Schatzline DEI Bill Reaches Into City Workplace Discipline

The text as introduced · 891 words

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.