*SB0235.1* January 24, 2025 SENATE BILL No. 235 _____ DIGEST OF SB 235 (Updated January 22, 2025 6:55 pm - DI 149) Citations Affected: IC 4-10; IC 21-38; IC 21-44; IC 21-49; IC 25-1. Synopsis: Limitations on diversity, equity, and inclusion. Establishes prohibitions and requirements on state agencies, recipients of state contracts or grants, state educational institutions, and health profession licensing boards regarding diversity, equity, and inclusion. Allows the attorney general to bring an action concerning noncompliance against a state educational institution. 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: July 1, 2025. Johnson T, Byrne, Tomes January 8, 2025, read first time and referred to Committee on Education and Career Development. January 13, 2025, reassigned to Committee on Judiciary pursuant to Rule 68(b). January 23, 2025, amended, reported favorably — Do Pass. SB 235—LS 6753/DI 110 January 24, 2025 First Regular Session of the 124th General Assembly (2025) PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type. Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution. Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2024 Regular Session of the General Assembly. SENATE BILL No. 235 A BILL FOR AN ACT to amend the Indiana Code concerning state and local administration. Be it enacted by the General Assembly of the State of Indiana: 1 SECTION 1. IC 4-10-24 IS ADDED TO THE INDIANA CODE AS 2 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 3 1, 2025]: 4 Chapter 24. Prohibition of Diversity, Equity, and Inclusion 5 Expenditures 6 Sec. 1. As used in this chapter, "agency" has the meaning set 7 forth in IC 4-15-10.5-4. 8 Sec. 2. (a) As used in this chapter, "diversity, equity, and 9 inclusion" or "DEI" means any effort to do any of the following: 10 (1) Manipulate or otherwise influence the composition of 11 employees with reference to race, sex, color, or ethnicity, 12 which does not include ensuring color blind and race neutral 13 hiring in accordance with state and federal antidiscrimination 14 laws. 15 (2) Promote differential treatment of or provide special 16 benefits to individuals on the basis of race, sex, color, or 17 ethnicity. SB 235—LS 6753/DI 110 2 1 (3) Promote or promulgate policies or procedures designed or 2 implemented with reference to race, sex, color, or ethnicity 3 that are not policies or procedures approved in writing by the 4 attorney general for the sole purpose of ensuring compliance 5 with any applicable court order or state or federal law. 6 (4) Promote or promulgate training, programming, or 7 activities designed or implemented with reference to race, sex, 8 color, ethnicity, gender identity, or sexual orientation that are 9 not training, programming, or activities developed by an 10 attorney and approved in writing by the attorney general for 11 the sole purpose of ensuring compliance with any applicable 12 court order or state or federal law. 13 (5) Promote as the official position of an agency a particular 14 opinion referencing: 15 (A) unconscious or implicit bias; 16 (B) cultural appropriation; 17 (C) allyship; 18 (D) transgender ideology; 19 (E) microaggressions; 20 (F) group marginalization; 21 (G) antiracism; 22 (H) systemic oppression; 23 (I) social justice; 24 (J) intersectionality; 25 (K) neopronouns; 26 (L) heteronormativity; 27 (M) disparate impact; 28 (N) gender theory; 29 (O) racial or sexual privilege; or 30 (P) any related formulation of the concepts under clauses 31 (A) through (O). 32 (b) The term does not include equal opportunity or equal 33 employment opportunity materials designed to inform individuals 34 about the prohibition of discrimination based on protected status 35 under state or federal law. 36 Sec. 3. As used in this chapter, "DEI office" means any division, 37 office, center, or other unit of an agency with duties that include 38 coordinating, creating, developing, designing, implementing, 39 organizing, planning, or promoting policies, programming, 40 training, practices, activities, or procedures relating to DEI. 41 Sec. 4. As used in this chapter, "DEI officer" means an 42 individual: SB 235—LS 6753/DI 110 3 1 (1) who is: 2 (A) a full-time or part-time employee of an agency; or 3 (B) an independent contractor of an agency; and 4 (2) whose duties for the agency include coordinating, creating, 5 developing, designing, implementing, organizing, planning, or 6 promoting policies, programming, training, practices, 7 activities, or procedures relating to DEI. 8 Sec. 5. (a) An agency may not expend appropriated funds or 9 otherwise expend any funds derived from bequests, charges, 10 deposits, donations, grants, gifts, income, receipts, or any other 11 source, to: 12 (1) establish, sustain, support, or staff a DEI office; or 13 (2) contract, employ, engage, or hire an individual to serve as 14 a DEI officer. 15 (b) Nothing in this section prohibits consideration of bona fide 16 qualifications based on sex that are reasonably necessary to the 17 normal operation of government functions. 18 Sec. 6. All recipients of state contracts or grants must certify to 19 the state comptroller, prior to being awarded a contract or grant, 20 that the recipient does not and will not require its employees, 21 contractors, volunteers, vendors, or agents to ascribe to, study, or 22 be instructed with DEI material with respect to state funds. 