Texas 2025 - 89th Regular

Texas House Bill HB167 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R477 RDS-D
2	2	By: Tepper H.B. No. 167
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6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the implementation of diversity, equity, and inclusion
10	10	initiatives and certain prohibited considerations in contracting
11	11	by governmental entities.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	ARTICLE 1. TITLE
14	14	SECTION 1.01. This Act may be cited as the Ending
15	15	Institutional Racism Act.
16	16	ARTICLE 2. PROHIBITED DIVERSITY, EQUITY, AND INCLUSION INITIATIVES
17	17	BY GOVERNMENTAL ENTITIES
18	18	SECTION 2.01. Subtitle A, Title 6, Government Code, is
19	19	amended by adding Chapter 621 to read as follows:
20	20	CHAPTER 621. PROHIBITION ON CERTAIN DIVERSITY, EQUITY, AND
21	21	INCLUSION INITIATIVES
22	22	SUBCHAPTER A. GENERAL PROVISIONS
23	23	Sec. 621.001. DEFINITIONS. In this chapter:
24	24	(1) "Diversity, equity, and inclusion office" means an
25	25	office, division, or other unit of a governmental entity
26	26	established for the purpose of:
27	27	(A) influencing hiring or employment practices
28	28	at the entity with respect to race, sex, color, or ethnicity, other
29	29	than through the use of color-blind and sex-neutral hiring
30	30	processes in accordance with any applicable state and federal
31	31	antidiscrimination laws;
32	32	(B) promoting differential treatment or
33	33	providing special benefits to individuals on the basis of race,
34	34	sex, color, or ethnicity;
35	35	(C) promoting policies or procedures designed or
36	36	implemented in reference to race, color, or ethnicity, other than
37	37	policies or procedures implemented for the purpose of ensuring
38	38	compliance with any applicable federal law; or
39	39	(D) conducting trainings, programs, or
40	40	activities designed or implemented in reference to race, color,
41	41	ethnicity, gender identity, or sexual orientation, other than
42	42	trainings, programs, or activities conducted for the purpose of
43	43	ensuring compliance with any applicable court order or state or
44	44	federal law.
45	45	(2) "Governmental entity" means:
46	46	(A) a department, commission, board, office, or
47	47	other agency that is in the executive branch of state government and
48	48	that was created by the constitution or a statute, other than an
49	49	institution of higher education as defined by Section 61.003,
50	50	Education Code;
51	51	(B) the legislature or a legislative state
52	52	agency;
53	53	(C) the supreme court, the court of criminal
54	54	appeals, a court of appeals, a district court, or the Texas Judicial
55	55	Council or another agency in the judicial branch of state
56	56	government;
57	57	(D) a county, municipality, special purpose
58	58	district, including a school district, or any other political
59	59	subdivision of this state; or
60	60	(E) an open-enrollment charter school
61	61	established under Subchapter D, Chapter 12, Education Code.
62	62	SUBCHAPTER B. DIVERSITY, EQUITY, AND INCLUSION INITIATIVES
63	63	Sec. 621.051. RESPONSIBILITY OF GOVERNMENTAL ENTITY
64	64	REGARDING DIVERSITY, EQUITY, AND INCLUSION INITIATIVES. (a) A
65	65	governmental entity shall ensure that each unit of the entity:
66	66	(1) does not, except as required by federal law:
67	67	(A) establish or maintain a diversity, equity,
68	68	and inclusion office;
69	69	(B) hire or assign an employee of the entity or
70	70	contract with a third party to perform the duties of a diversity,
71	71	equity, and inclusion office;
72	72	(C) compel, require, induce, or solicit any
73	73	person to provide a diversity, equity, and inclusion statement or
74	74	give preferential consideration to any person based on the
75	75	provision of a diversity, equity, and inclusion statement;
76	76	(D) give preference on the basis of race, sex,
77	77	color, ethnicity, or national origin to an applicant for
78	78	employment, an employee, or a participant in any function of the
79	79	entity; or
80	80	(E) require as a condition of employment any
81	81	person to participate in diversity, equity, and inclusion training,
82	82	which:
83	83	(i) includes a training, program, or
84	84	activity designed or implemented in reference to race, color,
85	85	ethnicity, gender identity, or sexual orientation; and
86	86	(ii) does not include a training, program,
87	87	or activity developed for the purpose of ensuring compliance with
88	88	any applicable federal law; and
89	89	(2) adopts policies and procedures for appropriately
90	90	disciplining, including by termination, an employee or contractor
91	91	of the entity who engages in conduct in violation of Subdivision
92	92	(1).
