H.B. No. 170 aims to establish new regulations regarding diversity, equity, and inclusion initiatives at public institutions of higher education in Texas. The bill amends Sections 51.3525(c)-(j) of the Education Code, removing previous language that limited institutions' ability to highlight their support for first-generation college students, low-income students, and underserved populations when applying for grants or accreditation. It introduces a requirement that institutions must not spend state-appropriated funds until their governing boards certify compliance with the new regulations. Additionally, the state auditor is tasked with conducting periodic compliance audits to ensure institutions are adhering to these requirements.

The bill also mandates that if an institution is found to have violated the spending regulations, it must rectify the issue within 180 days or risk losing funding increases in the subsequent fiscal biennium. Furthermore, it allows students or employees to take legal action against institutions for violations related to mandatory training. Lastly, the Texas Higher Education Coordinating Board is required to conduct a biennial study on the impact of these initiatives on various student metrics, with a report due to the legislature every even-numbered year until the expiration of this subsection in 2029.

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