Cites “finite funding”; would have qualified some for up to $150,000 or 20% down payment; signs 5 other bills
By Allen D. Payton
In a message to the California State Assembly on Thursday, Sept. 6, Governor Gavin Newsom explained his veto of AB1840, Home Purchase Assistance Program: eligibility by Assemblymember Dr. Joaquin Arambula (D-Fresno) that it’s due to limited funds. He wrote:
“To the Members of the California State Assembly:
I am returning Assembly Bill 1840 without my signature.
This bill seeks to prohibit the disqualification of applicants from one of California Housing Finance Agency’s (CalHFA) home purchase assistance programs based solely on their immigration status.
Given the finite funding available for CalHFA programs, expanding program eligibility must be carefully considered within the broader context of the annual state budget to ensure we manage our resources effectively.
For this reason, I am unable to sign this bill.”
Source: Office of the Governor of California
The bill would have allowed some illegal immigrants in California to qualify for the California Dream for All Shared Appreciation Loan program, which would have been renamed under the bill to the Home Purchase Assistance Program, and receive up to $150,000 for a 20% downpayment to purchase their first home.
Newsom also announced on Thursday the bills he signed into law:
AB 1170 by Assemblymember Avelino Valencia (D-Anaheim) – Political Reform Act of 1974: filing requirements.
AB 1770 by the Committee on Emergency Management – Emergency services: Alfred E. Alquist Seismic Safety Commission: seismic mitigation and earthquake early warning technology.
AB 2094 by Assemblymember Heath Flora (R-Modesto) – Alcoholic beverage control: public community college stadiums: City of Bakersfield.
AB 2436 by Assemblymember Juan Alanis (R-Modesto) – Cattle: inspections: fees.
AB 2721 by the Committee on Agriculture – Food and agriculture: omnibus bill.
Glazer votes to table the amendment without debate, Skinner votes to abstain
By Allen D. Payton
An effort by the Republicans in the California State Senate to end the state income tax on tips was blocked by Democrats during final session voting, last Thursday, August 29, 2024. That’s in spite of the fact that their party’s nominee for president, Vice President Kamala Harris, announced her support for the proposal just last month, following former President Trump’s previous announcement proposing the idea during the campaign.
All nine Republican state senators supported the amendment, while almost all the state’s Democratic senators, including State Sen. Steve Glazer, except for Senate President Pro Tempore Mike McGuire and State Sen. Nancy Skinner, voted in opposition. McGuire and Skinner, who represents portions of Western Contra Costa County, voted to abstain. Glazer currently represents the rest and most of Contra Costa County, including Antioch. The motion to table the amendment without debate passed 29-9-2.
A press release about the effort issued that day reads, “Today, California Senate Republicans advanced amendments to protect hospitality and service industry employees with a state tax exemption on tips. Legislative Democrats refused to consider the issue and summarily killed the proposal without discussion or debate. Click HERE to watch Senator Ochoa Bogh’s floor remarks and click HERE to view/download the roll call vote on the amendments.”
“The proposal, which was aimed at addressing the unsustainable tax burden placed on workers who rely heavily on tips, would have exempted those tips from state income taxes and allowed hospitality and service industry employees to take home more of their earnings,” the press release continued. “Proponents of the policy point to not only relief for taxpayers as a benefit but also increased spending that would result from those tax breaks and serve as an economic driver to lift all sectors of the economy.”
“The negligence involved in a refusal to even debate a policy issue of this magnitude cannot be overstated,” said state Senate Minority Leader Brian W. Jones. “The push to eliminate the federal tip tax has made its way to the campaign stage for both major party’s this year, yet California Democrat politicians don’t believe it be even worthy to discuss at the state level for residents here.”
