Assembly Standing Committee on Privacy and Consumer Protection
- Rebecca Bauer-Kahan
Legislator
I'll go. It's fine. Okay. Well, we are going to call. Thank you, Assembly Member Wicks, always here for the team. But I'll go first. Yeah. Okay. We're going to call the Assembly Privacy and Consumer Protection Committee hearing to order.
- Rebecca Bauer-Kahan
Legislator
We have 14 bills on the agenda today with one Bill, Assembly Bill 489 by Assemblymember Bonta on the consent calendar. We will take that motion once we have a quorum, which we don't. What we typically hear bills in file order. We have one change to that order.
- Rebecca Bauer-Kahan
Legislator
We will be hearing AB56, my Bill as a special order to accommodate my witness to effectively manage time we'll be hearing, each witness will get two minutes, two witnesses per side. After this, two preliminary support witnesses and the two preliminary opposition witnesses.
- Rebecca Bauer-Kahan
Legislator
We will take support and opposition from anybody in the room who would like to provide as much. And we, of course, are always happy to accept written testimony through the position letter portal on the Committee's website, which I can tell you we do look at. So with that, we will begin the hearing.
- Rebecca Bauer-Kahan
Legislator
So I will turn it over to the Vice Chair because I'm going to go first. Clearly, everybody can come up. The party's starting. Perfect. Yes. That's great. Yeah, we'll see where we are. All right, Madam Chair, Assembly Bill 1064. We're going to do AB 56, if you don't mind. No worries.
- Rebecca Bauer-Kahan
Legislator
Thank you, Madam Vice Chair and members. First, I want to begin by accepting the committee amendments which they make some changes to the initial warning label in the bill, shortening its duration and making sure it allows for immediate access to social media platforms.
- Rebecca Bauer-Kahan
Legislator
I want to thank my colleagues for bringing the concern around access to information in an emergency that resulted in these amendments. It also grants the Department of Public Health the ability to update the warning label. As science in the space evolves, we want to make sure we're always using the best possible science here in California.
- Rebecca Bauer-Kahan
Legislator
I'm going to be brief because I think my witness is going to say everything that needs to be said. But as we all know, and as those of us in the room that are parents or grandparents are experienced every day, we are in the midst of a mental health crisis with our teens, and there are a lot of reasons for that.
- Rebecca Bauer-Kahan
Legislator
And I am the first to say that social media is only a portion of what is causing our teens to suffer. But what has happened is that our teens have become a commodity. Their attention has become something that companies are trying to profit off of. And in so doing, they are harming our youth.
- Rebecca Bauer-Kahan
Legislator
And this committee and this body and Republicans and Democrats alike, I want to note, have worked over the years to try to do everything we can to protect our kids from the harms that they are facing online. And we continue to do that work today.
- Rebecca Bauer-Kahan
Legislator
And I had the privilege of voting for Assemblymember Dixon's bill in Judiciary just this morning that helps kids online. Assemblymember Wicks did age-appropriate design, which but for the company suing, would be the law today. And so this bill today, I want to say, is not the only solution to this problem.
- Rebecca Bauer-Kahan
Legislator
But where we are is that we have not been able to put into law age-appropriate design because the companies have sued and stopped it. And so what is critically important, and by the way, what I have heard the company say again and again in this room is the parents should be taking control, is that we educate folks about what the actual harms of social media are.
- Rebecca Bauer-Kahan
Legislator
And so this warning label, which is grounded in science and research that will allow users of social media to know that if they use social media for extended period of times, that it could cause harm. So that as they're experiencing it, as they get to that three hour point where the research shows that they start to experience the negative mental health impact, that they see that warning that we're educating them, okay, you're at that point, the research says now you're going to have those negative health impacts.
- Rebecca Bauer-Kahan
Legislator
We continue to educate and inform the public about the risks. And that's what this bill is about. And it's about saving the lives of our youth and making them better. And I say in this hearing all the time, we have no higher calling than to protect our youth. And I truly believe that this bill does just that.
- Rebecca Bauer-Kahan
Legislator
And so with that, I want to turn it over to Victoria Hinks, who is one of the strongest people I've had the privilege of getting to know. But I know she doesn't want to be here today. She would much rather not have to be here. But I thank her for her courage and her bravery and her willingness to help us save other lives. Victoria.
- Victoria Hinks
Person
Good afternoon. I'm Victoria Hinks. I'm here to share my daughter Alexandra's story because she no longer can. Alexandra, lovingly known as Al by her family and friends, died by suicide eight months ago. She was only 16. She was a kind, beautiful soul and full of life. She loved animals, especially our dog, Elsa.
- Victoria Hinks
Person
She loved her friends, babies, sports. She sang songs from Hamilton all the time. And she loved anything pink. But social media pulled her into a dark spiral. She was served content about self harm, suicide, eating disorders. She started believing she wasn't pretty enough and needed beauty filters.
- Victoria Hinks
Person
She became hooked to doom scrolling for hours and getting more and more isolated. We as parents were left with impossible choices. Do we not let her be on social media and have her feel isolated from her friends? Or do we let her use social media to help her feel connected? We tried everything to help.
- Victoria Hinks
Person
Even therapy didn't help. What worked for her at 13 did not work for her at 16. Parental controls were useless. She bypassed them all. She became someone we didn't recognize. Taking social media away was like taking drugs away from an addict. And finally, she used social media to find out the best way to kill herself.
- Victoria Hinks
Person
A question which was answered in great detail and with encouragement. There's not a bone in my body that doubts social media played a major role in her death. Social media is knowingly and intentionally preying on the fragile psyche of teenage girls for profit. So instead of preparing for junior prom, I'm here today for change.
- Victoria Hinks
Person
For Al, for California's kids. This could be your child. This could be your grandchild. This could be your niece or nephew. Social media does not discriminate. We're raising kids in an unregulated social experiment. But we don't have to keep being the guinea pigs. We can demand better, real warnings, parental controls that actually work.
- Victoria Hinks
Person
Technology used for good and not for harm. These social media companies have incredible resources and a huge amount of intellectual horsepower. They could protect their kids, our kids, if they wanted to. And I can't bring back my beautiful little owl baby, but I won't let her short life be in vain.
- Victoria Hinks
Person
Maybe her story can help save someone else's child. I'm here as a mom, appealing to other parents. Please vote like a mom. Please support AB 56. You have the power to end this experiment and you have the power to be on the right side of history. Thank you so much for having me.
- Rebecca Bauer-Kahan
Legislator
Thank you. Thank you. Victoria and Tessa Pickard, a social worker and therapist, is here with Common Sense Media.
- Tessa Pickard
Person
Hi, my name is Tessa Pickard and I'm a licensed clinical social worker. My expertise is in child development and trauma. I've worked for over 20 years with children both in foster care and with neurodevelopmental disorders. I'm also the mother of three.
- Tessa Pickard
Person
I'm here as a council member of Common Sense Media and as an expert in this field to discuss how chronic stress from social media doesn't just harm mental health. It has the power to shape a developing brain. It has already been established that adverse childhood experiences are linked to lifelong health outcomes.
- Tessa Pickard
Person
But I'm here to tell you that when teens experience prolonged repetitive stress in their social relationships, this stress can do lasting harm not only on their self esteem, but can also literally change how their developing brain is mapped out forever. Let me explain.
- Tessa Pickard
Person
Experiences during development create superhighways in our brains, neural pathways that become default routes for thinking and feeling. Brains also operate on a use it or lose it principle, pruning away unused pathways and strengthening frequently activated ones.
- Tessa Pickard
Person
So when teens spend hours of their day on social media, much of which leads to feelings of isolation and anxiety, the brain adapts accordingly. Repeated stress during critical windows becomes hardwired, making anxious and depressive states the default. This is known as states becoming traits where prolonged stress responses become ingrained personality traits. This isn't just a parenting issue.
- Tessa Pickard
Person
Highly addictive social media is rewiring an entire generation's brains. Ignoring this reality is a reckless gambler with our greatest legacy, our children. AB 56 is important because it will require social media apps to provide a warning about potential mental health risks for users, especially minors. This helps families make informed choices about social media use. As lawmakers, you hold the power and the awesome responsibility to act. Thank you, Madam Chair and the members of this committee.
- Rebecca Bauer-Kahan
Legislator
Thank you. Oh, he's just here for technical support from the AG's office. So if people have questions.
- Diane Dixon
Legislator
Thank you. Okay, do we have speakers in support, please? Assembly Bill, where are we? 56.
- Crystal Strait
Person
Crystal Strait with Common Sense Media, the sponsor of the bill, in support.
- Kate Ruley
Person
Hello, my name is Kate Ruley, and I'm here in support. Strongly support AB 56. And I also lost a child to suicide. And this is my son. Thank you.
- Mark Dale
Person
I'm Mark Dale from Marin County. I've worked with many families who've lost and I stand in support of AB 56. Thank you.
- Marc Berkman
Person
Marc Berkman with the Organization for Social Media Safety in support.
- Ken Wang
Person
Good afternoon, Vice Chair. Ken Wang on behalf of the California Initiative for Technology Democracy in support. Thank you.
- Malik Bynum
Person
Good afternoon, Madam Chair. Malik Bynum with the Accounting Behavioral Health Directors Association in strong support. Thank you.
- Steve Wimmer
Person
Good afternoon, Madam Chair. Steve Wimmer with the Transparency Corporation. And strong support.
- Nicholas Romley
Person
Nick Romley here on behalf of the California School Nurses Organization. In support.
- Anthony Liu
Person
I'd just like to say I'm Anthony Liu from the Office of Attorney General Rob Bonso. We're also in support and one of the sponsors of this bill.
- Diane Dixon
Legislator
Okay. Oh, I see. Okay, thank you. Any other speakers in support? Speakers in opposition and main witness, if you want to come forward please. Please proceed. Thank you.
- Dylan Hoffman
Person
Thank you. Madam Chair, members of the committee, Dylan Hoffman, on behalf of TechNet in respectful opposition to AB 56. First, I want to state that our member companies don't dispute at all that there is a youth mental health crisis going on in our country which warrants serious discussion.
- Dylan Hoffman
Person
Our companies recognize that we need to be part of that conversation and have been for decades at the forefront for designing platforms and policies to provide as safe and enjoyable an experience as possible online. What we question is whether a bill like AB 56 is a meaningful solution to this problem.
- Dylan Hoffman
Person
And while the proposed amendments move in a better direction, we still have to question what this bill is actually going to accomplish. 10 seconds is a long time on the Internet. Even for a skippable warning, 90 seconds is an eternity. Consider that 40% of users navigate away from a loading screen after just three seconds.
- Dylan Hoffman
Person
This incredible nuisance and burdening of access to speech for all users simply won't meaningfully address youth mental health. First, the warning as proposed flattens an incredibly complex, nuanced and evolving issue to the point of overgeneralization.
- Dylan Hoffman
Person
It's inapplicable to adults, but it also tells minors nothing about what kinds of content, online behaviors or features could be risky, impact their mental health, or steps that they can take to prevent protect themselves. Second, excessive warnings also lead to users ignoring them. As studies have shown, users experience warning fatigue from repeated notices.
- Dylan Hoffman
Person
At best, these labels will be ignored. At worst, they'll create an annoyance and burden to users of all ages trying to access lawful speech. Which leads me to some of the constitutional issues with this Bill. We believe this bill is highly likely to be challenged in court and likely to be found unconstitutional.
- Dylan Hoffman
Person
Consider a couple of offline contexts requirements subjecting consumers entering a bookstore or a comedy club or other venue that the books or material they encounter inside could be harmful. That would never pass constitutional muster. Strict scrutiny would almost certainly apply to this bill, considering you're telling users that the content they see behind this warning could be harmful.
- Dylan Hoffman
Person
This bill almost certainly is not narrowly tailored or the least restrictive means to disseminate information about the potential risks of social media to youth. For those reasons, we're respectfully opposed to AB 56. Thank you.
- Aodhan Downey
Person
Thank you for the opportunity to speak today. I'm Aodhan Downey. I serve as a State Policy Manager for the Computer and Communications Industry Association an international not for profit tech trade association. CCIA strongly believes in keeping children safe online. However, AB 56 would fail to make kids safer.
- Aodhan Downey
Person
It displaces focus away from real solutions, including those that promote parental education and digital literacy. These focuses would be more effective compared to one size fits all warning labels that do not differentiate between healthy and unhealthy uses of social media.
- Aodhan Downey
Person
While targeting a broad population unaffected by the harms it warns against, these mandated warning labels raise First Amendment concerns that have been ruled compelled speech or more accurately, compelled silence. Studies have found that 40% of users will not wait for 3 second delay for a website. Therefore, even the amended 10 seconds is significant
- Aodhan Downey
Person
state imposed barrier to Information. This is important to note, especially as California courts have ruled against state imposed content regulations on digital services.
- Aodhan Downey
Person
This regulation is likely to result in a significant operational and technical burden through the mandatory implementation of time tracking and the warning displays themselves, especially for smaller and medium sized digital services that fall into the scope of the broad definition of social media platform.
- Aodhan Downey
Person
The costs required to redesign interfaces and conduct testing favor large companies with necessary resources, potentially harming smaller competitors or decentralized platform.
- Aodhan Downey
Person
Overall, CCIA believes that an alternative to approaching these complex issues is to work with businesses to continue their ongoing private efforts to implement mechanisms such as daily time limits or child safe searching which provides parents control over their own child social media use.
- Aodhan Downey
Person
Creating a safer online environment for all is a worthwhile goal, but it should not come at the expense of disempowering families and Californians. We appreciate the committee's consideration of these comments and request a no vote. Thank you.
- Diane Dixon
Legislator
Thank you. Do we have speakers in opposition? If you please come forward to the microphone.
- Tracy Rosenberg
Person
Hi, Tracy Rosenberg from Oakland Privacy. We are not in an opposed position. We are in a tweener position. We just want to underline the comments regarding having the message correlate to a public health problem that is experienced by all of the users who will see the message.
- Tracy Rosenberg
Person
We are, we are concerned that it will in fact get thrown out. Of course.
- Becca Cramer Mowder
Person
Becca Cramer-Mowder on behalf of Kaiser Advocacy, representing Electronic Frontier Foundation in respectful opposition. Thank you.
- Ronak Daylami
Person
Ronak Daylami on behalf of Cal Chamber, respectfully also in opposition. Thank you.
- Robert Singleton
Person
Robert Singleton with Chamber of Progress, also respectfully opposed.
- Diane Dixon
Legislator
Thank you very much. Any other speakers in opposition, please come forward. Seeing none, we'll bring it up to the committee. Comments. Wicks.
- Buffy Wicks
Legislator
Thank you. Thank you to the author for bringing this bill forward. You and I have served on this committee since we came in together in 2018. So it's our seventh year and have run numerous attempts at different ways to try to get to the problem.
- Buffy Wicks
Legislator
The problem that there's pretty clear evidence that social media for young people increases anxiety. There's cyberbullying, there's distorted body image issues, self harm, shortened attention span. All of this is pretty well documented and outlined. And I apologize because I was talking to some of my colleagues during some of the opposition testimony.
- Buffy Wicks
Legislator
But I think what I did hear from you, sir, was essentially arguing for no regulation in the face of all of this is what I was kind of picking up from that. And I will tell you as a mom, there is no way we are going to sit here and let this happen to our children.
- Buffy Wicks
Legislator
This is one tragic example of many that we see across this country. It is our responsibility as lawmakers to keep our community safe, specifically our most vulnerable, which is our children. I know our chair and many others are committed to this. How anyone can argue against warning labels to me is just beyond me.
- Buffy Wicks
Legislator
When we see this evidence, I would like to make a motion to move the Bill. I'd like to also be added as a co author. Second, we have a lot of seconds and just appreciate your testimony and bringing the, the story of your daughter to this hearing today and all the good work.
- Buffy Wicks
Legislator
And I know this can't be easy for you. So thank you so much for being here and appreciate the work of the author.
- Diane Dixon
Legislator
Thank you. Before we go any further, let's do a couple administrative items.
- Diane Dixon
Legislator
Just in time. Thank you for that. And then we'll have a vote on the consent calendar.
- Diane Dixon
Legislator
We'll keep it open for absence. All right, back to the committee. We've heard from Assemblymember Wicks. Any other comments on AB 56? Yes. Ms. Mckinnor.
- Tina McKinnor
Legislator
'd like to thank the author for bringing this bill. And I'd also like to thank the mom for coming here and testifying. You are so brave, and my heart goes to you. My prayers to your family. To the opposition. I think you mentioned that there were. You guys have.
- Tina McKinnor
Legislator
Have protections already set up for children. Can you give me an example? Am I right? You said that there were. You have already. Can you give me an example of one of those protections?
