This bill requires large publicly traded companies—those with over 100 employees or at least $300 million in value—to conduct racial equity audits every two years and report their findings to the Securities and Exchange Commission. Each audit must assess the company's civil rights and diversity policies and identify any historical ties to slavery or profits derived from slavery. Companies that discover such connections must disclose steps they've taken or plan to take to "reconcile" these ties, such as funding programs in low-income communities, supporting historically Black colleges and universities, or contributing to Black organizations. The bill imposes steep penalties for non-compliance: $20,000 per day for companies that fail to file reports and $2,000 per day for individual employees or officers responsible for violations. Half of collected fines go to a new Treasury Office of Minority Low to Moderate Income Programs (authorized $3 billion), while the other half funds Housing and Urban Development programs including homebuyer assistance, affordable housing, rental assistance, and fair housing initiatives. The bill also allows shareholders to sue companies for failure to report and provides whistleblower awards of at least $20,000 for reporting violations.
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