The proposed "Diversity Act" aims to enhance diversity, equity, and inclusion within New Mexico's state personnel system by establishing a Chief Diversity Officer and a Workforce Diversity and Inclusion Council. The Chief Diversity Officer will be responsible for leading initiatives to promote diversity and equity, collaborating with state agencies to identify barriers to recruitment and retention of a diverse workforce, and ensuring compliance with relevant laws. Each state agency will designate a Diversity and Inclusion Liaison to work closely with the Chief Diversity Officer, and both will be tasked with implementing anti-institutional racism training and developing strategic plans to address diversity goals.

Additionally, the bill mandates that state agencies develop comprehensive diversity, equity, and inclusion strategic plans, submit annual reports detailing their workforce demographics and compliance with anti-discrimination policies, and provide data-driven recommendations for improvement. The act includes an appropriation of $250,000 from the general fund for its implementation in fiscal year 2026. The provisions of the act are set to take effect on July 1, 2025.