This bill prohibits institutions of higher education from using cultural competency and knowledge of specific ethnic or religious groups as criteria for employment or promotion decisions. It establishes that if an institution is found non-compliant with this prohibition by the Secretary of Higher Education, it will lose eligibility for state support for its operational and capital costs.

Additionally, the bill includes an exemption for positions where cultural competency skills or knowledge of a particular ethnic or religious group is deemed essential, as determined by the Secretary of Higher Education. This ensures that while the bill restricts certain criteria, it still allows for flexibility in hiring for roles where such competencies are necessary. The act is set to take effect immediately upon passage.