23 Sec. 7. (a) Any person may notify the attorney general of a 24 violation or alleged violation of this chapter. 25 (b) The attorney general may file an action for mandate to 26 compel an agency to comply with this chapter. 27 SECTION 2. IC 21-38-10-0.5 IS ADDED TO THE INDIANA 28 CODE AS A NEW SECTION TO READ AS FOLLOWS 29 [EFFECTIVE JULY 1, 2025]: Sec. 0.5. As used in this chapter, 30 "diversity, equity, and inclusion" or "DEI" has the meaning set 31 forth in IC 4-10-24-2. 32 SECTION 3. IC 21-38-10-1, AS ADDED BY P.L.113-2024, 33 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 34 JULY 1, 2025]: Sec. 1. A state educational institution that establishes, 35 supports, sustains, or employs may establish, support, sustain, or 36 employ an office or individual whose primary duties include 37 coordinating, creating, developing, designing, implementing, 38 organizing, planning, or promoting noncredit earning diversity 39 programming shall include within the mission of the office or position 40 programming that substantially promotes both cultural and intellectual 41 diversity. 42 SECTION 4. IC 21-38-10-2 IS ADDED TO THE INDIANA CODE SB 235—LS 6753/DI 110 4 1 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 2 1, 2025]: Sec. 2. A state educational institution may not establish, 3 support, sustain, or employ an office or individual whose primary 4 duties include coordinating, creating, developing, designing, 5 implementing, organizing, planning, or promoting noncredit 6 earning diversity programming that includes DEI. 7 SECTION 5. IC 21-38-10-3 IS ADDED TO THE INDIANA CODE 8 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 9 1, 2025]: Sec. 3. A state educational institution may not conduct 10 internal DEI audits or engage DEI consultants. 11 SECTION 6. IC 21-38-10-4 IS ADDED TO THE INDIANA CODE 12 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 13 1, 2025]: Sec. 4. (a) The attorney general may investigate 14 allegations of violations of section 2 or 3 of this chapter, and, 15 subject to subsection (b), the attorney general may bring a civil 16 action concerning each violation. 17 (b) Before the attorney general brings an action against a state 18 educational institution under subsection (c), the attorney general 19 shall send the state educational institution a notice of violation. The 20 notice sent under this subsection must describe the violation of 21 section 2 or 3 of this chapter. The state educational institution has 22 thirty (30) days from the date on the notice to cure the violation 23 and provide documentation to prove that the violation has been 24 remedied. 25 (c) The attorney general may petition a court with jurisdiction 26 to impose a civil penalty of not more than two hundred fifty 27 thousand dollars ($250,000) for each violation of section 2 or 3 of 28 this chapter committed by a state educational institution. The 29 attorney general shall transfer all civil penalties collected under 30 this chapter to the treasurer of state for deposit in the state general 31 fund. 32 (d) The attorney general may file an action for mandate to 33 compel a state educational institution to comply with this chapter. 34 (e) The attorney general may adopt rules under IC 4-22-2 to 35 establish procedures for investigating violations of this chapter. 36 SECTION 7. IC 21-44-1-10, AS AMENDED BY P.L.126-2009, 37 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 38 JULY 1, 2025]: Sec. 10. "Eligible institution", for purposes of: 39 (1) sections 2 and 11 of this chapter, and IC 21-44-2, and 40 IC 21-44-3.5, means a university, college, or other educational 41 institution that: 42 (A) operates in the United States; and SB 235—LS 6753/DI 110 5 1 (B) offers a health education program leading to a 2 baccalaureate, graduate, or postgraduate degree in a health 3 related field including: 4 (i) medicine; 5 (ii) dentistry; 6 (iii) optometry; 7 (iv) nursing; 8 (v) physical therapy; 9 (vi) occupational therapy; or 10 (vii) other allied health fields; and 11 (2) IC 21-44-3, refers to a postsecondary educational institution 12 that qualifies as an eligible institution under IC 21-44-3-1(4). 13 SECTION 8. IC 21-44-3.5 IS ADDED TO THE INDIANA CODE 14 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE 15 JULY 1, 2025]: 16 Chapter 3.5. Eligible Institution Requirements 17 Sec. 1. Each eligible institution shall require for admission to the 18 eligible institution a standardized admissions test focused on 19 knowledge and critical thinking around science and medical 20 training. 21 Sec. 2. (a) Before an eligible institution may alter the academic 22 standards for the: 23 (1) admission of new students to a health education program 24 described in IC 21-44-1-10(1)(B); or 25 (2) conferral of a baccalaureate, graduate, or postgraduate 26 degree or other certificate for a health education program 27 described in subdivision (1); 28 the eligible institution shall submit the information described in 29 subsection (b) to the legislative council in an electronic format 30 under IC-5-14-6 and the commission for higher education. 31 (b) An eligible institution shall submit the following to the 32 legislative council and commission for higher education as required 33 under subsection (a): 34 (1) A copy of the proposed academic standards. 35 (2) A concise general statement explaining the proposed 36 academic standards. 