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          A BILL TO BE ENTITLED
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          AN ACT
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        relating to a prohibition against certain forms of employment  | 
      
      
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        discrimination by state contractors; providing an administrative  | 
      
      
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        penalty. | 
      
      
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               BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
      
      
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               SECTION 1.  Subchapter A, Chapter 2155, Government Code, is  | 
      
      
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        amended by adding Section 2155.0065 to read as follows: | 
      
      
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               Sec. 2155.0065.  PROHIBITION AGAINST DISCRIMINATION BY  | 
      
      
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        STATE CONTRACTOR BASED ON SEXUAL ORIENTATION OR GENDER IDENTITY OR  | 
      
      
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        EXPRESSION.  (a)  In this section: | 
      
      
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                     (1)  "Employee" means an individual who is employed by  | 
      
      
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        a contractor or subcontractor for compensation. | 
      
      
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                     (2)  "Gender identity or expression" means having or  | 
      
      
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        being perceived as having a gender-related identity, appearance,  | 
      
      
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        expression, or behavior, regardless of whether that identity,  | 
      
      
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        appearance, expression, or behavior is different from that commonly  | 
      
      
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        associated with the individual's actual or perceived sex. | 
      
      
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                     (3)  "Sexual orientation" means the actual or perceived  | 
      
      
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        status of an individual with respect to the individual's sexuality. | 
      
      
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               (b)  A state agency contracting with a contractor under this  | 
      
      
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        subtitle shall require the contractor to adopt and apply an  | 
      
      
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        employment policy under which the contractor and any subcontractor  | 
      
      
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        may not, because of sexual orientation or gender identity or  | 
      
      
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        expression: | 
      
      
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                     (1)  fail or refuse to hire an individual, discharge an  | 
      
      
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        individual, or discriminate in any other manner against an  | 
      
      
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        individual in connection with compensation or the terms,  | 
      
      
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        conditions, or privileges of employment;  or | 
      
      
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                     (2)  limit, segregate, or classify an employee or  | 
      
      
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        applicant for employment in a manner that would deprive or tend to  | 
      
      
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        deprive an individual of any employment opportunity or adversely  | 
      
      
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        affect in any other manner the status of an employee. | 
      
      
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               (c)  Each contract entered into between a state agency and a  | 
      
      
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        contractor under this subtitle must include terms that: | 
      
      
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                     (1)  authorize an employee of a contractor or  | 
      
      
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        subcontractor, or an applicant for employment with the contractor  | 
      
      
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        or subcontractor, to make a verbal or written complaint to the state  | 
      
      
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        agency regarding the contractor's or subcontractor's noncompliance  | 
      
      
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        with an employment policy required by Subsection (b); | 
      
      
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                     (2)  explain that, on confirmation of a contractor's  | 
      
      
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        noncompliance with an employment policy required by Subsection (b)  | 
      
      
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        that is the subject of a complaint, the state agency shall provide  | 
      
      
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        to the contractor written notice of the noncompliance by hand  | 
      
      
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        delivery or certified mail; | 
      
      
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                     (3)  inform a contractor that the state agency may  | 
      
      
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        impose an administrative penalty if the contractor fails to comply  | 
      
      
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        with an employment policy required by Subsection (b) after the date  | 
      
      
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        on which the contractor receives notice under Subdivision (2); and | 
      
      
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                     (4)  explain that an amount equal to the amount of the  | 
      
      
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        administrative penalty may be withheld from a payment otherwise  | 
      
      
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        owed to a contractor under a contract. | 
      
      
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               (d)  The amount of an administrative penalty imposed under  | 
      
      
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        Subsection (c)(3) is $100 per day for each employee or applicant for  | 
      
      
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        employment who is discriminated against in violation of an  | 
      
      
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        employment policy required by Subsection (b). | 
      
      
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               (e)  Each state agency shall develop procedures for the  | 
      
      
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        administration of this section. | 
      
      
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               SECTION 2.  Section 2155.0065, Government Code, as added by  | 
      
      
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        this Act, applies only to a contract for which a state agency first  | 
      
      
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        advertises or otherwise solicits bids, proposals, offers,  | 
      
      
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        qualifications, or other similar expressions of interest on or  | 
      
      
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        after the effective date of this Act. | 
      
      
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               SECTION 3.  This Act takes effect September 1, 2017. |