The proposed bill, known as the Ending Institutional Racism Act, seeks to prohibit certain diversity, equity, and inclusion (DEI) initiatives by governmental entities in Texas. It introduces Chapter 621 to the Government Code, which defines a "diversity, equity, and inclusion office" and outlines prohibited actions such as establishing DEI offices, hiring for DEI roles, or requiring diversity statements. The bill mandates disciplinary policies for employees who violate these provisions while clarifying that these prohibitions do not extend to academic instruction, scholarly research, or specific student activities.

Additionally, the bill amends existing laws regarding governmental contracting, specifically banning the awarding of contracts based on race, color, ethnicity, sex, gender identity, or sexual orientation. It modifies definitions related to disadvantaged persons, removing references to women and minority business enterprises in favor of a broader focus on disadvantaged businesses. The bill allows individuals to take legal action against governmental entities for violations, including recovering costs and attorney's fees, and waives sovereign immunity for claims under this chapter. It also repeals provisions related to minority and women-owned business contracting opportunities, streamlining the focus on disadvantaged individuals, with the changes effective for contracts entered into after September 1, 2025.

Statutes affected:
Introduced: Civil Practice and Remedies Code 106.001, Government Code 2161.001, Government Code 2161.061, Government Code 2269.055, Government Code 2303.405, Government Code 2310.305, Health and Safety Code 281.051, Labor Code 91.005, Local Government Code 381.004, Special District Local Laws Code 3871.103, Special District Local Laws Code 3884.103, Transportation Code 22.084, Transportation Code 451.252, Transportation Code 452.001 (Government Code 2161, Government Code 2310, Special District Local Laws Code 3884, Transportation Code 452, Health and Safety Code 281, Transportation Code 22, Government Code 2269, Government Code 2303, Transportation Code 451, Civil Practice and Remedies Code 106, Labor Code 91, Special District Local Laws Code 3871, Local Government Code 381)