an applicant based on:
	(1)  an arrest that is not followed by an indictment;
	(2)  a conviction that has been sealed, dismissed, or
	expunged; or
	(3)  a Class C misdemeanor or other misdemeanor
	punishable by fine only.
	Sec. 656.155.  FACTORS IN DETERMINING WHETHER CONVICTION
	RELATES TO EMPLOYMENT POSITION. In determining whether a criminal
	conviction directly relates to an employment position under Section
	656.154(b)(1), the state agency shall consider:
	(1)  whether the criminal conviction is directly
	related to the duties and responsibilities of the employment
	position;
	(2)  the extent to which employment might offer an
	opportunity to engage in further criminal activity of the same type
	as that for which the person was convicted;
	(3)  whether circumstances leading to the conduct for
	which the person was convicted will recur in the employment
	position; and
	(4)  the amount of time that has elapsed since the
	applicant's last criminal conviction.
	Sec. 656.156.  NOTICE OF INTENT TO DENY EMPLOYMENT. Before
	denying an applicant employment based on the applicant's criminal
	history record information, a state agency must notify the
	applicant in writing of the state agency's intent to deny the
	applicant an employment position because of the applicant's
	criminal history. The state agency must:
	(1)  identify the criminal conviction that is the basis
	for the potential denial or disqualification;
	(2)  provide to the applicant a copy of the applicant's
	criminal history record information; and
	(3)  provide examples of evidence of mitigation or
	rehabilitation that the applicant may voluntarily provide under
	Section 656.157.
	Sec. 656.157.  EVIDENCE OF APPLICANT'S REHABILITATION. A
	state agency may not initially disqualify an applicant from an
	employment position because of a criminal conviction directly
	relating to the employment position if, not later than the 10th day
	after the date the state agency notified the applicant under
	Section 656.156 of the state agency's intent to deny employment,
	the applicant provides to the state agency evidence of:
	(1)  mitigation or rehabilitation, including evidence
	that:
	(A)  at least one year has elapsed since the date
	of the applicant's release from any correctional institution
	without subsequent criminal convictions; and
	(B)  the applicant is in compliance with the
	applicant's terms of probation or parole; and
	(2)  the applicant's fitness to perform the duties of
	the employment position, including letters of recommendation.
	Sec. 656.158.  DENIAL OF EMPLOYMENT. A state agency shall
	consider any information provided under Section 656.157 and make a
	final employment decision based on an individualized assessment of
	the information submitted by the applicant and the factors under
	Section 656.155. A state agency that denies an applicant
	employment after considering that information shall notify the
	applicant in writing of:
	(1)  the final denial or disqualification;
	(2)  the appeals process established by the Texas
	Workforce Commission under Section 656.161;
	(3)  potential eligibility of the applicant for other
	employment; and
	(4)  the earliest date on which the applicant may
	reapply for employment.
	Sec. 656.159.  HIRING BY CONTRACTOR. A state agency
	entering into an agreement with a contractor shall:
	(1)  require the contractor to certify in writing that
	the contractor's consideration of criminal history record
	information in hiring decisions satisfies the requirements of this
	subchapter for state agencies;
	(2)  review a contractor's policies for the
	consideration of criminal history record information in hiring for
	consistency with the requirements of this subchapter for state
	agencies; and
	(3)  when evaluating a contract, consider the
	contractor's policies for the consideration of criminal history
	record information in hiring among the criteria to award a
	contract.
	Sec. 656.160.  RECORDS; REVIEW; COMPLAINTS. (a) A state
	agency shall retain application forms, records of employment,
	communications with applicants, and any other records related to
	this subchapter until at least the third anniversary of the date of
	filling an employment position subject to this subchapter.
	(b)  The Texas Workforce Commission shall have access to
	records under Subsection (a) to monitor compliance with this
	subchapter.
	(c)  Any person aggrieved by a state agency's violation of
	this subchapter may file a complaint regarding the implementation
	of, compliance with, and impact of this subchapter to the Texas
	Workforce Commission. The Texas Workforce Commission shall keep a
	record of reports made under this subsection.
	(d)  The Texas Workforce Commission shall:
	(1)  conduct periodic reviews of state agencies to
	assess compliance with this subchapter;
	(2)  investigate and review complaints of violations of
	this subchapter; and
	(3)  report quarterly on complaints, investigations,
	and reviews.
	Sec. 656.161.  APPEAL. The Texas Workforce Commission shall
	establish an appeals process for any complaints or grievances
	concerning a violation of this subchapter.
