Amends TCA Title 4; Title 8; Title 12; Title 48 and Title 67.

No later than January 1, 2025, and each January 1 thereafter, this bill requires each corporation registered with the secretary of state to submit the following information to the secretary of state, which the secretary of state must make public on the secretary of state's website as the information is received:<br /> <br /> (1) Whether the corporation is a publicly held domestic or foreign corporation with its principal executive office located in this state; and<br /> <br /> (2) If the corporation is a publicly held domestic or foreign corporation with its principal executive office located in this state, (i) data on specific qualifications, skills, and experience that the corporation considers for its board of directors, nominees for the board of directors, and executive officers; (ii) the gender of each member of its board of directors; (iii) data on whether each member of its board of directors self-identifies as a minority person and, if so, which race or ethnicity to which the member belongs; (iv) a description of the corporation's process for identifying and evaluating nominees for the board of directors, including whether, and, if so, how demographic diversity is considered; (v) a description of the corporation's process for identifying and appointing executive officers, including whether, and, if so, how demographic diversity is considered; and (vi) a description of the corporation's policies and practices for promoting diversity, equity, and inclusion among its board of directors and executive officers. As used in this bill, "minority person" means an individual who is a citizen or lawful permanent resident of the United States and who is a member of a racial or ethnic minority within this state.<br /> <br /> No later than March 1, 2025, and each March 1 thereafter, this bill requires the secretary of state to review the information reported and published and to publish on the secretary of state's website a report that provides aggregate data on the demographic characteristics of the boards of directors and executive officers of corporations filing an annual report for the preceding year along with an individualized rating for each corporation as described below. The report must identify strategies for promoting diversity and inclusion among boards of directors and corporate executive officers.<br /> <br /> This bill requires the secretary of state to establish a rating system assessing the representation of women and minorities on corporate boards of directors of those corporations that are publicly held domestic or foreign corporations with their principal executive office located in this state based on the information gathered under this section. The rating system must consider, among other things, compliance with the demographic reporting obligations in this bill; the corporation's policies and practices for encouraging diversity in recruitment, board membership, and executive appointments; and the demographic diversity of board seats and executive positions.<br /> <br /> This bill authorizes the secretary of state to promulgate rules to effectuate this bill.<br />