Texas Senate Bill SB2118

Texas 2021 - 87th Regular

Caption

Relating to ensuring compliance with federal civil-rights laws by corporations doing business in Texas, and prohibiting discrimination in the selection of a corporation's board members.

Impact

If enacted, SB2118 will mandate that all corporations, whether formed in Texas or doing business in the state, adhere strictly to federal civil rights regulations. This will ensure that any corporate governance practices that might violate these regulations will be met with legal consequences. Furthermore, the bill allows private individuals, rather than state officials, to bring civil actions against non-compliant corporations, introducing a more individual-centered enforcement model that elevates civil recourse against discrimination in board selection processes.

Summary

Senate Bill 2118 aims to enforce compliance with federal civil rights laws among corporations operating in Texas, while also prohibiting discriminatory practices in the selection of a corporation's board members. This bill seeks to amend the Business Organizations Code by introducing measures that prevent corporations from asking or inducing their suppliers to violate civil rights statutes. Specifically, it reiterates the importance of federal laws such as the Civil Rights Act of 1964 and mandates that corporations refrain from establishing biased quotas based on race, sex, or other characteristics in board member selections.

Contention

Despite its intentions of promoting equality and adherence to civil rights laws, SB2118 may face scrutiny and opposition. Critics might argue that the bill could limit corporate discretion in diverse board recruitment strategies, potentially creating a rigid framework that undermines initiatives seeking genuine diversity. Additionally, the private enforcement provisions raise concerns over escalating litigation against corporations, which some may view as excessive or misaligned with broader business interests in Texas. The discussion around the balance between promoting civil rights and maintaining corporate flexibility will likely be a significant point of contention.