Bill Text: CA AB2819 | 2017-2018 | Regular Session | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: University of California: study: high technology companies: employees.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Vetoed) 2018-09-30 - Vetoed by Governor. [AB2819 Detail]
Download: California-2017-AB2819-Amended.html
NOYES
Local Program:
NO
Bill Title: University of California: study: high technology companies: employees.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Vetoed) 2018-09-30 - Vetoed by Governor. [AB2819 Detail]
Download: California-2017-AB2819-Amended.html
|
Amended
IN
Assembly
March 20, 2018 |
CALIFORNIA LEGISLATURE—
2017–2018 REGULAR SESSION
| Assembly Bill | No. 2819 |
| Introduced by Assembly Member Holden |
February 16, 2018 |
An act to add and repeal Article 8 (commencing with Section 92682) of Chapter 6 of Part 57 of Division 9 of Title 3 of the Education Code, relating to employment.
LEGISLATIVE COUNSEL'S DIGEST
AB 2819, as amended, Holden.
Employment. University of California: study: high technology companies: employees.
Existing law establishes the University of California, under the administration of the Regents of the University of California. The California Constitution provides that the University of California constitutes a public trust administered by the Regents of the University of California, a corporation in the form of a board, with full powers of organization and government, subject to legislative control only for specified purposes.
This bill would request the University of California to conduct a biannual study on the racial and ethnic diversity of the board of directors and employees of California high technology companies, and would request that the study
include, among other things, the number of people employed by the high technology industry of each race or ethnicity and of each gender. The bill would request the University of California to post a report of the study on its Internet Web site on or before January 1, 2020, and every two years thereafter, until January 1, 2030.
Existing law establishes the Department of Industrial Relations in the Labor and Workforce Development Agency to foster, promote, and develop the welfare of the wage earners of California, to improve their working conditions, and to advance their opportunities for profitable employment. Existing law establishes within the department the Division of Labor Standards Enforcement, which is vested with the general duty of enforcing various labor laws, including the enforcement of laws prohibiting wage differentials.
This bill would state the intent of the Legislature to enact legislation that would, among other things, increase diversity and inclusion efforts of the technology sector in Silicon Valley through the recruitment and retention of diverse talent in technical roles and corporate boards, and address ethnic pay
gap.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee:Bill Text
The people of the State of California do enact as follows:
SECTION 1.
It is the intent of the Legislature to enact legislation that would accomplish all of the following:(a) Increase diversity and inclusion efforts of the technology sector in Silicon Valley through the recruitment and retention of diverse talent in technical roles and corporate boards.
(b) Address ethnic pay gap, employment and outreach opportunities, board diversification, pipeline creation, upward mobility of diverse technical talent, and retention of that talent through company culture and development.
(c) Work with the
technology sector to understand where the current needs are to ensure access to underserved communities.
SEC. 2.
The Legislature finds and declares all of the following:(a) According to United States Equal Employment Opportunity Commission (EEOC), “employment in computer science and engineering is growing at twice the rate of the national average. These jobs tend to provide higher pay and better benefits, and they have been more resilient to economic downturns than other private sector industries over the past decade. In addition, jobs in the high tech
industry have a strong potential for growth.”
(b) The commission also found that the high tech sector employs about one-fourth of United States professionals and about 5 to 6 percent of the total labor force.
(c) Analysis has shown that highly ranked universities graduate African American and Latino computer science and computer engineering majors at twice the rate that leading technology companies hire them.
(d) The EEOC study shows that compared to overall private industry, the high tech sector employed a larger share of Whites (63.5 percent to 68.5 percent), Asian Americans (5.8 percent to 14 percent), and men (52 percent to 64 percent), and a smaller share of African Americans (14.4 percent to 7.4 percent), Hispanics (13.9 percent to 8 percent), and women (48 percent to 36 percent).
(e) The study also showed that in the tech sector nationwide, whites are represented at a higher rate in the executives category, which typically encompasses the highest level jobs in the organization.
(f) According to a report by the Ascend Foundation, Asian Americans were the least likely to be promoted to manager or executive positions in San Francisco Bay area technology companies.
(g) According to a study by the EEOC, fewer than 1 percent of Silicon Valley executives and managers are African American.
(h) According to a report by McKinsey and Company, for every 10 percent increase in racial and ethnic diversity on the senior-executive team, earnings before interest and taxes rise 0.8 percent.
(i) A study by Dalberg Global Development Advisors found that the high tech industry could generate an additional $300–$370 billion each year if the racial or ethnic diversity of tech companies’ workforces reflected that of the talent pool.
(j) Therefore, it is the intent of the Legislature to urge, by January 2022, every publicly held high tech corporation in California with nine or more director seats have a minimum of three people from underrepresented communities on its board, every publicly held corporation in California with five to eight director seats have a minimum of two people from underrepresented communities on its board, and every publicly held corporation in California with fewer than five director seats have a minimum of one person from an underrepresented community on its board.
SEC. 3.
Article 8 (commencing with Section 92682) is added to Chapter 6 of Part 57 of Division 9 of Title 3 of the Education Code, to read:Article 8. Diversity Study of Technology Companies
92682.
(a) The University of California is requested to conduct a biannual study on the racial and ethnic diversity of the board of directors and employees of California high technology companies. The study is requested to include all of the following:(1) The number of people employed by the high technology industry of each race or ethnicity.
(2) The number of people employed by the high technology industry of each gender.
(3) The number of people employed by the high technology industry that are employed as executives, senior officials, or managers categorized by race and gender.
(4) The number of people on all companies’ boards of directors categorized by race and gender.
(5) The number of people employed by the high technology industry categorized by job type, including management, technical, and administration, broken down by racial or ethnic and gender demographics.
(b) The University of California is requested to post a report of the study on its Internet Web site on or before January 1, 2020, and every two years thereafter, until January 1, 2030.