37 (3) The proposed effective date of the proposed academic 38 standards. 39 (c) The proposed academic standards described in subsection 40 (b)(1) may not become effective earlier than sixty (60) days after 41 the date that the eligible institution complies with subsections (a) 42 and (b). SB 235—LS 6753/DI 110 6 1 Sec. 3. All eligible institutions that are not open enrollment 2 eligible institutions: 3 (1) shall require "A" through "F" grade based assessments 4 for each course required to graduate; and 5 (2) may not use pass/fail assessments for any course required 6 to graduate. 7 SECTION 9. IC 21-49-4-3, AS ADDED BY P.L.113-2024, 8 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 9 JULY 1, 2025]: Sec. 3. Not later than September 1, 2024, and 10 September 1 of each year, thereafter, a state educational institution 11 shall submit to the state budget committee a report with the following 12 information for the preceding state fiscal year: 13 (1) The total number of state educational institution: 14 (A) full-time and tenured professors; 15 (B) adjunct instructors; 16 (C) other contingent faculty; and 17 (D) nonacademic support or administrative employees. 18 (2) The total number of employees at the state educational 19 institution whose primary or secondary job duties or job titles 20 include diversity, equity, and inclusion. 21 (3) (2) The total number of state educational institution 22 adjudications or proceedings regarding violations of policies 23 regarding diversity, equity, and inclusion or harassment. 24 (4) (3) A list and description of what the state educational 25 institution did to ensure free speech rights of students. 26 (5) (4) A list and description of what the state educational 27 institution did to ensure intellectual freedom for professors. 28 (6) (5) A list and description of what the state educational 29 institution did to ensure intellectual and ideological diversity of 30 professors. 31 (7) (6) The institution's budget allocations for diversity, equity, 32 and inclusion initiatives. 33 SECTION 10. IC 25-1-23 IS ADDED TO THE INDIANA CODE 34 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE 35 JULY 1, 2025]: 36 Chapter 23. Diversity, Equity, and Inclusion in Health 37 Profession Licensing 38 Sec. 1. As used in this chapter, "board" means any of the boards 39 listed in IC 25-0.5-11, except for the Indiana board of veterinary 40 medicine. 41 Sec. 2. As used in this chapter, "diversity, equity, and inclusion" 42 or "DEI" has the meaning set forth in IC 4-10-24-2. SB 235—LS 6753/DI 110 7 1 Sec. 3. A board may not adopt or impose, as a condition of 2 obtaining or renewing a license, certification, registration, or 3 permit any incentives or requirements that applicants for a license, 4 certification, registration, or permit undergo, demonstrate 5 familiarity with, or support any DEI training, education, material, 6 or program. 7 Sec. 4. Any board that issues a state required health related 8 professional license, certification, registration, or permit may not 9 use DEI material or require DEI training as part of the license or 10 certification process. 11 Sec. 5. A board may not conduct internal DEI audits or engage 12 DEI consultants. SB 235—LS 6753/DI 110 8 REPORT OF THE PRESIDENT PRO TEMPORE Mr. President: Pursuant to Senate Rule 68(b), I hereby report that Senate Bill 235, currently assigned to the Committee on Education and Career Development, be reassigned to the Committee on Judiciary. BRAY _____ COMMITTEE REPORT Mr. President: The Senate Committee on Judiciary, to which was referred Senate Bill No. 235, has had the same under consideration and begs leave to report the same back to the Senate with the recommendation that said bill be AMENDED as follows: Page 2, line 14, delete "referencing unconscious or implicit:" and insert "referencing:". Page 2, line 15, after "(A)" insert "unconscious or implicit". Page 4, delete lines 11 through 27. Page 4, line 28, delete "IC 21-38-10-5" and insert "IC 21-38-10-4". Page 4, line 30, delete "5." and insert "4.". Page 4, line 31, delete "chapter." and insert "chapter, and, subject to subsection (b), the attorney general may bring a civil action concerning each violation.". Page 4, between lines 31 and 32, begin a new paragraph and insert: "(b) Before the attorney general brings an action against a state educational institution under subsection (c), the attorney general shall send the state educational institution a notice of violation. The notice sent under this subsection must describe the violation of section 2 or 3 of this chapter. The state educational institution has thirty (30) days from the date on the notice to cure the violation and provide documentation to prove that the violation has been remedied.". Page 4, delete line 32. Page 4, line 33, delete "under section 4 of this chapter, the", begin a new paragraph and insert: "(c) The". Page 4, line 35, delete "one million dollars ($1,000,000)" and insert "two hundred fifty thousand dollars ($250,000)". Page 4, line 40, delete "(c)" and insert "(d)". Page 4, line 42, delete "(d)" and insert "(e)". SB 235—LS 6753/DI 110 9 Page 7, delete lines 21 through 26. Renumber all SECTIONS consecutively. and when so amended that said bill do pass. (Reference is to SB 235 as introduced.) BROWN L, Chairperson Committee Vote: Yeas 8, Nays 2. SB 235—LS 6753/DI 110