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Tennessee General Assembly· HB 622Transmitted to Governor for his action.

Local Government, General - As enacted, enacts "Dismantle DEI in Employment Act." - Amends TCA Title 5; Title 6; Title 7; Title 8 and Title 49. HB0622 has been assigned Public Chapter Number 494 by the Secretary of State, the official text

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                        ~tate of utennessee

                          PUBLIC CHAPTER NO. 494

                                                  HOUSE BILL NO. 622

By Representatives Maberry, Lamberth, Mr. Speaker Sexton, Faison, Reeves, McCalmon,
Capley, Grills, Hill, Terry, Carringer, Davis, Sherrell, Littleton, Powers, Reedy, Bulso,
Todd, Reneau, Hulsey

                                       Substituted for: Senate Bill No. 1083

 By Senators Johnson, Hensley, Powers, Rose, Stevens, Watson, Bowling, Yager, Bailey,
                                        Crowe, Gardenhire, Jackson, Taylor

          AN ACT to amend Tennessee Code Annotated, Title 5; Title 6; Title 7; Title 8 and Title
49, relative to hiring practices of governmental entities.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:

          SECTION 1. This act is known and may be cited as the "Dismantle DEi in Employment
Act."

          SECTION 2. Tennessee Code Annotated, Title 5, Chapter 1, Part 1, is amended by
adding the following as a new section:

                    (a) The general assembly finds that local governments are at their most effective
          when the employees of the local government are the most highly qualified candidates for
          employment with the local government and that hiring decisions should be based on
          merit rather than any other metric.

                    (b) A county government shall not base an employment decision on any metric
          that considers an applicant's or employee's race, ethnicity, sex, age, or any other similar
          demographic characteristic, rather than on individual merit, qualifications, veteran status,
          or lawful eligibility criteria.

                     (c)

                               (1) This section does not apply to an employment decision of a county
                     government, if the county government 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 for the employment decision 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
                     county government and, if the comptroller finds that compliance would result in
                     the loss of federal funding, then the comptroller shall notify the county
                     government in writing of its exemption.

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

                     (d) As used in this section, "employment decision":

                               (1) Means any action or determination relating to the hiring, firing,
                     retention, promotion, demotion, discipline, evaluation, compensation, training,
                     reassignment, or any other term, condition, or privilege of employment; and
HB622

                              (2) Does not include actions required under applicable state or federal
                    employment laws.

          SECTION 3. Tennessee Code Annotated, Title 6, Chapter 54, Part 1, is amended by
adding the following as a new section:

                    (a) The general assembly finds that local governments are at their most effective
          when the employees of the local government are the most highly qualified candidates for
          employment with the local government and that hiring decisions should be based on
          merit rather than any other metric.

                    (b) A municipal government shall not base an employment decision on any
          metric that considers an applicant's or employee's race, ethnicity, sex, age, or any other
          similar demographic characteristic, rather than on individual merit, qualifications, veteran
          status, or lawful eligibility criteria.

                    (c)

                              (1) This section does not apply to an employment decision of a municipal
                    government, if the municipal government 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 for the employment decision
                    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
                     municipal government and, if the comptroller finds that compliance would result
                     in the loss of federal funding, then the comptroller shall notify the municipal
                     government in writing of its exemption.

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

                     (d) For the purposes of this section, "employment decision":

                               (1) Means any action or determination relating to the hiring, firing,
                     retention, promotion, demotion, discipline, evaluation, compensation, training,
                     reassignment, or any other term, condition, or privilege of employment; and

                               (2) Does not include actions required under applicable state or federal
                     employment laws.

           SECTION 4. Tennessee Code Annotated, Title 7, Chapter 3, Part 1, is amended by
 adding the following as a new section:

                     (a) The general assembly finds that local governments are at their most effective
           when the employees of the local government are the most highly qualified candidates for
           employment with the local government and that hiring decisions should be based on
           merit rather than any other metric.

                     (b) A metropolitan government shall not base an employment decision on any
           metric that considers an applicant's or employee's race, ethnicity, sex, age, or any other
           similar demographic characteristic, rather than on individual merit, qualifications, veteran
           status, or lawful eligibility criteria.

                     (c)

                               (1) This section does not apply to an employment decision of a
                     metropolitan government, if the metropolitan government submits notice in
                     writing to the comptroller of the treasury that compliance with this section would

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HB622

                   result in a loss of federal funding, to the extent such an exemption for the
                   employment decision 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 metropolitan government and, if the comptroller finds that
                   compliance would result in the loss of federal funding, then the comptroller shall
                    notify the metropolitan government in writing of its exemption.

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

                    (d) For the purposes of this section, "employment decision":

                              (1) Means any action or determination relating to the hiring, firing,
                    retention, promotion, demotion, discipline, evaluation, compensation, training,
                    reassignment, or any other term, condition, or privilege of employment; and

                              (2) Does not include actions required under applicable state or federal
                    employment laws.

          SECTION 5. Tennessee Code Annotated, Title 49, Chapter 2, Part 1, is amended by
adding the following as a new section:

                    (a) The general assembly finds that LEAs are at their most effective when the
          faculty members and employees of the LEAs are the most highly qualified candidates for
          employment with the LEAs and that hiring decisions should be based on merit rather
          than any other metric.

