89R13369 JBD-D
 
  By: Schatzline H.B. No. 2770
 
 
 
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.