Golden State Today

California Attorney General Rob Bonta has issued a statement following Governor Gavin Newsom's signing of Assembly Bill (AB) 2432 into law. This legislation will allow state courts to impose increased monetary penalties on corporations convicted of criminal offenses. The funds collected from these penalties will be directed towards crime victim service organizations in California, which provide various forms of assistance to victims and their families.

Attorney General Bonta, who co-sponsored AB 2432, stated, "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." He added that the increased penalties would help fund organizations facing federal funding cuts.

Assemblymember Jesse Gabriel (D-Encino), who introduced the bill, emphasized its importance for accountability and support for vulnerable Californians. "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," said Gabriel.

Assemblymember Eloise Gómez Reyes (D-Colton) also expressed her gratitude for the new legislation. "The focus of this legislation is ensuring justice is served by not only punishing crimes but restoring and supporting victims," she said.

Assemblymember Sabrina Cervantes (D-Riverside) highlighted the bill's role in providing stable funding for victim support organizations. "This will help insulate crime victim service organizations from fluctuations in federal funding and ensure that survivors have access to the support they need and deserve," she stated.

Crime victim service organizations across all states have traditionally been funded through the federal Crime Victims Fund established by the Victims of Crime Act of 1984 (VOCA). However, there has been a significant decline in this funding source. In fiscal year 2024, California experienced a 43.4% decrease compared to fiscal year 2023.

Under AB 2432, maximum criminal fines on corporations can now be twice the amount taken from victims or twice the loss caused by defendants, replacing the previous cap of $10,000 per felony. All funds collected will go into a newly created California Crime Victims Fund. Restitution fines for corporations will also increase from $10,000 to $100,000 with specific allocations between this fund and prosecuting agencies.

The new law aims to create a state funding stream to support crime survivors while holding corporate offenders accountable. It takes effect on January 1, 2025.