                    (b) An LEA shall not base an employment decision on any metric that considers
          an applicant's or employee's race, ethnicity, sex, age, or any other similar demographic
          characteristic, rather than on individual merit, qualifications, veteran status, or lawful
          eligibility criteria.

                    (c)

                              (1) This section does not apply to an employment decision of an LEA, if
                    the LEA 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 for the employment decision 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 an LEA and, if the comptroller
                     finds that compliance would result in the loss of federal funding, then the
                     comptroller shall notify the LEA in writing of its exemption.

                               (2) After one (1) calendar year from the date on which the comptroller
                     exempts an employment decision by an LEA from this section, the LEA shall
                     submit in writing to the comptroller to have the exemption renewed for an
                     additional one-year period. An LEA shall notify the comptroller within fourteen
                     (14) days if the conditions or justifications for the comptroller granting the
                     exemption no longer exist.

                     (d) For the purposes of this section, "employment decision":

                               (1) Means any action or determination relating to the hiring, firing,
                     retention, promotion, demotion, discipline, evaluation, compensation, training,
                     reassignment, or any other term, condition, or privilege of employment; and

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HB622

                              (2) Does not include actions required under applicable state or federal
                    employment laws.

          SECTION 6. Tennessee Code Annotated, Title 49, Chapter 7, Part 1, is amended by
adding the following as a new section:

                    (a) The general assembly finds that public institutions of higher education are at
          their most effective when the faculty members and employees of the institutions are the
          most highly qualified candidates for employment with the institutions and that hiring
          decisions should be based on merit rather than any other metric.

                    (b) A public institution of higher education shall not base an employment decision
          on any metric that considers an applicant's or employee's race, ethnicity, sex, age, or
          any other similar demographic characteristic, rather than on individual merit,
          qualifications, veteran status, or lawful eligibility criteria.

                     (c)

                              (1) This section does not apply to an employment decision of a public
                    institution of higher education government, if the public institution of higher
                    education 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 for the employment decision 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 public institution of higher
                    education and, if the comptroller finds that compliance would result in the loss of
                    federal funding, then the comptroller shall notify the public institution of higher
                     education in writing of its exemption.

                               (2) After one (1) calendar year from the date on which the comptroller
                     exempts an employment decision by a public institution of higher education from
                     this section, the public institution of higher education shall submit in writing to the
                     comptroller to have the exemption renewed for an additional one-year period. A
                     public institution of higher education shall notify the comptroller within fourteen
                     (14) days if the conditions or justifications for the comptroller granting the
                     exemption no longer exist.

                     (d) For the purposes of this section, "employment decision":

                               (1) Means any action or determination relating to the hiring, firing,
                     retention, promotion, demotion, discipline, evaluation, compensation, training,
                     reassignment, or any other term, condition, or privilege of employment; and

                               (2) Does not include actions required under applicable state or federal
                     employment laws.

           SECTION 7. Tennessee Code Annotated, Title 8, Chapter 30, Part 1, is amended by
 adding the following as a new section:

                     (a) The general assembly finds that the state government is at its most effective
           when the employees of the state government are the most highly qualified candidates for
           employment with the state government and that hiring decisions should be based on
           merit rather than any other metric.

                     (b) This state shall not base an employment decision on any metric that
           considers an applicant's or employee's race, ethnicity, sex, age, or any other similar
           demographic characteristic, rather than on individual merit, qualifications, veteran status,
           or lawful eligibility criteria.

                     (c)

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HB622

                              (1) This section does not apply to an employment decision of this state, if
                    the state 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 for the employment decision 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 the state and, if the comptroller
                    finds that compliance would result in the loss of federal funding, then the
                    comptroller shall notify the state in writing of its exemption.

                              (2) After one (1) calendar year from the date on which the comptroller
                    exempts an employment decision by a public institution of higher education from
                    this section, the state shall submit in writing to the comptroller to have the
                    exemption renewed for an additional one-year period. The state shall notify the
                    comptroller within fourteen (14) days if the conditions or justifications for the
                    comptroller granting the exemption no longer exist.
                    (d) For the purposes of this section, "employment decision":

                              (1) Means any action or determination relating to the hiring, firing,
                    retention, promotion, demotion, discipline, evaluation, compensation, training,
                    reassignment, or any other term, condition, or privilege of employment; and

                              (2) Does not include actions required under applicable state or federal
                    employment laws.
          SECTION 8. Tennessee Code Annotated, Section 49-1-302(9), is amended by deleting
the subsection and substituting instead:
                    (g) The board shall not adopt a policy that promotes educator diversity based on
          race, ethnicity, sex, age, or any other similar demographic characteristic, rather than on
          individual merit, qualifications, veteran status, or lawful eligibility criteria. Any policy
          previously adopted by the board in conflict with this subsection is void and of no effect.
          SECTION 9. This act takes effect upon becoming a law, the public welfare requiring it.

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                    HOUSE BILL NO. 622

PASSED:  April 22, 2025

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                                     CAMERONSEXTON,SPEAKER
                                     HOUSE OF REPRESENTATIVES

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                                                    - RANDY MCNALl.Y

                                           SPEAKER OF THE SENATE

r ,;1. APPROVED this J9 day of (Vb_, ,.            2025

BILL LEE, GOVERNOR  ·~
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