89R13437 JBD-D By: Schatzline H.B. No. 2821 A BILL TO BE ENTITLED AN ACT relating to county diversity, equity, and inclusion initiatives. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subtitle B, Title 5, Local Government Code, is amended by adding Chapter 162 to read as follows: CHAPTER 162. PROHIBITION ON COUNTY DIVERSITY, EQUITY, AND INCLUSION INITIATIVES Sec. 162.001. 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. 162.002. PROHIBITION ON COUNTY SPENDING OF PUBLIC MONEY ON DIVERSITY, EQUITY, AND INCLUSION INITIATIVES. Except as required by federal law, a county 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 county 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 commissioners court of the county 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 county. Sec. 162.003. DIVERSITY, EQUITY, AND INCLUSION INITIATIVES AFFECTING COUNTY OFFICERS AND EMPLOYEES. (a) To the maximum extent permitted by law, the commissioners court of a county 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 commissioners court of a county may not: (1) adopt or enforce an order 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. 162.004. 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 in which the violation occurs. (c) Notwithstanding any other law, if it is determined in an action under Subsection (b) that a county has violated a provision of this chapter, the county may not adopt an ad valorem tax rate that exceeds the county's no-new-revenue tax rate for the three tax years that begin on or after the date of the determination. (d) A county 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 counties. SECTION 2. This Act takes effect September 1, 2025.