- Dylan Hoffman
Person
Yeah. So it varies between different platforms, but sort of an industry standard is not only to have a family center where parents can access information about how the platform operates, where they can find those sorts of tools to restrict hours of use notifications and adjust various privacy settings.
- Dylan Hoffman
Person
Many platforms also enable parents to control who can message a teen or minor user. So some of those are just a few of the ways, but it kind of depends on each platform because the platforms are so inherently different. But across the board, there are those tools that exist, the settings.
- Tina McKinnor
Legislator
Settings. Okay. Okay. Well, I don't think that goes far enough. I actually got attacked. I'm 60 years old, and last year at the end of session, I got attacked so brutally, and I am 60 years old. And it really sent me into a spin.
- Tina McKinnor
Legislator
I'd never been spoken to in that way ever in my life by hundreds of people that I don't even know. And it was just horrible. It was so bad that I ended up getting off of X in January because I just. It was distracting and it was bad.
- Tina McKinnor
Legislator
So I cannot imagine a 13 year old getting bullied on or a 10 year old getting bullied on social media and what that would cost.
- Tina McKinnor
Legislator
So I suggest, as I'm gonna suggest in a lot of committees, is that you sit down and you talk to folks and you guys don't just say, no, let's find solution for these problems because it is a problem. If kids are committing suicide, that mean it is a problem. So we cannot ignore the problem.
- Tina McKinnor
Legislator
So I suggest business that you sit down and you talk to people and you. We gotta care about these consumers. We just can't say no. But. And, and you. I will be voting yes on this bill.
- Diane Dixon
Legislator
Thank you, Assembly Member. All right, next comment. Yes, Irwin.
- Jacqui Irwin
Legislator
Yeah. You know, we often say in privacy that social media can be accessible. And I am. You are very brave for coming and sharing the story with us. I hear these stories all the time in my district. I'm, I'm definitely going to be supporting. I wish we could do way more than warning labels that there.
- Jacqui Irwin
Legislator
I agree with Assemblymember Mckinnor. There must be some way that we could get the industry to come together and acknowledge some of the issues that we have with social media. But there are also very good reasons to use social media. And I had this in my district with the Palisades fire.
- Jacqui Irwin
Legislator
People were on social media every minute looking for evacuation orders, road closures, and it was really, you had to get on very quickly. The winds were 60 miles an hour and people just wanted to know what was happening next. So I appreciate that you shortened the warning at the beginning.
- Jacqui Irwin
Legislator
One of the things that I'm hoping that you make more clear is to actually put an X in there so somebody can, in this case, can quickly get through the warning to make sure that they can get any information that they need, especially which is especially critical in times of disaster.
- Rebecca Bauer-Kahan
Legislator
May I share? Okay. Thank you. Yeah. No. And I want to thank Assemblymember Irwin for raising this issue when she raised the issue of emergency preparedness and the ability to get that information in instances like the Palisades fire.
- Rebecca Bauer-Kahan
Legislator
It was the first time someone had brought this issue up on this bill, which is what this committee process is all about. And so we actually pulled the bill from that hearing and made the amendments in concert with Assemblymember Irwin.
- Rebecca Bauer-Kahan
Legislator
And we talked about adding that clear and conspicuous language around the ability to click through and so didn't have time to do it in this committee. But we'll continue to work on it and do appreciate your feedback because like I said to you that day, when you're like, nobody brought that up, nobody brought it up.
- Liz Ortega
Legislator
First, thank you. Would love to be added as a co author and your daughter would be or is very proud of you. Thank you for being here today. To the opposition, warning fatigue? That is your concern. Warning fatigue. I mean there was. I'm not looking for an answer. I'm just quoting what is in your opposition statement.
- Liz Ortega
Legislator
When it comes to our children, as a parent, I will never be fatigued to ensure that my child is safe. Tobacco industry did this when we asked for warning labels. They were also concerned with warning labels and we were able to achieve it.
- Liz Ortega
Legislator
So I don't understand why adding on warning label is so difficult here in the world of AI, where you come in here and talk about how wonderful it is and all the things that we can accomplish with the technology that we have today, a warning label that can save a life is not fatigue.
- Diane Dixon
Legislator
Thank you, Assembly Member. Any other comments up here? Ms. Pellerin.
- Gail Pellerin
Legislator
First of all, I want to thank the author for all the conversations we've had and appreciate the amendments you're taking and to the primary witness and those in the room that have lost a child, I really feel your pain on that and I'm so honored to have you here and to hear your story and so I guess so the question I have is a very practical one right now.
- Gail Pellerin
Legislator
Given that the social media platforms have different languages settings on their users preferences. Are you thinking about having the warning label in multiple languages or just English?
- Rebecca Bauer-Kahan
Legislator
Just like Assemblymember Irwin, that's the first time we've been asked that question.
- Gail Pellerin
Legislator
And I want to credit my coworker who asked last night. So I thought I'd put it out there today.
- Rebecca Bauer-Kahan
Legislator
It's a great question. We hadn't thought about it, but I think it's important. The point of this bill is really education, which I've been hearing the platform say is really what they think needs to be done.
- Rebecca Bauer-Kahan
Legislator
And so to your point, if someone is language is accessing it in a different language, that is something we should consider, but we haven't. But I absolutely will look into that. Thank you.
- Gail Pellerin
Legislator
Absolutely. Following up on Assembly Member Irwin's questions about, you know, the social media being used during the Los Angeles fires to communicate between individuals and official sources to get information, I'm just wondering if it's possible to do some kind of, you know, granting social media companies some discretion during emergency situations.
- Gail Pellerin
Legislator
So I'm not advocating for doom scrolling, but I do think maybe the geo fencing could be employed to allow folks in a disaster to have all forms of communication available to them as quickly as possible. Or is that something that's.
- Rebecca Bauer-Kahan
Legislator
Yeah, I'd have to look at that. I mean, what we talked about, Assemblymember Erwin and I, which is what you see in the bill, is that now at the initial turn on of your app, whatever it is, you will not be blocked at all by this warning. Right.
- Rebecca Bauer-Kahan
Legislator
So initially on introduction, you would have to look at the warning, and you wouldn't be able to get to social media until you'd seen the warning. That is no longer true. Now. You'll have the warning at the bottom. Assuming the bottom. I guess they put it at the top. I don't care where they put it.
- Rebecca Bauer-Kahan
Legislator
And the rest of your screen will be your feed. It will be available. So there will be no disruption of access ever. At the beginning. Now, at three hours, where the research says you start to have these harms, then we will say, okay.
- Rebecca Bauer-Kahan
Legislator
And you are the one who told me that Netflix already did this to you once, that they said, you've been on a long time. Are you sure? And so, you know, we know that they're trying to.
- Rebecca Bauer-Kahan
Legislator
We've all done it as though we remember Valerie. But we know they're tracking our usage, they're selling it to the ad folks. And so we know that they can do this. And so we're confident that at that point where you start to get it, that we need to make sure you did get that education that you did.
- Rebecca Bauer-Kahan
Legislator
Catch on to what we said, because to the point of the opposition, we need to make sure warning labels are meaningful, which is how this bill is crafted.
- Josh Lowenthal
Legislator
First of all, I'd like to thank the woman testifying and sharing her story. It resonates with all of us. We're parents. I'm so sorry for your loss. Thank you. And I really appreciate you being here. It's making a dramatic difference. It's critically important. It takes a lot of strength. Appreciate you.
- Josh Lowenthal
Legislator
I also appreciate the author for bringing this forward. The author, who has a history of bringing these issues forward, who has been relentless on this issue because we have a mental health crisis taking place with our children that is directly tied to use of social media. No ifs, ands or buts tied to it.
- Josh Lowenthal
Legislator
So I want to commend you. I'd also like to be added as a co author, if you will have me. And I would like to ask a few questions to the opposition, my good man Dylan right here, who I feel for so much because we're friends and is in a very unenviable position.
- Josh Lowenthal
Legislator
And I think you do such a tremendous job, Dylan. So I just want to make sure I say that in front of the world. You know, prior to joining the legislature, I talk about this all the time. I served as Tech Executive and entrepreneur.
- Josh Lowenthal
Legislator
As President of FreeConferenceCall.com, we did all of our customer acquisition digitally and spent in the neighborhood of $50 million or so in customer acquisition annually. Everything's measured. Every single thing is measured. And that real estate and all the actions around it.
- Josh Lowenthal
Legislator
So I want to ask you a question, since the crux of the opposition is around the efforts that you're making right now to provide tools for parents. What is the take rate of those tools? What is the impact of those tools?
- Josh Lowenthal
Legislator
What are the defined goals and what are the metrics that you're trying to achieve with those goals? What is the penetration that you're trying to seek with that? Are those defined? What are those? What's being measured?
- Dylan Hoffman
Person
Through the Chair. Thank you, Mr. Assemblymember Lowenthal, for the question. Unfortunately, I can't answer that specifically for any platform. I think each platform is going to have different answers to those questions. Be happy to facilitate that conversation.
- Dylan Hoffman
Person
But I don't have the numbers for each specific platform based on the take rate, the defined goals, how they're measuring different metrics.
- Josh Lowenthal
Legislator
And it was an unfair question to ask because you're representing an entire industry. And of course that goes on a platform by platform basis. But the reason why I'm asking you that question is you are going to continue to see legislation and bills aimed towards protecting the families that are here that are testifying right now.
- Josh Lowenthal
Legislator
Until we have these answers, until we know precisely what the industry is doing and what are the metrics they're seeking to achieve, and we have a dialogue specifically about what safety is and what it isn't and what we need to reach in order for that to happen, it's specifically because the industry is opaque on these topics and does not allow any visibility as to what success is and what success isn't, that you're going to continue to see bills like this and be in that unenviable chair defending what I believe to be indefensible so thank you again to the author.
- Josh Lowenthal
Legislator
I really appreciate this so much, and I look forward and challenge you to start to present and challenge each platform to give us metrics to be public and open about the metrics that they're seeking to achieve with putting these tools out there and how to optimize those tools.
- Dylan Hoffman
Person
Through the chair, if I may respond to that. If it's a question of more data and metrics on these specific questions, that's something we're more than happy to discuss. We've worked on prior iterations of bills that have increased transparency around the information that social media platforms are required to release publicly.
- Dylan Hoffman
Person
We've been active partners on a number of bills, providing red lines to avoid these bills ever going to court. So consider us partners in that. It's just when it comes to a bill like this that we think is unconstitutional, we have. That's what we're going to raise.
- Dylan Hoffman
Person
And we're going to say there are better ways to protect kids that aren't going to get tied up in court, that aren't going to push this problem further down the line. And I think that's an important conversation to be had. And so, like, that's the. That's where we're approaching this. I appreciate that. Thank you.
- Cottie Petrie-Norris
Legislator
Thank you, Madam Vice Chair. And thank you again to your witness for being here. I, too, am a parent. We've got two teenage boys who are 16 and 18. And like all the parents here, we recognize that social media is not good for our kids, but it's real, real hard to get them to disengage.
- Cottie Petrie-Norris
Legislator
And I, too, appreciate the chair's focus on what is really a crisis. And I know you and I have had some conversation about this. Have you considered narrowing the bill to just provide this warning to individuals who we believe are, in fact, youth? So the folks who I think we're most concerned about.
- Rebecca Bauer-Kahan
Legislator
Yeah, thank you assemblymember and I, as many of you know, the Attorney General is the sponsor of the bill. And I would, if you don't mind, defer to the Attorney General's Office on that one to explain that. Yeah. Is that okay? Is that okay?
- Anthony Lew
Person
Hi. Anthony Lew from the AG's office, the sponsor. Thank you for the question. The social media warning labels are an equitable, effective and transparent way to deliver public health information.
- Anthony Lew
Person
Okay. So I think the question was why the initial warning label. Why not just the later label?
- Cottie Petrie-Norris
Legislator
No, no, no. Why don't you just provide that to children? So serve that up to folks that are under 18.
- Anthony Lew
Person
So as you know, social media warning labels are a warning. They're a product warning to that we want to have sent to parents, adults, children, adults who are in a position to give the product to the child to make a decision.
- Anthony Lew
Person
Perhaps this warning alerts them, the reader of the warning, that this is a product that has some risk to children and maybe they should think twice about giving a risky product to a child.
- Anthony Lew
Person
We want them to have this information before they decide to buy the toy, to give the product that potentially poses a risk to the child.
- Anthony Lew
Person
And so for this bill, the social media warning label bill, this is a way to deliver public health information about the risk of social media to the parent, to the older brother, the cousin, the grandparents. This is a way to provide the information about the risk of social media.
- Anthony Lew
Person
Now the parents are responsible for enabling children to use social media platforms. And so the warning label is intended to reach the families, the children and others to provide the information in the morning.
- Rebecca Bauer-Kahan
Legislator
Perhaps author could. Yeah, can I add to that? Okay, thank you. So I think what is critical is, I will say the research indicates that it has, sorry adults, negative mental health impacts on us too.
- Rebecca Bauer-Kahan
Legislator
As we heard from our colleague that this extensive use and the researchers really showed three hours, at that point, even for us, it starts to have negative mental health impacts. So I will say that it isn't as if we are showing this warning to people who won't be impacted by those health impacts.
- Rebecca Bauer-Kahan
Legislator
Obviously, as a mom, I am really here most focused on our children. But it is important this information gets to everyone. I mean, we really saw, I thought something about Ortega's point about cigarettes was such a good one because I think that what we have before us is something that people.
- Rebecca Bauer-Kahan
Legislator
When I joined Facebook, which was the first one probably many of us ever joined back in 19. You're right, MySpace. And back then it actually didn't have the addictive features right. It was the old school timeline, which wasn't as addictive.
- Rebecca Bauer-Kahan
Legislator
And then over the years, technology got better and they were able to. The attention economy was able to addict us more.
- Rebecca Bauer-Kahan
Legislator
And we are now in this situation where we have a tool that when used for a little bit or to check evacuation routes or to find out whether the road to Tahoe is open, something I use Twitter for often is fine. It doesn't have the same impacts as extensive use, which is why the warning says that.
- Rebecca Bauer-Kahan
Legislator
But in addition, I think the point the Attorney General's Office was trying to make is that when you're providing a warning, like a cigarette warning, for something that is harmful, you are trying to inform the public, you're trying to make sure that there is broad public understanding about the harms that are caused.
- Rebecca Bauer-Kahan
Legislator
And that is what this does, which is why it is a broad applicability. And I don't know if you want to add anything based on the research on that or. I don't know.
- Unidentified Speaker
Person
Yeah, I mean, I think the idea is that it is a public awareness issue. And that way teachers, parents, adults, pediatricians, people in children's lives can all be aware of this. And I have to add also that it is, you know, there is harm to adults too.
- Unidentified Speaker
Person
And these repetitive pathways that happen for children also happen for adults in our brains. And so that's what I'd add to that. Okay, thank you. Okay.
- Cottie Petrie-Norris
Legislator
And the opposition witness, I think in responding to Assemblymember Lowenthal's question, you, I think, said something to the fact you didn't think this was perhaps the most effective way to protect children online and that there were perhaps better ways. Can you provide some insight into what those are?
- Dylan Hoffman
Person
So I think part of our concern with the label going back to, you know, the potential for it to be ignored is we don't see, you know, if it's click through and people are not reading it and not paying attention to it, or it's not providing them actual information to help themselves, either to direct them to the settings in which they can dial in their privacy settings or change who can message them or any number of those features.
- Dylan Hoffman
Person
If it's not telling them what types of behaviors put them at risk, what types of content may be harmful for them, I don't know that it's actually addressing the root issue here. Some other things that we've worked on in the past, we've worked on the age appropriate design code. TechNet was a partner in that. We provided amendments.
- Dylan Hoffman
Person
We've made suggestions to try to help avoid litigation on that bill. We've provided amendments on other bills related to notifications, whether platforms providing settings related to those or other things like that.
- Dylan Hoffman
Person
We've provided these suggestions in the red lines in good faith to try to get to a point of comfort with these bills and to avoid them going to court. Because in our view, a bill that gets challenged and struck down as unconstitutional is absolutely not helping anyone.
- Dylan Hoffman
Person
And so our goal is to try to avoid that and to provide meaningful solutions. So those are just a few of the things. And you know, think of us again as partners in that we're reviewing every bill that's before us this year. We're engaging with multiple authors on various bills.
- Dylan Hoffman
Person
We've had conversations with members of this committee and authors that sit on this committee as well. But that's some of the things and certainly our platforms can tell you more directly. Here are the list of features that we've instituted in the last year, six months to try to get ahead of this.
- Dylan Hoffman
Person
But from my perspective, I can only speak generally about what specifically those are.
