New California reparations law requires companies to disclose past profits from slavery

In summary

Companies with more than $100 million in annual worldwide gross receipts will be required to search their records and submit sworn disclosures about slavery-related transactions.

Gov. Gavin Newsom signed a first-in-the-nation law that requires large companies to disclose if they or their predecessors profited from chattel slavery.

The Truth in Disclosure Act will require major companies operating in the state to disclose these historical and financial ties to enslavement-related transactions. 2

The bill was a top priority for the California Legislative Black Caucus this year. No other state requires corporations to account for their historical role in the slave economy, according to advocates.

Authored by Assemblymember Isaac Bryan, a Democrat from Culver City, the law applies to companies with annual worldwide gross receipts over $100 million. Assembly Bill 2599 also requires relevant records and disclosures to be made publicly available through a searchable digital to be established by the state’s Civil Rights Department.

The sworn filings will be subject to the penalty of perjury. The first affidavits are due by Jan. 15, 2029.

Supporters say the database could be a useful tool for academics, journalists and advocates to examine the connections between current corporate wealth and historical participation in the slave economy.

An example of a type of company that would likely have to make such disclosures in California is JP Morgan Chase. According to the California Reparations Task Force report, in 2005, the banking giant wrote a formal apology because two banks that it had taken ownership of had taken 13,000 enslaved people as security for loans in Louisiana. When enslavers could not pay back the loans, the banks took ownership of 1,200 people.

The law only applies to companies that existed or whose predecessor company existed on or before December 1964.

“I’m thinking agriculture. I’m thinking banking, insurance. I’m thinking anything in the financial sector,” Bryan said about the types of companies he expects may have to file disclosures.

“Once the public has this disclosure and we have a full accounting of the impact, then it’s up to us to decide what that means and what we’re going to do about it,” he added.

Several insurance companies opposed the measure as it moved through the Legislature. They said they already disclosed their connections to slavery through a 2000 California law that resulted in a publicly available report.

The newest law is the latest in a slow, uneven effort to act on the findings of the state’s reparations task force.

Newsom created the task force in 2020. After two years of study, it released a 2023 report detailing California’s history of enslavement and discriminatory policies and made more than 100 recommendations. Economists estimated the state owes Black residents at least $800 billion for harms in policing, housing, and health.

Lawmakers have since taken small steps. In 2024, Newsom signed six of the Legislative Black Caucus’ 14 priority bills that drew from the task force report, including a formal state apology. That year, the caucus declined to advance two ambitious reparations bills, opening a painful split with grassroots advocates.

The California chapter of the Council on American-Islamic Relations and the Alliance for Reparations, Reconciliation and Truth applauded Newsom and Bryan for the new law.

“California has long been a state that prides itself on justice and equity and AB 2599 moves the needle closer to the transparency that is necessary to recognize and rectify these historical injustices and understand the roots of modern economic disparities,” said CAIR-CA Chief Executive Hussam Ayloush in a written statement.