|  | 
         
            |  | 
         
            |  | A BILL TO BE ENTITLED | 
         
            |  | AN ACT | 
         
            |  | relating to municipal diversity, equity, and inclusion | 
         
            |  | initiatives. | 
         
            |  | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
         
            |  | SECTION 1.  Subtitle A, Title 5, Local Government Code, is | 
         
            |  | amended by adding Chapter 148 to read as follows: | 
         
            |  | CHAPTER 148.  PROHIBITION ON MUNICIPAL DIVERSITY, EQUITY, AND | 
         
            |  | INCLUSION INITIATIVES | 
         
            |  | Sec. 148.001.  DEFINITIONS.  In this chapter: | 
         
            |  | (1)  "Diversity, equity, and inclusion initiative" | 
         
            |  | means an initiative that: | 
         
            |  | (A)  is based on the belief that identity | 
         
            |  | classifications are central to understanding social, professional, | 
         
            |  | and political disparities; | 
         
            |  | (B)  requires, encourages, or otherwise promotes | 
         
            |  | organizational practices such as employee hiring and promotion, | 
         
            |  | resource allocation, or policy formulation to achieve proportional | 
         
            |  | representation of identity classification groups or to eliminate | 
         
            |  | perceived systemic differences between them; or | 
         
            |  | (C)  otherwise promotes discriminatory treatment | 
         
            |  | of a person on the basis of the person's identity classification. | 
         
            |  | (2)  "Identity classification" means a classification | 
         
            |  | of a person based on the race, color, religion, national origin, or | 
         
            |  | ethnicity of the person. | 
         
            |  | Sec. 148.002.  PROHIBITION ON MUNICIPAL SPENDING OF PUBLIC | 
         
            |  | MONEY ON DIVERSITY, EQUITY, AND INCLUSION INITIATIVES.  Except as | 
         
            |  | required by federal law, a municipality may not spend public money | 
         
            |  | or provide compensation in any manner to directly or indirectly: | 
         
            |  | (1)  fund a department, program, or committee, or pay | 
         
            |  | compensation to a person associated with a department, program, or | 
         
            |  | committee, that is focused on formulating, promoting, or | 
         
            |  | implementing a diversity, equity, and inclusion initiative; | 
         
            |  | (2)  hire or contract with an independent vendor or | 
         
            |  | contractor to formulate, promote, or implement a diversity, equity, | 
         
            |  | and inclusion initiative; | 
         
            |  | (3)  promote an event, meeting, or club that excludes | 
         
            |  | the participation of a person on the basis of the person's identity | 
         
            |  | classification or that advocates for the preferential treatment of | 
         
            |  | the person on the basis of the person's identity classification; | 
         
            |  | (4)  require or encourage an employee of the | 
         
            |  | municipality to participate in a workforce training or professional | 
         
            |  | development training that promotes a diversity, equity, and | 
         
            |  | inclusion initiative; | 
         
            |  | (5)  provide funding to enable an employee or a member | 
         
            |  | of the governing body of the municipality to attend a conference | 
         
            |  | that promotes or teaches a diversity, equity, and inclusion | 
         
            |  | initiative; | 
         
            |  | (6)  provide funding to a business, nonprofit | 
         
            |  | organization, association, or other similar organization if that | 
         
            |  | organization: | 
         
            |  | (A)  excludes the participation of a person in the | 
         
            |  | organization on the basis of the person's identity classification; | 
         
            |  | or | 
         
            |  | (B)  advocates for the preferential treatment of a | 
         
            |  | person on the basis of the person's identity classification; | 
         
            |  | (7)  provide funding to an education scholarship | 
         
            |  | program that: | 
         
            |  | (A)  promotes a diversity, equity, and inclusion | 
         
            |  | initiative; | 
         
            |  | (B)  awards a scholarship to a recipient on the | 
         
            |  | basis of the person's identity classification; or | 
         
            |  | (C)  advocates for the preferential treatment of a | 
         
            |  | person on the basis of the person's identity classification; | 
         
            |  | (8)  provide funding for the development or promotion | 
         
            |  | of a film, advertisement, or other media that promotes a diversity, | 
         
            |  | equity, and inclusion initiative, or that is made for the benefit of | 
         
            |  | a certain identity classification group; or | 
         
            |  | (9)  promote or seek to implement a diversity, equity, | 
         
            |  | and inclusion initiative when working with a business or other | 
         
            |  | organization whose purpose is to provide or attract economic | 
         
            |  | development or tourism to the municipality. | 
         
            |  | Sec. 148.003.  DIVERSITY, EQUITY, AND INCLUSION INITIATIVES | 
         
            |  | AFFECTING MUNICIPAL OFFICERS AND EMPLOYEES.  (a)  To the maximum | 
         
            |  | extent permitted by law, the governing body of a municipality shall | 
         
            |  | promote, encourage, and implement policies that: | 
         
            |  | (1)  avoid explicitly considering an identity | 
         
            |  | classification in organizational decision making such as employee | 
         
            |  | hiring and promotion, resource allocation, or policy formulation; | 
         
            |  | and | 
         
            |  | (2)  rely on consideration of individual merit in | 
         
            |  | organizational decision making such as employee hiring and | 
         
            |  | promotion, resource allocation, or policy formulation. | 
         
            |  | (b)  Except as required by federal law, the governing body of | 
         
            |  | a municipality may not: | 
         
            |  | (1)  adopt or enforce an ordinance, regulation, or | 
         
            |  | other measure that: | 
         
            |  | (A)  implements or advocates for a diversity, | 
         
            |  | equity, and inclusion initiative; or | 
         
            |  | (B)  seeks to discriminate on the basis of | 
         
            |  | identity classification to attempt to rectify past wrongs; | 
         
            |  | (2)  discriminate on the basis of identity | 
         
            |  | classification in adopting or implementing organizational | 
         
            |  | disciplinary procedures; or | 
         
            |  | (3)  use alternative discipline practices, including | 
         
            |  | restorative practices, to address conflict or wrongdoing in the | 
         
            |  | workplace. | 
         
            |  | Sec. 148.004.  ENFORCEMENT.  (a)  In this section: | 
         
            |  | (1)  "No-new-revenue tax rate" means the | 
         
            |  | no-new-revenue tax rate calculated under Chapter 26, Tax Code. | 
         
            |  | (2)  "Tax year" has the meaning assigned by Section | 
         
            |  | 1.04, Tax Code. | 
         
            |  | (b)  The attorney general may bring an action to enjoin a | 
         
            |  | violation under this chapter in a district court in: | 
         
            |  | (1)  Travis County; or | 
         
            |  | (2)  the county of the municipality in which the | 
         
            |  | violation occurs. | 
         
            |  | (c)  Notwithstanding any other law, if it is determined in an | 
         
            |  | action under Subsection (b) that a municipality has violated a | 
         
            |  | provision of this chapter, the municipality may not adopt an ad | 
         
            |  | valorem tax rate that exceeds the municipality's no-new-revenue tax | 
         
            |  | rate for the three tax years that begin on or after the date of the | 
         
            |  | determination. | 
         
            |  | (d)  A municipality that is determined in an action under | 
         
            |  | Subsection (b) to have violated this chapter may not receive state | 
         
            |  | grant funds for a period of two years following the date of the | 
         
            |  | determination.  The comptroller shall adopt rules to implement this | 
         
            |  | subsection uniformly among the state agencies from which state | 
         
            |  | grant funds are distributed to municipalities. | 
         
            |  | SECTION 2.  This Act takes effect September 1, 2025. |