Text of TX HB 3075 (2025)

89R12449 CS-F By: McLaughlin H.B. No. 3075 A BILL TO BE ENTITLED AN ACT relating to a prohibition on the provision of state money to entities that promote certain ideological programs and the establishment of a division in the Legislative Budget Board to ensure such entities do not receive state money; authorizing the imposition of a civil penalty. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subtitle F, Title 10, Government Code, is amended by adding Chapter 2279 to read as follows: CHAPTER 2279. PROHIBITION ON AWARD OF STATE MONEY TO ORGANIZATIONS SUPPORTING RESTRICTED IDEOLOGICAL PROGRAMS Sec. 2279.001. DEFINITIONS. In this chapter: (1) "Organization" means any entity, including a public or private institution, nonprofit organization, corporation, or association, that directly or indirectly receives state money. (2) "Restricted ideological program" means a program that supports, promotes, or is aligned with: (A) initiatives, theories, or policies that seek to alter social institutions through identity-based conflict; (B) advocacy that prioritizes the redistribution of resources based on perceived societal inequalities; (C) an equity initiative that seeks equal outcomes rather than equal opportunities based on demographic factors; (D) advocacy for a nonbiological definition of gender and policies supporting gender transition; (E) a doctrine asserting that gender identity is independent of biological sex; (F) a theory that assigns privilege, oppression, or identity based primarily on racial categorization; or (G) an institutional policy that prioritizes demographic representation over merit-based evaluation. (3) "State money" means money appropriated by the legislature through the General Appropriations Act or other state law and includes money awarded by a state agency under a grant program. Sec. 2279.002. PROHIBITION ON AWARD OF STATE MONEY TO ORGANIZATIONS SUPPORTING RESTRICTED IDEOLOGICAL PROGRAMS. A state agency or organization may not provide state money to an entity that promotes, teaches, advocates for, or is ideologically aligned with a restricted ideological program. Sec. 2279.003. CIVIL PENALTY. (a) An entity that knowingly misrepresents the entity's activities to receive state money in violation of Section 2279.002 is liable for a civil penalty not to exceed the amount of state money that the entity has received in violation of that section. (b) The attorney general may sue to collect a civil penalty under this section. SECTION 2. Chapter 322, Government Code, is amended by adding Section 322.025 to read as follows: Sec. 322.025. STATE FUNDING INTEGRITY REVIEW DIVISION. (a) In this section: (1) "Division" refers to the state funding integrity review division of the board. (2) "Organization" and "restricted ideological program" have the meanings assigned by Section 2279.001. (b) The board shall establish the state funding integrity review division as a division of the board. (c) The division shall: (1) conduct an initial and ongoing review of all state-funded grants, contracts, and other awards to identify organizations engaged in restricted ideological programs in violation of Section 2279.002; (2) develop a vetting process for entities applying for or organizations receiving state money to ensure compliance with Section 2279.002; (3) provide an annual report to the governor, the lieutenant governor, and the speaker of the house of representatives detailing the division's findings during the preceding year and any recommendations or referrals made under Subsection (d), (e), or (f) during that period; and (4) recommend corrective actions and funding reallocations for organizations receiving state money in violation of Section 2279.002. (d) If the division determines that a state agency spent money in violation of Section 2279.002, the division shall recommend to: (1) the legislature that the agency be subject to budgetary restrictions during the next state fiscal biennium; and (2) the agency that disciplinary action be taken against personnel responsible for oversight of the allocation of state money, including removal from that oversight role. (e) If the division determines that an organization has received state money in violation of Section 2279.002: (1) the division shall promptly notify the comptroller of that determination; and (2) on receipt of notice under Subdivision (1), the comptroller may not issue warrants to the organization until the fifth anniversary of the date of the determination. (f) The division shall refer each instance of an entity knowingly misrepresenting the entity's activities to receive state money in violation of Section 2279.002 to the attorney general for appropriate action under Chapter 2279. SECTION 3. The changes in law made by this Act apply only to a contract entered into or renewed on or after the effective date of this Act. A contract entered into or renewed before the effective date of this Act is governed by the law in effect when the contract was entered into or renewed, and the former law is continued in effect for that purpose. SECTION 4. Not later than the 90th day after the effective date of this Act, a state agency shall terminate a grant or other award of state money made to a person in violation of Section 2279.002, Government Code, as added by this Act. SECTION 5. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2025.