House File 856 - Reprinted HOUSE FILE 856 BY COMMITTEE ON EDUCATION (SUCCESSOR TO HSB 155) (As Amended and Passed by the House March 18, 2025 ) A BILL FOR An Act prohibiting public entities and private educational 1 institutions from engaging in certain activities relating to 2 diversity, equity, and inclusion, creating a private cause 3 of action, and including effective date provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 HF 856 (2) 91 sc/ns/md

H.F. 856 DIVISION I 1 STATE ENTITIES —— DIVERSITY, EQUITY, AND INCLUSION ACTIVITIES 2 PROHIBITED 3 Section 1. NEW SECTION . 19.1 Definitions. 4 As used in this chapter: 5 1. “Diversity, equity, and inclusion” includes any of the 6 following: 7 a. Any effort to manipulate or otherwise influence the 8 composition of the employees or student body with reference to 9 race, sex, color, or ethnicity, apart from ensuring colorblind 10 and sex-neutral admissions and hiring in accordance with state 11 and federal anti-discrimination laws. 12 b. Any effort to promote differential treatment of or 13 provide special benefits to individuals on the basis of race, 14 color, or ethnicity. 15 c. Any effort to promote or promulgate policies and 16 procedures designed or implemented with reference to race, 17 color, or ethnicity. 18 d. Any effort to promote or promulgate trainings, 19 programming, or activities designed or implemented with 20 reference to race, color, ethnicity, gender identity, or sexual 21 orientation. 22 e. Any effort to promote, as the official position 23 of the state entity, a particular, widely contested 24 opinion referencing unconscious or implicit bias, 25 cultural appropriation, allyship, transgender ideology, 26 microaggressions, group marginalization, anti-racism, systemic 27 oppression, social justice, intersectionality, neopronouns, 28 heteronormativity, disparate impact, gender theory, racial 29 privilege, sexual privilege, or any related formulation of 30 these concepts. 31 2. “Diversity, equity, and inclusion office” means any 32 division, office, center, or other unit of a state entity 33 that is responsible for creating, developing, designing, 34 implementing, organizing, planning, or promoting policies, 35 -1- HF 856 (2) 91 sc/ns/md 1/ 10

H.F. 856 programming, training, practices, activities, or procedures 1 related to diversity, equity, and inclusion. “Diversity, 2 equity, and inclusion office” does not include any of the 3 following: 4 a. An office staffed exclusively by licensed attorneys and 5 paralegal and secretarial support for the licensed attorneys, 6 and certified by the attorney general as operating with the 7 sole and exclusive mission of ensuring legal compliance with 8 the state entity’s obligations under Tit. IX of the federal 9 Education Amendments Act of 1972, 20 U.S.C. §1681 et seq., 10 as amended, the federal Americans with Disabilities Act of 11 1990, 42 U.S.C. §12101 et seq., as amended, the federal Age 12 Discrimination in Employment Act of 1967, 29 U.S.C. §621 et 13 seq., as amended, the federal Civil Rights Act of 1964, Pub. 14 L. No. 88-352, as amended, or any other applicable federal or 15 state law or a court order. 16 b. An academic department within a public school that exists 17 primarily for the purpose of offering courses and that does not 18 establish a policy or procedure to which other departments of 19 the public school are subject. 20 c. An office solely engaged in recruitment. 21 d. A registered student organization. 22 e. An office that a state entity is required to maintain 23 pursuant to a contract or agreement with a federal governmental 24 entity. 25 3. “Diversity, equity, and inclusion officer” means an 26 individual who is either employed by a state entity or who 27 is an independent contractor of a state entity and whose 28 duties include coordinating, creating, developing, designing, 29 implementing, organizing, planning, or promoting policies, 30 programming, training, practices, activities, and procedures 31 relating to diversity, equity, and inclusion. “Diversity, 32 equity, and inclusion officer” does not include any of the 33 following: 34 a. Any employee who is a licensed attorney and whose sole 35 -2- HF 856 (2) 91 sc/ns/md 2/ 10

