H.B. No. 5280 proposes an amendment to the Government Code by adding Section 2252.911, which addresses the considerations that governmental entities must take into account when awarding contracts. The new section explicitly prohibits governmental entities from refusing to award contracts or providing differential treatment to bidders based on their diversity, equity, and inclusion (DEI) initiatives. Specifically, it states that a bid cannot be rejected or treated differently if the bidder has a DEI department, solicits DEI statements from employees, or promotes employee resource groups related to DEI initiatives.

The bill aims to ensure that businesses are not discriminated against in the contracting process based on their DEI efforts, thereby promoting fairness and inclusivity in government contracting. The act will take effect immediately if it receives a two-thirds majority vote from both houses of the legislature; otherwise, it will become effective on September 1, 2025.

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