California is poised to require major companies to publicly disclose historical links to slavery, following the passage of a bill by the state legislature this week. The measure, known as Assembly Bill 2599, now awaits a decision from Governor Gavin Newsom, who has until September 30 to either sign or veto the legislation.
If enacted, the bill would compel companies with over $100 million in annual worldwide sales to investigate and report any evidence that they, their predecessors, or subsidiaries were involved in the buying or selling of enslaved people, or provided financial support for such transactions, including through insurance or loans. This requirement would only take effect if the Legislature allocates specific funding for its implementation.
Following funding allocation, the California Civil Rights Department would be tasked with establishing a digital platform to host these disclosures. Assemblymember Isaac Bryan, a proponent of the bill, expressed confidence that the funding for the platform would not be substantial and that the initiative would proceed.
The legislation has drawn some opposition from insurance companies. They contend that the bill largely duplicates an existing California law that already mandates insurers to reveal past policies issued to slaveholders that covered the death or injury of enslaved individuals. Companies such as New York Life Insurance Company, Aetna Life Insurance Company, and American International Group (AIG) have previously disclosed connections to enslaved people and slaveholders under the existing regulations.
While some advocates for reparations view the proposed measure as a significant advancement, others have raised questions about its potential impact.