Sen. Dodd: Bill to Protect Newspapers, Journalism, Clears Committee

Tuesday, August 11, 2020

SACRAMENTO – A bill co-authored by Sen. Bill Dodd, D-Napa, that would extend for two years a requirement for newspapers to comply with the state’s new gig-worker law, protecting the industry from financial crisis while ensuring the future of journalism, cleared a key committee today.

“In these uncertain times, ensuring newspapers can remain viable and continue reporting is vitally important to our democracy,” Sen. Dodd said. “They are our eyes and ears, and we cannot afford to lose them. This bill will prevent new costs that could be a knock-out blow for some struggling newspapers and keep jobs from going away.”

Many newspapers are facing dire financial futures. Nationwide, advertising revenue has declined by more than half over the past seven years, dropping from $25 billion in 2012 to $11 billion in 2019. Economists predict an additional 25 percent decrease in 2021 because of the coronavirus pandemic. The demise of newspapers will mean lost jobs and a reduction in news coverage – from reporting on local school boards to news in our nation’s capital.

Assembly Bill 323 would extend the deadline for compliance with a new law, Assembly Bill 5, requiring gig workers including newspaper carriers to be classified as full-time employees. Doing so would add an estimated 85 percent to newspaper distribution costs, forcing layoffs and newspaper closures. AB 323 would give newspapers until Jan. 1, 2023 to comply.  The bill would further help the industry by giving preference to local news organizations for state agency advertising and marketing contracts.

AB 323 is authored by Assemblymember Blanca Rubio, D-Baldwin Park, and is co-authored by Sen. Dodd, Sen. Mike McGuire, D-Healdsburg, Sen. Holly Mitchell, D-Los Angeles, and Sen. Bob Hertzberg, D-Van Nuys. It passed the Senate labor committee with bipartisan support, and heads next to Senate appropriations before returning to the Assembly for concurrence.

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Senator Bill Dodd represents the 3rd Senate District, which includes all or portions of Napa, Yolo, Sonoma, Solano, Sacramento and Contra Costa counties. More information on Senator Bill Dodd can be found at www.senate.ca.gov/dodd.