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