Governor Newsom Signs New Law to Hold Corporations Accountable, Fund Essential Services for Crime Victims

SACRAMENTO, CA — Today, Governor Gavin Newsom signed the California Victims of Crime Act, bipartisan legislation authored by Assemblymember Jesse Gabriel (D-Encino) that will increase financial penalties for corporations convicted of criminal wrongdoing while directing funding to programs that assist survivors of domestic violence, human trafficking, sexual assault, and child abuse. Also known as Assembly Bill (AB) 2432, the California Victims of Crime Act was sponsored by California Attorney General Rob Bonta and supported by a broad coalition of law enforcement, criminal justice reform, and victims' services organizations.

“The California Victims of Crime Act is about fairness and justice — when major corporations break the law, they must be held accountable,” said Assemblymember Jesse Gabriel (D-Encino), the author of the California Victims of Crime Act. “The enhanced penalties in this bill will ensure that bad actors cannot evade responsibility when they defraud or exploit vulnerable Californians and will provide critical funding for programs that serve some of the most vulnerable crime victims in California. I am grateful to Governor Newsom and Attorney General Bonta for their partnership in protecting public safety and funding programs that serve crime victims across California.”

The California Victims of Crime Act builds on the federal Victims of Crime Act (VOCA), which was enacted by Congress and signed into law by President Reagan in 1984. VOCA created the Crime Victims' Fund, which has helped to fund essential public safety programs and services across the United States, including California. However, declining revenues in the federal Crime Victims’ Fund this year led to a 43% reduction in funding for service providers in California.   

Assemblymember Jesse Gabriel, who serves as Chair of the Assembly Budget Committee, also worked to secure $103 million for the Victim Services Program in the most recent state budget. The California Victims of Crime Act will establish a permanent funding source known as the California Crime Victims Fund to support these programs.

The California Victims of Crime Act was supported by a broad coalition of law enforcement, victims' services organizations, and criminal justice reform groups that include the California Partnership to End Domestic Violence, the Coalition to Abolish Slavery and Trafficking, the California Women’s Law Center, and District Attorneys from across California.

“I want to thank Governor Newsom for signing AB 2432 into law. Deterring and punishing corporate crime is a top priority at the California Department of Justice. With AB 2432, we will be better equipped to do just that,” said Attorney General Rob Bonta, a sponsor of AB 2432. “Importantly, the increased corporate criminal penalties will be used to help fund crime victim service organizations up and down our state. These organizations have been facing significant federal funding cuts, and today, we’re letting them know that we have their backs.”  

"In every California community, victims of crime are navigating the trauma of sexual violence, domestic violence, and child abuse," said Krista Colón, Senior Director of Public Policy & Communication Strategies at the California Partnership to End Domestic Violence (CPEDV). "They deserve to heal and for the services they rely on to be well funded. The new California Crime Victims Fund prioritizes their support for the long haul, addressing far-reaching impacts of violence including homelessness and ongoing mental health needs from traumatic experiences. We thank Assemblymember Gabriel for his leadership in planning for the years ahead."

Background on AB 2432 

In response to the declining revenues of the federal Crime Victims Fund, AB 2432 enables California to establish a permanent state-level funding mechanism for crime victim service programs by making the following changes:

• Increasing the maximum criminal fines that could be imposed on a corporation to twice the amount taken from victims or twice the amount of the loss caused. Currently, the maximum criminal fines are generally $10,000 per felony. 
• Restitution fines for corporations could be increased to $100,000 from $10,000. 75% of the monies would be deposited in the California Crime Victims Fund, and 25% would be distributed to the state General Fund or the city or county that brought the criminal prosecution. Restitution fines are additional fines imposed on defendants upon conviction. 
• Establishing the California Crime Victims Fund, where additional monies collected under the provisions of the California Victims of Crime Act will be deposited and used to support crime victim services.

These changes will also help ensure that corporations are held accountable when they break the law. For example, AB 2432 would have led to a more just outcome in the case regarding the 2015 Refugio Oil Spill in Santa Barbara County, during which 140,000 gallons of crude oil were released into the Pacific Ocean and spread across coastal beaches. In that matter, then-Attorney General Xavier Becerra and then-Santa Barbara County District Attorney Joyce E. Dudley secured guilty verdicts against Plains All American Pipeline, L.P. (Plains) in 2018. Plains was sentenced to pay only $3,347,650 in total fines and penalty assessments — the maximum allowable amount under state law — and the corporation fought payment of any suitable restitution to hundreds of victims of this criminal conduct. 

AB 2432 would have given the court discretion to levy an additional fine against Plains proportionate to the conduct and harm caused by Plains, the proceeds of which would have been paid into the new California Crime Victims Fund, thereby providing greater support to victims of crime across California. It is estimated that the misconduct by Plains, a Fortune 200 company that made over $2 billion in net income during 2018, caused over $200 million in damages in the 2015 Refugio Oil Spill. 

Through the creation of a new state funding stream to support crime survivors, these changes will help ensure corporate offenders are held accountable and offer a significant deterrent for the benefit of all Californians.

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Jesse Gabriel proudly represents the San Fernando Valley in the California State Legislature.