Prohibition on discriminatory preferences for diversity, equity, and inclusion in state government

Tenn. Code Ann. § 4-1-427, under Miscellaneous.

Tenn. Code Ann. § 4-1-427

(a) (1) A department, agency, or other unit of state government shall not use a discriminatory preference in an effort to increase diversity, equity, or inclusion or establish or maintain an office, division, or department for such purposes. All mandates, policies, programs, activities, guidance, regulations, enforcement actions, consent orders, or other declarations of a department, agency, or other unit of state government, or an office, division, or department thereof, in existence prior to May 9, 2025 that are in conflict with this section of this act are void.(2) As used in this subsection (a), “discriminatory preference”:(A) Means a policy, practice, or requirement that grants or withholds benefits, opportunities, advantages, or disadvantages to an individual or group based on race, ethnicity, sex, age, or any other demographic characteristic, rather than on individual merit, qualifications, veteran status, or lawful eligibility criteria; and(B) Does not include:(i) Public health, medical research, or disease prevention programs that use demographic-based outreach for medically substantiated reasons, such as initiatives addressing health conditions that disproportionately affect specific populations; or(ii) Lawful and neutral outreach programs that ensure equal access to state services or contracting based on objective eligibility criteria, so long as such programs do not mandate quotas, alter selection criteria, or require preferential treatment based on demographic characteristics.

(1) A department, agency, or other unit of state government shall not use a discriminatory preference in an effort to increase diversity, equity, or inclusion or establish or maintain an office, division, or department for such purposes. All mandates, policies, programs, activities, guidance, regulations, enforcement actions, consent orders, or other declarations of a department, agency, or other unit of state government, or an office, division, or department thereof, in existence prior to May 9, 2025 that are in conflict with this section of this act are void.

(2) As used in this subsection (a), “discriminatory preference”:(A) Means a policy, practice, or requirement that grants or withholds benefits, opportunities, advantages, or disadvantages to an individual or group based on race, ethnicity, sex, age, or any other demographic characteristic, rather than on individual merit, qualifications, veteran status, or lawful eligibility criteria; and(B) Does not include:(i) Public health, medical research, or disease prevention programs that use demographic-based outreach for medically substantiated reasons, such as initiatives addressing health conditions that disproportionately affect specific populations; or(ii) Lawful and neutral outreach programs that ensure equal access to state services or contracting based on objective eligibility criteria, so long as such programs do not mandate quotas, alter selection criteria, or require preferential treatment based on demographic characteristics.

(A) Means a policy, practice, or requirement that grants or withholds benefits, opportunities, advantages, or disadvantages to an individual or group based on race, ethnicity, sex, age, or any other demographic characteristic, rather than on individual merit, qualifications, veteran status, or lawful eligibility criteria; and

(B) Does not include:(i) Public health, medical research, or disease prevention programs that use demographic-based outreach for medically substantiated reasons, such as initiatives addressing health conditions that disproportionately affect specific populations; or(ii) Lawful and neutral outreach programs that ensure equal access to state services or contracting based on objective eligibility criteria, so long as such programs do not mandate quotas, alter selection criteria, or require preferential treatment based on demographic characteristics.

(i) Public health, medical research, or disease prevention programs that use demographic-based outreach for medically substantiated reasons, such as initiatives addressing health conditions that disproportionately affect specific populations; or

(ii) Lawful and neutral outreach programs that ensure equal access to state services or contracting based on objective eligibility criteria, so long as such programs do not mandate quotas, alter selection criteria, or require preferential treatment based on demographic characteristics.

(b) (1) This section does not apply to a department, agency, or other unit of state government that submits notice in writing to the comptroller of the treasury that compliance with this section would result in a loss of federal funding, to the extent such an exemption is necessary to conform to federally awarded or amended contracts, subcontracts, or postsecondary grants as a condition to receipt of federal funds. The comptroller of the treasury shall create guidelines as to what information is required in the notice. The comptroller shall review a notice submitted by a department, agency, or other unit of state government and, if the comptroller finds that compliance would result in the loss of federal funding, then the comptroller shall notify the department, agency, or other unit of state government in writing of its exemption.(2) After one (1) calendar year from the date on which the comptroller exempts a department, agency, or other unit of state government from this section, the department, agency, or other unit of state government shall submit in writing to the comptroller to have the exemption renewed for an additional one-year period. A department, agency, or other unit of state government shall notify the comptroller within fourteen (14) days if the conditions or justifications for the comptroller granting the exemption no longer exist.

(1) This section does not apply to a department, agency, or other unit of state government that submits notice in writing to the comptroller of the treasury that compliance with this section would result in a loss of federal funding, to the extent such an exemption is necessary to conform to federally awarded or amended contracts, subcontracts, or postsecondary grants as a condition to receipt of federal funds. The comptroller of the treasury shall create guidelines as to what information is required in the notice. The comptroller shall review a notice submitted by a department, agency, or other unit of state government and, if the comptroller finds that compliance would result in the loss of federal funding, then the comptroller shall notify the department, agency, or other unit of state government in writing of its exemption.

(2) After one (1) calendar year from the date on which the comptroller exempts a department, agency, or other unit of state government from this section, the department, agency, or other unit of state government shall submit in writing to the comptroller to have the exemption renewed for an additional one-year period. A department, agency, or other unit of state government shall notify the comptroller within fourteen (14) days if the conditions or justifications for the comptroller granting the exemption no longer exist.

(c) The executive head of each department, agency, or other unit of state government subject to this section shall submit an annual attestation of compliance with subsection (a) to the comptroller of the treasury not later than January 1, 2027, and each January 1 thereafter.

(d) The attorney general and reporter may investigate any allegation that a state department, agency, or other unit of state government is acting in violation of this section, § 8-30-109, or another state law prohibiting the use of a discriminatory preference in an effort to increase diversity, equity, or inclusion.