This bill enacts the "Dismantling DEI Departments Act," which prohibits the following entities from maintaining or authorizing an office or department that promotes or requires discriminatory preferences in an effort to increase diversity, equity, or inclusion:  A department, agency, or other unit of state government;  A county government;  A municipal government;  A metropolitan government; and A public institution of higher education in this state. This bill provides that all mandates, policies, programs, activities, guidance, regulations, enforcement actions, consent orders, or other declarations by such an office or department are void. ON APRIL 22, 2025, THE SENATE ADOPTED AMENDMENT #1 AND PASSED SENATE BILL 1084, AS AMENDED. AMENDMENT #1 rewrites this bill to enact the "Dismantling DEI Departments Act," which prohibits units of state government, as well as counties, municipalities, metropolitan governments, and public institutions of higher education from using a discriminatory preference in an effort to increase diversity, equity, or inclusion or establishing or maintaining an office, division, or department for such purposes. All mandates, policies, programs, activities, guidance, regulations, enforcement actions, consent orders, or other declarations of a governmental or public entity subject to this amendment, or an office, division, or department thereof, in existence prior to the date that this bill becomes a law and that are in conflict with such prohibition will be void. For purposes of this amendment, "discriminatory preference" means a policy, practice, or requirement that grants or withholds benefits, opportunities, advantages, or disadvantages to an individual or group based on race, ethnicity, sex, age, or any other demographic characteristic, rather than on individual merit, qualifications, veteran status, or lawful eligibility criteria. With regard to entities of state government, "discriminatory preference" does not include: (1) Public health, medical research, or disease prevention programs that use demographic-based outreach for medically substantiated reasons, such as initiatives addressing health conditions that disproportionately affect specific populations; or (2) Lawful and neutral outreach programs that ensure equal access to state services or contracting based on objective eligibility criteria, so long as such programs do not mandate quotas, alter selection criteria, or require preferential treatment based on demographic characteristics. This amendment's prohibition against uses of discriminatory practices and establishing or maintaining administrative units for such purpose does not apply to a governmental or public entity that submits notice in writing to the comptroller of the treasury that compliance with such prohibition would result in a loss of federal funding, to the extent such an exemption is necessary to conform to federally awarded or amended contracts, subcontracts, or postsecondary grants as a condition to receipt of federal funds. This amendment requires the comptroller to create guidelines as to what information is required in the notice. This amendment further requires the comptroller to review a notice submitted by governmental or public entity and, if the comptroller finds that compliance would result in the loss of federal funding, notify the entity in writing of its exemption. After one calendar year from the date on which the comptroller exempts an entity under this amendment, the entity is required to submit in writing to the comptroller to have the exemption renewed for an additional one-year period. An entity that received an exemption under this amendment is required to notify the comptroller within 14 days if the conditions or justifications for the comptroller granting the exemption no longer exist. Present law generally requires that the governor, in appointing citizens to serve on boards, commissions, committees, and other governing or advisory entities of the executive branch of state government, strive to ensure that at least one such citizen serving on each such board, commission, committee, or other governing or advisory entity is 60 years of age or older and that at least one such citizen serving on each such board, commission, committee, or other governing or advisory entity is a member of a racial minority. This amendment prohibits the governor from granting preferential treatment when making appointments to any board, commission, committee, or other governing or advisory entity of the executive branch of state government on the basis of race. This amendment also replaces the present law with a requirement that the governor, in appointing citizens to serve on boards, commissions, committees, and other governing or advisory entities of the executive branch of state government, strive to ensure that all appointments be made based on individual merit, qualifications, and the needs of the board, commission, committee, or other governing or advisory entity. This amendment makes a corresponding change to the creating statutes for various boards, commissions, committees, and other governing or advisory entities of the executive branch of state government, which presently include language directing the governor to appoint, or strive to appoint, persons based on characteristics included in this amendment's definition of discriminatory preference. This amendment also deletes from present law: (1) The requirement that the executive director of the Tennessee arts commission hire a full-time employee to undertake activities to assure equitable participation by the traditionally underserved and underrepresented ethnic minority, people with a disability, elderly, and rural artists and arts organizations within this state with regard to grant programs administered by or through entities of state government; (2) The requirement that, if the general assembly authorizes an allocation of certain TNInvestco investment tax credits, the commissioner of revenue and the commissioner of economic and community development strive to select applicants whose investment team membership is reflective of the racial, ethnic and gender diversity of Tennessee's population; (3) The requirement that all qualified TNInvestcos, and the qualified businesses in which they invest, strive to maximize the participation of minority-owned businesses and woman-owned businesses to reflect the racial, ethnic and gender diversity of Tennessee's population; (4) The minority business participation advisory council for the Tennessee education lottery corporation; (5) The requirement that municipal service boards include at least one woman and one minority citizen; (6) The requirement that at least two of the members of a tourist commission are selected from minorities, as well as members of the sex that historically have been underrepresented on the tourist commission; (7) The requirement that policies and practices of industrial development corporations must ensure that minority-owned and other disadvantaged businesses share more fully in the American economic system of private enterprise through free and vigorous competition, to be fostered through encouragement and support of such businesses; (8) The requirement that, except in Davidson County, at least one appointee to the board of directors of any not-for-profit corporation acting for the benefit or on behalf of any one or more counties, cities, towns or governmental entities pursuant present law concerning energy production facilities or resource recovery and solid waste disposal must be black; (9) The requirement that when appointing a board of directors for a sports authority, the appointing authorities strive to ensure that at least one director is a female and at least one director is of a racial minority; (10) The requirement for consideration of the need for racial, gender, age, and ethnic minority diversity on utility district boards of commissioners; (11) The requirement that, in making appointments to board of directors for the Davidson County emergency communications district include members selected from minorities as well as members of the sex that historically has been underrepresented on boards and commissions of the metropolitan government; (12) The requirement that, in making appointments to the emergency communication board, the appointing authorities strive to ensure that the composition of the board represents the diversity of persons in Tennessee by considering race, gender, age, and geographical and political interests; and (13) The requirement that, in appointing members to a board of directors for a convention center authority, a mayor strive to ensure that the board is composed of directors who are diverse in professional background, educational background, ethnicity, race, gender, geographic residency, heritage, perspective and experience, and strive to appoint at least one director who is female and at least one director who is a racial minority.

Statutes affected:
Amended with SA0330 -- 04/22/2025: 8-1-111, 4-8-301(a)(2), 4-8-301, 4-10-103, 4-11-102, 4-11-106(a)(2), 4-11-106, 4-11-302, 4-14-203, 4-20-101, 4-20-107, 4-20-301, 4-23-202(a)(2), 4-23-202, 4-24-104, 4-28-105, 4-28-106, 4-49-105, 4-51-103, 4-51-112, 4-56-106, 6-54-114(b), 6-54-114, 7-4-109, 7-53-313, 7-54-113(a), 7-54-113, 7-67-108, 7-82-307, 7-82-701(c)(1)(E), 7-82-701, 7-86-105(b)(2), 7-86-105, 7-86-302, 7-89-108(a)(4), 7-89-108, 8-30-108(c)(1), 8-30-108