Up to $150,000 for a 20% down payment, awaits Newsom’s signature or veto
Glazer votes against, Grayson for
By Allen D. Payton
The California State Senate passed the bill, on Tuesday, August 27, 2024, to give home loan down payments to illegal immigrants on a 25-14 vote with 1 Democrat abstaining from voting. It follows the action in May by the Assembly, which passed it on a 56-15 vote with 6 Democrats and 3 Republicans not voting. Now the controversial Assembly Bill 1840 is on Governor Newsom’s desk awaiting his decision.
State Senator Nancy Skinner (D-SD9) who represents portions of West Contra Costa County voted yes, while State Senator Steve Glazer (D-SD7), who represents the rest of the county including Antioch, voted against the bill authored by Assemblyman Joaquin Arambula (D-AD31) of Fresno. As previously reported, all four Assemblymembers representing Contra Costa County, including Tim Grayson (D-AD15), Lori Wilson (D-AD11), Rebecca Bauer-Kahan (D-AD16) and Buffy Wicks (D-AD14), voted to pass the bill.
It would expand eligibility of the California Dream for All Shared Appreciation Loan program, to be renamed under the bill to the Home Purchase Assistance Program, by removing any disqualifications based on an applicant’s immigration status. If approved, illegal immigrants could enter the lottery system under the program and qualify for the 20% in down payment assistance up to $150,000.
However, not all illegal immigrants would qualify for the program. Under AB 1840, only those with taxpayer ID numbers or Social Security numbers could apply. According to the language of the bill “This bill would specify that an applicant who meets all other requirements for a loan under the program and who is otherwise eligible under applicable federal and state law, shall not be disqualified solely based on the applicant’s immigration status.”
According to a June 28, 2024, press release from the governor’s office, out of 18,000 people who applied to the program this year, only 1,700 were chosen and according to a report by KQED, in 2013, the program ran out of money in the first 11 days. The bill would greatly expand the number of applicants, due to the California Dream program targeting low- to middle-income first-time buyers.
According to the program details, “The Dream for All Shared Appreciation Loan is a down payment assistance program for first-time homebuyers to be used in conjunction with the Dream For All Conventional first mortgage for down payment and/or closing costs. Upon sale or transfer of the home, the homebuyer repays the original down payment loan, plus a share of the appreciation in the value of the home.” In addition, one borrower must be a first-generation homebuyer and all borrowers must be first-time homebuyers.
Contact the Governor
To contact the governor to offer your input on how he should respond to the bill use the online form on the office’s website at www.gov.ca.gov/contact/. But you’ll have to select Immigration Issues/Concerns and write AB1840 in the comment as it is not currently in the Active Bills list. You can also call Newsom’s office at (916) 445-2841 and leave a message with or for his staff.
Adding to the tenant protections previously passed, during their meeting on Tuesday, August 27, 2024, on a 5-0 vote, the Antioch City Council approved a Just Cause Eviction ordinance limiting the ability of landlords to evict tenants except for specific reasons and, if they do, the landlord must give notice to both the tenant and the City and pay for the tenant’s relocation costs. The ordinance was negotiated between representatives of tenants, community organizations, the apartment owners’ association, city council and staff members.
According to the city staff report on the item, State law requires “just cause” for a landlord to evict a tenant who has continuously and lawfully occupied a residence for at least 12 months. The California Tenant Protection Act of 2019 (“TPA”) limits rent increases and places restrictions on landlords’ ability to evict tenants, unless the eviction is as a result of a “just cause” that is defined by state law. The TPA also imposes certain notice and language requirements, “Just cause” includes “at-fault” evictions for wrongful or malicious conduct by tenants and “no-fault” evictions, such as when a property owner or their immediate family move into an otherwise occupied unit, remove a unit from the rental market, or when a landlord intends to demolish or “substantially remodel” a unit.
The city’s ordinance extends the time to 24 months after eviction for the former tenant to have first-right-of-refusal be offered from the landlord to rent the unit, again, without an increase in rent more than the allowable increases under state law and city ordinances.
