SACRAMENTO (CBS13) – Publicly held corporations based in California will need to have at least one woman on its board of directors by December 31, 2019 if a proposed Senate bill passes.

SB 826 would then require companies with 5 authorized directors to have a minimum of two females on the board by December 31, 2021, or companies with at least 6 directors to have a minimum of 3 females on the board.

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Companies not in compliance with the proposed law would face fines imposed by the Secretary of State.

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The bill states: “More women directors serving on boards of directors of publicly held corporations will boost the California economy, improve opportunities for women in the workplace, and protect California taxpayers, shareholders, and retirees, including retired California state employees and teachers whose pensions are managed by CalPERS and CalSTRS. Yet studies predict that it will take 40 or 50 years to achieve gender parity, if something is not done proactively.”

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A 2017 study by MCSI found companies with three or more female directors reported earnings shares 45% higher than companies with no female directors.

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California previously adopted Senate Resolution 62 in 2013 urging corporations to increase the amount of women on their boards. Five other states followed suit.

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SB 826 passed the Senate in late May by a 22-11 vote (6 Senators did not vote.) The bill is being heard by the Assembly Banking and Finance Committee on Monday.