LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 6753 NOTE PREPARED: Jan 24, 2025
BILL NUMBER: SB 235 BILL AMENDED: Jan 23, 2025
SUBJECT: Limitations on Diversity, Equity, and Inclusion.
FIRST AUTHOR: Sen. Johnson T BILL STATUS: CR Adopted - 1
st
House
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
DEDICATED
FEDERAL
Summary of Legislation: (Amended) This bill establishes prohibitions and requirements on state agencies,
recipients of state contracts or grants, state educational institutions (SEIs), and health profession licensing
boards regarding diversity, equity, and inclusion. The bill also allows the Attorney General to bring an action
concerning noncompliance against an SEI.
The bill establishes: (1) requirements regarding a standardized admissions test; and (2) requirements
regarding altering academic standards; for postsecondary educational institutions that offer certain health
education programs.
Effective Date: July 1, 2025.
Explanation of State Expenditures: (Revised) Attorney General (AG): This bill requires that all training,
programming and activities that are to be promulgated by a state agency in order to comply with state and
federal law must be developed by an attorney and approved by the AG. It also allows the AG to investigate
violations of the bill’s provisions and to adopt rules concerning such investigations. The bill provides that,
before filing a civil action against an SEI for a violation, the AG must notify the SEI of the violation and
provides 30 days to the SEI to demonstrate compliance. These provisions may constitute a significant
workload increase for the AG, and existing staffing and resource levels, if currently being used to capacity,
may be insufficient for full implementation. The additional funds and resources required could be supplied
through existing staff and resources currently being used in another program or with new appropriations.
Standardized Testing for Admissions: This bill requires the utilization of a standardized test “focused on
knowledge and critical thinking around science and medical training” by all “eligible institutions,” which
are defined in the bill as any institution offering a health education program at the bachelors level or above.
Currently, there are no standardized tests specifically for prospective undergraduate students in the health
field. It is unclear if the required standardized test applies to all applicants to the institution or only to the
health education programs. If a suitable test for applicants to undergraduate health education programs exists,
or a broader standardized test such as the SAT or ACT is determined to meet the requirements of this bill,
this provision will create minor workload increases associated with revising admissions requirements.
SB 235 1 Academic Standards: This bill provides that eligible institutions may not implement changes to academic
standards for admission or graduation until at least 60 days after it has notified the Legislative Council and
the Commission for Higher Education (CHE). It also specifies that eligible SEIs that are not open enrollment
programs must require graded (“A” through “F”) rather than “pass/fail” assessments for all courses required
to graduate. These requirements are within each SEI’s routine administrative functions and should be able
to be implemented with no additional appropriations, assuming near customary agency staffing and resource
levels.
DEI Prohibitions: This bill prohibits programming that includes DEI as defined in this bill. It prohibits DEI
audits and the hiring of DEI consultants by state agencies, SEIs and health licensing boards, as well as the
establishment of DEI offices or the hiring of DEI officers by state agencies and SEIs. All agencies will need
to review and, if necessary, revise policies and practices to ensure compliance with this bill. Some entities
may need to reorganize staff or reassign personnel. These requirements should be met within existing
resources, and in some cases, may result in a net decrease in expenditures.
All human health profession licensing entities would be prohibited from including DEI training requirements
or considering such training as a factor in certification. This will require the review and potential revision
of certification processes by 17 boards, but any increase in workload should be within the routine
administrative functions of each board. [Boards are appointed by the Governor and staffed by the
Professional Licensing Association, which receives General Fund appropriations.]
(Revised) Legal Actions Against SEIs: This bill allows the Attorney General to bring an action against an
SEI for violations of certain provisions of this bill but also requires the AG to notify the SEI of the violation
and provides 30 days to the SEI to demonstrate compliance. Any action filed could result in additional
workload to the SEI or additional legal costs. The bill also specifies that the AG may petition the court to
compel compliance by an SEI and to seek a civil penalty of up to $250,000 per violation.[SEIs receive
General Fund appropriations.]
Explanation of State Revenues: (Revised) Civil Penalties: SEIs found to have violated provisions of this
bill and not remediated those violations after notification by the AG may face civil penalties of up to
$250,000. These penalties will be deposited in the General Fund.
Explanation of Local Expenditures: (Revised) Legal Actions Against SEIs: If the AG files additional
actions against SEIs, it will create an increase in workload for local courts. Any increase should be met
within existing resources. [The AG does not pay court fees.]
Explanation of Local Revenues:
State Agencies Affected: Attorney General; all state agencies, SEIs, health profession licensing boards.
Local Agencies Affected: Trial courts, city and town courts.
Information Sources:
Fiscal Analyst: Alexander Raggio, 317-234-9485.
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