California Governor Signs Bill Requiring Corporations to Disclose Historical Ties to Slavery

<p>California advocacy groups are recognizing a significant development in their efforts for state-level reparations following Governor Gavin Newsom's signing of a bill that mandates large corporations to investigate and disclose historical connections to chattel slavery. The legislation, known as Assembly Bill 2599 or the Truth in Disclosure Act, was signed into law on September 30.</p><p>Kristin Nimmers, policy and campaign manager for the California Black Power Network (CBPN) and the Alliance for Reparations, Reconciliation, and Truth, stated that the signing of AB 2599 represents a milestone for corporate accountability. "There are 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," Nimmers said.</p><p>The law requires businesses with over $100 million in annual worldwide gross receipts that existed or had a predecessor entity in operation on or before December 31, 1964, to submit sworn affidavits detailing any historical involvement in transactions related to slavery. This includes the purchase or sale of enslaved individuals, the use of enslaved people as loan collateral, and slave-related insurance policies. Companies have until January 15, 2029, to submit their initial filings.</p><p>California is the first state to establish a formal task force to study the legacy of slavery and recommend potential restitution measures. Nimmers noted that the California Reparations Task Force spent years documenting the state's role in perpetuating racial harm and outlining a path toward repair. "AB 2599 is really starting the work of identifying who really benefited from this racial harm and from slavery," she added.</p><p>The bill was authored by Assemblymember Isaac Bryan, D-Ladera Heights. Although Newsom has been cautious regarding broader reparations initiatives, he did approve state funding for California universities to research and establish verification methods for descendants of enslaved Americans to determine potential eligibility for future noncash benefits.</p><p>Despite some legislative setbacks, including Newsom's veto of a bill that would have exempted future state reparations payments from California's personal income tax, Nimmers expressed optimism about the future of reparations in California. She emphasized that CBPN plans to use AB 2599 as momentum to advance the task force’s broader recommendations into law.</p><p>CBPN is a coalition of 48 Black-led and Black-serving organizations across 14 California counties, focused on addressing systemic racism through policy advocacy and community organizing. The coalition has been involved in grassroots civic engagement to inform the task force’s final report issued in 2023.</p><p>Nimmers stated, "AB 2599 really represents a historic step toward corporate transparency and accountability. We know for generations, corporations and financial institutions have really benefited from slavery and from the exploitation of Black people. This matters because we can't fully and meaningfully repair harms if we're not really willing to acknowledge and confront the truth."</p><p>Similar localized reparations programs have been implemented across the country with varying degrees of success, such as a municipal program in Evanston, Illinois, which provided $25,000 housing grants to Black residents as part of efforts to rectify historic housing discrimination.</p>