- Cottie Petrie-Norris
Legislator
And I guess I feel like I'm once again in a little bit of a quandary and that I don't, I think the problem statement is very real, I don't know, to the opposition's point that this is going to be the thing that like is the silver bullet that changes it.
- Cottie Petrie-Norris
Legislator
So I actually kind of like his suggestion about perhaps making those warning labels more action oriented and providing some like specific recommendations and providing resources. So perhaps there is an opportunity to have a meeting of the minds. So I will support the Bill today and hope that we can find ways to make this an actually meaningful intervention.
- Rebecca Bauer-Kahan
Legislator
And if I may, Madam Vice Chair, I agree. I mean, they had not provided that feedback until today, but if they want us to make this educational piece in addition to the education we're achieving, also actionable, I don't see why we wouldn't want to do that.
- Rebecca Bauer-Kahan
Legislator
So I appreciate that feedback and we are happy to beef it up to make sure parents can take action once they learn what they need to learn about the safety of their children.
- Diane Dixon
Legislator
You know, just listening here, listening this maybe for the second year of all the good work and hundreds of hours that have gone into trying to thread this needle so carefully that we won't be it won't be unconstitutional and it will be effective and it will hopefully prevent tragedies like our witness has unconscionably experienced.
- Diane Dixon
Legislator
We all can feel that as parents just sitting here without proposing necessarily amendments. I just have a couple of thoughts how this can be approached.
- Diane Dixon
Legislator
First of all, we're dealing with a technology we all know new to the world, innovates 24/7 new things all the time by putting this and I like your personally like your amendment how you've taken away the big black box and now it's just a little bar at the bottom and it disappears after 10 seconds.
- Diane Dixon
Legislator
If that's currently, so it's harmless. I can remember maybe because I'm old enough to remember this, but I was a little girl when the warning label on cigarettes my father smoked during that year, and he actually later had lung cancer, but he survived that. That was. He lived a long life. And I remember the controversy about that.
- Diane Dixon
Legislator
My father was in the newspaper business, so I remember all this going on at discussing the dinner table because he was an advocate for cigarette smoking in the 60s. And then this warning label came out, and my mother said, you know, you got to stop smoking. You got to stop smoking.
- Diane Dixon
Legislator
Eventually he did, and he lived a long life. But it's not something that this warning label, in my belief, is not going to instantly change behavior.
- Diane Dixon
Legislator
What I expect to happen with the competitive marketplace of the platforms wanting to do the right thing, I believe because in their heart of hearts, they don't want tragic tragedies like this to happen. So you have that little black box.
- Diane Dixon
Legislator
I would imagine this is an opportunity for the platforms to go one up and that the state doesn't have to regulate this. The state doesn't have to prescribe any further. Help us save children, Help us save lives. And they will come up with their own public awareness, public communications, because it will be talked about everywhere.
- Diane Dixon
Legislator
It's a headline news that the first time that there is some measure of restraint on watching out for children. And I believe that's what the marketplace will do. They'll be competitive with one another to inform the public of where the dangers are and 10 seconds of your life to maybe save a life and talk to your children.
- Diane Dixon
Legislator
It gives families an opportunity to talk to their children. And we've all had experiences. Many people know. I have three grandsons13, 11, and 9. And when I was the visit and they live in New York and I'm the visiting grandmother, and I want to spoil them and do all kinds of things when the parents aren't there.
- Diane Dixon
Legislator
You know how that is. The last word my daughter would say is, they're leaving now, Mom. Don't let them. Don't let them. 30 minutes. That's it. No more than 30 minutes. Okay, okay, okay. And then maybe it got to 45 minutes after she's gone.
- Diane Dixon
Legislator
And I'm watching them and I saw with my very eyes how the stupor arises that they are kind of my. Their eyes glaze over and they're just punching buttons all the time. And I said, you guys, time's up. Your mom is right. Totally right. I see how you're changing. And I talked to my grandsons how they.
- Diane Dixon
Legislator
I watched them physically change and disconnect from the other world. So I think you've come up. Maybe it's not the perfect solution. I guess it will be challenged in court. I don't know. I'm not a lawyer, so I can't speak to the constitutional issues. Others will do that. But to start somewhere, you've narrowed this so specifically.
- Diane Dixon
Legislator
See how it happens. See, we've got to do something. A little black box. How is that objectionable? Let the platforms go from there and make it better, using that as a foundation. So I will support the bill, obviously, with. But I've just. I've heard this in this committee for two years now.
- Diane Dixon
Legislator
Let's do something and move this forward. All right. Any other comments? Yeah, Any other comments? All right, your closing statement, please.
- Rebecca Bauer-Kahan
Legislator
Thank you. And the bill is just for clarification, going to judiciary next on the constitutionality issue. So for those that are interested in that issue, I know Senator Dixon and I will get to have that conversation again next week.
- Rebecca Bauer-Kahan
Legislator
And, you know, obviously, cigarette warnings are a perfect example of how there is actually case law on the constitutionality of forced speech around public health warnings. And it is constitutional and lawful. And we are doing this in compliance with constitutional law.
- Rebecca Bauer-Kahan
Legislator
But what I really want to say in closing is I want to thank Victoria for her bravery and for, I was just learning before this hearing, she's part of an angel network of moms that have lost their children by suicide. And there shouldn't be a network.
- Rebecca Bauer-Kahan
Legislator
I'm glad they have it, but it shouldn't exist because we should be saving our children. And I have sat here for seven years alongside Assemblymember Wicks listening to there's a better solution. And yet I have yet to hear what that solution is.
- Rebecca Bauer-Kahan
Legislator
And so we will continue to propose solutions to protect our children, because, like I said, I believe there's no higher calling. And in Judaism, when we lose a loved one, we say, may their memory be a blessing.
- Rebecca Bauer-Kahan
Legislator
And I know today Al's memory is absolutely a blessing to the children of California as we move forward in her memory that I ask for your I vote.
- Committee Secretary
Person
Item number two, AB 56 by Assemblymember Bauer-Kahan. The motion is do pass to the Judiciary Committee.
- Diane Dixon
Legislator
Assemblymember Alvarez, you have your AB 358. You'd like to come forward, please? Thank you. Do you have a witness, Assemblymember? Okay. Okay. Press proceed on Assembly Bill 358. Thank you. And the Chair has just arrived.
- David Alvarez
Legislator
Thank you, Madam Vice Chair. And thank you to the Chair as well and committee members. Good afternoon. Thank you for the opportunity to present Assembly Bill 358, the Technology Reform for Access to Crime Evidence, or TRACE, amendment.
- David Alvarez
Legislator
I also want to thank the committee staff for the extensive work on the bill and the analysis that is before you today. Assembly Bill 358 ensures that survivors of stalking, domestic violence, and harassment are not left defenseless when they discover that their privacy has been violated.
- David Alvarez
Legislator
The bill makes a narrow, narrow again as your analysis identifies, and necessary change to the California Electronic Communications Privacy Act, also known as CalECPA, to allow law enforcement to access tracking and surveillance devices with the explicit consent of the person who finds it in their private space that's being used against them.
- David Alvarez
Legislator
Right now, according to CalECPA, the law enforcement cannot immediately inspect spy cameras or AirTags that are placed in a victim's private space, even if the victim says that they have the authority to do so. That means that if a stalking or domestic violence survivor finds an unauthorized tracking or recording device in their home or in their vehicle, law enforcement cannot search the device without first obtaining a warrant. Obtaining a warrant can create a delay that gives perpetrators time to hide their tracks and continue to cause harm to victims.
- David Alvarez
Legislator
This TRACE amendment empowers survivors and strengthens protections for those facing threats from stalkers and ensures that law enforcement can help victims in real time rather than being restricted by potential delays. With the most recent amendment, we have narrowed the scope of this bill to only apply to devices whose sole purpose is to record and to surveil.
- David Alvarez
Legislator
That means we exclude cell phones, laptops, and other devices that may actually be used and contain personal information so that we could avoid any potential violation of privacy. Assembly Bill 358 does not allow warrantless searches beyond these narrow and victim-centered circumstances.
- David Alvarez
Legislator
So imagine that a domestic violence survivor who finds an AirTag in their personal belongings or in their car, or if you have a guest come over and one of them sets up a spy camera in your bathroom, the perpetrators have technically abandoned that item, left it in your property, your possession, with the intent to track you or to spy on you without your permission.
- David Alvarez
Legislator
As the analysis writes, the Fourth Amendment does not extend garbage left outside a home. Therefore, the perpetrator here essentially forfeits any reasonable expectation of privacy of that device, that person who placed that device in your property. Assembly Bill 358 is about common sense, safety, and survivor empowerment.
- David Alvarez
Legislator
The bill does not undermine privacy rights, but rather ensures that victims, victims can protect themselves when their privacy has been violated. We have the Deputy's District Attorney's Office, Mr. Madero, who will provide some testimony. They've sponsored a bill and I thank them for being here.
- Joel Madero
Person
Thank you very much and good afternoon to the Chair and members of the committee. Thank you, Assemblyman Member Alvarez, for sponsoring this or authoring this bill. My name is Joel Madero and I'm a prosecutor with the District Attorney's Office in San Diego.
- Joel Madero
Person
And I am the director of the CATCH unit, which is our high-tech unit who is responsible for items such as spying devices that we're discussing today. AB 358 stemmed from ongoing incident that I was part of where it was spy cameras left in another individual's home in an adult daughter's vent in her bathroom and her bedroom.
- Joel Madero
Person
They suspected that they knew exactly who it was. A person who had no right to the home, did not live in the house, but was associated with a member of the home. When that case came before my office, we had to discuss whether a warrant was needed.
- Joel Madero
Person
When the victims of this case were on board, they wanted to consent. And consent has always been an exception to the requirement to get a warrant. We had victims prepared to move the investigation forward quickly. But instead, after several roundtables, myself and several other people who are experts with CalECPA, we decided that a warrant was needed and that warrant created a delay.
- Joel Madero
Person
Ultimately, by the time it was done, it's unknown whether the device or whether the cloud, such as an Amazon, it was an Amazon device, would have had evidence, but we were unable to attain any evidence on that case, despite the fact that we are well aware of what the perpetrator was doing, which was spying on an adult young, 20-year-old woman and it was a male who had placed the device in the event of that person's home.
- Joel Madero
Person
AB 358 aligns CalECPA with privacy interests. The privacy interests involved are the reasonable expectation of privacy that victims have in their own home, their own vehicle, and their own personal effects. Nothing outside of the protections granted by CalECPA, many of which are very important, would prevent a victim in these situations from consenting to being able to get into the devices fast. It is quite narrow. It's gone through a couple amendments at this point.
- Joel Madero
Person
And at this point we are very much looking at items solely used to invade somebody else's privacy. And the reality is that CalECPA, as it stands, places the perpetrator's rights to a device left in somebody else's home, a place where they have no reasonable expectation of privacy above those of the victims, again in their homes and the areas where they should expect a reasonable expectation of privacy.
- Joel Madero
Person
We believe that this was an unintended consequence of CalECPA, that this wasn't something that maybe was at the forefront of everybody's thought process as CalECPA was being passed. But we are seeing an increasing use of these types of devices. And as I reached out to law enforcement about this proposal immediately, I had investigators saying, oh, yeah, we're seeing this often. These devices are cheap.
- Max Perry
Person
Chair and members, Max Perry on behalf of the California Police Chief Association.
- Rebecca Bauer-Kahan
Legislator
Thank you. Is there anyone here in opposition to this bill? Come on up. Two minutes each, when you're ready.
- Becca Cramer Mowder
Person
Becca Cramer-Mowder with Kaiser Advocacy on behalf of the Electronic Frontier Foundation, one of the sponsors of CalECPA in respectful opposition to AB 358. EFF stands in solidarity with domestic violence survivors and has often worked closely with advocates for survivors to oppose legislation that would increase tracking risks to to domestic violence survivors. Let me be clear.
- Becca Cramer Mowder
Person
AB 358 will not protect domestic violence or stalking survivors in new ways. Instead, AB 358 creates an unnecessary loophole to allow police to circumvent the constitutionally-based CalECPA rights we all rely on. CalECPA currently allows warrantless searches of devices when law enforcement believes an emergency involving danger of death or serious physical injury to any person requiring accessing the device. That provision is in current law already, and it protects the people that AB 358 is trying to protect.
- Becca Cramer Mowder
Person
But by creating a different new provision for law enforcement to access electronic information without a warrant, AB 358 would eliminate the requirement that law enforcement apply for a search warrant retroactively, a requirement that provides needed oversight to ensure the exigent circumstances provision in CalECPA cannot be abused as a loophole to get around the statute's warrant requirement.
- Becca Cramer Mowder
Person
If no emergency exists, law enforcement can simply get a warrant to search the device and use one of the many readily available technologies to ensure the device cannot be remotely wiped while they wait 15 minutes for a warrant. Thus, AB 358 does not make domestic violence or stalking survivors safer. It simply allows law enforcement to skirt around basic Fourth Amendment Protections that keep us all safe. For these reasons, we ask that you vote no on AB 358.
- Jake Snow
Person
Good morning. My name is. Or afternoon. Sorry. My name is Jake Snow. I'm a senior staff attorney at the ACLU of Northern California, also a sponsor of CalECPA, and I rise in opposition to AB 358. The narrowing amendments of this bill do not resolve the core problems with the approach and that is that the California Legislature, this body, passed CalECPA in 2015 to put limits on how the government can access people's electronic devices. And those limits take the modern day reality into account.
- Jake Snow
Person
All of the immense amounts of information that we know are held on devices and also in cloud storage systems. And CalECPA and the United States Constitution and also the California Constitution allow the government to get access to that information based upon a showing of probable cause.
- Jake Snow
Person
The information is available to the government so long as they can show that there's probable cause, that there's evidence of criminal activity. And getting a warrant is not a pointless inconvenience for law enforcement. It is one of the core foundational protections of our democracy and of people's privacy rights.
- Jake Snow
Person
We can look around this country today and see how things that seem like an annoyance are actually the foundational rights that we must hold to with absolute commitment. Now, the sponsors claim that these devices and this permission is necessary to stop the remote wiping of these devices or for the interruption of an investigation.
- Jake Snow
Person
But this imaginative scenario doesn't bear any resemblance to reality because the bill doesn't even cover devices that could be remotely wiped or that have the capability to put information on cloud storage. And if that information was on cloud storage in the cloud, in Google, in other places, then on those cloud storage systems, there would also be immense repositories of personal information that could be then available to the government. And for putting these devices in a state where they can't be accessed.
- Jake Snow
Person
Faraday bags, which enclose a phone or a camera in a system that can stop it from communicating with the outside world and with the Internet, are already available and are already used frequently by law enforcement.
- Jake Snow
Person
Fundamentally, a police officer should not be the person to decide in the moment whether a device is a surveillance device and whether they can just search it without a warrant. That's what the judicial system is for, that's what the warrant process is for, and that is one of the foundational privacy protections in our democracy. Thanks very much.
- Rebecca Bauer-Kahan
Legislator
Thank you. Anybody else here in opposition to this legislation? Seeing nobody, We'll bring it up back up to the dais. I see McKinnor looks like she's ready.
- Tina McKinnor
Legislator
Yes. I won't be able to support this bill today because I don't support anything with the warrantless search or warrantless arrest. It violates the Fourth Amendment. It sets a dangerous legal precedent allowing law enforcement to seize and search a device without probable cause. A court order weakens the warrant requirement. Legal standards must be objective and consistent.
- Tina McKinnor
Legislator
The phrase reasonable believes is vague and open the door to abuse and misuse. It risks targeting innocent people and misidentified devices. You know, there are already legal remedies for this. If a person finds a suspicious device, they could file a police report. The law enforcement could then request a warrant to examine the device.
- Tina McKinnor
Legislator
I definitely, definitely support people who are being abused. I don't want to see people being abused. It horrifies me that someone's placing a device in a bathroom for someone. But you can call the police, report the device, get a warrant and make sure that you can search this device.
- Tina McKinnor
Legislator
Also, with the deportation issue that's happening right now, the risk of unlawful evidence gathering, the pathway to deportation data from the warrantless search could be shared with Immigration and Customs Enforcement, ICE. ICE may use that location data to track arrest and initiate removal proceedings. Due process and discrimination concerns we must have.
- Tina McKinnor
Legislator
We must have due process in this country and in this state. You know, we don't want to skirt our Fourth Amendment by when we're helping someone else, we want to do both. We want to make sure that we protect our, the victims and also we want to follow the law. So today I won't be able to support this bill.
- Lori Wilson
Legislator
Thank you to the author. I definitely understand your intent. I think it was referenced in the analysis. But also to the DA who expressed his expressed. I'm sorry, excuse me, who talked about a particular case. That part of why this brought this forward and in a time where rights are being trampled on and that we have to do everything to protect our rights and we're fighting battles that we never thought we'd have to fight again. I'm really mindful of that and I came into this more undecided whether I was supporting or not.
