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.
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.
Additionally, an analysis performed by the Latino Corporate Directors Association, found there are 662 publicly traded companies headquartered in California.
This bill is an attempt at closing the disparity between all white board members and those who are underrepresented in corporations here in California.