Slavery: corporate disclosures.

Plain English Breakdown

The bill's text does not specify which department will be responsible for creating and maintaining the public digital platform.

Slavery: Corporate Disclosures

The bill requires large companies doing business in California to disclose if they or their related entities have been involved with slavery-related activities and to submit this information under penalty of perjury.

What This Bill Does

• Requires businesses with over $100 million in annual worldwide gross receipts to file an affidavit stating whether they or their related entities have engaged in slavery-related activities.
• Specifies the types of records companies must search for when completing the affidavit, including buying and selling slaves, using slaves as collateral, providing loans to purchase slaves, insuring slave transactions, and aiding such transactions.
• Requires a public digital platform by January 3, 2028, where these affidavits and reports will be available.
• Allows the Attorney General to take legal action if companies do not follow the rules.
• Expands the crime of perjury for businesses that submit false information.

Who It Names or Affects

• Businesses with over $100 million in annual worldwide gross receipts doing business in California
• State agencies when reviewing contracts with these businesses

Terms To Know

Affidavit

A written statement that is signed and sworn to be true under penalty of perjury.

Perjury

The act of lying or making false statements while under oath, which can result in legal penalties.

Limits and Unknowns

• Does not specify the exact department responsible for creating and maintaining the public digital platform.
• Details about how companies will be penalized if they do not comply are not provided.
• The bill does not mention what happens to businesses that were involved in slavery but have since stopped such activities.

Official Summary Text

AB 2599, as amended, Bryan.
Slavery: corporate disclosures.
Existing law requires every retail seller and manufacturer doing business in this state and having annual worldwide gross receipts that exceed $100,000,000 to disclose, as specified, its efforts to eradicate slavery and human trafficking from its direct supply chain for tangible goods offered for sale.
Existing law also requires a person that submits a bid or proposal to, or otherwise proposes to enter into or renew a contract with, a state agency with respect to any contract in the amount of $100,000 or more to certify, under penalty of perjury, at the time the bid or proposal is submitted or the contract is renewed that they have complied with the Unruh Civil Rights Act and the California Fair Employment and Housing Act, and that any policy that they have
adopted against any sovereign nation or peoples recognized by the government of the United States is not used as a pretext for discrimination in violation of the Unruh Civil Rights Act or the California Fair Employment and Housing Act.
This bill would require
textile, tobacco, railroad, shipping, rice, sugar, financial, and insurance companies
any business or enterprise that is doing business in the state and has annual worldwide gross receipts that exceed $100,000,000
to complete an affidavit, under penalty of perjury, verifying that it has searched through any and all records in its and its related entities’, as defined, possession, control, and knowledge for records that the in-state entity or its related entities bought or sold persons subjected
to slavery, used persons subjected to slavery as collateral, provided loans to purchase persons subjected to slavery, insured such transactions or the persons subjected to slavery, or provided related or other services to aid or otherwise facilitate those transactions. The bill would set forth the contents of the affidavit, the timeline and manner of submission, and reporting requirements. The bill would require an unspecified department to create a public, digital platform by January 3, 2028, that would make available affidavits and reports made pursuant to the bill and disaggregated data, as described.
The bill would authorize the Attorney General to bring an action for injunctive relief for a violation of these provisions. The bill would additionally require the above-described business or entity, that submits a bid or proposal to, or otherwise proposes to enter into or renew a contract with, a state agency, as described
above, to additionally certify, under penalty of perjury, that they have submitted the affidavit in compliance with the above-described provisions.
By requiring an
affidavit,
affidavit and to certify under penalty of perjury regarding compliance with the above-described affidavit requirements,
and thus expanding the crime of perjury, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.

Current Bill Text

Download Bill PDF