- Lori Wilson
Legislator
So I do have some follow up questions for both the proponent of the bill and opponent of the bill. You noted. Well, actually to the author first, I did note that there wasn't a lot of domestic violence support which would seem natural for this. And I know opponent talked about that. And so when you reached out, I know as, as staff reach out on our bills all the time to get support. What was the feedback that you got prior to today as it relates to domestic violence?
- David Alvarez
Legislator
So I can't provide you with like a specific list of who was reaching.
- David Alvarez
Legislator
Right. The outreach was done to as many groups as possible. The only, the only affirmative support that we have at the time is what's in noted in the analysis, including obviously the probation officers, the Crime Victims Alliance and the District Attorney's Office as stated their support. Those are the only folks.
- Lori Wilson
Legislator
I just wanted to, did you get any feedback of people who were declining to support or weren't. Did you get any. I guess I'm wondering did you get any feedback as it relates to DV survivors? I know I've done bills in the space where they wanted to have a conversation when they were opposed or even supporting. And so I just wondered if there'd been any feedback as it relates to this noting their absence.
- Lori Wilson
Legislator
Okay, good to know, Good to know. You noted about this the time that it took in that particular case. And so I would say more broadly you can speak to that case or more broadly, the time it took to get a warrant was so long that there was no information on there and you couldn't know whether it was deleted. Was none not captured yet or was it deleted? So how long does it typically take to get a warrant in these type of cases?
- Joel Madero
Person
Yeah, so speaking more broadly versus in a particular case, I think 15 minutes is just simply unrealistic in most cases. I know that that was a referenced amount of time. It can take hours to days depending on the device and what's being sought.
- Joel Madero
Person
And part of it is that it's essentially a two stage analysis because sometimes first you're getting into the device to figure out if the device itself has anything, including identifiers. And then if you're linking that to something like a cloud storage, you're getting a second stage warrant to then go to the cloud storage.
- Joel Madero
Person
This bill, AB 358, would still require a warrant to get to potentially cloud storage. But the idea is to be able to get into the device quickly to be able to then if there is cloud storage connected to it, write a warrant to go directly to any potential cloud storage. So again, depending on the multiple factors, I would say hours to days in order to write a warrant, a well written warrant, that's going to get approved and pushed through. I think that's fair.
- Lori Wilson
Legislator
And would you say that a device that doesn't have cloud storage, that means that the data is stored locally, that you would still be able to access that data within hours to days to be able to make an assessment? I mean, I think the issue might be coming with cloud storage where somebody could delete but a data, but a device that is locally stored, what would be the impact of waiting for hours to days for a warrant?
- Joel Madero
Person
You might not actually even know kind of how, what the connections look like until you get into the device itself. So in the camera, in the particular instance that I brought up, it was upon looking at logs in the device that we saw a lot of IP connections and items like that that triggered, oh, there's something more going on. And then that led to a second warrant. So getting into the device itself was step one and then going from there was going into to get the additional warrant. Yeah.
- Lori Wilson
Legislator
And so the analysis talks about a Faraday case. Isn't that pretty common for law enforcement and or District Attorney offices to have a Faraday case to be able to house devices? Isn't that a, isn't that a very common, like we all have refrigerators, at least I hope everybody has a refrigerator in their house.
- Joel Madero
Person
I can speak to my unit. Of course, we, I mean we are a high-tech unit, so we have some pretty advanced Faraday boxes and bags. As far as every patrol officer who is handling a phone call that they're going out and collecting these devices, I think that that's unlikely.
- Joel Madero
Person
Although I can tell you that my unit goes out and gives trainings on the importance of doing this. I think it would be unrealistic to think that a patrol officer usually is a less experienced officer who shows up to take a report from somebody who's identified a camera, is immediately throwing that camera into a Faraday bag.
- Joel Madero
Person
Even at the time that it takes for law enforcement to show up to a location, that's that oftentimes is a significant delay. And I can speak as to my own calls to law enforcement. The amount of time can be hours just to get law enforcement to show up.
- Joel Madero
Person
Just imagine a victim locates this camera and if the perpetrator is actively watching it or recording it now they know, oh, I've been caught and immediately they have the time to start obfuscating, deleting and kind of causing a problem to potentially prove a case down the line.
- Joel Madero
Person
So really the impetus here is that the second law enforcement getting there, being able to analyze it to the best of their ability, could give additional information, whether it's an SD card or some kind of a memory on there and say, like, oh, it wasn't recording you, that's not what was happening here.
- Joel Madero
Person
Or it was in fact recording you and it's connected to the cloud storage. So we'll work with the DA's office to kind of see, seek additional warrants. That's, that's really the impetus in this case. I would also just like to respectfully disagree that this is a Fourth Amendment issue.
- Joel Madero
Person
There's no other state that we're aware of that and no case that, that we're aware of that has held that a device that's been effectively abandoned in somebody else's home has Fourth Amendment protection. A person who does that has no legal standing under the Fourth Amendment. So it really is the statutory protection granted by CalECPA that, that prevents law enforcement from moving forward.
- Lori Wilson
Legislator
Can you stay on that for just one second? Are you saying that, are you only saying that there's been no challenge to the Fourth Amendment related to something, a privacy component of someone else, property within somebody else's home, which could be effectively abandoned and not relating to other laws in other states dealing with this particular issue?
- Joel Madero
Person
Yes. Speaking specifically to the jurisprudence under reasonable expectation of privacy, there's been no argument that I'm aware of that. Anybody that I work with is aware of that. That standing has been granted to somebody when they're leaving spying devices in somebody else's area that simply they, they would not have a reasonable expectation of privacy to that device. And therefore, if a victim found it under Fourth Amendment, they can consent to law enforcement searching it. And outside of electronic devices, that would still hold.
- Joel Madero
Person
So if it was a document that somebody left behind in my home that delineated a crime or something like that, a victim could call the cops and say, hey, I had a house guest over. They left this. Let's say it was just a photograph to make it, I guess, a little bit more visual, like a child porn type photograph. And they were like, somebody left this in my home. Please come get it. Of course, that that person who finds it in their home would be able to hand over that photograph to law enforcement.
- Joel Madero
Person
And that's, that's a similar type analysis. It's just CalECPA takes it to the next level. And so therefore there's, there's statutory rights, which we agree, and that's why we've sought, we've sought warrants in the past and are seeking this very, very narrow exception.
- Lori Wilson
Legislator
Thank you and then my question to the opponents. I'm glad you brought up and explained that more because that was going to be my question is where have you seen this become an issue in terms of violating Fourth Amendment rights? Are we aware of any cases and supposed to be brought it up as it relates to this particular issue having to defend this anywhere at all?
- Rebecca Bauer-Kahan
Legislator
And I will just add, we do not have the legislative authority to overrule the Fourth Amendment.
- Rebecca Bauer-Kahan
Legislator
So the Fourth Amendment will still stand no matter what we do here today. The only thing we are doing here today is modifying CalECPA so the statutory protections that are currently in place for these devices. I do agree with the analysis that there is no reasonable expectation of privacy in these devices under the Fourth Amendment.
- Rebecca Bauer-Kahan
Legislator
So I don't think we have a Fourth Amendment problem. But even if we did, these devices would still be protected under the Fourth Amendment even after this bill were to be signed into law if that were to happen. So I just want to clarify that.
- Lori Wilson
Legislator
And I'll look to the Chair because I know we have a lot of bills to get through today. So if you think that it's not an appropriate line of questioning for our committee and stuff, I'm fine to withdraw the question.
- Rebecca Bauer-Kahan
Legislator
No, I mean I think it's an important conversation. I will say that the bill was first heard in public safety. That is much more their jurisdiction than ours. So I wasn't there for that but I assume this was a topic of conversation of public safety. But it's a fine question to ask.
- Rebecca Bauer-Kahan
Legislator
I just wanted to clarify, as we asked the opposition, the question that even if they agree that you have a Fourth Amendment right to protect this, that our actions today wouldn't change that. So that was my clarification.
- Jake Snow
Person
And I would like to speak though to the Fourth Amendment question. There is a doctrine of abandonment under the Fourth Amendment. If a device or something else is abandoned, then the Fourth Amendment reasonable expectation of privacy would not apply in that situation. There's a set of factors that determine whether something is abandoned.
- Jake Snow
Person
You have to look at that on a case by case basis. But I think here there's a deeper problem which does implicate the Fourth Amendment, which is that you have a situation where potentially people who are in possession of these devices could be mistaken about them being abandoned and they could tell an officer that they're abandoned when in fact they are not.
- Jake Snow
Person
An officer could also just decide that they're abandoned when there's not very much evidence of that. And certainly you don't have the person who ostensibly abandoned them available to say whether or not they were really abandoned.
- Jake Snow
Person
And then you could have situations where either the police officer or the person claims that they were abandoned when in fact they are not. And the reason that's important is that getting a warrant is not just about the protection of having a judge see something before the search happens.
- Jake Snow
Person
It also creates a public record where that judge has a paper, where they have granted a warrant, and it has a scope. That warrant is then available in the public record for people like me to go to a courthouse and say, I would like to look at all the warrants and see what's going on in terms of law enforcement accessing people's devices. Without that public record, transparency in our in California gets chipped away.
- Jake Snow
Person
And then you just don't know what kinds of searches are happening by law enforcement of people's devices. Getting a warrant can happen relatively quickly. There's safeguards in place and that transparency and accountability really is vital. And so I think that these comments don't eliminate concerns.
- Rebecca Bauer-Kahan
Legislator
Thank you. Is that complete for you, Assemblymember? Okay, thank you. Assemblymember Macedo.
- Alexandra Macedo
Legislator
I just want to say that I really appreciate you bringing this bill forward. I have a personal experience that I was leaving an event, I got in my car and my phone detected an AirTag. I immediately called my dad. My dad came, picked me up. I was scared to go home. I was scared to be in my vehicle.
- Alexandra Macedo
Legislator
Turned off my location settings and felt like no place was safe or private. So thankfully no device was found. But as a young woman, that's not a fun place to be. So time is of the essence in these situations to make sure that if somebody is stalking or potentially could cause harm to a young woman like myself, or a young man for that matter, any person, this is of the utmost importance. So I actually would appreciate to be added as a co-author to this bill and will be supporting this bill today. Thank you.
- Rebecca Bauer-Kahan
Legislator
Thank you, Assemblymember. Anybody else with questions? I wanna thank the author for taking the narrowing amendments, most of which were taken, as I mentioned, in public safety. I was concerned that this is a tracking device. Let's be real, guys. But it also contains so much private information that each of us hold.
- Rebecca Bauer-Kahan
Legislator
And by the way, I do actually think I could make a creative argument that I have an expectation of privacy in this because it is locked. Just so you know, when you put your trash out on the curb, the courts have found you don't have an expectation of privacy in what's in your trash can.
- Rebecca Bauer-Kahan
Legislator
We don't have an expectation of privacy in everything. That's not how the Fourth Amendment works. I believe deeply in the warrant system, but I actually believe it's there to protect people's constitutional rights. I don't believe it's there as a record-keeping service.
- Rebecca Bauer-Kahan
Legislator
And so I think that with the narrowing amendments, where we're talking about devices that are solely used to track or record people, that we really are talking about things that are being used nefariously. And if you leave that somewhere, you no longer have an expectation of privacy.
- Rebecca Bauer-Kahan
Legislator
And so I personally believe that this change to CalECPA is minor, but will address some of what I know women in our communities deal with day in and day out. And these devices, which are really helpful when you want to track your luggage, but are really dangerous when you have an abusive spouse, are out there and are easily accessible. And our society has changed. And so we need to make sure that law enforcement has the tools to protect our community members. And so I am happy to support the bill today. And with that, would you like to close?
- David Alvarez
Legislator
I would. Thank you very much. Appreciate all the input provided by everybody. The bill did go through public safety. It had just as a robust conversation there as it did here. And so I appreciate that. I just A couple of things that were said. Very mindful.
- David Alvarez
Legislator
And thank Ms. McKinnor for her concerns on sharing of information with federal agents. I think you would expect that I'd be concerned about that. SB 54 remains in place. This does not change that. So sharing and cooperating is not allowed and will not be allowed under the changes we're proposing. As was stated, this is not a change to the Fourth Amendment.
- David Alvarez
Legislator
It's a change to state law, CalECPA. And that's what the focus is. And, you know, I doubt that there are circumstances when the opposition talks about police can just go and pick up any device and then say that they're thinking it's tracking or it's recording.
- David Alvarez
Legislator
We very explicitly said if a victim gives their consent of something that's found in their personal property, then the police has the authority to do so. Police can't just walk up and pick up an AirTag or a camera, can't go into someone's home, just pick up a camera or an AirTag and start to search.
- David Alvarez
Legislator
That's not what this does. It's if someone who is a victim gives the authority for the police to do so, then the authority exists. It does not exist before that. And so I want to clarify that this is specifically centered on victims wanting to make sure that justice is brought to whatever potential harm is being caused to them and not something that is just willy nilly being done by the police at any given moment. So with that, I respectfully request your aye vote.
- Rebecca Bauer-Kahan
Legislator
Thank you. I have a motion and a second. Let's call the roll.
- Rebecca Bauer-Kahan
Legislator
That has nine votes. It is out. But we will leave the roll open for absent Members. We'll move on to Assemblymember Krell's Bill, AB 1137. Thank you for being here, Assemblymember Krell.
- Maggy Krell
Legislator
It's good to see you. Hi, good afternoon, everyone. Thanks so much to the Chair and thank you to the Committee for all your work on this Bill. Really appreciate it. Assembly Bill 1137 strengthens California's existing mechanism to report sexual abuse material on social media platforms.
- Maggy Krell
Legislator
If you might recall, my joint author in this Bill authored Assembly Bill 1394 last year, and this set up a really important framework for a reporting system to increase transparency and accountability, when sexual abuse material is shared online.
- Maggy Krell
Legislator
It's not news to this Committee that there are literally millions of CSAM images online, all the time, on social media platforms we've heard of, and some we haven't even heard of.
- Maggy Krell
Legislator
The mechanism that was put in place last year was a really, really important framework to try and report, reduce, and prevent additional child sexual abuse material from getting online. This Bill that I'm bringing today is really an implementation Bill. It makes—it takes—the vision of that Bill and allows it to more effectively be put into action.
- Maggy Krell
Legislator
The Bill would allow anyone to use the CSAM reporting mechanism on social media. Currently, the law limits reporting to the person in the CSAM, and so, expanding access to all users would relieve survivors from the burden of having to seek out their own instances of abuse.
- Maggy Krell
Legislator
It also requires that the reporting mechanism be clear and conspicuous, so that users of social media can easily see this and report it. It also requires that the CSAM reports be reviewed by hash matching, or an actual person, rather than just relying solely on algorithms.
- Maggy Krell
Legislator
Allowing public attorneys to bring civil charges against social media platforms for failure to comply with the reporting mechanism, and that way, it's just not solely the responsibility of the survivor to privately bring these cases.
- Maggy Krell
Legislator
And then, finally, it requires public biannual audits to be done by an independent third-party, ensuring that social media platforms aren't facilitating, aiding, or abetting in the CSAM. So, that's an overview of the Bill, and I appreciate the thorough analysis by the Committee.
- Maggy Krell
Legislator
With me today are Nicole W, the mother of a child who was a victim of CSAM on social media, and then, also, Hillary Evans, Survivor Leader, representing 3Strands Global Foundation. Now, who wants to go first?
- Hillary Evans
Person
Good afternoon, Chair Bauer-Kahan and Members of the Committee. My name is Hillary Evans. I'm the Director of Social Impact at 3Strands Global Foundation, a California-based nonprofit dedicated to ending human trafficking and supporting survivors nationwide, through trauma-informed prevention, education, and reintegration services.
- Hillary Evans
Person
3Strands Global Foundation is proud to co-sponsor AB 1137 and strongly supports its passage. This Bill is a crucial next step in the fight against online child exploitation. In 2023, we co-sponsored AB 1394, which is now law, and laid a strong foundation, by requiring platforms to implement reporting systems for child sexual abuse material.
- Hillary Evans
Person
AB 1137 builds on that work, by ensuring that those systems are not only available, but effective and centered on the needs of survivors. Specifically, the Bill removes the requirement that a reporting user must be depicted in the material and mandates that reporting mechanisms be clear and conspicuous.
- Hillary Evans
Person
Most importantly, it strengthens the response process, by requiring that all reports be reviewed through robust methods, either via established hash matching technology for known material, or, where no match exists, by trained reviewers—human reviewers. As a direct service provider, we witness firsthand the devastating impact of online child sexual exploitation.