In addition, under the City’s ordinance, if the tenant hasn’t done anything wrong, but the landlord is asking them to move out, then they must both notify the city and pay for the tenant’s relocation costs, in an “amount equal to two times the Tenant’s monthly rent in effect when the Landlord served the notice to terminate the tenancy.”
The city staff report claims the ordinance will require an additional city staff member and “increased future workloads for the City Attorney’s Office related to new inquiries and requests for services from tenants and landlords.”
For the public hearing there was only a proponent to speak in favor of the ordinance, but no opponent to speak against it. The proponent, an attorney, said, “Under Antioch’s new ordinance, everyone has just cause for eviction protections,” speaking specifically of renters.
Several members of the public spoke in favor of the ordinance, including representatives of ACCE Action and Rising Juntos Antioch and two council candidates in District 3, Addison Peterson and Antwon Webster.
During council member discussion of the ordinance, District 1 Councilwoman Torres-Walker said, “Now everyone in Antioch is covered.”
“Thank you all for pushing us,” Mayor Pro Tem Monica Wilson said. “We finally made it, but we have to keep on keeping them honest.”
Mayor Lamar Hernandez-Thorpe thanked, “the attorneys and everyone who participated in the meetings. This is a big deal for the community.” He mentioned it took almost four years to get the ordinance developed and adopted.
Following council discussion, the ordinance passed on a unanimous vote.
The audience erupted with cheers and shouts of, “Si, se puede” which means, “yes, we can.”
George Washington Elementary School Principal Gina Lopez, in Lodi, welcomes students on the first day of school on July 30. Photo credit: Diana Lambert / EdSource
Include requiring menstrual products in elementary boy’s bathrooms – supported by all of Contra Costa’s state legislators; allowing kids 12 or older to consent to mental health care without parental consent, keeping transgender student secrets from parents, climate change instruction,more
California students, including those in elementary school, will have better access to mental health care, free menstrual products and information about climate change this school year. The expansion of transitional kindergarten also means there will be more 4-year-old students on elementary school campuses.
These and other new pieces of education legislation will go into effect this school year, including a bill that bans schools from suspending students for willful defiance and another that offers college students more transparency around the cost of their courses and the materials they will need to purchase for them.
Here are a few new laws that may impact students in the 2024-25 school year.
Climate change instruction required
Science instruction in all grades — first through 12th — must include an emphasis on the causes and effects of climate change, and methods to mitigate it and adapt to it. Although many schools are already teaching students about climate change, all schools must incorporate the topic into instruction beginning this school year.
Content related to climate change appears in some of the state curriculum frameworks, according to an analysis of Assembly Bill 285, the legislation that created the requirement.
Assemblymember Luz Rivas, D-Arieta, the author of the bill, said the legislation will give the next generation the tools needed to prepare for the future and will cultivate a new generation of climate policy leaders in California.
“Climate change is no longer a future problem waiting for us to act upon — it is already here,” Rivas said in a statement. “Extreme climate events are wreaking havoc across the globe and escalating in severity each year.”
Menstrual products in elementary bathrooms
A new law in effect this year adds elementary schools to the public schools that must offer a free and adequate supply of menstruation products — in order to help younger menstruating students.
Last school year, the Menstruation Equity for All Act went into effect, requiring public schools serving sixth- through 12th-grade students to provide menstruation products. It affected over 2,000 schools.
The new law expands the requirement to public schools that serve third- through fifth-grade students. A Senate analysis of the legislation notes that 10% of menstruation periods begin by age 10, according to a Centers for Disease Control and Prevention report.
The new law requires affected schools to offer free menstrual products in all-gender bathrooms, women’s bathrooms and at least one men’s bathroom on each campus. The legislation, authored by Assemblymember Eloise Gómez Reyes,D-San Bernardino, includes one men’s bathroom on each campus to offer access to transgender boys who menstruate.
Supporters of the bill note that menstruation isn’t always predictable and can strike at inopportune times, such as during a test. Menstruation products can also be pricey — especially for students who might also be struggling with food insecurity.
