California Enacts Slavery Disclosure Law for Businesses

2 min read

California businesses will now be required to disclose their historical and financial ties to slavery, following the signing of the Truth In Disclosure Act by Governor Gavin Newsom. The law, backed by Democrats, mandates that companies with more than $100 million in annual worldwide gross receipts and in business before December 31, 1964, provide sworn disclosures about their past involvement with slavery.

Disclosure Requirements and Public Access

Under the law, companies must attest under penalty of perjury that they have investigated whether they or their predecessors engaged in buying or selling persons subjected to slavery or other slavery-related transactions. These disclosures will be made publicly available through an online database, ensuring transparency for consumers and stakeholders.

Authorship and Legislative Context

The bill was authored by California Democratic Assemblymember Isaac Bryan and passed along party lines, with 60 Democrats voting in favor. While the law focuses on historical ties, critics have raised concerns that it is part of a broader reparations initiative in the state.

Reparations and Related Legislation

Newsom created the nation’s first reparations task force in 2020, which recommended measures such as property tax relief for African Americans in formerly redlined neighborhoods and a K-12 Black Studies Curriculum. Past proposals have included lifetime restitution of up to $1.2 million for Black Americans, with an estimated cost of reparations exceeding $2.8 trillion.

State Apology and Ongoing Efforts

In 2024, Newsom signed a formal state apology for slavery, coauthored by Democratic Assemblymember Reginald Byron Jones-Sawyer, Sr. The apology, to be memorialized with a plaque in the State Capitol, acknowledges California’s role in promoting and permitting slavery. Newsom emphasized the state’s responsibility for the enduring legacy of racial disparities.

Historical Context and Similar Laws

California was admitted as a free state in 1850, with slavery prohibited. However, the state has previously taken steps to address historical ties to slavery. In 2000, then-Governor Gray Davis required insurance companies to disclose policies that provided coverage for damage to or death of slaves.

Broader National and Global Trends

Across the country, New York City Mayor Zohran Mamdani has expressed support for reparations, stating the city must ‘repair’ damage caused by the slave trade. The city’s Commission on Racial Equity is expected to release its findings on reparations next summer.

Source: Daily Wire

Written by

Connor Davis