By: Creighton, et al.  S.B. No. 17          (In the Senate - Filed March 10, 2023; March 13, 2023, read   first time and referred to Subcommittee on Higher Education;   April 12, 2023, reported adversely, with favorable Committee   Substitute from Committee on Education by the following vote:     Yeas 8, Nays 2; April 12, 2023, sent to printer.)Click here to see the committee vote     COMMITTEE SUBSTITUTE FOR S.B. No. 17 By:  Paxton     A BILL TO BE ENTITLED   AN ACT     relating to the powers and duties of the governing boards of public   institutions of higher education.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 51.352(d), Education Code, is amended to   read as follows:          (d)  In addition to powers and duties specifically granted by   this code or other law, each governing board shall:                (1)  establish, for each institution under its control   and management, goals consistent with the role and mission of the   institution;                (2)  appoint the chancellor or other chief executive   officer of the system, if the board governs a university system;                (3)  appoint the president or other chief executive   officer of each institution under the board's control and   management and evaluate the chief executive officer of each   component institution and assist the officer in the achievement of   performance goals;                (4)  ensure that a majority of the members of a search   committee for the position of president or other chief executive   officer of an institution under the board's control and management   are members of the board;                (5)  set campus admission standards consistent with the   role and mission of the institution and considering the admission   standards of similar institutions nationwide having a similar role   and mission, as determined by the coordinating board; and                (6) [(5)]  ensure that its formal position on matters   of importance to the institutions under its governance is made   clear to the coordinating board when such matters are under   consideration by the coordinating board.          SECTION 2.  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 office of the attorney general 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 office of the   attorney general 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 academic or administrative 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 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 office of the attorney   general for the sole purpose of ensuring compliance with any   applicable court order or state or federal law; and                (2)  adopts policies and procedures for disciplining an   employee or contractor of the institution who engages in conduct in   violation of Subdivision (1), including by termination, as   appropriate.          (c)  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 Subsection (b) during the preceding   state fiscal year.          (c-1)  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 Subsection (b).  This subsection expires   September 1, 2027.          (d)  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.          (e)  If the state auditor determines pursuant to a compliance   audit conducted under Subsection (d) that an institution of higher   education has spent state money in violation of this section, the   institution is ineligible to receive state funds for the state   fiscal year immediately following the state fiscal year in which   the determination is made, other than state funds appropriated to   pay debt service on bonds or notes previously authorized for the   institution.          (f)  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.          SECTION 3.  (a) Except as provided by Subsection (b) of this   section, this Act applies beginning with the 2023-2024 academic   year.          (b)  Section 51.3525(c), 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 September 1, 2023.     * * * * *