Relating to the authority of a political subdivision to implement certain diversity, equity, and inclusion policies.

HB 3427 bars Texas cities, counties, and other local governments from implementing diversity, equity, and inclusion policies that require race- or gender-based hiring, provide differential benefits based on race or gender, or promote specific concepts like "systemic oppression," "anti-racism," or "transgender ideology." It prohibits mandatory DEI training for employees and allows lawsuits in Travis County or the local county to enforce these restrictions, with successful plaintiffs entitled to attorney fees. Violating the law could result in losing state grant funds for two years. The bill applies to all "political subdivisions" (local governments) and defines prohibited policies to include those referencing listed terms or concepts.