The lawsuit, National Center for Public Policy Research (NCPPR) v. Weber, was filed on Nov. 22 in U.S. District Court for the Eastern District of California.
Defendant Shirley Weber, a radical left-wing academic, is being sued in her official capacity as California secretary of state. Until January of this year, the San Diego-area Democrat was a member of the California State Assembly, where she championed AB 3121, a law creating a task force to develop proposals to pay reparations to blacks to compensate them for having ancestors a century and a half ago who were enslaved.
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California has an “ugly past,” and its “systemic injustice” needs to be confronted, she declared when her bill became law last year.
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The NCPPR is a pro-free market research and shareholder advocacy organization. It’s represented in the legal proceeding by Sacramento-based Pacific Legal Foundation (PLF), which argues that the new law, known as AB 979, perpetuates discrimination by treating people based on their immutable characteristics, not as individuals.
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Since 2020, the state law known as SB 826 has required that all publicly held corporations headquartered in California meet a quota of female board members or face fines. PLF client and shareholder activist Creighton Meland is challenging SB 826 in the same U.S. district court.
The state attempted to get the case dismissed but the U.S. Court of Appeals for the 9th Circuit unanimously determined that a shareholder of a California company has standing to sue over the law.
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Next year, AB 979 will require the affected corporations to meet an additional quota for board members based on race and sexual orientation.
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When signing AB 979 into law on Sept. 30, 2020, California Gov. Gavin Newsom, a Democrat, asserted he did so to advance “racial justice.” “When we talk about racial justice, we talk about empowerment, we talk about power, we need to talk about seats at the table,” Newsom said, according to the Los Angeles Times.
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The NCPPR disagrees about using government coercion to enforce diversity.
The problem is “these diversity quotas apply to all businesses across every industry in perpetuity, regardless of whether there is any specific evidence of discrimination,” the organization states in its legal complaint.
“These laws, which dole out benefits and impose burdens on the basis of race, sex, and sexual orientation, are unconstitutional.”
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