- Hillary Evans
Person
We work with survivors every day, young people who are not only living with the trauma of their abuse, but also the ongoing harm of seeing images of that abuse continue to circulate online. Social media platforms are not just bystanders in this crisis.
- Hillary Evans
Person
They are central to the spread of child sexual abuse material and without stronger enforceable safeguards, we know the exploitation will only increase. AB 1137 is an urgently needed response. It removes the painful burden, that survivors currently face, of having to locate and report their own abuse.
- Hillary Evans
Person
By allowing any user, not just the survivor, to report CSAM, this Bill creates a more accessible, responsive, and survivor-centered path to content removal. Requiring these reports to be reviewed by real people and not just algorithms ensures survivors are treated with the care and the dignity that they deserve, rather than being subjected to impersonal systems, that too often overlook and mishandle the severity of their pain.
- Hillary Evans
Person
We urge your strong support for AB 1137, as it is a vital step in protecting children who are vulnerable, supporting survivors, and ensuring tech companies take meaningful responsibility for the spaces that they create. Thank you for your leadership.
- Nicole W
Person
My name is Nicole, and I am the mother of a child sexual abuse survivor, whose abuse was recorded and has been widely distributed on a variety of Internet websites and social media platforms.
- Nicole W
Person
I am here today in support of AB 1137, a Bill that will allow crucial clarifications to existing California law, that requires social media platforms to take affirmative acts to remove child sexual abuse material from their platforms.
- Nicole W
Person
When the perpetrator, in my child's case, was arrested and charged, I was naive enough to be grateful that there were images proving what he had done, so that he would not be able to get away with it.
- Nicole W
Person
In the time that has passed, I have seen firsthand how the images themselves are abuse and every time the images are distributed, redistributed, and viewed, the child is revictimized. The current California law allows only someone depicted in the images to request their removal.
- Nicole W
Person
The reality is that many of the children being depicted are below the allowable age for them to be engaged on these platforms, in the first place. By allowing anyone to report these images, you are taking the responsibility off the children and allowing grownups in the room to speak up on their behalf.
- Nicole W
Person
AB 1137 also prevents revictimization by utilizing the existing hash data mechanism for known CSAM and requiring human review only in cases where the images have no hash match, and would not otherwise be removed. Imagine the worst thing that has ever happened to you having been recorded and shared out into the world, without your consent.
- Nicole W
Person
Wouldn't you want as few people to see this as possible? That's what this Bill does for CSAM survivors. Survivors need to have all of the remedies under the law available so that they can decide when, where, and how to seek justice against everyone who has been part of their abuse.
- Nicole W
Person
This Bill empowers the California Attorney General, state prosecutors, and local prosecutors to use their resources to pursue justice, on behalf of these children and their families. This Bill is about the safety of kids and there is nothing more important than protecting them. I know I alone could not have protected my own child.
- Nicole W
Person
We need help and new laws to keep children safe online. I urge the Assembly to move forward with AB 1137, to help ensure that every child has the safe childhood that they deserve.
- Rebecca Bauer-Kahan
Legislator
Thank you so much for being here and for your testimony. Do we have any other witnesses here in support on this Bill?
- Kimberly Stone
Person
Kim Stone, on behalf of the Children's Advocacy Institute, co-sponsor, in support.
- Kimberly Stone
Person
And I was stuck in another Committee and didn't get to do a "Me Too" on your Bill, 56, which I'm happy to see it got out.
- Kimberly Stone
Person
But they were all so supportive of that, and I'm sorry that I didn't...
- Kristi Merrill
Person
Kristi Merrill, 3Strands Global Foundation, proud co-sponsor, in support.
- Marc Berkman
Person
Mark Berkman, with the Organization for Social Media Safety, proud co-sponsor, in support.
- Ken Wang
Person
Ken Wang, on behalf of the California Initiative for Technology Democracy, in support.
- Rebecca Bauer-Kahan
Legislator
Thank you. Anyone here in opposition to this Bill, come on up.
- Dylan Hoffman
Person
Do you have a frequent flyer program? I'd love to take advantage. Madam Chair, as the sole witness. Do you mind if I-- Thank you.
- Dylan Hoffman
Person
Thank you, Madam Chair, Members of the Committee, Dylan Hoffman on behalf of TechNet in respectful opposition though, we anticipate moving to opposing unless amended as we continue to collect feedback and specific red lines. As an organization, we don't typically take an opposing lesson minute unless we have those red lines and have a path towards neutrality.
- Dylan Hoffman
Person
So we're working towards that. First, fully agree with the intent behind this bill. Our companies have been highly engaged partners in the fight to curb CSAM on the Internet and work very collaboratively with NCMEC and other nonprofits to do so. In fact, TechNet was a proactive partner in negotiations on the prior bill, AB 1394.
- Dylan Hoffman
Person
With the author, her staff and and sponsors of the bill, we provided numerous detailed red lines that would have made implementation more efficient, insulated the bill from constitutional challenges, and helped to remove more CSAM from the Internet.
- Dylan Hoffman
Person
While there were some issues we wish could have been resolved, we were appreciative of the conversations with Assemblymember Wicks and her willingness to work with us. All that to say we're more than willing to do the same with AB 1137 and have had an initial conversation with the author staff to begin that dialogue.
- Dylan Hoffman
Person
AB 1394 just went into effect January 1st of this year. If there is already evidence of gaps in compliance or ways to improve upon the bill, we'd like to be part of that conversation and provide helpful solutions in that regard. Want to highlight a few issues with the changes this bill makes.
- Dylan Hoffman
Person
First, as initially drafted, the human review requirement would have had a significant negative impact on our ability to process these reports. Platforms actually try to Automate Processing of CSAMs, CSAM reports as much as possible to prevent re victimization of the individual, but also to protect human moderators.
- Dylan Hoffman
Person
Content moderation is an incredibly difficult job, and one in which the nature of the content takes a significant toll on workers. It's in everyone's interest to have more, not less, automation in this instance, and the recent amendments help to address this issue, and we may have additional suggestions there.
- Dylan Hoffman
Person
Second, the changes to the audit requirements add significant compliance hurdles without much meaningful benefit. Third party audits are not only costly, but it's also not clear that there are auditors that would meet the requirements of having experience in digital trust and safety and content moderation.
- Dylan Hoffman
Person
AB 1394's audit requirements were constructed to ensure that companies were conducting meaningful self assessments of their systems and looking for ways to improve their methods. We still believe that twice yearly audits make that exercise more about checking a box than about a true assessment.
- Dylan Hoffman
Person
If the Committee finds it necessary to impose a third party audit requirement, we suggest that it's on a less frequent timeline with self assessments in between. More concerning, however, is the requirement that these audits be made public.
- Dylan Hoffman
Person
Platforms are in a constant battle to protect their users and their platforms from sophisticated bad actors that are trying to exploit and harm them.
- Dylan Hoffman
Person
Providing additional detailed information about platforms, moderation efforts, how they're using certain technologies, and identifying gaps in their systems and making this public is a very bad idea and gives sophisticated criminal organizations a significant advantage. The industry has made significant progress in the fight against CSAM and we cannot go backward.
- Dylan Hoffman
Person
This bill should not force companies to choose between non compliance and undercutting their work to combat CSAM on their platform. We've already discussed this point with the author's office and we're all obviously on the same team in this fight. This is an instance where transparency directly conflicts with safety and security.
- Dylan Hoffman
Person
We strongly suggest removing the public posting requirements from these audits. Additionally, the changes to the enforcement provisions upend several negotiation points on AB 1394, namely that inadvertent immaterial non compliance due to a technical malfunction or issue outside the control of the platform shouldn't be grounds for penalties or a lawsuit.
- Dylan Hoffman
Person
While we appreciate the change to make certain sections enforceable by public prosecutors rather than a private lawsuit, the bill and penalties currently treat small technical failures and serious intentional non compliance the same. We believe penalties and enforcement should be tailored to the harm caused by non compliance and we'll work to provide suggestions to that effect.
- Dylan Hoffman
Person
Lastly, I'll just say that AB 1394 reflected a careful balancing of interests between safety, transparency and accountability. It also balanced serious constitutional issues around the First and Fourth Amendments and is somewhat unique among social media bills in that it hasn't been challenged in court to date.
- Dylan Hoffman
Person
We suggest caution with any changes that could upset that very careful balance and we look forward to continuing our productive dialogue with the author and her staff and moving towards an opposing, less amended position. So thank you for your time today.
- Rebecca Bauer-Kahan
Legislator
Thank you. Any other witnesses here in opposition? I see at least one I think.
- Ronak Daylami
Person
Good afternoon. Ronak Daylami with Cal Chamber. Align our comments with those of TechNet. Respectfully in opposition. Thank you.
- Aodhan Downey
Person
Aodhan Downey representing the Computer and Communications Industry Association, want to echo what Dylan said and we are opposed unless amended. Thank you.
- Rebecca Bauer-Kahan
Legislator
Thank you. Seeing no additional witnesses here in opposition. We'll bring it back to the dais. Any questions? Concerns? Comment? Yeah, we'll start with Ms. Wilson.
- Lori Wilson
Legislator
Thank you to the author for bringing this forward. And I get that the law just went into effect at the beginning of this year, and I do think there's opportunity, as I was reading through the bill analysis, for improvement and I'll be supporting today.
- Lori Wilson
Legislator
But I do have one concern that I think is a valid concern and it is related to the audits being twice a year and having the third party requirement, an independent third party requirement. And I think that having the third party requirement is really good.
- Lori Wilson
Legislator
But then knowing having not done this type of audits, but just knowing how the audit process works, it could be long and cumbersome and rightfully so, especially when you're doing third party. And so it does feel more like a checks the box if you're doing them biannually. And so they should be meaningful and thorough.
- Lori Wilson
Legislator
And I am concerned about the two times a year. And then also with the information being public, we do want to protect. So there is some level of transparency I believe could be needed in terms of making notification that an audit has been completed and that being verifiable versus having to make the entire thing public.
- Lori Wilson
Legislator
So those are just some concerns that I thought when I read through. But I appreciate the work that you're doing and I think it's on track. And those are the only concerns that I saw that I thought were valid for further consideration from you by the author with these stakeholders. Thank you.
- Gail Pellerin
Legislator
Thank you. I want to thank the author for bringing this bill forward and the witnesses for sharing your personal stories and the work you've done in this space as well. So it's my understanding that some of the CSAM's are going to be reviewed by humans.
- Joe Patterson
Legislator
And over the past couple years, we've seen an increased acknowledgment of the mental health harm suffered by content moderators, specifically as it relates to suicide, diagnosis of PTSD, depression and anxiety. So I'm just wondering whether you're looking at possibly having AI or some other method of reviewing the CSAM materials.
- Maggy Krell
Legislator
Yes, it is reviewed by AI, but then it would also require just in specific circumstances to have reviewed by a natural person.
- Gail Pellerin
Legislator
Because AI can't be trained to be looking for everything we need it to find.
- Maggy Krell
Legislator
It can. And I mean, especially with hash images, AI can actually be better than human review in some circumstances, but we also need human review for situations where there's multiple reports and it's been rejected by AI. We want a person to look at it and make sure because that could be a child victim that's continuing to be victimized.
- Rebecca Bauer-Kahan
Legislator
And I'll thank the author for her amendment in this committee which got rid of review by humans when it was being removed, because that did seem unnecessary. If they're doing the right thing and taking it down, we didn't need more eyes on that image.
- Rebecca Bauer-Kahan
Legislator
So to the extent that the social that the companies are over inclusive in what they remove, there will be less eyes on it. But to the extent that they're choosing to leave it up, that's where this would apply. And I think that that's where they're making that decision.
- Rebecca Bauer-Kahan
Legislator
We want to make sure it's a decision that is made with real thought, sadly. Any other additional questions? With that would you like to close?
- Maggy Krell
Legislator
Sure. I appreciate the comments from the members of this committee and for the Chair and the Chair staff's work on this bill. Thanks for the opposition comments as well. We'll continue to listen to everyone as we keep going down the road. But right now I'd respectfully ask for everybody's aye vote thank you.
- Rebecca Bauer-Kahan
Legislator
And I'm supposed to give you the last word. If you want to say something after me, you can again. But I want to thank the author for this work. I know this is part of your life's work, protecting people who are survivors.
- Rebecca Bauer-Kahan
Legislator
And this is so important and I really want to thank you and I, you know, here we are again, trying to protect the most vulnerable from the most egregious of crimes and we have social media posing. So I'm excited to see the day when they come and help protect California's children. Would you like to close again?
- Rebecca Bauer-Kahan
Legislator
Are you good? Okay. Wait, do we have a motion?Oh, we have a motion and a second. And let's call the roll.
- Committee Secretary
Person
Item number five, AB 1137 by Assemblymember Krell. The motion is do passed to the Judiciary Committee. [Roll Call]
- Rebecca Bauer-Kahan
Legislator
That bill has seven votes, so it is on call. We will get additional votes when folks get back to Committee. Ah, okay, perfect. We will hear AB 1331. Elhawary, there she is. Your ear. When you're ready.
- Sade Elhawary
Legislator
I know you're working hard, so I'll keep it quick. All right. Good afternoon, Madam Chair and Members. I'm here to present AB 1331, which strengthens workplace privacy laws to address the rise of invasive workplace. Excuse me, invasive employer surveillance. Employers today aren't just using cameras.
- Sade Elhawary
Legislator
They're using wearable trackers, facial recognition, speech monitoring and algorithmic surveillance to monitor workers every minute of their shift, on and off the clock. The communities bearing the weight of the surveillance, excuse me, of the surveillance state, aren't the folks sitting in corner offices.
- Sade Elhawary
Legislator
It's black, brown and immigrant workers, the ones doing physically demanding low wage jobs, who are tracked, monitored and policed every minute of their shift. In California, nearly half of our low wage workers are Latino. In regions like the Inland Empire, warehouse workers are disproportionately black and Latino.
- Sade Elhawary
Legislator
And let's be honest, these are the same workers who don't feel like they can speak up because they're just trying to keep their jobs and provide for their families. These are the very communities, black, brown and immigrant workers, who are disproportionately subject to surveillance systems that track, control and monitor every move they make.
- Sade Elhawary
Legislator
This kind of monitoring isn't neutral. It increases stress, reduces job satisfaction and strips workers of their basic dignity. AB 1331 will modernize our laws to protect workers privacy. It limits surveillance in private spaces, off duty locations, and ensures that surveillance of a worker's home or vehicle is only allowed when absolutely necessary.
- Sade Elhawary
Legislator
This bill is about restoring dignity in the workplace and protecting the very people who keep our economy running. Black, brown, immigrant and low wage workers, so they are not forced to sacrifice their privacy just to earn a paycheck. With me testifying in support is Yvonne Fernandez with California Federation of Labor Unions.
- Rebecca Bauer-Kahan
Legislator
And before we move on, just want to make sure you're accepting the Committee amendments.
- Rebecca Bauer-Kahan
Legislator
Okay, great. And two minutes each one of you have a chance.
- Yvonne Fernandez
Person
Perfect. Thank you so much. Good afternoon, Madam Chair, Members of the Committee, Yvonne Fernandez with the California Labor Federation, a proud co sponsor of AB 1331. Members, when you think of surveillance, what comes to mind?
- Yvonne Fernandez
Person
I assume some may think of a camera, some may think of a microphone, but I assure you, the tools of today are so much more powerful than this. As the Assembly Member noted, Employers today have access to seemingly military grade equipment such as wearable trackers, heat sensors, and even in some parts of the world, implantable RFID chips.
- Yvonne Fernandez
Person
Surveillance hardware and software have become increasingly affordable and available. This is why employers are now eager to monitor every corner of the work site and it is why they have required workers to install keystroke monitors, a very effective form of productivity management and a practice that DOGE has instituted on federal workers.
- Yvonne Fernandez
Person
With every inch of the workplace under the eye of the employer, workers simply do not have adequate protections for being washed at home, when eating lunch, or even when going to the restroom.
- Yvonne Fernandez
Person
While there are existing privacy laws protecting workers from audio and visual recordings, this is primarily for camera and microphone technology, leaving workers vulnerable to new forms of surveillance technology.
- Yvonne Fernandez
Person
There are two reasons why we must protect workers from being surveilled at all hours of the day and the first is that workers need privacy on the job whether they're in the restroom, their home office or while on break.
- Yvonne Fernandez
Person
The second is that while that we all understand the power of data and how it can be used by employers to control the workplace. If an employer can track and listen to conversations throughout the entire day, they can gather as much information as possible and exercise that power over workers.
- Yvonne Fernandez
Person
For example, Amazon has developed a centralized AI system that can detect union friendly phrases and behaviors in Amazon warehouses in real time.
