California law requires large firms to disclose historical slavery ties
AB 2599, the Truth in Disclosure Act, requires large companies to search their records for ties to slavery dating back to 1849. Governor Gavin Newsom signed the act into law on September 30. The law targets businesses that operated in some form by the end of 1964 and currently generate more than $100 million in worldwide annual revenue. Once the legislature funds the implementation, these companies will be legally obligated to examine their own records, as well as those of their parent companies, subsidiaries, and predecessors. They must report any findings indicating that the company sold or leased enslaved people, used them as collateral for loans, or insured them. Newsom stated that the bill requires large companies to make these historical connections public, describing the practice as using human beings as collateral for loans. Democratic Assemblymember Isaac Bryan, the author of the bill, told CalMatters that he expects filings from companies in agriculture, banking, insurance, and the broader financial sector. He noted that once the public has this disclosure and a full accounting of the impact, lawmakers will decide what actions to take. Kristin Nimmers, policy and campaign manager for the California Black Power Network, spoke with Fox News Digital to argue that a single payment cannot fix community issues. She pushed for a method based on specific harm, stating that those who suffered should be eligible for repair. The law mandates that records be kept online indefinitely, with first filings due as early as January 15, 2029. On the same day Newsom signed AB 2599, he vetoed a separate bill that would have exempted reparations payments from state income tax. California released new test scores on October 15 showing that only 33.7% of Black students met the state standard in English and 21.5% in math. The Truth in Disclosure Act was demanded by California’s reparations task force. The law creates a public record of findings that will be available to activists and the general public. Companies covered by the law will be required to swear under penalty of perjury when submitting their disclosures. The legislation aims to uncover historical financial relationships with enslaved people that may have been obscured by time and corporate restructuring.
AB 2599, the Truth in Disclosure Act, requires large companies to search their records for ties to slavery dating back to 1849. Governor Gavin Newsom signed the act into law on September 30. The law targets businesses that operated in some form by the end of 1964 and currently generate more than $100 million in worldwide annual revenue. Once the legislature funds the implementation, these companies will be legally obligated to examine their own records, as well as those of their parent companies, subsidiaries, and predecessors. They must report any findings indicating that the company sold or leased enslaved people, used them as collateral for loans, or insured them. Newsom stated that the bill requires large companies to make these historical connections public, describing the practice as using human beings as collateral for loans. Democratic Assemblymember Isaac Bryan, the author of the bill, told CalMatters that he expects filings from companies in agriculture, banking, insurance, and the broader financial sector. He noted that once the public has this disclosure and a full accounting of the impact, lawmakers will decide what actions to take. Kristin Nimmers, policy and campaign manager for the California Black Power Network, spoke with Fox News Digital to argue that a single payment cannot fix community issues. She pushed for a method based on specific harm, stating that those who suffered should be eligible for repair. The law mandates that records be kept online indefinitely, with first filings due as early as January 15, 2029. On the same day Newsom signed AB 2599, he vetoed a separate bill that would have exempted reparations payments from state income tax. California released new test scores on October 15 showing that only 33.7% of Black students met the state standard in English and 21.5% in math. The Truth in Disclosure Act was demanded by California’s reparations task force. The law creates a public record of findings that will be available to activists and the general public. Companies covered by the law will be required to swear under penalty of perjury when submitting their disclosures. The legislation aims to uncover historical financial relationships with enslaved people that may have been obscured by time and corporate restructuring.