H.F. 856 job duties related to diversity, equity, and inclusion are to 1 ensure compliance with the state entity’s obligations under 2 Tit. IX of the federal Education Amendments Act of 1972, 20 3 U.S.C. §1681 et seq., as amended, the federal Americans with 4 Disabilities Act of 1990, 42 U.S.C. §12101 et seq., as amended, 5 the federal Age Discrimination in Employment Act of 1967, 29 6 U.S.C. §621 et seq., as amended, the federal Civil Rights 7 Act of 1964, Pub. L. No. 88-352, as amended, or any other 8 applicable federal or state law or a court order. 9 b. Any employee while engaged in teaching, research, or 10 the production of creative works, the dissemination of the 11 employee’s research or creative works, or advising a registered 12 student organization. 13 c. A guest speaker or performer with a short-term 14 engagement. 15 d. Any employee that a state entity is required to employ 16 pursuant to a contract or agreement with a federal governmental 17 entity. 18 4. “Gender identity” means a gender-related identity of a 19 person, regardless of the person’s assigned sex at birth. 20 5. “Sexual orientation” means the same as defined in section 21 216.2. 22 6. “State entity” means the state, including but not limited 23 to a state agency, department, division, board, commission, 24 institution, or authority; a city; a county; a township; or any 25 other political subdivision or special district in this state 26 as established pursuant to state or local law. 27 Sec. 2. NEW SECTION . 19.2 Restrictions on use of moneys. 28 1. A state entity shall not expend any moneys appropriated 29 by the general assembly or any other moneys derived from 30 bequests, charges, deposits, donations, endowments, fees, 31 grants, gifts, income, receipts, tuition, or any other source 32 to establish, sustain, support, or staff a diversity, equity, 33 and inclusion office, or to contract, employ, engage, or hire 34 an individual to serve as a diversity, equity, and inclusion 35 -3- HF 856 (2) 91 sc/ns/md 3/ 10

H.F. 856 officer. 1 2. Subsection 1 shall not be construed to cover or affect a 2 state entity’s funding of any of the following: 3 a. Academic course instruction. 4 b. Research or creative works by the state entity’s 5 students, employees, or other research personnel, and the 6 dissemination of such research or creative works. 7 c. Activities of registered student organizations. 8 d. Arrangements for guest speakers and performers with 9 short-term engagements. 10 e. Mental or physical health services provided by licensed 11 professionals. 12 f. Policies, programming, training, practices, activities, 13 or procedures related to diversity, equity, and inclusion that 14 are required pursuant to a contract or agreement with a federal 15 governmental entity. 16 3. Subsection 1 shall not be construed as prohibiting bona 17 fide qualifications based on sex that are reasonably necessary 18 to the normal operation of the state entity. 19 Sec. 3. NEW SECTION . 19.3 Enforcement —— venue. 20 1. Any person may notify the attorney general of a state 21 entity’s potential violation of section 19.2. The attorney 22 general may bring an action against a state entity for a writ 23 of mandamus to compel the state entity to comply with section 24 19.2. 25 2. A student enrolled in a public school, an alumnus of 26 a public school, or an employee of a state entity alleging 27 a violation of section 19.2 may bring a civil action for 28 injunctive relief against the state entity to prohibit the 29 state entity from continuing such violation. 30 3. An action brought under this section may be brought in 31 any of the following: 32 a. The county in which all or a substantial part of the 33 events or omissions giving rise to the action occurred. 34 b. The county in which the principal office of the state 35 -4- HF 856 (2) 91 sc/ns/md 4/ 10

H.F. 856 entity is located. 1 c. The county in which the claimant resides, if the claimant 2 is an individual and resides in this state. 3 d. The county in which a defendant resides, if the defendant 4 is an individual and resides in this state. 5 Sec. 4. EFFECTIVE DATE. This division of this Act, being 6 deemed of immediate importance, takes effect upon enactment. 7 DIVISION II 8 COMMUNITY COLLEGES —— DIVERSITY, EQUITY, AND INCLUSION 9 ACTIVITIES PROHIBITED 10 Sec. 5. Section 261J.1, subsection 2, paragraph a, as 11 enacted by 2024 Iowa Acts, chapter 1152, section 31, is amended 12 to read as follows: 13 a. (1) An With respect to an institution of higher 14 learning governed by the state board of regents, an office 15 staffed exclusively by licensed attorneys and paralegal and 16 secretarial support for the licensed attorneys, and certified 17 by the attorney general as operating with the sole and 18 exclusive mission of ensuring legal compliance with the public 19 institution of higher education’s obligations under Tit. IX of 20 the federal Education Amendments Act of 1972, 20 U.S.C. §1681 21 et seq., as amended, the federal Americans with Disabilities 22 Act of 1990, 42 U.S.C. §12101 et seq., as amended, the federal 23 Age Discrimination in Employment Act of 1967, 29 U.S.C. §621 et 24 seq., as amended, the federal Civil Rights Act of 1964, Pub. 25 L. No. 88-352, as amended, or any other applicable federal or 26 state law or a court order. 27 (2) With respect to a community college, an office ensuring 28 legal compliance. 29 Sec. 6. Section 261J.1, subsection 3, as enacted by 2024 30 Iowa Acts, chapter 1152, section 31, is amended to read as 31 follows: 32 3. “Public institution of higher education” means an 33 institution of higher learning governed by the state board of 34 regents or a community college . 35 -5- HF 856 (2) 91 sc/ns/md 5/ 10

