S.B. No. 17

	AN ACT
	relating to diversity, equity, and inclusion initiatives at public
	institutions of higher education.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Subchapter G, Chapter 51, Education Code, is
	amended by adding Section 51.3525 to read as follows:
	Sec. 51.3525.  RESPONSIBILITY OF GOVERNING BOARDS REGARDING
	DIVERSITY, EQUITY, AND INCLUSION INITIATIVES.  (a)  In this
	section, "diversity, equity, and inclusion office" means an office,
	division, or other unit of an institution of higher education
	established for the purpose of:
	(1)  influencing hiring or employment practices at the
	institution 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
	antidiscrimination laws;
	(2)  promoting differential treatment of or providing
	special benefits to individuals on the basis of race, color, or
	ethnicity;
	(3)  promoting policies or procedures designed or
	implemented in reference to race, color, or ethnicity, other than
	policies or procedures approved in writing by the institution's
	general counsel and the Texas Higher Education Coordinating Board
	for the sole purpose of ensuring compliance with any applicable
	court order or state or federal law; or
	(4)  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 developed by an attorney and approved in
	writing by the institution's general counsel and the Texas Higher
	Education Coordinating Board for the sole purpose of ensuring
	compliance with any applicable court order or state or federal law.
	(b)  The governing board of an institution of higher
	education shall ensure that each unit of the institution:
	(1)  does not, except as required by federal law:
	(A)  establish or maintain a diversity, equity,
	and inclusion office;
	(B)  hire or assign an employee of the institution
	or contract with a third party to perform the duties of a diversity,
	equity, and inclusion office;
	(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
	institution; or
	(E)  require as a condition of enrolling at the
	institution or performing any institution function any person to
	participate in diversity, equity, and inclusion training, which:
	(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 by an attorney and approved in writing by the
	institution's general counsel and the Texas Higher Education
	Coordinating Board for the sole purpose of ensuring compliance with
	any applicable court order or state or federal law; and
	(2)  adopts policies and procedures for appropriately
	disciplining, including by termination, an employee or contractor
	of the institution who engages in conduct in violation of
	Subdivision (1).
	(c)  Nothing in this section may be construed to limit or
	prohibit an institution of higher education or an employee of an
	institution of higher education from, for purposes of applying for
	a grant or complying with the terms of accreditation by an
	accrediting agency, submitting to the grantor or accrediting agency
	a statement that:
	(1)  highlights the institution's work in supporting:
	(A)  first-generation college students;
	(B)  low-income students; or
	(C)  underserved student populations; or
	(2)  certifies compliance with state and federal
	antidiscrimination laws.
	(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.
	(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.
	(f)  In the interim between each regular session of the
	legislature, the governing board of each institution of higher
	education, or the board's designee, shall testify before the
	standing legislative committees with primary jurisdiction over
	higher education at a public hearing of the committee regarding the
	board's compliance with this section.
	(g)  The state auditor shall periodically conduct a
	compliance audit of each institution of higher education to
	determine whether the institution has spent state money in
	violation of this section.  The state auditor shall adopt a schedule
	by which the state auditor will conduct compliance audits under
	this subsection.  The schedule must ensure that each institution of
	higher education is audited at least once every four years.
	(h)  If the state auditor determines pursuant to a compliance
	audit conducted under Subsection (g) that an institution of higher
	education has spent state money in violation of this section, the
	institution:
	(1)  must cure the violation not later than the 180th
	day after the date on which the determination is made; and
	(2)  if the institution fails to cure the violation
	during the period described by Subdivision (1), is ineligible to
	receive formula funding increases, institutional enhancements, or
	exceptional items during the state fiscal biennium immediately
	following the state fiscal biennium in which the determination is
	made.
	(i)  A student or employee of an institution of higher
	education who is required to participate in training in violation
	of Subsection (b)(1)(E) may bring an action against the institution
	for injunctive or declaratory relief.
	(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, 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.  This subsection
	expires September 1, 2029.
	SECTION 2.  A public institution of higher education may
	provide to each employee in good standing at the institution whose
	position is eliminated as a result of the implementation of Section
	51.3525, Education Code, as added by this Act, a letter of
	recommendation for employment for a position at the institution or
	elsewhere.
	SECTION 3.  (a)  Except as provided by Subsection (b) of this
	section, this Act applies beginning with the spring semester of the
	2023-2024 academic year.
	(b)  Section 51.3525(e), Education Code, as added by this
	Act, applies beginning with money appropriated to a public
	institution of higher education for the state fiscal year beginning
	September 1, 2024.
	SECTION 4.  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 January 1, 2024.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I hereby certify that S.B. No. 17 passed the Senate on
	April 19, 2023, by the following vote:  Yeas 19, Nays 12;
	May 25, 2023, Senate refused to concur in House amendments and
	requested appointment of Conference Committee; May 26, 2023, House
	granted request of the Senate; May 28, 2023, Senate adopted
	Conference Committee Report by the following vote:  Yeas 19,
	Nays 12.
	______________________________
	Secretary of the Senate
	I hereby certify that S.B. No. 17 passed the House, with
	amendments, on May 22, 2023, by the following vote:  Yeas 83,
	Nays 62, one present not voting; May 26, 2023, House granted
	request of the Senate for appointment of Conference Committee;
	May 28, 2023, House adopted Conference Committee Report by the
	following vote:  Yeas 82, Nays 61, one present not voting.
	______________________________
	Chief Clerk of the House
	Approved:
	______________________________
	Date
	______________________________
	Governor