Girl Scout Troop 76 in the Inland Empire advocated for the bill. Scout Ava Firnkoess said that menstruation access is important to young girls, like her, who started menstruating early.
“I have another friend who also started at a young age. She had to use toilet paper and paper towels because she did not have access to menstrual products,” Firnkoess said in a statement. “We think young students who start their periods need to have access to products, not just those who start in sixth grade or later.”
According to the California Legislative Information website, State Senators Steve Glazer (D-SD7, Orinda) and Nancy Skinner (D-SD9, Berkeley), and Assemblymembers Tim Grayson (D-AD15, Concord), Lori Wilson (D-AD11, Suisun City), Rebecca Bauer-Kahan (D-AD16, Orinda) and Buffy Wicks (D-AD14, Oakland) all voted for the bill.
Younger students on campus
Elementary students may seem to be getting a little smaller this year, as transitional kindergarten classes are expanded to children who will turn age 5 between Sept. 2 and June 2.
Transitional kindergarten, an additional grade before kindergarten, was created for 4-year-old children who turn 5 before Dec. 2. It has been expanded each year since 2022 to include more children aged 4. All 4-year-old students will be eligible in the fall of 2025.
Gov. Gavin Newsom and State Superintendent of Public Instruction Tony Thurmond have celebrated the expansion of transitional kindergarten, pointing to numbers that show enrollment doubled over the past two years, from 75,000 in 2021-22, to 151,000 in 2023-24. However, a recent analysis by CalMatters found that the percentage of children eligible for transitional kindergarten who actually enrolled had gone down 4 to 7 percentage points.
Colleges must disclose costs
The typical California college student is expected to spend $1,062 on books and supplies in the 2024-25 academic year, according to the California Student Aid Commission.
The exact costs can be hard for students to predict, leaving them uncertain about how much money to budget for a given class. Assembly Bill 607, which Newsom signed last year, requires California State University campuses and community colleges to disclose upfront the estimated costs of course materials and fees for some of their courses this school year. The bill asks University of California campuses to do the same, but does not make it a requirement.
The schools must provide information for at least 40% of courses by Jan. 1 of next year, increasing that percentage each year until there are cost disclosures for 75% of courses by 2028. This year, campuses should also highlight courses that use free digital course materials and low-cost print materials, according to the legislation.
Proponents of the law, which was co-authored by Assemblymembers Ash Kalra, D-San Jose; Isaac Bryan, D-Los Angeles; and Sabrina Cervantes, D-Inland Empire, said it will promote price transparency. The bill covers digital and physical textbooks as well as software subscriptions and devices like calculators.
A student speaking in support of AB 607 in May 2023 said she felt “helplessly exposed and vulnerable” when she had to appeal to a professor for help covering the surprise costs of a textbook’s online course content.
“If I would have known that a month ahead of time, I could have organized and evaluated my budget in an effective manner for the entire semester,” said Rashal Azar. “This would have prevented my financial anxiety and not triggered my mental health as well.”
TK exempt from English language test
Students enrolled in transitional kindergarten, also known as TK, are no longer required to take the initial English Language Proficiency Assessment for California (ELPAC). The test, which measures proficiency in listening, speaking, reading and writing in English, is required to be taken within 30 days of enrollment in kindergarten through 12th grade, if parents indicate in a survey that their children speak another language at home.
Previously, transitional kindergartners also had to take the ELPAC when enrolling. But many school district staff and advocates for English learners said the test was not designed for 4-year-old children and that it was not identifying English learners accurately, because the children were too young to answer questions correctly.
The California Department of Education has directed school districts to mark children’s English language acquisition status as “to be determined” in the California Longitudinal Pupil Achievement Data System, if their parents indicate on the home language survey that their primary or native language is a language other than English. These students will take the initial ELPAC when they begin kindergarten the following year.
