HB 167

relating to the implementation of diversity, equity, and inclusion
initiatives and certain prohibited considerations in contracting
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.01.  This Act may be cited as the Ending
ARTICLE 2. PROHIBITED DIVERSITY, EQUITY, AND INCLUSION INITIATIVES
SECTION 2.01.  Subtitle A, Title 6, Government Code, is
amended by adding Chapter 621 to read as follows:
CHAPTER 621. PROHIBITION ON CERTAIN DIVERSITY, EQUITY, AND
SUBCHAPTER A.  GENERAL PROVISIONS
Sec. 621.001.  DEFINITIONS.  In this chapter:
(1)  "Diversity, equity, and inclusion office" means an
office, division, or other unit of a governmental entity
established for the purpose of:
(A)  influencing hiring or employment practices
at the entity with respect to race, sex, color, or ethnicity, other
than through the use of color-blind and sex-neutral hiring
processes in accordance with any applicable state and federal
(B)  promoting differential treatment or
providing special benefits to individuals on the basis of race,
(C)  promoting policies or procedures designed or
implemented in reference to race, color, or ethnicity, other than
policies or procedures implemented for the purpose of ensuring
compliance with any applicable federal law; or
(D)  conducting trainings, programs, or
activities designed or implemented in reference to race, color,
ethnicity, gender identity, or sexual orientation, other than
trainings, programs, or activities conducted for the purpose of
ensuring compliance with any applicable court order or state or
(2)  "Governmental entity" means:
(A)  a department, commission, board, office, or
other agency that is in the executive branch of state government and
that was created by the constitution or a statute, other than an
institution of higher education as defined by Section 61.003,
(B)  the legislature or a legislative state
(C)  the supreme court, the court of criminal
appeals, a court of appeals, a district court, or the Texas Judicial
Council or another agency in the judicial branch of state
(D)  a county, municipality, special purpose
district, including a school district, or any other political
(E)  an open-enrollment charter school
established under Subchapter D, Chapter 12, Education Code.
SUBCHAPTER B.  DIVERSITY, EQUITY, AND INCLUSION INITIATIVES
Sec. 621.051.  RESPONSIBILITY OF GOVERNMENTAL ENTITY
REGARDING DIVERSITY, EQUITY, AND INCLUSION INITIATIVES.  (a)  A
governmental entity shall ensure that each unit of the entity:
(1)  does not, except as required by federal law:
(A)  establish or maintain a diversity, equity,
(B)  hire or assign an employee of the entity or
contract with a third party to perform the duties of a diversity,
(C)  compel, require, induce, or solicit any
person to provide a diversity, equity, and inclusion statement or
give preferential consideration to any person based on the
provision of a diversity, equity, and inclusion statement;
(D)  give preference on the basis of race, sex,
color, ethnicity, or national origin to an applicant for
employment, an employee, or a participant in any function of the
(E)  require as a condition of employment any
person to participate in diversity, equity, and inclusion training,
(i)  includes a training, program, or
activity designed or implemented in reference to race, color,
ethnicity, gender identity, or sexual orientation; and
(ii)  does not include a training, program,
or activity developed for the purpose of ensuring compliance with
any applicable federal law; and
(2)  adopts policies and procedures for appropriately
disciplining, including by termination, an employee or contractor
of the entity who engages in conduct in violation of Subdivision
(b)  Subsection (a)(1) may not be construed to apply to:
(1)  academic course instruction;
(2)  scholarly research or a creative work by a school
district's or open-enrollment charter school's students or faculty;
(3)  an activity of a student organization registered
with or recognized by a school district or open-enrollment charter
(4)  guest speakers or performers on short-term
(5)  a program or activity to enhance student academic
achievement or postgraduate outcomes that allows participation
without regard to race, sex, color, or ethnicity; or
SUBCHAPTER C. LIABILITY FOR CERTAIN DIVERSITY, EQUITY, AND
Sec. 621.101.  LIABILITY FOR CERTAIN INITIATIVES.  The
following individuals may bring an action against a governmental
entity that violates Section 621.051:
(1)  an employee of the governmental entity; or
(2)  an individual who resides in an area served by the
Sec. 621.102.  REMEDIES.  (a)  A claimant is entitled to
recover in an action brought under this chapter:
(1)  declaratory and injunctive relief; and
(2)  costs and reasonable attorney's fees.
