On Sept. 30, California Gov. Gavin Newsom (D) signed Assembly Bill 2599, the Truth in Disclosure Act, which requires certain large companies doing business in California to disclose historical ties to chattel slavery.

The law applies to companies with more than $100 million in annual worldwide sales that existed, or had a predecessor company that existed, on or before Dec. 31, 1964. Covered companies must search historical records and submit sworn affidavits disclosing whether they, their affiliates, or predecessor companies participated in or profited from slavery-related transactions, including the purchase, sale, insurance, or use of enslaved people as collateral.

The California Civil Rights Department will publish the disclosures on a public digital platform. The first filings are due Jan. 15, 2029.

The law also requires covered companies bidding on or renewing state contracts worth $100,000 or more to certify that they complied with the disclosure requirements.

California is the first state to require large corporations across industries to disclose historical ties to chattel slavery, including through their corporate predecessors. Earlier state laws, including California's 2000 law and similar requirements enacted in Illinois in 2007 and Maryland in 2009, generally focused on requiring insurance companies to disclose historical policies involving enslaved people.

The law could produce new public records documenting whether major corporations or their predecessors participated in or profited from historical slavery-related transactions.

Assemblymember Isaac Bryan (D) introduced AB 2599 following recommendations from California's Reparations Task Force, which the state created in 2020 to study slavery and discrimination against Black Californians and recommend potential remedies. The task force issued its final report in 2023. The California Legislature passed AB 2599 along party lines with Democrats in support.The Senate voted 30-8 on Aug. 25 and the Assembly concurred with Senate amendments 60-13 on Aug. 26.

Insurance industry groups opposed AB 2599, arguing that the law could duplicate disclosures insurers already made under California's 2000 slavery-era insurance law.

The law relates to broader debates over corporate disclosure requirements, including whether companies should be required to report information about their historical conduct and social impacts.

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