89R15478 RDR-F By: A. Davis of Dallas H.B. No. 4345 A BILL TO BE ENTITLED AN ACT relating to an exemption from certain requirements regarding diversity, equity, or inclusion initiatives for certain activities for veterans or persons with disabilities provided by public institutions of higher education and to reporting regarding those activities. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 51.3525, Education Code, is amended by amending Subsections (d), (e), and (j) and adding Subsection (d-1) to read as follows: (d) Subsection (b)(1) may not be construed to apply to: (1) academic course instruction; (2) scholarly research or a creative work by an institution of higher education's students, faculty, or other research personnel or the dissemination of that research or work; (3) an activity of a student organization registered with or recognized by an institution of higher education; (4) guest speakers or performers on short-term engagements; (5) a policy, practice, procedure, program, or activity to enhance student academic achievement or postgraduate outcomes that is designed and implemented without regard to race, sex, color, or ethnicity; (6) data collection; [or] (7) student recruitment or admissions; or (8) a service, program, or activity that supports veterans or persons with disabilities without regard to race, sex, color, or ethnicity, including: (A) the hiring or assignment of personnel necessary to comply with state or federal law or grant requirements relating to veterans or persons with disabilities; and (B) training developed or implemented to address the unique needs and rights of veterans or persons with disabilities. (d-1) The provision of a service, program, or activity under Subsection (d)(8) may not be used to establish or maintain a diversity, equity, and inclusion office unless explicitly required by state or federal law. (e) An institution of higher education may not spend money appropriated to the institution for a state fiscal year until the governing board of the institution submits to the legislature and the Texas Higher Education Coordinating Board a report certifying the board's compliance with this section during the preceding state fiscal year. The report must include: (1) a description of services, programs, and activities offered by the institution that support veterans or persons with disabilities; (2) any change or discontinuation of services, programs, or activities described by Subdivision (1), including the reason for the change or discontinuation; and (3) efforts made to ensure compliance with applicable state and federal laws regarding veterans or persons with disabilities. (j) The Texas Higher Education Coordinating Board, in coordination with institutions of higher education, shall conduct a biennial study to identify the impact of the implementation of this section on the application rate, acceptance rate, matriculation rate, retention rate, grade point average, and graduation rate of students at institutions of higher education, disaggregated by race, sex, veteran status, disability status, and ethnicity. Not later than December 1 of each even-numbered year, the coordinating board shall submit to the legislature a report on the results of the study, [and] any recommendations for legislative or other action, and a summary of information submitted to the coordinating board under Subsections (e)(1), (2), and (3). This subsection expires September 1, 2029. SECTION 2. This Act takes effect September 1, 2025.