Californians Together, which advocates for English learners, and Early Edge California, which advocates for quality early education for all children, were among the organizations that celebrated the bill.
“As the parent of bilingual children and a dual language learner myself, I deeply appreciate Governor Newsom, Assemblymember (Al) Muratsuchi, and California’s legislators for supporting our young multilingual learners by championing AB 2268,” said Patricia Lozano, executive director of Early Edge California in a news release. “This bill will create more support tailored to their needs and strengths, so they can learn and thrive from the early years onward.”
Kids can consent to mental health care
A new law that took effect in July makes it easier for children on Medi-Cal who are 12 or older to consent to mental health treatment inside and outside of schools. Children older than 12 on private insurance can already consent to mental health care without parental consent.
Previously, students in this age group could only consent to mental health treatment without parental approval under a limited number of circumstances: incest, child abuse or serious danger, such as suicidal ideation.
“From mass shootings in public spaces and, in particular, school shootings, as well as fentanyl overdoses and social media bullying, young people are experiencing a new reality,” said Assemblymember Wendy Carrillo, D-Los Angeles, author of the bill. “The new law is about “making sure all young people, regardless if they have private health insurance or are Medi-Cal recipients, have access to mental health resources.”
Children who need mental health care but do not have consent from their parents could potentially seek help from social media and other online resources of sometimes dubious quality, according to the legislation.
The legislation allows mental health professionals to determine whether parental involvement is “inappropriate” and also whether the child in question is mature enough to consent.
California Capitol Connection, a Baptist advocacy group, opposed the bill, stating, “In most cases, a parent knows what is best for their child.”
This is not strictly an education bill, but it does affect schools. The law notes that school-based providers, such as a credentialed school psychologist, find that some students who want to avail themselves of mental health resources are not able to get parental consent.
No willful defiance suspensions
Beginning this school year, and for the next five years, California students across all grade levels cannot be suspended for willful defiance.
Acts of willful defiance, according to Senate Bill 274, include instances where a student is intentionally disruptive or defies school authorities. Instead of being suspended, these students will be referred to school administrators for intervention and support.
SB 274 builds on previous California legislation that had already banned willful defiance suspensions among first-through-eighth-grade students, and had banned expulsions for willful defiance across the board.
Los Angeles Unified, Oakland Unified, San Francisco Unified and other school districts have already banned the practice.
SB 274 would apply to all grades TK through 12 in both traditional public schools and charters. The bill would also prohibit schools from suspending or expelling students for being tardy or truant.
Schools can’t ‘out’ students
After Jan. 1, California schools boards will not be permitted to pass resolutions requiring teachers and staff to notify parents if they believe a child is transgender.
Newsom signed the Support Academic Futures and Educators for Today’s Youth, or SAFETY Act, in July in response to the more than a dozen California school boards that proposed or passed parental notification policies in just over a year. At least seven California school districts passed the policies, often after heated public debate.
The policies require school staff to inform parents if a child asks to use a name or pronoun different from the one assigned at birth, or if they engage in activities and use facilities designed for the opposite sex.
The new law protects school staff from retaliation if they refuse to notify parents of a child’s gender preference. The legislation also provides additional resources and support for LGBTQ+ students at junior high and high schools.
“Politically motivated attacks on the rights, safety and dignity of transgender, nonbinary and other LGBTQ+ youth are on the rise nationwide, including in California,” said Assemblymember Chris Ward, D-San Diego, who introduced the legislation along with the California Legislative LGBTQ Caucus.
SB 1327 gets required two-thirds vote approving $500 million in annual tax credits
Funded by fee on large internet companies
SACRAMENTO – Senator Steve Glazer’s bill to help strengthen local newsrooms with $500 million in annual tax credits was approved Thursday on a required two-thirds vote. It now moves to the Assembly.
The bill, SB 1327, was approved on a bipartisan 27-7 vote. A two-thirds vote was required because the bill assesses a Data Extraction Mitigation Fee on large Internet companies. It would distribute the money through tax credits to California news organizations.
