89R12449 CS-F
By: McLaughlin H.B. No. 3075
A BILL TO BE ENTITLED
AN ACT
relating to a prohibition on the provision of state money to
entities that promote certain ideological programs and the
establishment of a division in the Legislative Budget Board to
ensure such entities do not receive state money; authorizing the
imposition of a civil penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle F, Title 10, Government Code, is
amended by adding Chapter 2279 to read as follows:
CHAPTER 2279. PROHIBITION ON AWARD OF STATE MONEY TO ORGANIZATIONS
SUPPORTING RESTRICTED IDEOLOGICAL PROGRAMS
Sec. 2279.001. DEFINITIONS. In this chapter:
(1) "Organization" means any entity, including a
public or private institution, nonprofit organization,
corporation, or association, that directly or indirectly receives
state money.
(2) "Restricted ideological program" means a program
that supports, promotes, or is aligned with:
(A) initiatives, theories, or policies that seek
to alter social institutions through identity-based conflict;
(B) advocacy that prioritizes the redistribution
of resources based on perceived societal inequalities;
(C) an equity initiative that seeks equal
outcomes rather than equal opportunities based on demographic
factors;
(D) advocacy for a nonbiological definition of
gender and policies supporting gender transition;
(E) a doctrine asserting that gender identity is
independent of biological sex;
(F) a theory that assigns privilege, oppression,
or identity based primarily on racial categorization; or
(G) an institutional policy that prioritizes
demographic representation over merit-based evaluation.
(3) "State money" means money appropriated by the
legislature through the General Appropriations Act or other state
law and includes money awarded by a state agency under a grant
program.
Sec. 2279.002. PROHIBITION ON AWARD OF STATE MONEY TO
ORGANIZATIONS SUPPORTING RESTRICTED IDEOLOGICAL PROGRAMS. A state
agency or organization may not provide state money to an entity that
promotes, teaches, advocates for, or is ideologically aligned with
a restricted ideological program.
Sec. 2279.003. CIVIL PENALTY. (a) An entity that knowingly
misrepresents the entity's activities to receive state money in
violation of Section 2279.002 is liable for a civil penalty not to
exceed the amount of state money that the entity has received in
violation of that section.
(b) The attorney general may sue to collect a civil penalty
under this section.
SECTION 2. Chapter 322, Government Code, is amended by
adding Section 322.025 to read as follows:
Sec. 322.025. STATE FUNDING INTEGRITY REVIEW DIVISION. (a)
In this section:
(1) "Division" refers to the state funding integrity
review division of the board.
(2) "Organization" and "restricted ideological
program" have the meanings assigned by Section 2279.001.
(b) The board shall establish the state funding integrity
review division as a division of the board.
(c) The division shall:
(1) conduct an initial and ongoing review of all
state-funded grants, contracts, and other awards to identify
organizations engaged in restricted ideological programs in
violation of Section 2279.002;
(2) develop a vetting process for entities applying
for or organizations receiving state money to ensure compliance
with Section 2279.002;
(3) provide an annual report to the governor, the
lieutenant governor, and the speaker of the house of
representatives detailing the division's findings during the
preceding year and any recommendations or referrals made under
Subsection (d), (e), or (f) during that period; and
(4) recommend corrective actions and funding
reallocations for organizations receiving state money in violation
of Section 2279.002.
(d) If the division determines that a state agency spent
money in violation of Section 2279.002, the division shall
recommend to:
(1) the legislature that the agency be subject to
budgetary restrictions during the next state fiscal biennium; and
(2) the agency that disciplinary action be taken
against personnel responsible for oversight of the allocation of
state money, including removal from that oversight role.
(e) If the division determines that an organization has
received state money in violation of Section 2279.002:
(1) the division shall promptly notify the comptroller
of that determination; and
(2) on receipt of notice under Subdivision (1), the
comptroller may not issue warrants to the organization until the
fifth anniversary of the date of the determination.
(f) The division shall refer each instance of an entity
knowingly misrepresenting the entity's activities to receive state
money in violation of Section 2279.002 to the attorney general for
appropriate action under Chapter 2279.
SECTION 3. The changes in law made by this Act apply only to
a contract entered into or renewed on or after the effective date of
this Act. A contract entered into or renewed before the effective
date of this Act is governed by the law in effect when the contract
was entered into or renewed, and the former law is continued in
effect for that purpose.
SECTION 4. Not later than the 90th day after the effective
date of this Act, a state agency shall terminate a grant or other
award of state money made to a person in violation of Section
2279.002, Government Code, as added by this Act.
SECTION 5. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2025.