California Governor Gavin Newsom has signed a highly controversial and possibly costly business ‘transparency’ measure into law. Assembly Bill 2599, known as the Truth in Disclosure Act, requires large corporations to publicly reveal any historical financial ties to chattel slavery.
The mandate targets companies operating in California with over one hundred million dollars in annual revenue that were in business before December thirty-first, 1964. When you read about the inhospitable business climate in California, this, along with the on-the-ballot “Billionaire Tax“, Prop 40, is a more proof.
Supporters argue the law is a vital step toward historical accountability and corporate honesty–despite that fact that California was a free state. However, critics and business advocates contend it places an unfair, expensive burden on modern enterprises.
Compliance won’t be cheap. Corporate experts warn that affected firms face millions of dollars in combined archival research and legal auditing costs. Companies must comb through records dating back to 1849 to track historical transactions—such as slave insurance or loan collateral—and submit sworn affidavits under penalty of perjury.
Furthermore, any company failing to comply risks losing lucrative state contracts, as any bid over one hundred thousand dollars now requires certified compliance.
