10:30 a.m. ET, Aug. 20, 2024
Following years of legislative work, a draft deal between Google, Gov. Gavin Newsom and Assemblymember Buffy Wicks is circulating among California local news stakeholders and beyond. It’s been evolving and there remains some confusion about what the framework includes, or will include in its final form.
With the caveat that this could be overrun by events any minute now, here’s what we know:
How much is this deal worth?
There will likely be some big numbers put out, but keep in mind that the overall deal includes:
We are focused on the first component, since that is the bucket mostly likely to result in new support for local journalism in the state. Based on the framework as we last saw it, Google has committed to $15 million in new money for this fund in the first year, plus continuing to put about $10 million through Google News Initiative. The state of California contributing $30 million in the first year, which would bring the total to $45 million in year one.
What about after the first year?
This is a five-year deal. Google is committing to a minimum of $10 million annually in the Local News Fund while maintaining at least $10 million in Google News Initiative investments. Google’s total commitment to the Local News Fund at this point is $55 million over five years. California legislators are also committing to support the Local News Fund in the coming years, but the amounts are vague at this point.
Who would get this money?
As of now, the Local News Fund would be distributed based on how many eligible editorial employees there are in a news organization, using the definitions in AB 886.
How would the smallest of newsrooms fare in this framework?
In the latest draft of the framework, there is also a provision that 12% would go to “underserved” and “local” news outlets. It’s a bit hard to know what that means, but based on what we’re hearing, it’s likely that means members of California’s ethnic press and outlets with fewer than five employees.
If the total for the Local News Fund in the first year is $45 million that would mean about $5.5 million would be reserved for that cohort, which may be as big as 285 different outlets (based on the Medill State of Local News report). In years two through five, the total committed amount for the Local News Fund is $10 million — the state has guaranteed a minimum contribution, so it could be more. Small news outlets and members of the ethnic press would be guaranteed $1.2 million to be shared among them.
We have proposed a “guaranteed minimum” that would make it more likely that smaller players would get a meaningful sum, but it does not appear that that concept was included. Ultimately, it’s likely the governing board would make final decisions on allocation.
Who would run this program?
As of now, the program would be run out of UC Berkeley journalism school. There would be a governing board but who is on that board has been the subject of much negotiation. Last we heard it was a seven-person board consisting of:
We have suggested expanding the board to nine so it can include a guaranteed representative from the nonprofit news sector. Additionally, we think it would be ideal to have other parts of the state and the journalism education world help administer this program — perhaps the excellent journalism program at Fresno State.
Who are the players here? Who is negotiating with whom?
These negotiations were mostly between the governor’s office, Assemblymember Wicks’ office and Google. At this point, other lawmakers are weighing in, including Sen. Glazer, who introduced SB 1327 and Sen. Mike McQuire, the Senate Pro Tem.
What happens to AB 886 and SB 1327 if this deal is confirmed?
Those bills are almost certainly stalled for this session. We’ve not heard of any lawmakers making promises of forgoing legislation in the future if this deal is agreed to. Whether there is stakeholder will to pursue future legislation is an open question.
You said earlier that this was based on the definitions in AB886. What are those?
Here are the operative definitions based on the latest version of AB 886:
A qualified news outlet:
(j) “Qualifying publication” means an internet website, online or mobile application, or other digital service that meets all of the following criteria:
(1) The internet website, online or mobile application, or other digital service does not primarily display, provide, distribute, or offer content generated, created, produced, or owned by an eligible broadcaster.
NOTE: In some of the later versions of AB 886, national network broadcasters were excluded from the scheme. This point is moot, though, when applied to the negotiated framework because all broadcasters, including public broadcasters, are being excluded at this point.
(2) The internet website, online or mobile application, or other digital service provides information to an audience in the state and has done so for the prior two years.
(3) The internet website, online or mobile application, or other digital service performs a public information function comparable to that traditionally served by newspapers and other periodical news publications.
