This bill mandates that any state agency or local unit of government collecting demographic information from individuals must include specific subcategories for individuals identifying as black, African, or Caribbean. The required subcategories are: (a) descendants of individuals who were enslaved in the United States, referred to as American Freedmen; (b) individuals who are not descendants of enslaved individuals; and (c) cases where descendant status is unknown or the individual chooses not to identify. The implementation of this requirement is set to begin for state agencies on April 1, 2027, and for local units of government on January 1, 2027.

Additionally, the bill provides definitions for key terms used within the legislation, including "African," "Caribbean," and "descendant of an individual who was enslaved in the United States." These definitions clarify the criteria for categorizing individuals based on their ancestry and immigration status. The bill aims to enhance the accuracy and specificity of demographic data collected by governmental entities, thereby improving the understanding of the diverse populations within the state.