“The passage today of my bill, SB 1327, is a step toward helping to revive news organizations across California,” said Glazer, D-7-Contra Costa. “Independent journalism is the lifeblood of our democracy by keeping our citizens informed on the workings of their government.
“This measure will mitigate the damage caused by platforms who use our personal data and their subsequent advertising profits to gut our mainstream news channels. I will continue to work with all stakeholders in the weeks ahead to chart a path forward that restores and expands independent news organizations, so critical to our democracy.”
Assemblywoman Buffy Wicks, D-14-Oakland, who represents portions of West Contra Costa County and has her own legislation, AB 886, to help news organizations, applauded the bill’s passage.
“I am encouraged to see SB 1327 move forward, and grateful to my Senate colleagues for recognizing the importance of this issue,” said Wicks. “The advancement of Sen. Glazer’s bill will allow us to continue working collaboratively toward a solution that protects and grows newsrooms across California.”
Joins the other Assemblymembers representing Contra Costa: Wilson, Bauer-Kahan and Wicks, who support offering up to 20% for down payment or closing costs, not to exceed $150,000
By Allen D. Payton
A bill to make illegal immigrants eligible for the California Dream for All Shared Appreciation Loan Program, which provides up to 20 percent of downpayment assistance to prospective homebuyers, passed the State Assembly last month on a vote of 56-15. All four Assemblymembers representing Contra Costa County voted in favor of Assembly Bill 1840, including Tim Grayson (D-15), who represents Antioch, Lori Wilson (D-11), Rebecca Bauer-Kahan (D-16) and Buffy Wicks (D-14).
Wicks also voted for the bill, authored by Assemblyman Joaquin Arambula (D-31), as a member of the Assembly Appropriates Committee.
AB1840 Assembly Floor vote on May 21, 2024. Source: leginfo.legislature.ca.gov
According to CalFHA, “The Dream For All Shared Appreciation Loan is a down payment assistance program for first-time homebuyers to be used in conjunction with the Dream For All Conventional first mortgage for down payment and/or closing costs. Upon sale or transfer of the home, the homebuyer repays the original down payment loan, plus a share of the appreciation in the value of the home.”
The program offers up to 20% for down payment or closing costs, not to exceed $150,000 and is not on a first come, first served basis. The homebuyer must register for a voucher and a randomized drawing will select registrants who will receive the voucher. The program requires at least one borrower be a first-generation homebuyer and all borrowers must be first-time homebuyers.
According to the Legislative Counsel’s Digest, “Existing law establishes the California Housing Finance Agency in the Department of Housing and Community Development, and authorizes the agency to, among other things, make loans to finance affordable housing, including residential structures, housing developments, multifamily rental housing, special needs housing, and other forms of housing, as specified. Existing law establishes the California Dream for All Program to provide shared appreciation loans to qualified first-time homebuyers, as specified.
Existing law establishes the California Dream for All Fund, which is continuously appropriated for expenditure pursuant to the program and defraying the administrative costs for the agency. Existing law authorizes moneys deposited into the fund to include, among other moneys, appropriations from the Legislature from the General Fund or other state fund.
This bill would specify that an applicant under the programwho meets all other requirements for a loan under the program, including, but not limited to, any requirements imposed by the Federal National Mortgage Association or other loan servicer, shall not be disqualified solely based on the applicant’s immigration status.
By expanding the persons eligible to receive moneys from a continuously appropriated fund, this bill would make an appropriation. The bill would recast the fund so that appropriations from the Legislature from the General Fund or other state fund are deposited into the California Dream for All Subaccount, which the bill would create and make available upon appropriation by the Legislature for specified purposes.”
AB 1840 is now up for votes by the State Senate Housing and Judiciary Committees before a possible vote on the floor.
