The bill, Bill 979 Convention, was signed by California Gov. Gavin Newsom in 2020 and was part of the state’s efforts to address racial inequalities in the workplace. It required companies to have at least one board member from a under-represented community by the end of 2021 and at least two or three – depending on the size of the board – by the end of 2022. Individuals from underrepresented communities are defined in the bill as anyone self-identifying as Black, African American, Hispanic, Latino, Asian, Pacific Islander, Native American, Hawaiian, or Alaskan, or self-identified as homosexual, gay, or homosexual. Companies that do not comply may face fines of $ 100,000 for first-time breaches and $ 300,000 for repeated breaches, according to the law. In his decision, Green did not specify the reason for his decision. Tom Fitton, president of Judicial Watch, welcomed the judge’s ruling, saying state law was “one of the most egregious and significant attacks in modern times on constitutional prohibitions against discrimination.” In a statement to CNN, the governor’s office said the state is committed to providing paths to success for various groups. The governor “recognizes the work that still needs to be done to combat discrimination and to create a more inclusive and equitable future.” California State Attorney Chris Holden, who co-sponsored the bill, said he was disappointed with the judge’s decision because it was intended to “give people of different backgrounds a place at the decision-making boardroom.” . Holden said he expects government officials to provide information on the next course of action, adding that he hopes companies have already seen the value of diversity on corporate boards. In a report released last month, the Secretary of State’s office said about 42 percent of the 716 publicly-owned California-based public companies showed that they complied with the law in the 2021 corporate disclosure statements they submitted to the state. Esther Aguilera, president and CEO of the Latino Corporate Directors Association, said her group has been actively helping to connect companies with qualified Latin American candidates in recent years and does not expect the judge’s decision to “slow us down”. Meanwhile, another state law on diversity in the state is being considered by a court. In a separate lawsuit, Judicial Watch argued that a 2018 California law requiring a minimum number of female executives is a “quota system for female representation” and is unconstitutional. A judge has not yet ruled on this lawsuit.