H.F. 856 Sec. 7. Section 261J.4, as enacted by 2024 Iowa Acts, 1 chapter 1152, section 34, is amended to read as follows: 2 261J.4 Reporting. 3 Each public institution of higher education governed by 4 the state board of regents shall, on or before December 1 of 5 each year, submit an annual report to the general assembly and 6 the governor that certifies the public institution of higher 7 education’s institution’s compliance with this chapter . 8 Sec. 8. 2024 Iowa Acts, chapter 1152, section 36, is amended 9 to read as follows: 10 SEC. 36. FY 2025-2026 APPROPRIATIONS —— REALLOCATION. At 11 the close of the fiscal year beginning July 1, 2025, all 12 unexpended moneys appropriated by the general assembly for the 13 fiscal year that would have been expended by an institution 14 of higher learning governed by the state board of regents on 15 diversity, equity, and inclusion offices or diversity, equity, 16 and inclusion officers on or after the effective date of this 17 division of this Act are reallocated to the Iowa workforce 18 grant and incentive program fund established pursuant to 19 section 256.230, subsection 8 . 20 DIVISION III 21 PRIVATE INSTITUTIONS OF HIGHER EDUCATION —— DIVERSITY, EQUITY, 22 AND INCLUSION ACTIVITIES PROHIBITED 23 Sec. 9. Section 256.183, subsection 1, unnumbered paragraph 24 1, Code 2025, is amended to read as follows: 25 “Accredited private institution” means an institution of 26 higher learning located in Iowa which is operated privately 27 and not controlled or administered by any state agency or 28 any subdivision of the state and which meets the criteria in 29 paragraphs “a” and “b” and all of the criteria in paragraphs “d” 30 through “j” “k” , except that institutions defined in paragraph 31 “c” of this subsection are exempt from the requirements of 32 paragraphs “a” and “b” : 33 Sec. 10. Section 256.183, subsection 1, Code 2025, is 34 amended by adding the following new paragraph: 35 -6- HF 856 (2) 91 sc/ns/md 6/ 10

H.F. 856 NEW PARAGRAPH . k. Adopt a policy for compliance with 1 chapter 261K. 2 Sec. 11. Section 256.183, subsection 3, Code 2025, is 3 amended to read as follows: 4 3. “Eligible institution” means an institution of higher 5 learning located in Iowa which is operated privately and 6 not controlled or administered by any state agency or any 7 subdivision of the state, which is not exempt from taxation 8 under section 501(c)(3) of the Internal Revenue Code, and which 9 meets all of the criteria in subsection 1 , paragraphs “d” 10 through “j” “k” , and is a school of barbering and cosmetology 11 arts and sciences licensed under chapter 157 and is accredited 12 by a national accrediting agency recognized by the United 13 States department of education. For the fiscal year beginning 14 July 1, 2017, such a school of barbering and cosmetology arts 15 and sciences shall provide a matching aggregate amount of 16 institutional financial aid equal to at least seventy-five 17 percent of the amount received by the institution’s students 18 for Iowa tuition grant assistance under section 256.191 . For 19 the fiscal year beginning July 1, 2018, the school of barbering 20 and cosmetology arts and sciences shall provide a matching 21 aggregate amount of institutional financial aid equal to at 22 least eighty-five percent of the amount received in that fiscal 23 year. Commencing with the fiscal year beginning July 1, 2019, 24 and each succeeding fiscal year, the matching aggregate amount 25 of institutional financial aid shall be at least equal to the 26 match provided by eligible institutions under section 261.9, 27 subsection 3 , paragraph “a” , Code 2023. 28 Sec. 12. NEW SECTION . 261K.1 Definitions. 29 As used in this chapter, unless the context otherwise 30 requires: 31 1. “Department” means the department of education. 32 2. “Diversity, equity, and inclusion” includes all of the 33 following: 34 a. Any effort to manipulate or otherwise influence the 35 -7- HF 856 (2) 91 sc/ns/md 7/ 10