93	93	(b) Subsection (a)(1) may not be construed to apply to:
94	94	(1) academic course instruction;
95	95	(2) scholarly research or a creative work by a school
96	96	district's or open-enrollment charter school's students or faculty;
97	97	(3) an activity of a student organization registered
98	98	with or recognized by a school district or open-enrollment charter
99	99	school;
100	100	(4) guest speakers or performers on short-term
101	101	engagements;
102	102	(5) a program or activity to enhance student academic
103	103	achievement or postgraduate outcomes that allows participation
104	104	without regard to race, sex, color, or ethnicity; or
105	105	(6) data collection.
106	106	SUBCHAPTER C. LIABILITY FOR CERTAIN DIVERSITY, EQUITY, AND
107	107	INCLUSION INITIATIVES
108	108	Sec. 621.101. LIABILITY FOR CERTAIN INITIATIVES. The
109	109	following individuals may bring an action against a governmental
110	110	entity that violates Section 621.051:
111	111	(1) an employee of the governmental entity; or
112	112	(2) an individual who resides in an area served by the
113	113	governmental entity.
114	114	Sec. 621.102. REMEDIES. (a) A claimant is entitled to
115	115	recover in an action brought under this chapter:
116	116	(1) declaratory and injunctive relief; and
117	117	(2) costs and reasonable attorney's fees.
118	118	(b) If the court finds an action brought under this chapter
119	119	to be frivolous, a governmental entity is entitled to recover costs
120	120	and reasonable attorney's fees.
121	121	Sec. 621.103. IMMUNITY WAIVER. The sovereign immunity of
122	122	this state and governmental immunity of a political subdivision to
123	123	suit and from liability is waived to the extent of the liability
124	124	created by this chapter.
125	125	Sec. 621.104. NOTICE. A governmental entity is entitled to
126	126	receive notice of a claim against it under this chapter not later
127	127	than 90 days before the date a claimant files an action under this
128	128	chapter. The notice must reasonably describe a specific action of
129	129	the governmental entity that is the basis for the claim against it.
130	130	Sec. 621.105. VENUE. (a) Notwithstanding any other law,
131	131	including Chapter 15, Civil Practice and Remedies Code, and except
132	132	as provided by Subsection (b), a claimant may bring an action under
133	133	this chapter in a county in which the governmental entity is
134	134	located.
135	135	(b) A claimant must bring an action under this chapter in
136	136	Travis County if the governmental entity is:
137	137	(1) an agency, board, commission, department, or
138	138	office that is in the executive branch of state government;
139	139	(2) the legislature or a legislative state agency; or
140	140	(3) the supreme court, the court of criminal appeals,
141	141	the Texas Judicial Council, or another agency in the judicial
142	142	branch of state government.
143	143	(c) If the action is brought in a venue authorized by this
144	144	section, the action may not be transferred to a different venue
145	145	without the written consent of all parties.
146	146	ARTICLE 3. PROHIBITION ON CERTAIN CONSIDERATIONS IN CONTRACTING
147	147	SECTION 3.01. Subchapter Z, Chapter 2252, Government Code,
148	148	is amended by adding Section 2252.911 to read as follows:
149	149	Sec. 2252.911. PROHIBITED CONSIDERATIONS IN CONTRACTING.
150	150	(a) In this section, "governmental entity" has the meaning
151	151	assigned by Section 2252.001, except that the term does not include
152	152	an institution of higher education as defined by Section 61.003,
153	153	Education Code.
154	154	(b) Notwithstanding any other law, a governmental entity
155	155	may not award a contract or provide preferential treatment to a
156	156	person submitting a bid for a contract on the basis of race, color,
157	157	ethnicity, sex, gender identity, or sexual orientation.
158	158	SECTION 3.02. Section 106.001(c), Civil Practice and
159	159	Remedies Code, is amended to read as follows:
160	160	(c) This section does not prohibit the adoption of a program
161	161	designed to increase the participation of businesses owned and
162	162	controlled by [women, minorities, or] disadvantaged persons in
163	163	public contract awards.
