Calif. Digital Discrimination Bill Stalls in Appropriations

California appropriators last week halted multiple telecom-related bills meant to help vulnerable communities. Assemblymember Mia Bonta (D) blamed the broadband industry after the Senate Appropriations Committee held back her bill that would have banned digital discrimination as the FCC defines it (AB-2239). However, that committee and its Assembly counterpart advanced several other telecom and privacy bills to final floor votes.

The Bonta bill’s disparate impact standard raised liability concerns for industry. At hearings earlier this year, lobbyists for CTIA, USTelecom, the Wireless Infrastructure Association, the California Communications Association and the California Video & Broadband Association (CalBroadband) opposed AB-2239. Some state senators echoed those worries at a Communications Committee meeting last month (see 2407020062). However, Bonta vigorously defended the bill including such a standard, which considers situations when a seemingly neutral practice has a disproportionately negative impact on one group over another.

Bonta was “incredibly heartbroken to learn” that AB-2239 “will no longer be advancing this legislative session,” she said in a statement. “Against the backdrop of a well-funded opposition campaign led by the broadband industry, this bill defied all expectations by making it as far as it did.” It would have provided relief for historically underserved communities, she added. “Disconnected Californians lost today.”

Senate Appropriations also held back an affordability bill. AB-1588 would have required the California Public Utilities Commission to establish an expedited process for existing telephone companies to become eligible telecom carriers for providing state or federal Lifeline services. It failed despite being scaled back from a previous version that proposed updating the California LifeLine subsidy program to support broadband for low-income households (see 2407020062).

Meanwhile, the Assembly Appropriations Committee held a bill (SB-424) that would have required $30 affordable internet plans as a condition of receiving California Advanced Services Fund (CASF) infrastructure grants. However, the same committee voted unanimously to advance a bill to remove a requirement that ISPs provide free internet before receiving CASF public housing grants (SB-1383). The cable industry supported that bill because it claims that the current restriction deters grant applications (see 2404020049).

“CalBroadband remains committed to helping our state reach the goal of broadband for all by 2032," Janus Norman, the state cable association's president, said Friday. "We will continue to partner with stakeholders to advocate for policies that work towards California families having access to affordable and reliable broadband service throughout the state.”

Upcoming Floor Votes

The California legislature has until Aug. 31 to send bills to Gov. Gavin Newsom (D). The Appropriations Committee sent many bills to the Assembly and Senate floors Thursday.

For example, Senate Appropriations advanced a proposed update of the state’s 2006 video franchise law, known as the Digital Infrastructure and Video Competition Act (DIVCA). The committee voted 5-2, with Republicans voting no, for AB-1826, which would increase fines for service-quality problems and seeks increased participation from the public and its advocates in the franchise renewal process. In addition, the committee voted 7-0 for AB-3216, which requires that schools adopt limits or bans on student use of smartphones.

In the privacy realm, the Senate panel voted 4-1 for AB-1949, which would set stricter limits on sharing children’s personal data under the California Consumer Privacy Act (CCPA). Also, the fiscal committee voted 4-0 for AB-2930, which would set rules for automated decision-making technology, including requiring impact assessments and disclosures to consumers. The committee amended the bill to delete all requirements for state and local agencies, specify that only the California Civil Rights Department may enforce the bill and narrow its scope to employment. CTIA, USTelecom and California cable and telecom groups opposed AB-2930 in a July 30 letter to Appropriations Committee Chair Anna Caballero (D). “The bill could prevent internet and telecommunications providers from utilizing critical tools that support network reliability and improve customer service” they wrote.

Senate appropriators voted 5-1 to advance AB-3172, which would establish civil penalties for any big social media platform that “breaches its responsibility of ordinary care and skill to a child” younger than 18. But it held AB-3080, which would have required porn websites to use age verification to keep minors from using them.

And the committee cleared the California Journalism Preservation Act (AB-886), which would require large websites to compensate digital journalism providers. The vote was 4-2. The News/Media Alliance CEO Danielle Coffey applauded the measure. “News publishers must receive compensation from the Big Tech platforms for the use of their content to be able to continue their critically important work.”

Meanwhile, Assembly Appropriations advanced a social media bill (SB-976) that would provide parental controls, including the ability to decide whether their children see a chronological news feed or one based on an algorithm, the current default. Also, the panel supported SB-1504 to tighten a cyberbullying law that requires social platforms to have reporting mechanisms. Committee Republicans didn’t vote on either bill.

The California Senate could soon vote on several other bills that previously advanced to the floor. On the telecom side, AB-2765 would require the CPUC to report on inspections that ensure companies comply with resiliency plans. AB-2905 would expand the state’s autodialer definition to include calls made with an AI voice.

On privacy and social media: AB-3048 would require web browsers to include an option to opt out of selling and sharing data on all websites. AB-1008 would clarify that personal information under the CCPA can exist in different formats, including physical and digital. AB-1824 would require a business acquiring another company to follow an acquired customer’s privacy directions under the CCPA. AB-1282 would require a study on mental health risks of social media for children. Last, AB-2481 would create a mechanism for people who report threatening content on social media platforms.

Additional bills coming to the Assembly floor include SB-1283, which is similar to AB-3216 and would require that schools adopt limits or bans on student use of smartphones; and SB-1223, which would amend the CCPA to include “neural data” as a type of sensitive personal information.