H.F. 856 composition of the faculty or student body with reference to 1 race, sex, color, or ethnicity, apart from ensuring colorblind 2 and sex-neutral admissions and hiring in accordance with state 3 and federal antidiscrimination laws. 4 b. Any effort to promote differential treatment of or 5 provide special benefits to individuals on the basis of race, 6 color, or ethnicity. 7 c. Any effort to promote or promulgate policies and 8 procedures designed or implemented with reference to race, 9 color, or ethnicity. 10 d. Any effort to promote or promulgate trainings, 11 programming, or activities designed or implemented with 12 reference to race, color, ethnicity, gender identity, or sexual 13 orientation. 14 3. “Diversity, equity, and inclusion office” means 15 any division, office, center, or other unit of a private 16 institution of higher education that is responsible for 17 creating, developing, designing, implementing, organizing, 18 planning, or promoting policies, programming, training, 19 practices, activities, or procedures related to diversity, 20 equity, and inclusion. “Diversity, equity, and inclusion office” 21 does not include any of the following: 22 a. An office ensuring legal compliance. 23 b. An academic department within a private institution 24 of higher education that exists primarily for the purpose of 25 offering courses for degree credit and that does not establish 26 a policy or procedures to which other departments of the 27 private institution of higher education are subject. 28 c. An office solely engaged in new student recruitment. 29 d. A registered student organization. 30 4. “Private institution of higher education” means an 31 accredited private institution as defined in section 256.183 or 32 and eligible institution as defined in section 256.183. 33 Sec. 13. NEW SECTION . 261K.2 Diversity, equity, and 34 inclusion office prohibited. 35 -8- HF 856 (2) 91 sc/ns/md 8/ 10

H.F. 856 1. A private institution of higher education shall not, 1 except as otherwise provided by federal or state law or 2 accreditation standards, establish, sustain, support, or staff 3 a diversity, equity, and inclusion office. 4 2. Subsection 1 shall not be construed to cover or affect a 5 private institution of higher education’s funding of any of the 6 following: 7 a. Academic course instruction. 8 b. Research or creative works by the private institution 9 of higher education’s students, faculty, or other research 10 personnel, and the dissemination of such research or creative 11 works. 12 c. Activities of registered student organizations. 13 d. Arrangements for guest speakers and performers with 14 short-term engagements. 15 e. Mental or physical health services provided by licensed 16 professionals. 17 3. Subsection 1 shall not be construed as prohibiting bona 18 fide qualifications based on sex that are reasonably necessary 19 to the normal operation of private higher education. 20 Sec. 14. NEW SECTION . 261K.3 Enforcement. 21 1. Any person may report a private institution of higher 22 education’s potential violation of section 261K.2 to the 23 attorney general. The attorney general shall provide notice 24 of such report to the department and the institution within 25 fifteen days. No later than thirty days after receiving such 26 notice, the institution shall do one of the following: 27 a. Correct the violation and provide documentation of the 28 correction to the attorney general and the department. 29 b. Provide documentation to the attorney general and the 30 department demonstrating that the action of the institution 31 upon which the report was based was not a violation of section 32 261K.2. 33 2. If, upon the conclusion of the thirty-day period 34 provided in subsection 1, the institution has not complied 35 -9- HF 856 (2) 91 sc/ns/md 9/ 10

H.F. 856 with subsection 1, paragraph “a” , or provided documentation 1 under subsection 1, paragraph “b” , that demonstrates to 2 the satisfaction of the attorney general that a violation 3 of section 261K.2 did not occur, the institution shall be 4 ineligible to participate in the tuition grant program under 5 chapter 256, subchapter VII, part 4, subpart B, as of the 6 next academic year beginning thereafter. If either action is 7 carried out by the institution by October 1 of an academic 8 year, eligibility shall be restored as of the next academic 9 year beginning after such action is carried out. The attorney 10 general shall notify the college student aid commission to this 11 effect. 12 -10- HF 856 (2) 91 sc/ns/md 10/ 10