Relating to the consideration by a governmental entity of the diversity, equity, and inclusion initiatives of a business bidding on a contract with the governmental entity.

HB 5280 prohibits Texas governmental entities from refusing to award contracts or providing unequal treatment to businesses based on three specific diversity, equity, and inclusion (DEI) activities: having a dedicated DEI department, asking employees to submit DEI statements, or promoting employee resource groups related to DEI initiatives. The bill directly affects businesses bidding on government contracts and the agencies evaluating those bids. It amends the Government Code to explicitly ban these considerations in contracting decisions. The law would take effect September 1, 2025, unless it receives a two-thirds vote for immediate implementation. This is a policy change limiting how government entities may evaluate DEI efforts during contract procurement.