California Introduces Bill To Support Local Journalism By Imposing Revenue-Based ‘Mitigation Fee’ On Tech Platforms

By Free Press Photos: YouTube Screenshots SACRAMENTO — On Wednesday, California State Sen. Steve Glazer introduced legislation (SB 1327) that would impose a “data extraction mitigation fee” on major tech platforms to help support the production of local news. The revenue generated by this fee, estimated to be roughly $500 million, would provide outlets with an employment tax credit to cover a portion of employees’ wages. Free Press Action has long supported a tax on advertising revenue as a means to support the sort of local journalism that serves communities and has been decimated by the changing economics of news production. Sen. Glazer’s legislation offers a similarly promising funding approach. But for it to be effective, the legislation must ensure that support is directed to outlets most in need, especially those community publishers, nonprofit newsrooms and ethnic-media outlets that serve populations that traditional media have long neglected. In a letter sent to Sen. Glazer and other members of the California Senate Committee on Revenue and Taxation, Free Press Action called on lawmakers to make key amendments to SB 1327 so that the bill can best serve California residents and effectively support local news. These include placing a funding cap on...