Doesn’t consult at least four local news publishers in his district before developing legislation
SACRAMENTO – A data extraction mitigation fee on major Internet corporations would raise $500 million to fund employment credits for news organizations across California under legislation Senator Steve Glazer, D-Contra Costa, outlined Wednesday at a press conference. Joining Senator Glazer were news publishers representing hundreds of community, and ethnic outlets.
Amid the backdrop of newsrooms continuing a downward spiral with staff layoffs, cutbacks in resources or outright closures, Senator Glazer said “we must create a new framework to ensure that newsrooms keep our citizens informed and democracy accountable to the people.”
The bill, SB 1327, is co-authored by Senate President Pro Tem Mike McGuire, D-Santa Rosa, and Senators Catherine Blakeslee, D-Encinatas, Steve Padilla, D-San Diego, and John Laird, D-Santa Cruz.
Senator Glazer’s proposal would create a data extraction mitigation fee on the largest online companies, or platforms, with a minimum of $2.5 billion in revenues. The Data Extraction Mitigation Fee will be based on the value that online platforms derive by extracting personal and economic data from those who visit the company’s web pages.
“News organizations and their advertising revenues have been hollowed out by these online platforms,” Senator Glazer said. “They should mitigate this damage and this new bill will do exactly that.”
The data extraction mitigation fee closes a loophole that allows online platforms to avoid taxation on the value of the barter in which they engage with customers who, in effect, trade access to their personal data for the opportunity to use a website. While this kind of economic relationship has helped fuel innovation and access to information, it has also created what economists call “negative externalities” – or harm to third parties who are not directly a part of that exchange.
In this case, the harm is being done to local news organizations and, more broadly, to all Californians who depend on independent local news coverage of events that affect their daily lives and the democratic form of government – the foundation of our society.
“You cannot have informed voters if there is no one to tell them what their government is doing,” said Senator Blakespear. “We’ve seen the journalism industry devastated in recent years, and we need to do something about that. SB 1327 is a smart, sensible way to fund local journalism.”
Unofficial estimates indicate that a fee level equivalent to the current statewide sales and use tax rate could generate almost $1 billion per year. Of that amount, 39.5% would go to K-14 education as required by Proposition 98 and 1.5% would go to state budget reserves as required by Proposition 2.
In addition to the constitutional requirement to use a portion of the fee revenue for education and budget reserves, some of the revenue would also go to backfill the state’s general fund for revenue lost when the companies deduct the cost of the fee as an expense on their income tax returns. Some of the money would also go to the Franchise Tax Board for administration and collection costs. That would leave approximately $500 million annually to support local journalism.
While Congressman Mark DeSaulnier held a Zoom meeting with local news publishers in Contra Costa County to provide input on his proposed federal legislation in 2021, neither Glazer nor his staff reached out to at least four publishers in the county for input on his bill before developing it. They include Tamara Steiner, publisher of the Concord and Clayton Pioneer, Mike Burkholder, publisher of ContraCostaNews.com, Greg Robinson, publisher of The Press covering Brentwood, Oakley and Discovery Bay, and Allen Payton, publisher of the Antioch Herald and Contra Costa Herald.
As he did with DeSaulnier’s bill, Payton twice asked the state senator if he would include an exception in the tax code to allow non-profit owners of local media to continue endorsing or opposing candidates and ballot measures, and publishing editorials. But that was not included in the state legislation.
However, Glazer did gather support from other news organizations and sought their input prior to announcing his legislation.
Steve Waldman, president of Rebuild Local News, a nonpartisan, nonprofit coalition of more than 3,000 locally-owned and nonprofit, community-based newsrooms, said the legislation would be a major breakthrough for the news industry – and for communities that are starving for local news.
“We vigorously applaud Sen. Glazer’s proposed local news employment credit, which would truly revitalize community news in California,” Waldman said. “It is a transformative proposal. It would dramatically improve the capacity of newsrooms to cover their communities and is especially attentive to the role of medium and small-sized outlets.