	Sec. 656.162.  STATISTICS AND AUDITS. A state agency shall:
	(1)  maintain a record of the number of:
	(A)  employment positions, applicants, and
	applicants conditionally offered employment for employment
	positions requiring criminal history record information by the
	state agency; and
	(B)  applicants with prior criminal convictions
	who:
	(i)  were notified of the state agency's
	intent to deny the applicant employment under Section 656.156;
	(ii)  provided evidence of rehabilitation
	under Section 656.157;
	(iii)  were notified of the state agency's
	denial of employment under Section 656.158; or
	(iv)  were offered employment;
	(2)  regularly conduct a confidential, anonymous
	survey of employees in employment positions not requiring criminal
	history record information to determine the number of employees
	with prior convictions; and
	(3)  conduct an audit of the state agency's hiring
	practices in an effort to ensure that applicants with prior
	criminal convictions are not unreasonably denied employment.
	Sec. 656.163.  EXEMPTIONS.  This subchapter does not apply
	to an applicant for a position:
	(1)  that involves the provision of services to or care
	of children;
	(2)  that requires direct interaction with children; or
	(3)  for which consideration of criminal history record
	information is otherwise required by law.
	SECTION 2.  Subtitle C, Title 5, Local Government Code, is
	amended by adding Chapter 181 to read as follows:
	CHAPTER 181.  CONSIDERATION OF CRIMINAL HISTORY RECORD INFORMATION
	Sec. 181.001.  DEFINITIONS.  In this chapter:
	(1)  "Applicant" means a person who has made an oral or
	written application with an employer, or has sent a resume or other
	correspondence to an employer, indicating an interest in
	employment.
	(2)  "Criminal history record information" has the
	meaning assigned by Section 411.082, Government Code.
	(3)  "Local government" means a county, municipality,
	or other political subdivision of this state.
	Sec. 181.002.  CRIMINAL HISTORY ON EMPLOYMENT APPLICATION.
	A local government may not include a question regarding an
	applicant's criminal history record information on an initial
	employment application form.
	Sec. 181.003.  CONFIDENTIALITY OF CRIMINAL HISTORY RECORD
	INFORMATION. Notwithstanding Section 411.0765, Government Code,
	an applicant's criminal history record information is confidential
	and may not be disclosed by a local government.
	Sec. 181.004.  CONSIDERATION OF CRIMINAL HISTORY RECORD
	INFORMATION.  (a)  A local government may inquire into or consider
	an applicant's criminal history record information after the local
	government has determined that the applicant is otherwise qualified
	and has conditionally offered the applicant employment.
	(b)  A local government may not disqualify an applicant from
	employment because of a prior criminal conviction unless:
	(1)  the criminal conviction directly relates to the
	employment position sought by the applicant; or
	(2)  other law prohibits the applicant from employment
	because of the type of criminal conviction.
	(c)  A local government may not consider in the criminal
	history record information or disqualify an applicant based on:
	(1)  an arrest that is not followed by an indictment;
	(2)  a conviction that has been sealed, dismissed, or
	expunged; or
	(3)  a Class C misdemeanor or other misdemeanor
	punishable by fine only.
	Sec. 181.005.  FACTORS IN DETERMINING WHETHER CONVICTION
	RELATES TO EMPLOYMENT POSITION. In determining whether a criminal
	conviction directly relates to an employment position under Section
	181.004(b)(1), a local government shall consider:
	(1)  whether the criminal conviction is directly
	related to the duties and responsibilities of the employment
	position;
	(2)  the extent to which employment might offer an
	opportunity to engage in further criminal activity of the same type
	as that for which the person was convicted;
	(3)  whether circumstances leading to the conduct for
	which the person was convicted will recur in the employment
	position; and
	(4)  the amount of time that has elapsed since the
	applicant's last criminal conviction.
	Sec. 181.006.  NOTICE OF INTENT TO DENY EMPLOYMENT. Before
	denying an applicant employment based on the applicant's criminal
	history record information, a local government must notify the
	applicant in writing of the local government's intent to deny the
	applicant employment because of the applicant's criminal history.
	The local government must:
	(1)  identify the criminal conviction that is the basis
	for the potential denial or disqualification;
	(2)  provide to the applicant a copy of the applicant's
	criminal history record information; and
	(3)  provide examples of evidence of mitigation or
	rehabilitation that the applicant may voluntarily provide under
	Section 181.007.
	Sec. 181.007.  EVIDENCE OF APPLICANT'S REHABILITATION. A
	local government may not initially disqualify an applicant from an
	employment position because of a criminal conviction directly
	relating to the employment position if, not later than the 10th day
	after the date the local government notified the applicant under
	Section 181.006 of the local government's intent to deny
	employment, the applicant provides to the local government evidence
	of:
	(1)  mitigation or rehabilitation, including evidence
	that:
	(A)  at least one year has elapsed since the date
	of the applicant's release from any correctional institution
	without subsequent criminal convictions; and
	(B)  the applicant is in compliance with the
	applicant's terms of probation or parole; and
	(2)  the applicant's fitness to perform the duties of
	the employment position, including letters of recommendation.
