HB3075 - Relating to a prohibition on the provision of state money to entities that promote certain ideological programs and the establishment of a division in the Legislative Budget Board to ensure such entities do not receive state money; authorizing the imposition of a civil penalty.

  89R12449 CS-F     By: McLaughlin H.B. No. 3075       A BILL TO BE ENTITLED   AN ACT   relating to a prohibition on the provision of state money to   entities that promote certain ideological programs and the   establishment of a division in the Legislative Budget Board to   ensure such entities do not receive state money; authorizing the   imposition of a civil penalty.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subtitle F, Title 10, Government Code, is   amended by adding Chapter 2279 to read as follows:   CHAPTER 2279.   PROHIBITION ON AWARD OF STATE MONEY TO ORGANIZATIONS   SUPPORTING RESTRICTED IDEOLOGICAL PROGRAMS           Sec. 2279.001.  DEFINITIONS. In this chapter:                 (1)     "Organization" means any entity, including a   public or private institution, nonprofit organization,   corporation, or association, that directly or indirectly receives   state money.                 (2)     "Restricted ideological program" means a program   that supports, promotes, or is aligned with:                       (A)     initiatives, theories, or policies that seek   to alter social institutions through identity-based conflict;                       (B)     advocacy that prioritizes the redistribution   of resources based on perceived societal inequalities;                       (C)     an equity initiative that seeks equal   outcomes rather than equal opportunities based on demographic   factors;                       (D)     advocacy for a nonbiological definition of   gender and policies supporting gender transition;                       (E)     a doctrine asserting that gender identity is   independent of biological sex;                       (F)     a theory that assigns privilege, oppression,   or identity based primarily on racial categorization; or                       (G)     an institutional policy that prioritizes   demographic representation over merit-based evaluation.                 (3)     "State money" means money appropriated by the   legislature through the General Appropriations Act or other state   law and includes money awarded by a state agency under a grant   program.             Sec.   2279.002.     PROHIBITION ON AWARD OF STATE MONEY TO   ORGANIZATIONS SUPPORTING RESTRICTED IDEOLOGICAL PROGRAMS. A state   agency or organization may not provide state money to an entity that   promotes, teaches, advocates for, or is ideologically aligned with   a restricted ideological program.           Sec.   2279.003.     CIVIL PENALTY. (a) An entity that knowingly   misrepresents the entity's activities to receive state money in   violation of Section 2279.002 is liable for a civil penalty not to   exceed the amount of state money that the entity has received in   violation of that section.           (b)     The attorney general may sue to collect a civil penalty   under this section.          SECTION 2.  Chapter 322, Government Code, is amended by   adding Section 322.025 to read as follows:           Sec.   322.025.     STATE FUNDING INTEGRITY REVIEW DIVISION. (a)     In this section:                   (1)     "Division" refers to the state funding integrity   review division of the board.                   (2)     "Organization" and "restricted ideological   program" have the meanings assigned by Section 2279.001.           (b)     The board shall establish the state funding integrity   review division as a division of the board.           (c)  The division shall:                 (1)     conduct an initial and ongoing review of all   state-funded grants, contracts, and other awards to identify   organizations engaged in restricted ideological programs in   violation of Section 2279.002;                 (2)     develop a vetting process for entities applying   for or organizations receiving state money to ensure compliance   with Section 2279.002;                 (3)     provide an annual report to the governor, the   lieutenant governor, and the speaker of the house of   representatives detailing the division's findings during the   preceding year and any recommendations or referrals made under   Subsection (d), (e), or (f) during that period; and                 (4)     recommend corrective actions and funding   reallocations for organizations receiving state money in violation   of Section 2279.002.           (d)     If the division determines that a state agency spent   money in violation of Section 2279.002, the division shall   recommend to:                 (1)     the legislature that the agency be subject to   budgetary restrictions during the next state fiscal biennium; and                 (2)     the agency that disciplinary action be taken   against personnel responsible for oversight of the allocation of   state money, including removal from that oversight role.           (e)     If the division determines that an organization has   received state money in violation of Section 2279.002:                 (1)     the division shall promptly notify the comptroller   of that determination; and                 (2)     on receipt of notice under Subdivision (1), the   comptroller may not issue warrants to the organization until the   fifth anniversary of the date of the determination.           (f)     The division shall refer each instance of an entity   knowingly misrepresenting the entity's activities to receive state   money in violation of Section 2279.002 to the attorney general for   appropriate action under Chapter 2279.          SECTION 3.  The changes in law made by this Act apply only to   a contract entered into or renewed on or after the effective date of   this Act.  A contract entered into or renewed before the effective   date of this Act is governed by the law in effect when the contract   was entered into or renewed, and the former law is continued in   effect for that purpose.          SECTION 4.  Not later than the 90th day after the effective   date of this Act, a state agency shall terminate a grant or other   award of state money made to a person in violation of Section   2279.002, Government Code, as added by this Act.          SECTION 5.  This Act takes effect immediately if it receives   a vote of two-thirds of all the members elected to each house, as   provided by Section 39, Article III, Texas Constitution.  If this   Act does not receive the vote necessary for immediate effect, this   Act takes effect September 1, 2025.