- Yvonne Fernandez
Person
AI then analyzes the data to learn how to devise strategies to neutralize their program target, which in this case could be workers in a break room who are potentially pro union or at the very least concerned about their rights.
- Yvonne Fernandez
Person
Perceptics is a company that collects and analyzes employee surveys and other information and they said that they can create union vulnerability indexes so employers can see which groups of workers are at the highest risk of unionization. We at the Labor Federation of course support safety and workplace violence prevention.
- Yvonne Fernandez
Person
However, this is pushing surveillance from being used for safety and security into full on invasive surveillance. AB 1331 enacts sensible workplace privacy protections and keeps the Boss out of the restroom. I respectfully urge your aye vote.
- Shane Gusman
Person
Thank you. Good afternoon, Madam Chair. Members of the Committee, Shane Gusman, on behalf of the California Teamsters Public Affairs Council, co sponsor the bill along with the Amalgamated Transit Union, the Machinists Union, the Utility Workers Union of America, Unite Here and the Engineers and Scientists of California all in strong support of this measure.
- Shane Gusman
Person
Surveillance and monitoring of employees has been growing for some time, as you've just heard. Unfortunately, with the new technology, this practice is now becoming increasingly invasive and terribly problematic for worker Privacy, but not just privacy, also health and safety and actually productivity.
- Shane Gusman
Person
Workers who are constantly concerned about their employer monitoring every step of the day, including in bathrooms, in their private vehicles at home, do not make for better workers.
- Shane Gusman
Person
They make for stressed out, nervous workers that not only endangers their own mental health, but endangers their physical well being and the physical well being of their workers, especially if they're working in sort of safety sensitive areas, including distribution centers.
- Shane Gusman
Person
As you've just heard, this surveillance has been around for some time, but now because it's cheaper and more effective and more and more employers are taking advantage of it.
- Shane Gusman
Person
And so our view is that the time is now to act to provide some appropriate guardrails around the use of this technology so that we don't, you know, as the author said, force someone to trade off their privacy and autonomy just to get a paycheck.
- Rebecca Bauer-Kahan
Legislator
Thank you both. Anyone else here in the room in support of this bill, come on up. Name, organization and position. Although.
- Robert Horrell
Person
Good afternoon, Madam Chair and Members. Robert Horrell, Executive Director of the Consumer Federation of California, in support of this bill, thank you.
- Kimberly Rosenberger
Person
Kimberly Rosenberger on behalf of SEIU, UFCW, and CSEA in strong support.
- Ken Wang
Person
Ken Wang on behalf of the California Employment Lawyers Association, in support.
- Daniel Endbird
Person
Daniel Endbird, on behalf of the American Federation for State County Municipal Employees in support, thank you.
- Jp Hannah
Person
Jp Hannah with the California Nurses Association in strong support, thank you.
- Rebecca Bauer-Kahan
Legislator
And I assume we have witnesses in opposition who want to join us up here. Four minutes. You can do two minutes each or use it.
- Kaylin Dean
Person
Thank you very much, chair and Members. Kaylin Dean, on behalf of the California Hospital Association, representing over 400 hospitals and health systems in the state, we are here in regrettable opposition to AB 1331. We appreciate the recent amendments from the author and sponsors, but unfortunately, many of our concerns still remain.
- Kaylin Dean
Person
Hospitals do not want to infringe on the privacy of their workers, and hospitals do not surveil people in areas like locker rooms, bathrooms and lactation spaces. The safety of our hospital workers and patients are of utmost importance to us.
- Kaylin Dean
Person
But in order for us to ensure safety while adhering to workplace violence prevention standards and a host of other regulations, we use security cameras 24 hours a day, seven days a week throughout the hospital facilities and grounds, including around the perimeter of the property.
- Kaylin Dean
Person
Due to the unique operations of hospitals, workers take their breaks at various times throughout the 24 hours, often in common areas shared by the public, such as the cafeteria or designated smoking areas while off duty, either to begin or end their shift.
- Kaylin Dean
Person
Workers are likely to be in other public spaces such as elevators, corridors or stairwells and the parking lot. There are cameras in all of these areas to protect our workers and the public. AB 1331 is not practical.
- Kaylin Dean
Person
Workers off duty areas are shared with the public and from a security perspective, the components of the bill would put our health care system at risk by not being able to observe activity in common areas that have included assaults, larcenies, slips and falls, and unfortunately, attempts at even infant abduction.
- Kaylin Dean
Person
The tools that hospitals use cannot be turned off or disabled by the worker. My colleague from the Chamber will discuss more info or more concerns that we have around cybersecurity monitoring and the California Hospital Association respectfully request your no vote today. Thank you.
- Ronak Dalami
Person
Thank you. Good afternoon. Ronak Dalami on behalf of Cal Chamber. I'm actually playing the role of Ashley Hoffman today, who is much smarter than me in our labor issues, so please bear with me. We are respectfully in opposition today as a cost driver to AB 1330. Of course, privacy does not exist in a vacuum.
- Ronak Dalami
Person
It exists in conflict with other rights and obligations, including safety and security. Unfortunately, AB 1331 does not account for the legitimate reasons why businesses, schools, banks, hospitals and many more use surveillance. Many employers have security cameras in areas like hallways or parking lots where employees may happen to concrete in their breaks.
- Ronak Dalami
Person
We do disagree with the bill's characterization of those areas as being on the same level as bathrooms or changing rooms. Cameras in those areas would be prohibited under AB 1331 for any reason.
- Ronak Dalami
Person
If an employee asks for a camera because of a recent incident, or if there was a suspicious person in an office or a school campus, we do track computers and systems system access, for example, because of as anyone who's taken a cybersecurity training in the last year knows, people are really the number one way in which hackers or those who are attempting phishing attacks or ransomware attacks can get in.
- Ronak Dalami
Person
As such, those systems must always be running to identify low level attacks in seconds. We also collect emails on our servers to ensure compliance with legal obligations and prevent incidents of harassment. There are scenarios where disabling or leaving behind a tool is also not practical.
- Ronak Dalami
Person
Consider when an employee is having lunch or an employer owned vehicle, excuse me, between site visits or customer calls. Those geolocation systems cannot simply be turned off and on and they cannot just be leave the car behind.
- Ronak Dalami
Person
So to be clear, we are absolutely not defending surveillance for nefarious purposes, but AB 1331's flaw is that it bans certain actions altogether without considering the technological feasibility for doing so or the reasoning behind so certain tools that we need to be able to use for legitimate reasons.
- Ronak Dalami
Person
And so for these reasons, we do ask for your no vote and oppose. Thank you.
- Rebecca Bauer-Kahan
Legislator
Thank you. Anyone else here in opposition to this bill? Come on up. Name, organization and position, please.
- Delilah Clay
Person
Good afternoon. Delilah Clay on behalf of the California Construction and Industrial Materials Association, in opposition.
- Laura Curtis
Person
Good afternoon Chair and Members. Laura Curtis with the American Property Casualty Insurance Association also in respectful opposition. Thank you.
- Marcus Detwiler
Person
Good afternoon. Marcus Detwiler with the California Special Districts Association in opposition. I've also been asked to convey the opposition of the League of California Cities and the California State Association of Counties. Thank you.
- Chris Rose
Person
Thank you. Chris Rose on behalf of the California Forestry Association in opposition.
- Unidentified Speaker
Person
[Unintelligible] on behalf of The California Travel Association. In opposition.
- Scott Governor
Person
Scott Governor on behalf of the Construction Employers Association, also speaking on behalf of the National Electrical Contractors Association, Sheet Metal and Air Conditioning Contractors Association, Southern California Contractors Association, United Contractors and the Wall and Ceiling Alliance in opposition.
- Rebecca Bauer-Kahan
Legislator
I'm sure that there was someone you forgot, but good afternoon.
- Sara Duquette
Person
Sarah Duquette on behalf of the Rural County Representatives of California and the Urban Counties of California, in opposition.
- Carlos Gutierrez
Person
Madam Chair, Members, Carlos Gutierrez here on behalf of the California Grocers Association, in opposition.
- Unidentified Speaker
Person
[Unintelligible] the after the California League of Food Producers, in opposition. Thank you.
- Matthew Easley
Person
Matt Easley on behalf of Associated General Contractors of California, in opposition.
- Sam Hood
Person
Sam Hood on behalf of the Security Industry Association, respectfully opposed. Today.
- Nick Chappie
Person
Nick Chappie on behalf of the California Trucking Association, respectfully opposed. Thank you.
- Max Perry
Person
Max Perry on behalf of the California Pest Management Association, also opposition.
- Jack Yannis
Person
Jack Yannis on behalf of the California Fuels and Convenience Alliance, respectfully opposed.
- John Doherty
Person
Good afternoon. John Doherty with Hawaiian Gardens Casino, in opposition.
- Shane Gusman
Person
Mike Robeson on behalf of the California Alarm Association in post.
- Sabrina Lockhart
Person
Sabrina Lockhart, California Attractions and Parks Association, in opposition.
- Jacob Brent
Person
Jacob Brent with the California Retailers Association, in respectful opposition.
- Rebecca Bauer-Kahan
Legislator
Thank you. Seeing no further opposition. I'm going to bring it back to the dais. I will just make a point on this bill, which is we received the request from the Hospital Association yesterday afternoon to talk about the bill for the first time. We are only as good as the engagement we get on legislation.
- Rebecca Bauer-Kahan
Legislator
And so I would just ask people to engage earlier, have productive conversations. I don't think that the author intends to put Anybody at risk in a hospital, I think I hope those conversations continue. But having been the recipient of the communications, I know they've been coming very late.
- Rebecca Bauer-Kahan
Legislator
And so, you know, I would appreciate in the future if people could engage a little earlier. Bringing it back. Anybody else? Family Member Pellerin?
- Gail Pellerin
Legislator
Hello. Thank you. I had thought that in Assembly labor and Employment, the Committee suggested that you do an exception, exception for workplace surveillance around off duty areas. Is that still something you're considering doing?
- Sade Elhawary
Legislator
That's a good question. And I'm going to ask my witnesses if we have talked about that with the amendments. I don't remember.
- Yvonne Fernandez
Person
Could you. So. Yes. So could you, could you elaborate a little further if possible?
- Gail Pellerin
Legislator
If I, if I, I mean, it's just my understanding that in some. In Assembly labor and Employment, the Committee suggested that you consider an exception for the use of a workplace surveillance tool in off duty areas to ensure the safety of workers. And I thought that I had heard that was something that you had accepted to do.
- Yvonne Fernandez
Person
If I may, through the chair. So we took amendments heading into this Committee specifically in 1561 D that allow for surveillance tools to be used in areas not listed in 1561 A, which are those off duty areas that we had listed.
- Yvonne Fernandez
Person
So you know, we can commonly refer to those as General areas so that a surveillance tool can be operating while a worker is still on a, is on a break. But it's not, but not in those off duty areas that we had mentioned.
- Yvonne Fernandez
Person
So for example, in a grocery store, a, a surveillance system can still remain on even when workers are on a break and they would not have to turn off or alter their surveillance systems. And that was the intent of our Amendment specifically in 1561 D.
- Yvonne Fernandez
Person
And if I also may add, you know, we're continuing working with opposition to try to get at the issue of ongoing surveillance as it pertains to workers, you know, who are off duty, but in General areas.
- Gail Pellerin
Legislator
And I understand that this is a trade off that you're considering and I would urge you to consider amendments that would allow for the recording of common spaces, but predicate the assessing of those recordings on the filing of a complaint from HR management or law enforcement in the case of an alleged sexual assault, harassment, bullying or violence.
- Gail Pellerin
Legislator
You know, these employee on employee kinds of, you know, violence could most likely occur in those areas like a break room. And from 1966 to 2021, there were 53 workplace shootings across the country. And that's 30% of the mass shootings during that same period. One of them occurred near my district in 2021 at BTA.
- Gail Pellerin
Legislator
And so I would see no issue with imposing penalties for the improper access of those recordings. But I would hope that those recordings would exist should an employee file a complaint about sexual harassment or have some kind of violence against them. So have you given that some consideration.
- Yvonne Fernandez
Person
If I may, through the chair? Yeah, you know, we're definitely, you know, taking into consideration workplace safety as it pertains to, you know, making sure that these recordings are.
- Yvonne Fernandez
Person
Or just General surveillance tools are able to be used, which is, you know, then going back to 1561 D, which is why we are allowing for surveillance to be occurring in General areas. And if I may, on the topic of safety, I will note that in terms of safety, we took that amendment to address that.
- Yvonne Fernandez
Person
But then also we see best workplace practices as methods of increasing safety. So, for example, increasing staffing and increasing security personnel, in addition to increasing workplace harassment trainings, all going in tandem with one another.
- Yvonne Fernandez
Person
And then also taking into consideration the amendment which is allowing for surveillance in just those General areas, those things going together to get at the issue of safety. So we definitely understand the concern regarding safety as you're mentioning, and we're open to conversations to make sure that workers are safe on the work site.
- Gail Pellerin
Legislator
I just have great faith in the author that you'll continue to work with the opposition to resolve those safety concerns that exist. So I'll go ahead and vote for the bill today.
- Carlos Gutierrez
Person
Thank you. I do. I will be supporting the bill today. You know, obviously we want to make sure that we're not surveilling workers to that extent. But I have to say a lot of the concerns of the opposition resonate in the. In the letter that they wrote. Employee safety. I think that that's a big issue.
- Carlos Gutierrez
Person
Yes, you can have additional workers, but the cameras often are there and that are there contribute to worker safety. I think it's an all of the above situation for worker safety.
- Carlos Gutierrez
Person
But I'm also concerned about the conflicts with the Cal OSHA, the conflicts with the Cal OSHA regulations, and then the cybersecurity concerns that were brought up by the opposition. So I feel like there need to be more exemptions and a narrowing of the bill to get at what it is that you are trying to achieve.
- Carlos Gutierrez
Person
And we'll see what the bill. I do have faith in the author, and we'll see what the bill looks like on the floor. But like I said, I'll be supporting today.
- Buffy Wicks
Legislator
I will also be supporting the bill today. I believe in the spirit of what you're attempting to do. I do want to align my comments with my colleagues, though, because I do think there's still some work to be done both on the safety issues also. And so I should make sure I have this clear.
- Buffy Wicks
Legislator
The bill that we're voting on today, does it allow for surveillance, security cameras in elevators or public spaces or parking.
- Buffy Wicks
Legislator
It does. Okay, got it. Okay, great. Just a little bit more thoughtfulness on this just because I do think there's been some good issues raised. But obviously we're in the First Committee of the First House. I want to give you the opportunity to keep working on the bill.
- Buffy Wicks
Legislator
So we'll be supporting it, but would love to see continue to work with opposition on trying to refine some of these things.
- Lori Wilson
Legislator
I have to agree with my colleagues. Thank you to the author for bringing this forward. You know, we are in this State of affairs where technology has allowed our privacy to be eroded in places where we expect some level of privacy outside of work. Right.
- Lori Wilson
Legislator
Whether that be remote work at home or when we're on break and things of that nature. But I think the concerns that were brought up with my colleagues, that were amplified from opposition by my colleagues are valid.
- Lori Wilson
Legislator
And I do think there needs to be level of refinement, especially given the issues of workplace violence from employees on employees and as well as being in secure environments, taken for example, what was noted from hospital and others like that of a need to be able to have some level of passive surveillance.
- Lori Wilson
Legislator
And I'll use the word from the analysis because I look at it as surveillance and then enhanced surveillance, which not supportive of. And so I think that there definitely needs to be refinement. I think this is one where you can be nuanced.
- Lori Wilson
Legislator
It's going to take time to be able to do that and more time than our legislative process allows when you're coming to the First Committee. Right. Or even to the Second Committee when you're in the first House. And so keep that in mind. I'll be supporting it today as well.
- Lori Wilson
Legislator
However, I think there definitely needs to be refinement before there's support on the floor or even the second time it comes because I'm sure there's going to be stuff in the Senate or suggestions made in the Senate.
- Lori Wilson
Legislator
But thank you for your attempt to try to navigate this serious issue of privacy and then balancing that with the needs to keep people safe.
- Rebecca Bauer-Kahan
Legislator
Thank you. Seeing no additional comments. I appreciate the comments of my colleagues and I'll let you address it in your close. But I do think you're getting at something really important, which is our workplaces are really. Technology is taking off in a way that is resulting in a lack of privacy.
- Rebecca Bauer-Kahan
Legislator
And we had a conversation, one of our prior bills about an expectation of privacy and some of the places you list in here. When I read this, I was like, well, of course you're not recording people in a locker room where they're changing. I think this is somewhere where you have an expectation of privacy.