	Sec. 181.008.  DENIAL OF EMPLOYMENT. A local government
	shall consider any information provided under Section 181.007 and
	make a final employment decision based on an individualized
	assessment of the information submitted by the applicant and the
	factors under Section 181.005. A local government that denies an
	applicant employment after considering that information shall
	notify the applicant in writing of:
	(1)  the final denial or disqualification;
	(2)  the appeals process established by the Texas
	Workforce Commission under Section 181.011;
	(3)  potential eligibility of the applicant for other
	employment; and
	(4)  the earliest date on which the applicant may
	reapply for employment.
	Sec. 181.009.  HIRING BY CONTRACTOR. A local government
	entering into an agreement with a contractor shall:
	(1)  require the contractor to certify in writing that
	the contractor's consideration of criminal history record
	information in hiring decisions satisfies the requirements of this
	chapter for local governments;
	(2)  review a contractor's policies for the
	consideration of criminal history record information in hiring for
	consistency with the requirements of this chapter for local
	governments; and
	(3)  when evaluating a contract, consider the
	contractor's policies for the consideration of criminal history
	record information in hiring among the criteria to award a
	contract.
	Sec. 181.010.  RECORDS; REVIEW; COMPLAINTS. (a) A local
	government shall retain application forms, records of employment,
	communications with applicants, and any other records related to
	this chapter until at least the third anniversary of the date of
	filling an employment position subject to this chapter.
	(b)  The Texas Workforce Commission shall have access to
	records under Subsection (a) to monitor compliance with this
	chapter.
	(c)  Any person aggrieved by a local government's violation
	of this chapter may file a complaint regarding the implementation
	of, compliance with, and impact of this chapter to the Texas
	Workforce Commission. The Texas Workforce Commission shall keep a
	record of reports made under this subsection.
	(d)  The Texas Workforce Commission shall:
	(1)  conduct periodic reviews of local governments to
	assess compliance with this chapter;
	(2)  investigate and review complaints of violations of
	this chapter; and
	(3)  report quarterly on complaints, investigations,
	and reviews.
	Sec. 181.011.  APPEAL. The Texas Workforce Commission shall
	establish an appeals process for any complaints or grievances
	concerning a violation of this chapter.
	Sec. 181.012.  STATISTICS AND AUDITS. A local government
	shall:
	(1)  maintain a record of the number of:
	(A)  employment positions, applicants, and
	applicants conditionally offered employment for employment
	positions requiring criminal history record information by the
	local government; and
	(B)  applicants with prior criminal convictions
	who:
	(i)  were notified of the local government's
	intent to deny the applicant employment under Section 181.006;
	(ii)  provided evidence of rehabilitation
	under Section 181.007;
	(iii)  were notified of the local
	government's final denial of employment under Section 181.008; or
	(iv)  were offered employment;
	(2)  regularly conduct a confidential, anonymous
	survey of employees in employment positions not requiring criminal
	history record information to determine the number of employees
	with prior convictions; and
	(3)  conduct an audit of the local government's hiring
	practices in an effort to ensure that applicants with prior
	criminal convictions are not unreasonably denied employment.
	Sec. 181.013.  EXEMPTIONS. This chapter does not apply to an
	applicant for a position:
	(1)  that involves the provision of services to or care
	of children;
	(2)  that requires direct interaction with children; or
	(3)  for which consideration of criminal history record
	information is otherwise required by law.
	SECTION 3.  Subchapter A, Chapter 53, Occupations Code, is
	amended by adding Sections 53.003, 53.004, and 53.005 to read as
	follows:
	Sec. 53.003.  CONFIDENTIALITY OF CRIMINAL HISTORY RECORD
	INFORMATION. A state agency that issues a license that obtains in
	connection with the licensing process any criminal history record
	information regarding a license applicant or license holder may not
	disclose or otherwise use the information, except as allowed by
	law.
	Sec. 53.004.  CONSIDERATION OF CRIMINAL HISTORY RECORD
	INFORMATION. A state agency that issues a license may not inquire
	into or consider an applicant's criminal history record information
	until after the state agency has determined that the applicant is
	otherwise qualified for the license.
	Sec. 53.005.  CRIMINAL HISTORY ON LICENSE APPLICATION.
	Notwithstanding any other law, an application for a license may not
	include a question regarding an applicant's criminal history record
	information.