(4) The internet website, online or mobile application, or other digital service engages professionals to create, edit, produce, and distribute original content or original content for which a valid license has been obtained concerning local, regional, national, or international matters of public interest through activities, including conducting interviews, observing current events, analyzing documents and other information, or fact checking through multiple firsthand or secondhand news sources.
(5) The internet website, online or mobile application, or other digital service updates its content on at least a weekly basis.
(6) The internet website, online or mobile application, or other digital service has an editorial process for error correction and clarification, including a transparent process for reporting errors or complaints to the publication.
(7) The internet website, online or mobile application, or other digital service meets any of the following criteria:
(A) The internet website, online or mobile application, or other digital service generated at least one hundred thousand dollars ($100,000) in annual revenue from its editorial content in the previous calendar year.
(B) The internet website, online or mobile application, or other digital service had an International Standard Serial Number assigned to an affiliated periodical before January 1, 2025.
(C) The internet website, online or mobile application, or other digital service is owned or controlled by an organization exempt from federal income taxation pursuant to Section 501(c)(3) of the Internal Revenue Code of 1986.
(8) The internet website, online or mobile application, or other digital service has at least 25 percent of its editorial content consisting of information about topics of current local, regional, national, or international public interest.
(9) The internet website, online or mobile application, or other digital service is not controlled, or wholly or partially owned by, an entity that meets any of the following criteria:
(A) The entity is a foreign power or an agent of a foreign power, as those terms are defined in Section 1801 of Title 50 of the United States Code.
(B) The entity is designated as a foreign terrorist organization pursuant to Section 1189 of Title 8 of the United States Code.
(C) The entity is a terrorist organization, as defined in Section 1182 of Title 8 of the United States Code.
(D) The entity is designated as a specially designated global terrorist organization under federal Executive Order 13224.
(E) The entity is an affiliate of an entity described in subparagraph (A), (B), (C), or (D).
(F) The entity that has been convicted of violating, or attempting to violate, Section 2331, 2332b, or 2339A of Title 18 of the United States Code.
A qualified journalist:
(f) “News journalist” means a natural person who meets both of the following criteria:
(1) The person is employed for an average of at least 30 hours per week during a calendar quarter by the digital journalism provider.
(2) The person is responsible for gathering, developing, preparing, directing the recording of, producing, collecting, photographing, recording, writing, editing, reporting, designing, presenting, or publishing original news or information that concerns local, regional, national, or international matters of public interest.
Qualified freelance spending:
In the latest draft of AB 886, the smallest of news outlets were able to receive some benefits based on their freelance spend. If this framework is implemented using these definitions, freelance spend would be taken into account based on these parameters.
(B) For the purpose of calculating an allocation from a covered platform pursuant to subdivision (a) of Section 3273.81 and subdivision(e) of Section 3273.82, or for establishing a digital journalism provider’s minimum allocation to news journalists and support staff pursuant to this section, a digital journalism provider with five or fewer employees may elect to count dollars spent on the equivalent functions performed by news journalists as follows:
(i) The digital journalism provider shall employ at least one news journalist for the primary purpose of producing content for a California audience.
(ii) Each forty thousand dollars ($40,000) spent by a digital journalism provider in the previous calendar year to compensate other natural persons performing the functions defined by paragraph (2) of subdivision (f) of Section 3273.80 may claim to employ the equivalent of one news journalist, up to a maximum of one hundred sixty thousand dollars ($160,000) or the equivalent of four news journalists, with those amounts subsequently annually adjusted for increases in the Consumer Price Index. In no instance may the total number of news journalists and their equivalents claimed pursuant to this clause exceed the number of natural persons compensated by the digital journalism provider.
Is the deal done?
We don't view the deal as done until it’s been announced. There have been deadlines tossed about, but the real deadline is the end of California’s legislative session. So, if groups have views they want to share with the governor’s office, Sen. McGuire or Assembly Member Wicks, they should.
Who should we connect with if we have questions?
Rebuild Local News policy director Anna Brugmann is fielding comments and questions.
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