Fiscal Summary

NOT SIGNIFICANT

Bill Summary

Beginning with the 2024-2025 academic year, and continuing with each academic year thereafter, this bill requires the board of trustees of the University of Tennessee, the board of regents, and each state university board to ensure the following:

(1) That each institution governed by the board does not establish or maintain a diversity, equity, and inclusion office or an office, unit, or administrative subdivision regardless of name or designation that performs in whole or in part the duties or activities of a diversity, equity, and inclusion office, nor hire or assign an employee of the institution or otherwise contract with a third party to perform the duties of a diversity, equity, and inclusion office;

(2) That its respective institutions do not compel, require, induce, solicit, or imply any negative direct or indirect consequences for the refusal of a person to provide a diversity, equity, and inclusion statement, nor give preferential consideration or treatment to a person based on the person's provision of a diversity, equity, and inclusion statement, nor give preference to any employment applicant, current employee, or participant in any function of the institution on the basis of race, sex, color, ethnicity, or national origin;

(3) That its respective institutions do not require a person to participate in diversity, equity, and inclusion training as a condition of enrolling in the institution or to perform any function of the institution. However, this (3) does not apply to any training, program, or activity developed by an attorney and approved in writing by the institution's general counsel for the sole purpose of ensuring compliance with an applicable court order, state or federal law;

(4) That it adopts rules, policies, and procedures for appropriately disciplining an employee or contractor of the institution who engages in conduct that violates this bill. Such disciplining may include termination; and

(5) That it adopts rules that satisfy the requirements of Title IX of the federal Education Amendments of 1972 and the federal regulations implementing Title IX, as amended, that clearly delineate the duties, requirements, actions, and activities of a diversity, equity, and inclusion office that the institution's required Title IX personnel are limited in, or prohibited from, performing, in whole or in part.

EXCEPTIONS

This bill clarifies that (1)-(3) above apply except as required by federal law. Additionally, this bill does not limit or prohibit a public institution of higher education or an employee from submitting a statement for the purpose of applying for a grant or complying with the terms of accreditation to a grantor or accrediting agency that highlights the institution's work in supporting first-generation college students, low-income students, underserved student populations, or which certifies compliance with state and federal antidiscrimination laws. Further, (1)-(3) above do not apply to academic course instruction, scholarly research, or the creative work of an institution's students, faculty, or other research personnel, or the dissemination of that research or work; the activities of a student organization registered with or recognized by the institution; guest speakers or performers on short-term engagements; a policy, practice, procedure, program or activity designed to enhance student academic achievement or postgraduate outcomes that is implemented without regard to race, sex, color, or ethnicity; data collection; or student recruitment or admissions.

CAUSE OF ACTION

This bill authorizes a student or employee of a public institution of higher education who is required to participate in training in violation of (3) above to bring an action against the institution for injunctive or declaratory relief.

COMPLIANCE REPORT TO LEGISLATURE

Beginning July 1, 2025, this bill prohibits a public institution of higher education from expending in a fiscal year any funds appropriated by the general assembly to the institution for the respective fiscal year until the governing board of the institution submits a report certifying the board's compliance with this bill during the immediately preceding year. The governing board of each public institution of higher education must submit a report to the education committee of the senate and the education administration committee of the house of representatives regarding the board's compliance.

COMPLIANCE AUDIT BY COMPTROLLER

This bill requires the comptroller of the treasury to periodically conduct a compliance audit of each public institution to determine whether the institution has expended funds in violation of this bill and adopt a schedule by which compliance audits are conducted. The schedule must maintain that each institution is audited at least once every four years. If the comptroller determines pursuant to a compliance audit that a public institution of higher education has expended funds in violation of this bill, then the institution must cure the violation no later than 180 days following such a determination. If the institution fails to timely cure the violation, then the institution is ineligible to receive formula funding increases, institutional enhancements, or exceptional items during the fiscal year immediately following the fiscal year in which the determination is made.

ANNUAL STUDY

The Tennessee higher education commission, in coordination with each public institution of higher education, must annually conduct a study to identify how implementation of this bill has affected the application rate, acceptance rate, matriculation rate, retention rate, grade point average, and graduation rate of students at public institutions of higher education, disaggregated by race, sex, ethnicity, institution, and campus. The commission must report the results of each annual study to the general assembly, including any legislative recommendations, no later than December 1 of each year.