House Bill No. 3427 seeks to amend the Local Government Code by adding Section 180.011, which prohibits political subdivisions from implementing certain diversity, equity, and inclusion (DEI) policies. The bill defines DEI policies as those that require or promote hiring practices based on race, sex, color, or ethnicity, provide differential treatment based on these characteristics, or promote specific opinions related to concepts such as unconscious bias, social justice, and systemic oppression. Under this new section, political subdivisions are explicitly barred from adopting or enforcing DEI policies unless mandated by state or federal law, and they cannot compel employees to participate in related training.

Additionally, the bill allows individuals, including the attorney general, to take legal action against political subdivisions that violate these prohibitions, with the venue for such actions being either Travis County or the county where the violation occurs. If a person prevails in such an action, they are entitled to reasonable attorney's fees and costs, and the political subdivision's governmental immunity is waived to the extent of liability created under this section. Furthermore, any political subdivision found to have violated these provisions will be ineligible to receive state grant funds for two years following the determination of the violation. The bill is set to take effect on September 1, 2025.

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