164	164	SECTION 3.03. Section 2161.001(3), Government Code, is
165	165	amended to read as follows:
166	166	(3) "Economically disadvantaged person" means a
167	167	person who:
168	168	(A) is economically disadvantaged because of the
169	169	person's status [identification] as a veteran [member of a certain
170	170	group, including:
171	171	[(i) Black Americans;
172	172	[(ii) Hispanic Americans;
173	173	[(iii) women;
174	174	[(iv) Asian Pacific Americans;
175	175	[(v) Native Americans; and
176	176	[(vi) veterans] as defined by 38 U.S.C.
177	177	Section 101(2) who has [have] suffered at least a 20 percent
178	178	service-connected disability as defined by 38 U.S.C. Section
179	179	101(16); and
180	180	(B) has suffered the effects of discriminatory
181	181	practices or other similar insidious circumstances over which the
182	182	person has no control.
183	183	SECTION 3.04. Sections 2161.061(b), (d), and (e),
184	184	Government Code, are amended to read as follows:
185	185	(b) As one of its certification procedures, the comptroller
186	186	may:
187	187	(1) approve the certification program of one or more
188	188	local governments or nonprofit organizations in this state that
189	189	certify historically underutilized businesses [, minority business
190	190	enterprises, women's business enterprises,] or disadvantaged
191	191	business enterprises under substantially the same definition, to
192	192	the extent applicable, used by Section 2161.001, if the local
193	193	government or nonprofit organization meets or exceeds the standards
194	194	established by the comptroller; and
195	195	(2) certify a business that is certified by a local
196	196	government or by a nonprofit organization as a historically
197	197	underutilized business under this chapter.
198	198	(d) A local government or a nonprofit organization that
199	199	certifies historically underutilized businesses [, minority
200	200	business enterprises, women's business enterprises,] or
201	201	disadvantaged business enterprises as described in Subsections (b)
202	202	and (c) shall complete the certification of an applicant or provide
203	203	an applicant with written justification of its certification denial
204	204	within the period established by the comptroller in its rules for
205	205	certification activities.
206	206	(e) A local government or a nonprofit organization that
207	207	certifies historically underutilized businesses under Subsection
208	208	(c) or that conducts a certification program described by and
209	209	approved under Subsection (b) shall make available to the public an
210	210	online searchable database containing information about
211	211	historically underutilized businesses [, minority business
212	212	enterprises, women's business enterprises,] and disadvantaged
213	213	business enterprises certified by the local government or nonprofit
214	214	organization, including:
215	215	(1) the name of the business;
216	216	(2) the contact person or owner of the business;
217	217	(3) the address and telephone number of the business;
218	218	(4) the type or category of business, including
219	219	relevant capabilities of the business and the North American
220	220	Industry Classification System codes for the business; and
221	221	(5) the expiration date of the business's
222	222	certification.
223	223	SECTION 3.05. Section 2269.055(b), Government Code, is
224	224	amended to read as follows:
225	225	(b) In determining the award of a contract under this
226	226	chapter, the governmental entity shall:
227	227	(1) consider and apply any existing laws, including
228	228	any criteria, related to historically underutilized businesses;
229	229	and
230	230	(2) consider and apply any existing laws, rules, or
231	231	applicable municipal charters, including laws applicable to local
232	232	governments, related to the use of [women, minority,] small [,] or
233	233	disadvantaged businesses.
234	234	SECTION 3.06. Section 2303.405(e), Government Code, is
235	235	amended to read as follows:
236	236	(e) Factors to be considered in evaluating the local effort
237	237	of a private entity include:
238	238	(1) the willingness to negotiate or cooperate in the
239	239	achievement of the purposes of this chapter;
240	240	(2) commitments to hire underskilled, inexperienced,
241	241	disadvantaged, or displaced workers who reside in the enterprise
242	242	zone;
243	243	(3) [commitments to hire minority workers and to
244	244	contract with minority-owned businesses;
245	245	[(4)] provision of technical and vocational job
246	246	training for enterprise zone residents or economically
247	247	disadvantaged employees;
248	248	(4) [(5)] provision of child care for employees;
249	249	(5) [(6)] commitments to implement and contribute to a
250	250	tutoring or mentoring program for area students;
251	251	(6) [(7)] prevention or reduction of juvenile crime
252	252	activity; and
253	253	(7) [(8)] the willingness to make contributions to the
254	254	well-being of the community, such as job training, or the donation
255	255	of land for parks or other public purposes.
