To amend the Securities Act of 1933 to require covered issuers to carry out a racial equity audit every 2 years, to require atonement for the descendants of enslaved persons, and for other purposes.
Analysis under review: This bill has generated analysis that may be too generic or incomplete. Clause-level evidence remains available below.
Summary
What This Bill Does
This bill requires large companies (with over 100 employees or market capitalization over $300 million) to conduct independent audits every two years examining their policies on civil rights, equity, diversity, and inclusion, as well as any historical ties to slavery. Companies must report findings to the SEC and disclose any reconciliation efforts. The bill also creates a new Office of Minority Low to Moderate Income Programs within the Treasury Department with $3 billion in authorized funding.
Who Benefits and How
Minority low-to-moderate income individuals and communities benefit through grants for startup capital, savings programs, and housing assistance. Historically Black colleges and universities (HBCUs) and Black nonprofit organizations may receive contributions from companies as part of reconciliation efforts. Whistleblowers who report non-compliance can receive awards of at least $20,000. Housing counseling organizations and affordable housing programs receive 50% of collected fines.
Who Bears the Burden and How
Large publicly-traded companies face new compliance costs including mandatory biennial independent audits, public reporting requirements, and potential fines of $20,000 per day for non-compliance. Corporate officers and employees face personal fines of $2,000 per day for intentional violations. Companies must dedicate resources to investigate their historical ties to slavery and develop reconciliation plans.
Key Provisions
- Mandatory biennial racial equity audits for companies with 100+ employees or $300M+ market cap
- Fines of $20,000/day for companies and $2,000/day for officers who fail to comply
- Creates Office of Minority Low to Moderate Income Programs with $3 billion authorization
- 50% of fines go to Treasury programs, 50% to HUD for housing assistance
- Private right of action for shareholders harmed by non-compliance
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers.
At a Glance
What This Bill Does
Requires large publicly-traded companies to conduct and disclose biennial racial equity audits, including an assessment of any historical ties to slavery, and establishes a Treasury Department office to provide grants to low-to-moderate income minority communities.
Key Policy Areas
Securities Regulation, Corporate Disclosure, Racial Equity, Housing, Economic Development
Primary Purpose
Requires large publicly-traded companies to conduct and disclose biennial racial equity audits, including an assessment of any historical ties to slavery, and establishes a Treasury Department office to provide grants to low-to-moderate income minority communities.
Policy Domains
Section 2 - Racial Equity Audit (Section 4B of Securities Act)
Identified Gains
Contextual inference, no direct clause citation- Minority low-to-moderate income individuals
- Historically Black colleges and universities
- Black nonprofit organizations
- Whistleblowers
- Affordable housing programs
Contextual inference, no direct clause citation
Identified Costs
Contextual inference, no direct clause citation- Large publicly-traded companies
- Corporate officers and executives
- Compliance and legal departments
Contextual inference, no direct clause citation
Section 317 - Office of Minority Low to Moderate Income Programs
Identified Gains
Contextual inference, no direct clause citation- Minority low-to-moderate income communities
- Descendants of enslaved persons
- Small business entrepreneurs in minority communities
Contextual inference, no direct clause citation
Identified Costs
Contextual inference, no direct clause citation- Federal taxpayers
Contextual inference, no direct clause citation
Sponsors
Legislative Progress
IntroducedMr. Green of Texas introduced the following bill; which was …
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Large publicly-traded companies (100+ employees or $300M+ market cap)
Department of Treasury, SEC enforcement and compliance divisions
Low-to-moderate income minority individuals, Minority low-to-moderate income individuals and communities
Corporate officers and executives at covered issuers
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "the_commission"
- → Securities and Exchange Commission (SEC)
- "the_secretary_of_the_treasury"
- → Secretary of the Treasury
- "the_secretary_of_housing_and_urban_development"
- → Secretary of Housing and Urban Development
- "the_secretary"
- → Secretary of the Treasury
- "the_secretary_of_housing_and_urban_development"
- → Secretary of Housing and Urban Development
Note: 'The Secretary' in Section 317 refers to Secretary of the Treasury, while Section 4B uses explicit titles (Secretary of the Treasury, Secretary of Housing and Urban Development)
Key Definitions
Terms defined in this bill
The median income for the area in which the individual lives, as determined by the Secretary of Housing and Urban Development for purposes of the United States Housing Act of 1937
An issuer that makes use of the mails or any means or instrumentality of interstate commerce and has more than 100 employees or a capitalization of greater than or equal to $300,000,000
An individual who has earnings of less than 80 percent of the area median income
Racial and ethnic populations that are underrepresented in the general population relative to the number of persons in the total population
To account for and balance in an equitable manner
A census tract in which 51 percent or more of the households located in the census tract earn less than 80 percent of the area median income
Information derived from the independent knowledge or analysis of an individual who voluntarily provides the information to the Commission, not known to the Commission from any other source
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology