HB 2770

relating to municipal diversity, equity, and inclusion
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Subtitle A, Title 5, Local Government Code, is
amended by adding Chapter 148 to read as follows:
CHAPTER 148.  PROHIBITION ON MUNICIPAL DIVERSITY, EQUITY, AND
Sec. 148.001.  DEFINITIONS.  In this chapter:
(1)  "Diversity, equity, and inclusion initiative"
(A)  is based on the belief that identity
classifications are central to understanding social, professional,
(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
Sec. 148.002.  PROHIBITION ON MUNICIPAL SPENDING OF PUBLIC
MONEY ON DIVERSITY, EQUITY, AND INCLUSION INITIATIVES.  Except as
required by federal law, a municipality 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,
(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
municipality to participate in a workforce training or professional
development training that promotes a diversity, equity, and
(5)  provide funding to enable an employee or a member
of the governing body of the municipality to attend a conference
that promotes or teaches a diversity, equity, and inclusion
(6)  provide funding to a business, nonprofit
organization, association, or other similar organization if that
(A)  excludes the participation of a person in the
organization on the basis of the person's identity classification;
(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
(A)  promotes a diversity, equity, and inclusion
(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 municipality.
Sec. 148.003.  DIVERSITY, EQUITY, AND INCLUSION INITIATIVES
AFFECTING MUNICIPAL OFFICERS AND EMPLOYEES.  (a)  To the maximum
extent permitted by law, the governing body of a municipality 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;
(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 governing body of
(1)  adopt or enforce an ordinance, regulation, or
(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
(3)  use alternative discipline practices, including
restorative practices, to address conflict or wrongdoing in the
Sec. 148.004.  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
(b)  The attorney general may bring an action to enjoin a
violation under this chapter in a district court in:
(2)  the county of the municipality in which the
(c)  Notwithstanding any other law, if it is determined in an
action under Subsection (b) that a municipality has violated a
provision of this chapter, the municipality may not adopt an ad
valorem tax rate that exceeds the municipality's no-new-revenue tax
rate for the three tax years that begin on or after the date of the
(d)  A municipality 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 municipalities.
SECTION 2.  This Act takes effect September 1, 2025.