SB 54: Venture capital companies: reporting.

Existing law generally prohibits discrimination in the provision of privileges and services on the basis of sex, race, color, religion, ancestry, national origin, disability, medical condition, genetic information, marital status, sexual orientation, citizenship, primary language, and immigration status. Existing law provides a cause of action against any person who denies, aids or incites a denial, or makes any discrimination or distinction on the bases listed, as specified, and permits the recovery of attorneys fees. Existing law establishes the Civil Rights Department (department) and makes it responsible for, among other things, investigating and prosecuting complaints alleging a violation of these provisions.

Existing law establishes the Civil Rights Enforcement and Litigation Fund (fund), to be administered by the department. This fund consists of attorneys fees and costs awarded by a court to the department when the department is the prevailing party in a civil action brought under specified law. Existing law authorizes moneys in the fund, upon appropriation by the Legislature in the annual Budget Act, to be used to offset the costs of the department.

This bill would, commencing on March 1, 2025, and annually thereafter, require a covered entity, defined as a venture capital company that meets specified criteria, to report to the department specified information about their funding determinations, including, at an aggregate level, specified demographic information for the founding teams of all of the businesses in which the covered entity made a venture capital investment in the prior calendar year to the extent the information was provided pursuant to a survey the bill would require a covered entity to provide to each founding team member of a business that has received funding from a venture capital company to which the covered entity has acted as an investment adviser, as specified. The bill would require this information to be collected and reported in a manner that does not associate the survey response data with an individual founding team member. The bill would require the department to charge and collect fees to administer these provisions, as specified. The bill would require the department to notify the covered entity that the covered entity must submit the report within 60 days of the notification. If the covered entity has not submitted the report after those 60 days have elapsed, the bill would authorize the department to commence prescribed proceedings seeking specified relief, including a penalty, as specified. The bill would require moneys collected pursuant to these provisions to be deposited in the fund, and would express the intent of the Legislature that these moneys be appropriated in the Budget Act to the department for administration of these provisions. The bill would define various terms for these purposes.