Newsom Signs Law Requiring Companies to Disclose Slavery-Era Business Ties

California Gov. Gavin Newsom has signed into law a first-in-the-nation measure that compels large companies doing business in the state to investigate and publicly disclose any historical ties to slavery. The law, Assembly Bill 2599, is part of California's broader effort to address the enduring effects of slavery.

"Accountability, as Bryan said, starts with the truth," Newsom stated in an interview accompanying the bill's signing. The law requires companies with more than $100 million in annual worldwide gross receipts, whose predecessor companies existed on or before December 31, 1964, to search their records for transactions involving enslaved people. These records could include insurance policies on enslaved individuals, the use of human beings as collateral for loans, and other related transactions.

Once the state legislature provides funding, covered companies must submit sworn affidavits detailing the results of their historical searches. These records are slated to become publicly accessible through a state-managed digital platform. For businesses operating in California by January 1, 2028, the initial disclosures will be due by January 15, 2029, though this deadline may be extended if the state's digital platform is not yet operational.

The legislation was authored by Democratic Assemblymember Isaac Bryan, who framed it as a means to expose the historical accumulation of corporate wealth derived from enslaved labor. "For centuries, private corporations across the country benefited from chattel slavery," Bryan said during a committee hearing. "They benefited from the economic wealth transfer of free labor."

This new law follows a 2020 state initiative that established California's first-in-the-nation Reparations Task Force. This task force spent three years examining the legacy of slavery and developing over 100 recommendations. While the task force explored various measures, including potential monetary compensation, policy changes in housing, education, health, and economic disparities, Newsom has previously expressed reservations about direct cash payments as the sole solution.

"Dealing with that legacy is about much more than cash payments," Newsom stated in 2023. The current law focuses on public disclosure as a form of corporate accountability.

Prior to AB 2599, California had already required insurance companies to research and disclose slavery-era insurance policies since 2000. Industry groups, including the American Council of Life Insurers and the American Property Casualty Insurance Association, had opposed the new legislation, citing potential overlap with existing disclosure requirements.

These groups noted in an analysis of the bill that AB 2599 seemed to duplicate reporting already mandated by a 2000 law. However, the new law broadens the scope beyond insurance to encompass a wider range of corporate activities and historical records.