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https://amp.sacbee.com/news/politics...246016865.html

Gavin Newsom signs law requiring California companies to name minority or LGBTQ leaders

By Kim Bojórquez September 30, 2020 02:41 PM



Gov. Gavin Newsom signed a law on Wednesday aimed at compelling public corporations headquartered in California to appoint minority or LGBTQ directors to their boards of directors.

It mirrors legislation signed by former Gov. Jerry Brown in 2018 that requires California-based corporations to appoint women to their boards of directors.

“When we talk about racial justice, we talk about empowerment, we talk about power and we need to talk about seats at the table,” Newsom said before signing the bill.

The new law, Assembly Bill 979, directs corporations to appoint leaders from under-represented communities defined as people who identify as Black, Latino, Native American, Asian American, Pacific Islander, native Hawaiian or native Alaskan. Companies also can comply with the law by appointing directors who self-identify as gay, lesbian, bisexual or transgender.

The law requires corporations to have at least one director from an under-represented community by the end of 2021. Additionally, corporations with more than four directors, but fewer than nine, would require a minimum of two diverse directors

A corporation with nine or more directors must have at least three directors from an under-represented community by 2022 to comply with the law.

Companies that don’t comply with the law could face fines between $100,000 and $300,000, according to Holden’s office. The fines will be imposed by the Secretary of State