(b)  If the court finds an action brought under this chapter
to be frivolous, a governmental entity is entitled to recover costs
and reasonable attorney's fees.
Sec. 621.103.  IMMUNITY WAIVER.  The sovereign immunity of
this state and governmental immunity of a political subdivision to
suit and from liability is waived to the extent of the liability
Sec. 621.104.  NOTICE.  A governmental entity is entitled to
receive notice of a claim against it under this chapter not later
than 90 days before the date a claimant files an action under this
chapter.  The notice must reasonably describe a specific action of
the governmental entity that is the basis for the claim against it.
Sec. 621.105.  VENUE.  (a)  Notwithstanding any other law,
including Chapter 15, Civil Practice and Remedies Code, and except
as provided by Subsection (b), a claimant may bring an action under
this chapter in a county in which the governmental entity is
(b)  A claimant must bring an action under this chapter in
Travis County if the governmental entity is:
(1)  an agency, board, commission, department, or
office that is in the executive branch of state government;
(2)  the legislature or a legislative state agency; or
(3)  the supreme court, the court of criminal appeals,
the Texas Judicial Council, or another agency in the judicial
(c)  If the action is brought in a venue authorized by this
section, the action may not be transferred to a different venue
without the written consent of all parties.
ARTICLE 3. PROHIBITION ON CERTAIN CONSIDERATIONS IN CONTRACTING
SECTION 3.01.  Subchapter Z, Chapter 2252, Government Code,
is amended by adding Section 2252.911 to read as follows:
Sec. 2252.911.  PROHIBITED CONSIDERATIONS IN CONTRACTING.
(a)  In this section, "governmental entity" has the meaning
assigned by Section 2252.001, except that the term does not include
an institution of higher education as defined by Section 61.003,
(b)  Notwithstanding any other law, a governmental entity
may not award a contract or provide preferential treatment to a
person submitting a bid for a contract on the basis of race, color,
ethnicity, sex, gender identity, or sexual orientation.
SECTION 3.02.  Section 106.001(c), Civil Practice and
Remedies Code, is amended to read as follows:
(c)  This section does not prohibit the adoption of a program
designed to increase the participation of businesses owned and
controlled by [women, minorities, or] disadvantaged persons in
SECTION 3.03.  Section 2161.001(3), Government Code, is
(3)  "Economically disadvantaged person" means a
(A)  is economically disadvantaged because of the
person's status [identification] as a veteran [member of a certain
[(iv)  Asian Pacific Americans;
[(vi)  veterans] as defined by 38 U.S.C.
Section 101(2) who has [have] suffered at least a 20 percent
service-connected disability as defined by 38 U.S.C. Section
(B)  has suffered the effects of discriminatory
practices or other similar insidious circumstances over which the
SECTION 3.04.  Sections 2161.061(b), (d), and (e),
Government Code, are amended to read as follows:
(b)  As one of its certification procedures, the comptroller
(1)  approve the certification program of one or more
local governments or nonprofit organizations in this state that
certify historically underutilized businesses [, minority business
enterprises, women's business enterprises,] or disadvantaged
business enterprises under substantially the same definition, to
the extent applicable, used by Section 2161.001, if the local
government or nonprofit organization meets or exceeds the standards
established by the comptroller; and
(2)  certify a business that is certified by a local
government or by a nonprofit organization as a historically
underutilized business under this chapter.
