California Governor Gavin Newsom faces a decision on bill AB 2599, which would require large corporations operating in the state to disclose any past ties to slavery. The bill, passed by the state Legislature along party lines, mandates that companies with at least $100 million in annual worldwide gross receipts must submit sworn affidavits detailing any historical involvement in or profit from slavery. These disclosures would then be made public in a searchable state database.
Assemblyman Isaac Bryan of Los Angeles, the bill's author, proposed the legislation, which has drawn criticism for its potential impact on businesses and its historical premise. California entered the Union as a free state in 1850, and slavery was abolished nationwide with the ratification of the 13th Amendment in 1865.
Opponents argue that the bill places an excessive administrative cost and burden on companies, particularly those formed outside of California, for the privilege of doing business in the state. A significant concern is the feasibility of companies accurately researching and disclosing activities that occurred potentially more than 170 years ago. Many companies that existed in 1865 may no longer be in operation or may have records that are no longer extant or easily accessible. The bill also specifies penalties for providing false information under oath, raising concerns about potential legal challenges and increased litigation costs for businesses.
Critics also question the practical implications of the disclosure requirement, noting the difficulty in tracing corporate lineage and financial activities from the mid-19th century. The bill's supporters suggest it is a measure for corporate accountability, while detractors label it a "virtue-signaling money grab" that could deter businesses from operating in California. The governor's office has not yet announced a timeline for his decision on the bill.