California news publishers and big tech companies seem to be moving closer to a compromise on a bill that would require Google and other major social media platforms to pay news outlets for the articles they distribute.
After stalling last year, Assembly Bill 886 took a significant step forward on Tuesday, passing the state Senate Judiciary Committee.
Lawmakers described the bill as an ongoing effort to address a critical issue: the decline of the news industry as technology changes how people consume information.
Sen. Tom Umberg (D-Orange), the committee chairman, emphasized the importance of finding a way to support journalism, saying, "I believe the marketplace is the best mechanism to regulate industry.
However, the demise of journalism harms democracy, so we have an obligation to support reasonable, credible journalism."
The bill, known as the “California Journalism Preservation Act,” would require digital platforms to pay a fee to news outlets when they sell advertising alongside news content.
The money would go into a fund, which would be distributed to news outlets based on the number of journalists they employ. Publishers would need to use 70% of the money they receive to pay journalists in California.
While the bill does not specify an amount for the fund, Umberg suggested that the involved parties should agree on the amount. Sen. Henry Stern (D-Calabasas) noted that discussions are progressing toward a potential deal.
In Canada, Google is already paying $74 million annually into a fund for the news industry under a similar law.
Jaffer Zaidi, Google's vice president of global news partnerships, testified against the California proposal, arguing that it would disrupt the principles of the open internet by forcing platforms to pay publishers for sending free traffic to them.
He also pointed out that the bill unfairly targets only Google and Meta, the parent company of Instagram and Facebook, while other large platforms that link to news are not included.
Google has proposed an alternative solution involving targeted programs funded by more companies than just the largest platforms. Zaidi expressed hope for a workable path forward, saying, "We remain committed to being here and constructively working towards an outcome."
Assemblymember Buffy Wicks (D-Oakland), the bill's author, is actively trying to engage with opposing companies to reach an agreement that will support the news industry.
She emphasized the importance of journalism in uncovering issues that lawmakers address, citing The Times' investigation into former USC gynecologist George Tyndall as an example.
The bill now moves to the Senate Appropriations Committee and will go to Gov. Gavin Newsom if it passes both houses of the Legislature by August 31.