256	256	SECTION 3.07. Section 2310.305(e), Government Code, is
257	257	amended to read as follows:
258	258	(e) Factors to be considered in evaluating the local effort
259	259	of a private entity include:
260	260	(1) the willingness to negotiate or cooperate in the
261	261	redevelopment of vacated defense facilities and the creation of
262	262	high-skilled, high wage jobs;
263	263	(2) commitments to hire dislocated defense workers and
264	264	economically disadvantaged workers;
265	265	(3) [commitments to hire minority workers and to
266	266	contract with minority-owned businesses;
267	267	[(4)] provision of technical and vocational job
268	268	training for residents of the nominating body's jurisdiction or
269	269	economically disadvantaged employees;
270	270	(4) [(5)] provision of child care for employees;
271	271	(5) [(6)] commitments to implement and contribute to a
272	272	tutoring or mentoring program for area students;
273	273	(6) [(7)] prevention or reduction of juvenile crime;
274	274	and
275	275	(7) [(8)] the willingness to make contributions to the
276	276	well-being of the community, such as job training, or the donation
277	277	of land for parks or other public purposes.
278	278	SECTION 3.08. Section 281.051(c), Health and Safety Code,
279	279	is amended to read as follows:
280	280	(c) The board shall encourage and promote participation by
281	281	all sectors of the business community, including small businesses
282	282	[and businesses owned by members of a minority group or by women],
283	283	in the process by which the district enters into contracts. The
284	284	board shall develop a plan for the district to identify and remove
285	285	barriers that do not have a definite or objective relationship to
286	286	quality or competence and that unfairly discriminate against small
287	287	businesses [and businesses owned by members of a minority or by
288	288	women]. These barriers may include contracting procedures and
289	289	contract specifications or conditions.
290	290	SECTION 3.09. Section 91.005, Labor Code, is amended to
291	291	read as follows:
292	292	Sec. 91.005. APPLICATION OF CERTAIN PROCUREMENT LAWS. With
293	293	respect to a bid, contract, purchase order, or agreement entered
294	294	into with the state or a political subdivision of the state, a
295	295	client's status or certification as a small or [, minority-owned,]
296	296	disadvantaged [, or woman-owned] business enterprise or as a
297	297	historically underutilized business is not affected because the
298	298	client has entered into a professional employer services agreement
299	299	with a license holder or uses the services of a license holder.
300	300	SECTION 3.10. Sections 381.004(a) and (b), Local Government
301	301	Code, are amended to read as follows:
302	302	(a) In this section, "another [:
303	303	[(1) "Another] entity" includes the federal
304	304	government, the State of Texas, a municipality, school or other
305	305	special district, finance corporation, institution of higher
306	306	education, charitable or nonprofit organization, foundation,
307	307	board, council, commission, or any other person.
308	308	[(2) "Minority" includes blacks, Hispanics, Asian
309	309	Americans, American Indians, and Alaska natives.
310	310	[(3) "Minority business" means a business concern,
311	311	more than 50 percent of which is owned and controlled in management
312	312	and daily operations by members of one or more minorities.
313	313	[(4) "Women-owned business" means a business concern,
314	314	more than 50 percent of which is owned and controlled in management
315	315	and daily operations by one or more women.]
316	316	(b) To stimulate business and commercial activity in a
317	317	county, the commissioners court of the county may develop and
318	318	administer a program:
319	319	(1) for state or local economic development;
320	320	(2) for small or disadvantaged business development;
321	321	(3) to stimulate, encourage, and develop business
322	322	location and commercial activity in the county;
323	323	(4) to promote or advertise the county and its
324	324	vicinity or conduct a solicitation program to attract conventions,
325	325	visitors, and businesses;
326	326	(5) [to improve the extent to which women and minority
327	327	businesses are awarded county contracts;
328	328	[(6)] to support comprehensive literacy programs for
329	329	the benefit of county residents; or
330	330	(6) [(7)] for the encouragement, promotion,
331	331	improvement, and application of the arts.