(d)  A local government or a nonprofit organization that
certifies historically underutilized businesses [, minority
business enterprises, women's business enterprises,] or
disadvantaged business enterprises as described in Subsections (b)
and (c) shall complete the certification of an applicant or provide
an applicant with written justification of its certification denial
within the period established by the comptroller in its rules for
(e)  A local government or a nonprofit organization that
certifies historically underutilized businesses under Subsection
(c) or that conducts a certification program described by and
approved under Subsection (b) shall make available to the public an
online searchable database containing information about
historically underutilized businesses [, minority business
enterprises, women's business enterprises,] and disadvantaged
business enterprises certified by the local government or nonprofit
(2)  the contact person or owner of the business;
(3)  the address and telephone number of the business;
(4)  the type or category of business, including
relevant capabilities of the business and the North American
Industry Classification System codes for the business; and
(5)  the expiration date of the business's
SECTION 3.05.  Section 2269.055(b), Government Code, is
(b)  In determining the award of a contract under this
chapter, the governmental entity shall:
(1)  consider and apply any existing laws, including
any criteria, related to historically underutilized businesses;
(2)  consider and apply any existing laws, rules, or
applicable municipal charters, including laws applicable to local
governments, related to the use of [women, minority,] small [,] or
SECTION 3.06.  Section 2303.405(e), Government Code, is
(e)  Factors to be considered in evaluating the local effort
(1)  the willingness to negotiate or cooperate in the
achievement of the purposes of this chapter;
(2)  commitments to hire underskilled, inexperienced,
disadvantaged, or displaced workers who reside in the enterprise
(3)  [commitments to hire minority workers and to
contract with minority-owned businesses;
[(4)]  provision of technical and vocational job
training for enterprise zone residents or economically
(4) [(5)]  provision of child care for employees;
(5) [(6)]  commitments to implement and contribute to a
tutoring or mentoring program for area students;
(6) [(7)]  prevention or reduction of juvenile crime
(7) [(8)]  the willingness to make contributions to the
well-being of the community, such as job training, or the donation
of land for parks or other public purposes.
SECTION 3.07.  Section 2310.305(e), Government Code, is
(e)  Factors to be considered in evaluating the local effort
(1)  the willingness to negotiate or cooperate in the
redevelopment of vacated defense facilities and the creation of
(2)  commitments to hire dislocated defense workers and
economically disadvantaged workers;
(3)  [commitments to hire minority workers and to
contract with minority-owned businesses;
[(4)]  provision of technical and vocational job
training for residents of the nominating body's jurisdiction or
economically disadvantaged employees;
(4) [(5)]  provision of child care for employees;
(5) [(6)]  commitments to implement and contribute to a
tutoring or mentoring program for area students;
(6) [(7)]  prevention or reduction of juvenile crime;
(7) [(8)]  the willingness to make contributions to the
well-being of the community, such as job training, or the donation
of land for parks or other public purposes.
SECTION 3.08.  Section 281.051(c), Health and Safety Code,
(c)  The board shall encourage and promote participation by
all sectors of the business community, including small businesses
[and businesses owned by members of a minority group or by women],
in the process by which the district enters into contracts.  The
board shall develop a plan for the district to identify and remove
barriers that do not have a definite or objective relationship to
quality or competence and that unfairly discriminate against small
businesses [and businesses owned by members of a minority or by
women].  These barriers may include contracting procedures and
contract specifications or conditions.
SECTION 3.09.  Section 91.005, Labor Code, is amended to
Sec. 91.005.  APPLICATION OF CERTAIN PROCUREMENT LAWS.  With
respect to a bid, contract, purchase order, or agreement entered
into with the state or a political subdivision of the state, a
client's status or certification as a small or [, minority-owned,]
disadvantaged [, or woman-owned] business enterprise or as a
historically underutilized business is not affected because the
client has entered into a professional employer services agreement
with a license holder or uses the services of a license holder.
SECTION 3.10.  Sections 381.004(a) and (b), Local Government
Code, are amended to read as follows:
(a)  In this section, "another [:
[(1)  "Another] entity" includes the federal
government, the State of Texas, a municipality, school or other
special district, finance corporation, institution of higher
education, charitable or nonprofit organization, foundation,
board, council, commission, or any other person.
[(2)  "Minority" includes blacks, Hispanics, Asian
Americans, American Indians, and Alaska natives.
[(3)  "Minority business" means a business concern,
more than 50 percent of which is owned and controlled in management
and daily operations by members of one or more minorities.
[(4)  "Women-owned business" means a business concern,
more than 50 percent of which is owned and controlled in management
and daily operations by one or more women.]