	SECTION 4.  Section 53.021, Occupations Code, is amended by
	amending Subsections (a) and (a-1) and adding Subsection (a-2) to
	read as follows:
	(a)  Except as provided by Subsection (b), notwithstanding
	any other law, a [A] licensing authority may not suspend or revoke a
	license, disqualify a person from receiving a license, or deny to a
	person the opportunity to take a licensing examination on the
	grounds that the person has been convicted of an offense, unless the
	offense:
	(1)  [an offense that] directly relates to the duties
	and responsibilities of the licensed occupation; or
	(2)  by operation of law automatically disqualifies the
	person from obtaining employment in the occupation for which the
	license is required [an offense that does not directly relate to the
	duties and responsibilities of the licensed occupation and that was
	committed less than five years before the date the person applies
	for the license;
	[(3)     an offense listed in Article 42A.054, Code of
	Criminal Procedure; or
	[(4)     a sexually violent offense, as defined by Article
	62.001, Code of Criminal Procedure].
	(a-1)  A licensing authority may not consider a person to
	have been convicted of an offense for purposes of this section if
	the conviction:
	(1)  is for an offense punishable by fine only
	[Subsection (a) does not apply to a person who has been convicted
	only of an offense punishable as a Class C misdemeanor] unless:
	(A) [(1)]  the person is an applicant for or the
	holder of a license that authorizes the person to possess a firearm;
	and
	(B) [(2)]  the offense for which the person was
	convicted is a misdemeanor crime of domestic violence as that term
	is defined by 18 U.S.C. Section 921; or
	(2)  has been sealed or expunged.
	(a-2)  A licensing authority may not suspend or revoke a
	license, disqualify a person from receiving a license, or deny to a
	person the opportunity to take a licensing examination on the
	grounds that the person has been arrested for an offense.
	SECTION 5.  Section 53.051, Occupations Code, is amended to
	read as follows:
	Sec. 53.051.  NOTICE OF SUSPENSION OR REVOCATION. A
	licensing authority that suspends or revokes a license [or denies a
	person a license or the opportunity to be examined for a license]
	because of the person's prior conviction of a crime and the
	relationship of the crime to the license shall notify the person in
	writing of:
	(1)  the reason for the suspension or [,] revocation[,
	denial, or disqualification];
	(2)  the review procedure provided by Section 53.052;
	and
	(3)  the earliest date the person may appeal the action
	of the licensing authority.
	SECTION 6.  Subchapter C, Chapter 53, Occupations Code, is
	amended by adding Sections 53.053, 53.054, and 53.055 to read as
	follows:
	Sec. 53.053.  NOTICE OF INTENT TO DENY LICENSE. Before
	denying an application for a license based on the applicant's
	criminal history record information, a state agency that issues a
	license must notify the applicant in writing of the agency's intent
	to deny the applicant a license because of the applicant's criminal
	history. The state agency must:
	(1)  identify the criminal conviction that is the basis
	for the potential denial or disqualification;
	(2)  provide to the applicant a copy of the applicant's
	criminal history record information; and
	(3)  provide examples of evidence of mitigation or
	rehabilitation that the applicant may voluntarily provide under
	Section 53.054.
	Sec. 53.054.  EVIDENCE OF APPLICANT'S REHABILITATION. A
	state agency that issues a license may not initially disqualify an
	applicant for a license because of a criminal conviction directly
	relating to the occupation for which the license is required if, not
	later than the 10th day after the date the agency notified the
	applicant under Section 53.053 of the agency's intent to deny an
	application for a license, the applicant provides to the agency
	evidence of:
	(1)  mitigation or rehabilitation, including evidence:
	(A)  that at least one year has elapsed since the
	date of the applicant's release from any correctional institution
	without subsequent criminal convictions; and
	(B)  that the applicant is in compliance with the
	applicant's terms of probation or parole; and
	(2)  the applicant's fitness to perform the duties of
	the occupation, including letters of recommendation.
	Sec. 53.055.  DENIAL OF LICENSE. A state agency that issues
	a license shall consider any information provided under Section
	53.054 and make a final licensing decision based on an
	individualized assessment of the information submitted by the
	applicant and the factors under Sections 53.022 and 53.023. A state
	agency that denies a license application after considering that
	information shall notify the applicant in writing of:
	(1)  the final denial;
	(2)  the review procedure provided by Section 53.052;
	(3)  the earliest date on which the person may appeal
	the action of the agency; and
	(4)  the earliest date on which the applicant may
	reapply for the license, if applicable.
	SECTION 7.  Sections 51.356 and 53.021(c), (d), and (e),
	Occupations Code, are repealed.
	SECTION 8.  (a) Subchapter E, Chapter 656, Government Code,
	and Chapter 181, Local Government Code, as added by this Act, apply
	only to an application for employment submitted, or a contract for
	which the solicitation of qualifications, proposals, or other
	similar expressions of interest is published, on or after the
	effective date of this Act.
	(b)  The changes in law made by this Act to Chapter 53,
	Occupations Code, apply only to an application for a license or
	other authorization that is filed, or a proceeding to revoke or
	suspend a license or authorization that is commenced, on or after
	the effective date of this Act.
	SECTION 9.  This Act takes effect September 1, 2017.