HB2770 - Relating to municipal diversity, equity, and inclusion initiatives.

  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.