Senate General Assembly File No. 355, also known as Substitute Senate Bill No. 414, is an act concerning equity in state employment, which will take effect on October 1, 2024. The bill requires the establishment of a Diversity, Equity, and Inclusion (DEI) Division within each state department, led by a full-time director whose role includes developing an equity plan, evaluating policies, and ensuring community engagement. Department heads must consult with the DEI director before implementing policies or regulations to avoid negative impacts on underserved communities. By October 1, 2026, and annually thereafter, DEI directors must create an equity action plan, which will be made public on the department's website, detailing goals, progress, barriers, and strategies for improving access to services for underserved communities.

The bill also introduces a standardized DEI training program for all state employees, with a minimum of four hours of annual training, prioritizing supervisory staff. The training will cover topics such as implicit bias, cultural sensitivity, and anti-discrimination practices. Departments are required to collect and report demographic data on job applicants and use diverse hiring panels. The director may waive these requirements under certain conditions. The fiscal impact statement estimates costs of approximately $5 million in FY 25 and $5.3 million annually thereafter, subject to future inflation. The Labor and Public Employees Committee has given a Joint Favorable Substitute report on the bill with a vote of 8 in favor and 4 against on March 21, 2024.