California Governor Gavin Newsom signed Assembly Bill 2599, known as the Truth in Disclosure Act, on September 30. The law mandates that any corporation with more than $100 million in annual worldwide gross receipts that existed, or had a predecessor, on or before Dec. 31, 1964 must submit sworn affidavits detailing any historic involvement in the purchase or sale of enslaved people, the use of enslaved individuals as loan collateral, slave‑related insurance policies, and other related financial transactions.
What the law requires
Covered businesses will be required to file their initial disclosures with the California Civil Rights Department by Jan. 15, 2029. The filings must be made under penalty of perjury, ensuring that corporations cannot simply ignore the request. The legislation was authored by Assemblymember Isaac Bryan, D‑Ladera Heights, and applies to companies operating in the state regardless of where the corporate headquarters are located.
Activist response
Advocacy groups such as the California Black Power Network (CBPN) and the Alliance for Reparations, Reconciliation, and Truth hailed the signing as a “big, important victory” for reparative justice. Kristin Nimmers, policy and campaign manager for CBPN, said the bill forces businesses to confront the “connections from slavery to current wealth of individuals and corporations” that built their foundations on the exploitation of Black people.
Governor’s broader reparations stance
While Newsom signed AB 2599, he has been cautious about broader cash‑based reparations. Earlier this year he vetoed Assembly Bill 2186, which would have exempted future state reparations payments from personal income tax, and has consistently resisted direct cash payments that could cost millions per eligible recipient. Instead, Newsom approved state funding for university research to verify descendants of enslaved Americans for potential non‑cash benefits.
Potential concerns
Critics of the legislation argue that the reporting requirements could impose significant compliance costs on businesses, especially smaller firms that meet the revenue threshold but lack extensive historical record‑keeping. They also note that the law does not provide direct compensation to victims or their descendants, focusing solely on transparency.
National context
California is the first state to require such corporate disclosures, joining a growing national conversation about how to address historic racial harms. Other municipalities, such as Evanston, Illinois, have pursued direct housing grants for Black residents, but those programs have faced mixed results and ongoing debate.
Next steps
CBPN plans to use the disclosures as a springboard for further legislative action, urging the state to move from recommendations to concrete implementation of reparative measures. The organization emphasizes that acknowledging historical truth is a prerequisite for any meaningful repair of systemic inequities.
As the law moves toward implementation, businesses operating in California will need to begin extensive historical research to comply with the new requirements, while policymakers and advocacy groups watch closely to see whether transparency will translate into broader reparative policies.
Original reporting: Fox News (HLL/CB) — read the source article.
