The state of California yesterday approved a law that requires companies to have at least one board member from an underrepresented community by the end of 2021 and at least two or three, depending on board size, by the end of 2022, said CNN Business. Specifically, the board members must be Black, African American, Hispanic, Latino, Asian, Pacific Islander, Native American, Native Hawaiian or Alaska Native, or who self-identifies as gay, lesbian, bisexual or transgender.

By 2022, board compositions will have to be as follows:

* If its number of directors is nine or more, the corporation shall have a minimum of three directors from underrepresented communities.
* If its number of directors is more than four but fewer than nine, the corporation shall have a minimum of two directors from underrepresented communities.
* If its number of directors is four or fewer, the corporation shall have a minimum of one director from an underrepresented community.

Firms in violation of this law will be fined $100,000 the first time and $300,000 each additional time.

Its passage comes two years after the passage of a similar law that forced boards to have a minimum number of female directors.