California Governor Signs Nation's First Corporate Slavery Disclosure Law

Gov. Gavin Newsom has signed Assembly Bill 2599, known as the Truth in Disclosure Act, into law, marking a significant legislative achievement for reparations advocates in California. The bill mandates that large corporations operating within the state must investigate and publicly disclose any historical connections to chattel slavery and slavery-related transactions.

Kristin Nimmers, policy and campaign manager for the California Black Power Network and the Alliance for Reparations, Reconciliation, and Truth, described the governor's signature on the bill, enacted on September 30, as a "historic moment." She stated that the law addresses the ongoing impact of slavery, noting that "connections right now from slavery to current wealth of individuals and current wealth of corporations whose foundation and who built—the start of their companies off of slavery and off of benefits gained from slavery."

The new law applies to businesses with over $100 million in annual worldwide gross receipts that were in operation on or before December 31, 1964, or had a predecessor entity in operation during that period. Once state funding is allocated, these companies will be required to submit sworn affidavits to the California Civil Rights Department detailing their historical involvement in the purchase or sale of enslaved people, the use of enslaved individuals as loan collateral, slave-related insurance policies, and other financial transactions. The deadline for these initial filings is January 15, 2029.

California was the first state to establish a task force to study the legacy of slavery and recommend reparations. The task force's extensive documentation and report informed the development of AB 2599. Nimmers indicated that the bill is a crucial step in identifying entities that benefited from slavery and its harms, enabling the broader reparations movement to transition from recommendations to implementation.

Newsom's approval of AB 2599 comes as he has taken a more cautious approach to broader, high-cost reparations initiatives. He recently vetoed Assembly Bill 2186, which would have exempted future state reparations payments from personal income tax. He has also resisted direct cash payments, which were estimated by the state task force to potentially cost millions per eligible recipient.

Despite these hesitations, Newsom did approve state funding for California universities to research and develop methods for verifying descendants of enslaved Americans to determine potential eligibility for future noncash benefits.

Activists view AB 2599 as a significant victory and a foundational step toward corporate accountability. Nimmers emphasized the importance of confronting historical truths to achieve meaningful repair, stating, "We can't fully and meaningfully repair harms if we're not really willing to acknowledge and confront the truth."

The California Black Power Network, a coalition of 48 organizations, aims to leverage this legislative success to advocate for the full implementation of the reparations task force's recommendations. The network views present-day economic disparities as direct consequences of historical harms stemming from slavery, segregation, and Jim Crow practices.

Elsewhere, localized reparations programs have seen mixed results. In Evanston, Illinois, Black residents have received housing grants as part of a municipal effort to address historic housing discrimination. Other similar initiatives across the nation are under discussion.