- Rebecca Bauer-Kahan
Legislator
And so hopefully there is an alignment. I mean, I'm sure. I hope they're not. That row of people is not recording people in the bathroom. I'm going to assume you're not everybody. So I know there's a lot of common ground, or I hope there's a lot of common ground here.
- Rebecca Bauer-Kahan
Legislator
And I do know that another concern was around the safety of patients as well, you know. And so again, I wish that we would have heard from folks in the opposition sooner, but that is what it is.
- Rebecca Bauer-Kahan
Legislator
And I know that I trust you as the author to continue this work in protecting our workers in all the ways, which I think was the comments of some of my colleagues. So with that, I will turn it over to you.
- Sade Elhawary
Legislator
Thank you. And definitely, I think, achieving a level of balance that really keeps in mind both the safety and privacy of workers as well as patients and overall, being thoughtful around how we work together.
- Sade Elhawary
Legislator
We've been actively engaging with opposition, and we're committed to ensuring this bill is both workable for employers and meaningful in protecting the rights and dignity of workers. I respectfully ask for an aye vote.
- Rebecca Bauer-Kahan
Legislator
Thank you. I don't know if we had a motion. A second. So do we have a motion? Thank you. Second it. Okay, we'll call the roll.
- Jacqui Irwin
Legislator
All right. Good afternoon, Madam Vice Chair and Members. I'm pleased to present AB 810, which will require special districts and joint powers authorities to migrate their public-facing internet websites and email addresses to .gov or ca.gov by 2031, which is six years away. We have given them plenty of time.
- Jacqui Irwin
Legislator
The public's trust in government is foundational for a healthy democracy. At the level of misinformation and fraud perpetuated online—as the level of misinformation and fraud perpetuated online—continues to rise and more sophisticated threat actors continue to confuse and mislead. We can no longer be haphazard about the way local governments are presented online.
- Jacqui Irwin
Legislator
The majority of special districts in California use .org, .com, or .net. These unregulated domains can easily be purchased by anyone and spoof local governments by registering a domain with a slight typo or adding terms like "district." Consider for a moment that the Water and Wastewater section is one of the most vulnerable critical infrastructure sectors for a cyber-attack.
- Jacqui Irwin
Legislator
Or consider how easily a fraudster can create a fake website, based on one of many special districts, for the sole purpose of spreading misinformation and causing panic. At times of emergency, government websites are one of the most sought-after resources and fraudulent actors prey on these moments.
- Jacqui Irwin
Legislator
Immediately after the Palisades Fire, in my district, broke out, I began to see a very large number of fraudulent websites meant to confuse and defraud my constituents. Without uniformity in government websites, only using a .gov domain, our constituents are being conditioned to believe that any .com or .org could be a real government website.
- Jacqui Irwin
Legislator
California's local government should take every effort to safeguard the public's trust in our institutions, especially when they rise to the level of being requirements for federal grants and offered free of charge by federal and state authorities, which is the situation for the .gov domain.
- Jacqui Irwin
Legislator
I acknowledge that the practical aspects of this Bill could pose challenges to some of the smaller governments' agencies with less IT capacity and I'm more than happy to work with the opposition coalition to find a way to add technical assistance into a Bill, that should be something that they would like to—if that's something that they want to work on together.
- Jacqui Irwin
Legislator
The transition itself though is not inherently out of reach for local agencies.
- Jacqui Irwin
Legislator
There are local agencies already on .gov and there are local agencies, like the Desert Water Agency in Riverside County, who have moved to neutral on this Bill because of the five-year timeline that we provided.
- Jacqui Irwin
Legislator
I would also like to note that every city and county in California will have to transition to .gov, thanks to my AB 1637 from 2023. Consistency among local agencies is a key element to reducing the effectiveness of fraudsters' ability to deceive Californians.
- Jacqui Irwin
Legislator
I believe that it is important for all Californians, regardless of where they live, to have the same confidence and trust in their online interactions with their government. Migrating to .gov or ca.gov will secure that trust. Thank you. No other witnesses.
- Diane Dixon
Legislator
No other witnesses, all right. Do we have speakers in support? Please come forward to the microphone. Assembly Bill 610. Is it 810? I can't read.
- Diane Dixon
Legislator
Been here a long time. 810. Please come forward. Seeing none. All right, do we have any speakers in opposition? Please come forward.
- Marcus Detwiler
Person
Good afternoon, Madam Chair and Members. My name is Marcus Detwiler. I'm with the California Special Districts Association, CSDA. CSDA represents all types of special districts—air districts, water districts, park districts, resource conservation districts, mosquito and vector control districts, and so on.
- Marcus Detwiler
Person
This Bill, AB 810, will require special districts, JPAs, and other political subdivisions to, no later than January 1, 2031, to transition to a website using a .gov or .ca.gov domain, and would require the agencies to provide their employees with email addresses that also end in .ca.gov or .gov.
- Marcus Detwiler
Person
This presents a significant cost for local agencies throughout the entire state, as not only do they have to provide a new public facing portal in the form of a new website, but they must account for other backend costs, including, for example, the reconfiguration of single sign on architecture, the re—the updating and redeployment—of agency applications, the updating of security software, testing of all these elements, and more.
- Marcus Detwiler
Person
Special districts also have a particularly unique impact, as it relates to the requirements of this Bill. Special districts do not always neatly fall within the jurisdictional boundaries of cities or counties. As a result, it becomes imperative for special districts to establish a unique and meaningful and distinct identity from other local public service providers.
- Marcus Detwiler
Person
The requirement to establish this identity, while also occupying a local essential service provider lane, becomes important. Take, for example, the instance of the Alameda County Mosquito and Vector Control District.
- Marcus Detwiler
Person
With the domain name mosquitoes.org, the agency has managed to secure a unique and memorable URL that agent—that jurisdictional—residents are able to sort of recall and access, in order to obtain information about the district and other public health initiatives.
- Marcus Detwiler
Person
Under this Bill, AB 810, the district would not be able to obtain anything resembling that domain, because the mosquitoes.gov domain would be reserved for a federal agency and mosquitoes.ca.gov would be an impermissible permutation under the.ca.gov licensing scheme because it does not contain the agency's full name, nor does it make use of the full initials of the agency.
- Marcus Detwiler
Person
The effect of AB 810 would be to undo the public outreach that the agency has done, and it would require the agency to undertake significant costs. This is a similar fact pattern that will repeat itself across the various local agencies throughout the state, and for these reasons we are opposed to AB 810 and would urge your "No" vote.
- Diane Dixon
Legislator
Okay. Yes. Thank you. Any other speakers in opposition, please come to the microphone.
- Ethan Nagler
Person
Ethan Nagler, on behalf of the California Association of Recreation and Park Districts. Want to echo the concerns of CSDA and respectfully oppose.
- Raquel Ayala
Person
Raquel Ayala, with REAP Government Relations, on behalf of El Dorado Irrigation District, Water Replenishment District, Solano County Water Agency, Roland Water District, and Puente Basin Water Agency, in opposition to the Bill, and on behalf of the California Central Valley Flat Control Association, in with an opposed unless amended. Thank you.
- Alexandra Levy
Person
Alexandra Levy, on behalf of the Inland Empire Utilities Agency, in respectful opposition. Thank you.
- Kylie Wright
Person
Kylie Wright, on behalf of the Association of California Water Agencies, respectfully in opposition. Thank you.
- Dorothy Johnson
Person
Good afternoon, Madam Chair and Members. Dorothy Johnson, on behalf the Association of California School Administrators. We greatly appreciate the amendments that were accepted in the last version of AB 810. We're fine tuning some of the language to ensure that all K-12 schools are excluded, which we believe is the intent, and look forward to continued conversations with the author.
- Nick Romley
Person
Thank you, Madam Chair, Members. Nick Romley, here on behalf of California IT and Education. Would just align our comments with AXA. Appreciative of the author being willing to work with us on clarifying that school exclusionary language. Thank you.
- Sam Nash
Person
Sam Nash, on behalf of the Los Angeles County Office of Education. Also thanking the offer for—author—for her amendments and wish to see all local educational agencies exempted from the Bill, as well. Thank you.
- Diane Dixon
Legislator
Thank you very much. I'll bring it up to the Committee. Questions from Committee Members?
- Diane Dixon
Legislator
Do you know—did you collect data—how many public agencies affected by this Bill would have already made the shift to .gov?
- Jacqui Irwin
Legislator
I—we don't have the exact number, but I do—would like to make a couple of comments. First of all, when you're talking about things like having to patch or keep websites updated. Yes, you're going to have to do that regardless of whether you're on .com or .org.
- Jacqui Irwin
Legislator
Alameda, the Mosquito District example that you use, they have already reserved the alamedamosquito.gov website. So, I think they're getting ready to switch over.
- Jacqui Irwin
Legislator
We're not sure how many have switched over, but the Bill that passed two years ago, the—that—required every city and every county to switch over, you're already seeing a lot of cities getting ready to do that. You are also, in the meantime, you have six years—you're able to just point to the .gov website, also.
- Jacqui Irwin
Legislator
So, I, and then, I want to mention, a lot of these water districts that have—or these districts that charge their residents, give their residents—send out bills—those residents are the most susceptible of all when an agency is on a .org website because it is very easy to spoof that website. You can buy a .org website in 20 seconds.
- Jacqui Irwin
Legislator
And so, if, if a bad player gets a hold of a list of residents, they could just send a—they could send out a message with a slightly altered name to residents and then those residents would be—could potentially lose thousands of dollars.
- Jacqui Irwin
Legislator
So, I think these agencies, these very important agencies, are exactly the ones that should migrate to .gov as quickly possible, to protect their residents from fraud.
- Diane Dixon
Legislator
Good points. I would also add, just my, I think as a user, I think just happened to me this week, I was going to an email address, and I was redirected. It wasn't necessarily a .gov, but I was redirected to a newer address. So, the technology exists to redirect the user to automatically. So, they're not.
- Diane Dixon
Legislator
The mosquito advocates are not going to be lost. They will be redirected to the new mosquito site.
- Diane Dixon
Legislator
Also, I wanted to say that I actually have a Bill related to DMV because there is a lot of fraud—allegedly fraudulent—use of the DMV.org and people think that they're getting their—doing their DMV online registrations and various things, and it automatically goes to a private third party.
- Diane Dixon
Legislator
That—and I experienced this, and it charges like 30 or 40% above the regular cost, or the stated cost of register—the license registration, car license. So, I talked to the DMV people.
- Diane Dixon
Legislator
They said yeah. So, I have a Bill right now going through the system that would prohibit the use of a public agency acronym in a .org email address. So, it is a problem. I'm just—long story short, it is a problem.
- Jacqui Irwin
Legislator
And the .gov can only be utilized, or can only be acquired, by a true government agency. So, people will have—they will be able to trust that a website is legitimate if it's a .gov.
- Jacqui Irwin
Legislator
And as you just mentioned, people are fooled all the time by URLs that use .org and some kind of made-up name, or name that's close to the agency they're trying to reach.
- Diane Dixon
Legislator
Even phishing. I mean using the real artwork graphics of our legitimate agencies. Sometimes you can be redirected. Anyway, any other speakers or comments? Oh, yes, Ms. Macedo.
- Alexandra Macedo
Legislator
I was just curious, is the author willing to exclude county of educations and JP—and also remove JPAs—that are divisions of school districts?
- Jacqui Irwin
Legislator
So, we are—we, right now, have a question in to Leg. Counsel, because we are unclear if county offices of education were covered under the last Bill. If they were covered under the last Bill, there's nothing that we can do. If they're not covered under the last Bill, then we would exclude them, because we excluded all K-12.
- Jacqui Irwin
Legislator
It's already law for counties and cities. Two years ago, the Bill passed that all counties and cities have to migrate to .gov. And I think I just said 2029. Yeah, by 2029. So, plenty of time. Four more years. They've already had to—yes, they all have to migrate there. We are unclear whether county boards of education.
- Jacqui Irwin
Legislator
We've looked at the language. We're unclear whether the language was written in a way to include them. We didn't realize that was a problem till last week. So, we're asking for Leg. opinion. And like I said, if they're covered under the original Bill, then they have to deal with that. If they're not, we would exclude them.
- Diane Dixon
Legislator
Any other questions up here? All right. Do we have a motion? Second? All right. Okay. Got it all worked out? Okay. Final comments?
- Diane Dixon
Legislator
We have four. We'll keep it open. Thank you very much. All right. Should we go to Mr. Lowenthal? Sounded like a good bet.
- Josh Lowenthal
Legislator
Madam Vice Chair. I just want to compliment you on your comments and earlier, how much that meant to me when you share your personal experiences and how much it resonates with countless Californians. So thank you for that. And I also will take this opportunity to lament that my colleagues are not here for this debate.
- Josh Lowenthal
Legislator
It's a very big bill for me and I value the input and the debate, the discussion. And sad that there are so many conflicts simultaneously that preclude them from being a part of this because I know that they want to be here right now and unfortunately they will vote on this without the benefit of having this discussion.
- Diane Dixon
Legislator
Well, just to give you a heads up, as soon as the Chair returns, I have to leave.
- Josh Lowenthal
Legislator
Yeah, it is one of those days. It's a heavy time of year and I completely understand the dilemma we're all in.
- Josh Lowenthal
Legislator
You know, earlier today in that very same debate that I spoke of, my colleague from Thousand Oaks said that she's, and I quote, I wish there is something we could do more than just warning labels. And there is. There is something that we can do more than just warning labels.
- Josh Lowenthal
Legislator
We have empirically a mental health crisis in our youth that is directly tied to social media use and we have woefully insufficient research and mental health resources to remedy it. While the digital economy powering social media grows exponentially in revenue and profit, it's taxpayers that are currently left holding the bag on the repercussions.
- Josh Lowenthal
Legislator
I'm therefore proud to present AB796, a bill that establishes the California Social Media Accountability act which will impose a recovery fee on social media platforms based on a percentage of of annual gross revenue derived from advertising to recover the costs associated with mitigating the impact social media is wreaking on this anxious generation.
- Josh Lowenthal
Legislator
The entirety of the revenue generated will be distributed into a new California Social Media Safety Trust Fund will not go into the General Fund. This Fund will support both existing and new programs that protect California's adolescent residents from the harms caused by social media use.
- Josh Lowenthal
Legislator
With the mass adoption of social media, serious social media related dangers have emerged. Current research shows empirically that social media is harming millions of America's children. According to one study, about 43% of young adults have seen self harm content on Instagram.
- Josh Lowenthal
Legislator
About 33 indicated they had performed the same or similar self harming behavior as a consequence of seeing that. Sadly, we hear those stories here in the capital. Another study found that new TikTok accounts set up by 13 year olds were recommended self harm and eating disorder content within minutes of scrolling the app's for your page.
- Josh Lowenthal
Legislator
Eating disorder content was recommended within eight minutes. Adolescents who spend more than three hours per day on social media face double the risk of experiencing more poor mental health outcomes, including symptoms of depression, anxiety. Of course, the average utilization for youth is five hours per day. Right now, nearly half of students surveyed say they have experienced cyberbullying.
- Josh Lowenthal
Legislator
The rising mental health challenges amongst our youth have significant economic impacts, leaving the burden on families, schools and taxpayers to cover the cost of treatment and prevention. In 2021, families in the United States spent approximately $31 billion on child mental health services, accounting for nearly half of all pediatric medical spending.
- Josh Lowenthal
Legislator
From 2017 to 2021, household spending on child mental health services rose 31%. It now costs an average of $4,361 more per year for a family to care for a child with mental health condition compared to families without such children.
- Josh Lowenthal
Legislator
And as we are experiencing an affordability crisis, the cost of mental health resources is very, very burdensome on families. But the burden doesn't just impact the families of children who need mental health treatment, but the cost is passed on to every taxpayer in this country.
- Josh Lowenthal
Legislator
Where our state and Federal Governments have to dedicate funds to increase mental health care services for children enrolled in Medicaid, those with mental health conditions accounted for 55% of overall health care spending, totaling $5.3 billion. California's youth mental health system is under unprecedented demand.
- Josh Lowenthal
Legislator
In response, our state has dedicated record funding of over $4 billion to expand counseling and school based services. The US government has spent $188 billion on spending school based mental health services and expanding the mental health workforce in high needs districts through the bipartisan Safer Communities Act.
- Josh Lowenthal
Legislator
But of course, now 13 billion of that has already been frozen by the Federal Government with more cuts on the way Social media related harms are also imposing a significant burden on our schools, requiring them to use their already limited resources to pay for the harm social media is causing on their campuses.
- Josh Lowenthal
Legislator
Schools are diverting resources to address mental health crises, cyberbullying and social media fueled misconduct. For example, the social media County Board of Education had to file lawsuit against social media platforms TikTok, Snapchat and YouTube due to the increased mental health care costs, vandalism, property damage and increased school security.