Waldman added: “An employment credit places the incentives in the right place: hiring of local reporters. It’s non bureaucratic. It helps for-profits and nonprofits, print, digital and broadcast, urban and rural. It’s future friendly so new innovators can plug in too. And it does all this while being compatible with the First Amendment and the need to protect the editorial independence of news outlets.”
Much like mitigation fees imposed on companies that put chemicals into the environment to make their products or develop projects that burden our roads and schools, this fee assigns the cost of saving local journalism to those firms whose economic activity is causing the news industry’s demise.
The program would also distribute at least $25 million annually for non-profit local news organizations that don’t benefit from tax credits. Half of that amount would be reserved for those news organizations with fewer than 10 full-time employees. Additional funds would be provided to journalism training programs.
To qualify for the tax credit, news organizations would have to have their primary circulation or distribution in California and their online news primarily consumed within the state. They would publish in the current and previous year and carry media liability insurance. Broadcasters would have to be licensed by the Federal Communications Commission to broadcast in the state to claim the credit.
All qualifying news organizations would be eligible for tax credits based on the number of working journalists they have, the credits increasing with every new hire. News organizations that aren’t profitable would be eligible for tax refunds, as would non-profit news organizations.
Matt Pearce, president of Media Guild of the West, said in a letter of support that the bill hits the right tone in its support of smaller publications and outlets.
“The journalism jobs tax credit is well structured, nondiscriminatory in a way that avoids government favoritism, and incentivizes local journalist employment,” Pearce wrote. “Smaller publishers with fewer than 10 employees – which includes many of California’s ethnic media publishers – would, appropriately, receive a slightly larger share of support than larger newsrooms. Freelance journalists are appropriately recognized and economically supported at a level that would not incentivize workforce fissuring. Employers that provide benefits to their employees would receive more support than those that didn’t.”
Laura Rearwin Ward, publisher of the Ojai Valley News in Ojai, CA near Santa Barbara and Ventura, praised Senator Glazer’s proposal to fund small news publications through tax credits and a data mitigation fee.
“Senator Glazer’s bill gives support to those most in need — California’s print and digital local, independent, and ethnic media,” Rearwin Ward said. “And the data mitigation fee appropriately focuses on large online platforms, such as Google, which profit from the use of content they do not create, and user data they have utilized in a one-sided barter arrangement. This fee will mitigate the harm done to the California news industry through loss of advertising revenue. This fee closes a loophole that has allowed online platforms to avoid taxation on the value of that barter. The visible damage to California is clear to see — huge losses in professional local news reporting, resulting in news deserts and ghost papers.”
Lance Knobel, CEO and co-founder of Cityside Journalism Initiative, the nonprofit that publishes Oaklandside, Berkeleyside and Richmondside, said the legislation could be a game-changer.
“Senator Glazer’s local news employment credit tackles the core problem for local journalism in California: how can we sustain and even increase the number of reporters and editors working in our community? If passed it would be truly transformative for independent local news organizations like ours,” Knobel said.
Ken Doctor, Local Founder and CEO of Santa Cruz-based publication Lookout, said the proposed tax credits would be a critical lifeline for local news organizations.
“The best solution for California’s local news crisis is simple: more experienced journalists offering trusted and trustworthy reporting to and for communities up and down the state,” said Doctor, also an analyst with Newsonomics. “Sen. Glazer’s bill recognizes that payroll tax credits are the best way to fund such a revival, without having the state pick winners or losers. As the legislature debates how to fund such credits, the focus on them is the one essential going forward.”
“We have seen a dramatic devastation of the news eco system, and with it a coarsening of our politics that have led many to worry whether our democracy can survive,” Senator Glazer said. “In so many cases, stories are not being covered in communities, large and small. We often don’t know what politicians and other community leaders are doing – many of the checks and balances have vanished – because nobody is there to cover them. We want to restore accountability and strengthen our democracy by reviving newsrooms.”