332	332	SECTION 3.11. Section 3871.103(d), Special District Local
333	333	Laws Code, is amended to read as follows:
334	334	(d) The district must follow Resolution 08-2826, adopted by
335	335	the city on October 22, 2008, for construction, procurement, and
336	336	professional services contracts related to the use of historically
337	337	underutilized businesses [and minority contracting] in the
338	338	implementation of its district plan.
339	339	SECTION 3.12. Section 3884.103(d), Special District Local
340	340	Laws Code, is amended to read as follows:
341	341	(d) The district must follow Resolution 08-2826, adopted by
342	342	the city on October 22, 2008, for construction, procurement, and
343	343	professional services contracts related to the use of historically
344	344	underutilized businesses [and minority contracting] in the
345	345	implementation of its district plan.
346	346	SECTION 3.13. The heading to Section 22.084, Transportation
347	347	Code, is amended to read as follows:
348	348	Sec. 22.084. AIRPORT REVENUE AND REVENUE BOND PROCEEDS
349	349	[; CONTRACTING OPPORTUNITIES FOR MINORITY- AND WOMEN-OWNED
350	350	BUSINESSES].
351	351	SECTION 3.14. Section 22.084(a), Transportation Code, is
352	352	amended to read as follows:
353	353	(a) If constituent agencies or a nonprofit corporation
354	354	created under Section 22.152 issues revenue bonds to finance the
355	355	construction or acquisition of a facility or other improvement at
356	356	an airport, the proceeds of the bonds and any other airport income
357	357	or revenue may be spent on projects for which the proceeds, income,
358	358	or revenue may otherwise be spent. An agreement may be made to
359	359	spend all or a portion of the proceeds, income, or revenue for the
360	360	planning, construction, or acquisition of facilities authorized by
361	361	Sections 22.011(a)-(c) and 22.012 without inviting, advertising
362	362	for, or otherwise requiring competitive bids. [A contract wholly
363	363	or partly funded with proceeds, income, or revenue under this
364	364	subsection shall be let in accordance with the joint board's rules
365	365	and policies relating to creation of contracting opportunities for
366	366	minority- and women-owned businesses.]
367	367	SECTION 3.15. The heading to Section 451.252,
368	368	Transportation Code, is amended to read as follows:
369	369	Sec. 451.252. [MINORITY AND] DISADVANTAGED INDIVIDUALS
370	370	PROGRAM: CERTAIN AUTHORITIES.
371	371	SECTION 3.16. Section 451.252(a), Transportation Code, is
372	372	amended to read as follows:
373	373	(a) The board of an authority confirmed before July 1, 1985,
374	374	shall establish a program to encourage participation in contracts
375	375	of the authority by businesses owned by [minorities or]
376	376	disadvantaged individuals.
377	377	SECTION 3.17. Section 452.001(1), Transportation Code, is
378	378	amended to read as follows:
379	379	(1) "Authority" means a regional transportation
380	380	authority created under this chapter or Chapter 683, Acts of the
381	381	66th Legislature, Regular Session, 1979. The term includes:
382	382	(A) when used in Subchapters B, C, D, F, H, and I
383	383	and Section [Sections 452.201 and] 452.451, a subregional authority
384	384	created by a contiguous municipality; and
385	385	(B) as appropriate, an authority, other than an
386	386	authority created by a contiguous municipality, consisting of one
387	387	subregion.
388	388	SECTION 3.18. The following provisions are repealed:
389	389	(1) Section 12.029, Agriculture Code;
390	390	(2) Sections 466.107, 466.151(c), 1232.104(c), and
391	391	2306.6734, Government Code;
392	392	(3) Section 775.306, Health and Safety Code;
393	393	(4) Section 381.004(d), Local Government Code;
394	394	(5) Sections 161.131 and 161.132, Natural Resources
395	395	Code;
396	396	(6) Section 2026.152(b), Occupations Code;
397	397	(7) Sections 451.253 and 452.201, Transportation
398	398	Code; and
399	399	(8) Sections 311.0101(d) and 351.1065(c), Tax Code.
400	400	ARTICLE 4. TRANSITION; EFFECTIVE DATE
401	401	SECTION 4.01. The changes in law made by Article 3 of this
402	402	Act apply only to a contract entered into on or after the effective
403	403	date of this Act. A contract entered into before that date is
404	404	governed by the law in effect on the date the contract was entered
405	405	into, and the former law is continued in effect for that purpose.
406	406	SECTION 4.02. This Act takes effect September 1, 2025.