(b)  To stimulate business and commercial activity in a
county, the commissioners court of the county may develop and
(1)  for state or local economic development;
(2)  for small or disadvantaged business development;
(3)  to stimulate, encourage, and develop business
location and commercial activity in the county;
(4)  to promote or advertise the county and its
vicinity or conduct a solicitation program to attract conventions,
(5)  [to improve the extent to which women and minority
businesses are awarded county contracts;
[(6)]  to support comprehensive literacy programs for
the benefit of county residents; or
(6) [(7)]  for the encouragement, promotion,
improvement, and application of the arts.
SECTION 3.11.  Section 3871.103(d), Special District Local
Laws Code, is amended to read as follows:
(d)  The district must follow Resolution 08-2826, adopted by
the city on October 22, 2008, for construction, procurement, and
professional services contracts related to the use of historically
underutilized businesses [and minority contracting] in the
implementation of its district plan.
SECTION 3.12.  Section 3884.103(d), Special District Local
Laws Code, is amended to read as follows:
(d)  The district must follow Resolution 08-2826, adopted by
the city on October 22, 2008, for construction, procurement, and
professional services contracts related to the use of historically
underutilized businesses [and minority contracting] in the
implementation of its district plan.
SECTION 3.13.  The heading to Section 22.084, Transportation
Code, is amended to read as follows:
Sec. 22.084.  AIRPORT REVENUE AND REVENUE BOND PROCEEDS
[;  CONTRACTING OPPORTUNITIES FOR MINORITY- AND WOMEN-OWNED
SECTION 3.14.  Section 22.084(a), Transportation Code, is
(a)  If constituent agencies or a nonprofit corporation
created under Section 22.152 issues revenue bonds to finance the
construction or acquisition of a facility or other improvement at
an airport, the proceeds of the bonds and any other airport income
or revenue may be spent on projects for which the proceeds, income,
or revenue may otherwise be spent.  An agreement may be made to
spend all or a portion of the proceeds, income, or revenue for the
planning, construction, or acquisition of facilities authorized by
Sections 22.011(a)-(c) and 22.012 without inviting, advertising
for, or otherwise requiring competitive bids.  [A contract wholly
or partly funded with proceeds, income, or revenue under this
subsection shall be let in accordance with the joint board's rules
and policies relating to creation of contracting opportunities for
minority- and women-owned businesses.]
SECTION 3.15.  The heading to Section 451.252,
Transportation Code, is amended to read as follows:
Sec. 451.252.  [MINORITY AND] DISADVANTAGED INDIVIDUALS
SECTION 3.16.  Section 451.252(a), Transportation Code, is
(a)  The board of an authority confirmed before July 1, 1985,
shall establish a program to encourage participation in contracts
of the authority by businesses owned by [minorities or]
SECTION 3.17.  Section 452.001(1), Transportation Code, is
(1)  "Authority" means a regional transportation
authority created under this chapter or Chapter 683, Acts of the
66th Legislature, Regular Session, 1979.  The term includes:
(A)  when used in Subchapters B, C, D, F, H, and I
and Section [Sections 452.201 and] 452.451, a subregional authority
created by a contiguous municipality; and
(B)  as appropriate, an authority, other than an
authority created by a contiguous municipality, consisting of one
SECTION 3.18.  The following provisions are repealed:
(1)  Section 12.029, Agriculture Code;
(2)  Sections 466.107, 466.151(c), 1232.104(c), and
(3)  Section 775.306, Health and Safety Code;
(4)  Section 381.004(d), Local Government Code;
(5)  Sections 161.131 and 161.132, Natural Resources
(6)  Section 2026.152(b), Occupations Code;
(7)  Sections 451.253 and 452.201, Transportation
(8)  Sections 311.0101(d) and 351.1065(c), Tax Code.
ARTICLE 4. TRANSITION; EFFECTIVE DATE
SECTION 4.01.  The changes in law made by Article 3 of this
Act apply only to a contract entered into on or after the effective
date of this Act.  A contract entered into before that date is
governed by the law in effect on the date the contract was entered
into, and the former law is continued in effect for that purpose.
SECTION 4.02.  This Act takes effect September 1, 2025.