- Josh Lowenthal
Legislator
This bill would impose a modest fee on social media platform providers, ensuring that they bear some of the financial responsibility for the harms they are causing and not just on hardworking taxpayers.
- Josh Lowenthal
Legislator
The revenue generated from this would go into four funds, including an education account for expenditures to ensure that the public is educated on how to mitigate the risk of adolescent media platform use, a mental health care account for expenditures to ensure that children and their caregivers receive mental health care services and support for mental health risks, a research and development account for expenditures to ensure research and best practices for all programs and services related to adolescent social media safety and finally, a social services account to ensure children that are harmed using the social media platforms, including but not limited to cyberbullying, sexual predication and human trafficking, receive appropriate social services.
- Josh Lowenthal
Legislator
Now Meta Platforms, which includes Facebook and Instagram, reported that their annual revenue from 2022 was $116 billion that resulted in a $23 billion profit.
- Josh Lowenthal
Legislator
Their annual revenue in 2023 was up to $135 billion, resulting in a $39 billion profit 50% increase and their most recent reported revenue from 2024 ready for this a staggering $165 billion resulting in a $62 billion profit. Once again, 50% increase, actually more than 50% increase.
- Josh Lowenthal
Legislator
Their profit trajectory is only expected to grow in the years to come. Meta announced earlier this year that it would be rolling back Content Moderation systems which was developed to address misinformation shared across its platforms further providing the need to fund research and evidence based mental health services.
- Josh Lowenthal
Legislator
Opponents will argue this bill will raise costs for small and medium sized businesses that buy digital advertising services. I have owned and operated such businesses and I want to be clear that this bill only applies to businesses that spend more than $100,000 a year at a social media platform for the year.
- Josh Lowenthal
Legislator
This does not affect smaller businesses who spend under $100,000 in advertising. Opponents argue that this bill is unconstitutional under the Internet Tax Freedom act, which prohibits discriminatory taxes on electronic commerce. But AB796 is carefully crafted to comply with the Internet Tax Freedom Act.
- Josh Lowenthal
Legislator
The act prohibits states from imposing taxes that discriminate against electronic commerce or that tax Internet access. AB 796 does neither. Social media advertising is a unique service, creating unique harms and thus meeting a specific policy response that is not preempted by the IFTA.
- Josh Lowenthal
Legislator
Opponents cite Maryland's digital advertising tax, which has been the subject of litigation since its passing. California would not, of course, be the first state. Maryland's Bill taxed all digital advertising. This bill specifically covers advertising on social media, which is a unique service not found anywhere else.
- Josh Lowenthal
Legislator
Social media platforms have created unique advertising ecosystems that use real time behavioral data, proprietary algorithms and feedback loops to target and influence users. AB796 implements a proven model to fund solutions.
- Josh Lowenthal
Legislator
California has successfully taxed products to fund related remediation California's tobacco tax generates revenues that goes towards first five tobacco related disease research programs and funds UC Tobacco Related Health Research recognizing that the product was inflicting societal costs health care costs holding the tobacco industry accountable. We tax alcohol to fund various state programs including public health initiatives.
- Josh Lowenthal
Legislator
Last year California passed AB28, becoming the first state to implement a tax on firearms and ammunition sales aimed to fund gun violence prevention and school safety initiatives. Every democrat here was in the Legislature last year supported AB28 when it came before them for a vote.
- Josh Lowenthal
Legislator
AB796 has clear objective to hold social media companies accountable for the negative impacts they create by ensuring they contribute to the costs associated with these harms. This committee's jurisdiction over privacy and consumer protection is over privacy and consumer protection which aligns with the goals of this bill.
- Josh Lowenthal
Legislator
Now if there are concerns about this new tax, you can voice them, but that should not be the reason that you do not support the bill today. Those concerns should and will be addressed in the relevant policy committee, revenue and tax where this bill will go should it pass this committee.
- Josh Lowenthal
Legislator
Today your vote should concern the consumer protection aspects of this bill. Every day families are grappling with the fallout of harmful social media content. This bill will help fund education, mental health resources and research to guide further action.
- Josh Lowenthal
Legislator
All of this can be achieved not by burdening parents, not by burdening taxpayers, but by asking multi billion social media companies to reinvest a very fractional portion of their ad profits into protecting the very consumers who make those profits possible, our children. Thank you and I respectfully ask for your aye vote. Excuse me.
- Josh Lowenthal
Legislator
Here to testify in support of AB796 is Mr. Mark Berman, CEO of the Organization for Social Media Safety.
- Marc Berkman
Person
Thank you so much Assemblymember. Thank you Chair, thank you Members. My name is Mark Berkman. I'm the CEO of the Organization for Social Media Safety here in support of AB796. As this Committee well knows, social media is causing a public health and safety emergency in this state.
- Marc Berkman
Person
We see soaring rates of teen depression, anxiety, eating disorders, cyberbullying and suicide and tangible immediate harms like school vandalism, increased juvenile crime and victimization like sexual predation, sextortion, fraud and drug and human trafficking. Beyond the horrors of the mass suffering, California's taxpayers are bearing the cost of these harms. Our public institutions are straining to respond.
- Marc Berkman
Person
For example, schools are diverting precious resources to address social media related harms.
- Marc Berkman
Person
We have spoken to counsel for school districts across California and nationwide who has seen preliminary estimates of economic damages in the tens of millions of dollars per school district depending upon size. In addition to increased mental health care related costs, our schools have diverted funds to address vandalism, property damage, investigation of crime and harassment, increased need for student discipline and increased school security.
- Marc Berkman
Person
Mental health services are overwhelmed as well. California's youth mental health system is under unprecedented demand in significant part due to social media's impact. The state has responded by dedicating record funding billions to address the harm we have seen mental health professionals ER physicians in tears over the inundation that they've seen over the last 10 years.
- Marc Berkman
Person
Law enforcement and social services are similarly under strain. Officers must investigate social media facilitated threats, exploitation and trafficking initiated via social media and social service providers struggle to support victimized teens from sextortion targets to trafficking survivors, Social media companies are profiting significantly from this new service of social media advertising.
- Marc Berkman
Person
While California's taxpayers absorb literally billions of dollars in addressing these related harms. AB796 will levy a tax on social media platform providers based on their annual gross revenue from in state social media advertisements purchased through their platforms. This is not an onerous burden.
- Marc Berkman
Person
The tax here represents a small amount ensuring these hugely profitable firms contribute a fair share to addressing the collateral damage and specifically the cost of their services to Californians. The bill creates the Social Media Safety Trust Fund, as the Assembly Member mentioned, a dedicated fund in the state treasury to receive all revenues from the bill.
- Marc Berkman
Person
Within this fund, specific accounts are earmarked for evidence based solutions to social media harms. The accounts include again as mentioned, so I'll go quickly, the mental health care account. This is going to expand things like access to counseling, therapy and treatment for youth struggling with issues related to social media.
- Marc Berkman
Person
An education account which will ensure funding for evidence based education initiatives to build resilience and social media safety literacy among our youth. A research and development account providing funding for research into the impacts of social media and the effectiveness of intervention strategies.
- Marc Berkman
Person
Ensuring that California's policy and education responses remain up to date with the rapidly evolving social media landscape. Finally, a social services account ensuring funding for social services and programs to mitigate specific harms like exploitation, trafficking or substance abuse linked to social media. Social service workers are inundated from these issues.
- Marc Berkman
Person
By establishing this fund, AB796 will ensure that we have a sustained funding source to support our youth in the social media age. It is common sense, constantly permissible solution commensurate with the scale of the problem. I ask for your aye vote. Thank you very much.
- Diane Dixon
Legislator
Thank you very much. Do we have any other speakers in support? All right, I will repeat that. Do we have anybody else in support in the room? Okay. Do we have opposition?
- Peter Blocker
Person
Good afternoon, Madam Chair and Members. Peter Blocker with the California Taxpayers Association on behalf of a coalition of taxpayers of all sizes and across many industries in opposition to AB 796. We oppose this because it'll raise costs for businesses, increase prices for consumers, and will be met with numerous legal challenges because would likely be deemed illegal under federal law.
- Peter Blocker
Person
First, I'll address the privacy concerns that we have. It's unclear how this would be administered. The bill lacks details on the sourcing of receipts, which leaves questions, like how will California determine who is in the state? Will it use a network based tracking system? Will the state utilize Wi-Fi positioning of mobile devices?
- Peter Blocker
Person
How will the state handle the growing utilization of encryption for users' locations? Is it even realistically possible to reliably obtain the information needed for sourcing? This isn't detailed. It's not detailed in the bill, and we worry about it being left up to the tax agencies through a regulatory process to come up with those details.
- Peter Blocker
Person
Seems like something that should be done, should be done in the legislative process. Also, the bill may be targeted at large companies, but the economic burden will fall on small businesses and consumers. This digital advertising taxes act like a gross receipts tax on business inputs, so it just gets layered into the cost.
- Peter Blocker
Person
Although there is a limit, a threshold, that doesn't mean that it doesn't make a company's advertising business more expensive in the sense that perhaps you might think that it would prohibit if it's just passed through as a line item on a receipt. That is not what has to happen here or is going to happen.
- Peter Blocker
Person
By making advertising in general more expensive, consumers will feel that, small businesses will feel that, prices will increase. And finally, we believe this violates the federal Internet Tax Freedom Act, which prohibits discriminatory taxes on electronic commerce.
- Peter Blocker
Person
This tax on digital advertising, not on all advertising. The fact that it is only targeted to social media companies we don't think is relevant in the sense that it's digital advertising. It's not on all advertising. Where it's being hosted is not, is not the issue with the discriminatory aspects of the tax. And with that, thank you for your time.
- Annalee Akin
Person
Thank you. Thank you, Madam Chair and Members. Annalee Augustine here on behalf of the Family Business Association California. We're a nonprofit dedicated to helping California's 1.4 million family owned businesses survive and thrive in the state. We echo the concerns raised by my colleague and are deeply concerned about the unintended consequences of this being passed on, especially to those businesses that rely on these platforms to promote their products and services in a cost effective, targeted, and environmentally conscious way.
- Annalee Akin
Person
While this tax is aimed at social media companies, it's important to recognize the cost will be passed down and affect the smaller and family owned businesses that purchase ad space on these platforms. For many of our members, digital advertising is the only affordable and scalable option to reach their local customers.
- Annalee Akin
Person
Increased costs in this area could mean fewer opportunities for outreach, higher prices for consumers, or worse, even shutting down businesses that are already operating on very thin margins. We appreciate how businesses spending less than $100,000 are excluded from being included in the revenues used to calculate the tax.
- Annalee Akin
Person
However, we do not see how that would prevent the this tax increase from being passed down to purchasers of the advertisements for businesses of all sizes. We sincerely appreciate the author's commitment to addressing youth mental health, a critical issue that we really all do care about deeply.
- Annalee Akin
Person
However, we believe that conversations about setting up these important funds might be better suited for budget discussions. And we also believe that conversations about these policy goals might be better suited for the other thoughtful policy goals that this Committee considers.
- Annalee Akin
Person
We don't see a strong policy nexus between these important mental health objectives and a broad based tax on digital advertising, much of which has no connection to youth audiences. For these reasons, we must respectfully oppose the bill today. Thank you. Thank you, Madam Chair.
- Rebecca Bauer-Kahan
Legislator
Thank you. I just walked in, so did both of you have an opportunity? Yes. Okay. Anybody else in the room in opposition? Come on up. Name, position, and organization.
- Matt Moretti
Person
Madam Chair and Members, Matt Moretti on behalf of the National... Excuse me, Association of National Advertisers in opposition.
- Jacob Brint
Person
Jacob Brint on behalf of the California Retailers Association in opposition.
- Ronak Daylami
Person
Ronak Daylami on behalf of Cal Chamber, respectfully in opposition. Thank you.
- Aodhan Downey
Person
Aodhan Downey representing the Computer and Communications Industry Association in opposition. Thank you.
- Amy E. Garrett
Person
Amy Garrett on behalf of California Association of Realtors in respectful opposition. Thank you.
- Rebecca Bauer-Kahan
Legislator
Thank you. Okay. Seeing no further opposition, we will bring it back to the dais. Yes, Mr. Ward
- Chris Ward
Legislator
Thank you. Was happy to support a similar bill that was before this Committee last year by our colleague. And, you know, I think with, you know, I maybe, you know, respectful difference to what some of the testimony is. You know, I do see that we have a direct connection here between activity that we're seeing online through social media and some of the consequences that we're having in a space of youth mental health or other challenges, other offsets.
- Chris Ward
Legislator
And so to link those two, when you have a great new thing that is causing some kind of externality, is there an appropriate nexus there that we are looking for revenue opportunities to be able to offset or support some of the consequences that you're having here.
- Chris Ward
Legislator
And so if that's the direction that you're going, this, I know this bill has more to be worked on, on some of the very specific details about exactly what the price and everything would be and what certain funding sources might go towards. And that can sort of live another day in future conversations.
- Chris Ward
Legislator
But I do think that we all recognize that the evidence is very clear that there is a consequence with this wonderful new thing that needs to be made whole. And I believe that that's what the author is trying to be able to achieve as well through this. And that we all should really try to come together to, one, admit and recognize that there is that consequence and that we all have some responsibility, a shared responsibility to try to be able to address that.
- Chris Ward
Legislator
And if you are being, you're operating with this new thing that is coming with a incredible new resource for revenue, good for you. But we're asking for a little bit of sharing of responsibility there too, and the means to be able to achieve that is right there in front of you.
- Chris Ward
Legislator
And to what extent and what level all that could be up for discussion. But using this vehicle to be able to start that conversation and hopefully find some dedicated funding for the very limited but needed behavioral health support dollars that we need out there for our children, I think is commendable and I want to be able to be proud to move the bill.
- Tina McKinnor
Legislator
Yes. I thank the author for this bill. I think it's a really important bill for our youth. As I listen to you guys, again, I'm going to talk about solutions. We can't just say no to everything. We have to figure out. We have to get in a room. And I have this message because I took a trip to Norway and I talked to their government and their business and their government and their labor people, they really work together to come up with solutions. So what I want to hear is like some solutions like these.
- Tina McKinnor
Legislator
We know, we all know that social media is starting to harm our children. And it can't just be on the government to put it in a budget item and take care of mental health for these kids that are being harmed with social media. And so it would be good for you guys to sit down with the author, and just because we have so many big brains in Sacramento. And it's like, let's sit down and let's come up with some solutions that we all can agree on. That's the best way to do this, that way business is in the conversation, but it can't just be no, right.
- Tina McKinnor
Legislator
Like we have to share the cost of the harm that's happening. And so what I'd love to hear, I don't know, is this your last Committee, this bill it has? So I would like to hear in the next Committee. I'm going to say yes to this bill today. But what I'd like to hear from you guys in the next Committee is like, no, we don't want it this way, but this is how we can help. And so let's come up with some solutions. Let's hear some solutions from you guys. Thank you.
- Josh Lowenthal
Legislator
Yeah. I just like to comment on a few things. First of all, I truly appreciate your points and your point of view. I truly appreciate that you brought up Norway and Europe. A digital services tax exists across Europe, many countries across Europe, that does fund mental health resources, among other things.
- Josh Lowenthal
Legislator
And so this is not a new concept by any stretch of the imagination. And I also want to make mention, since you were addressing the opposition. First of all, tremendous respect for of the points that you're making and protecting taxpayers and protecting industry. I'm a small business owner.
- Josh Lowenthal
Legislator
Is a worthy endeavor. To make mention that you're acknowledging the harms and to say that we should be paying for it out of the budget means that it's putting it on the backs of taxpayers, of all of us. We're all agreeing that there's this problem that we have this funding gap. Who's going to pay for it?
- Josh Lowenthal
Legislator
I did make mention that the companies involved, using Meta as an example, is growing in revenue and profit in a massive scale on an annual basis to the tune of nothing else we've ever seen. This is a trillion dollar industry that's going tax free and we're bearing all the costs associated with this. So again, I appreciate your comments, Assemly Member.
- Rebecca Bauer-Kahan
Legislator
Thank you. Assembly Member Wicks, did you want to say that?
- Buffy Wicks
Legislator
Yes, sure. One, I want to thank the author for his tireless commitment to keeping our online spaces safer for kids, since you've been here, since day one, and for putting forth a bold idea. This is not a hard... Or this is a hard bill for a lot of people. It's not a hard bill for me.
- Buffy Wicks
Legislator
I will be fully supporting this bill today. But I understand the politics around this. But I think it's creative, it's innovative, it's a bold idea. I'll be supporting the bill today. I just want to thank you for raising this. Sometimes these ideas, you got to do them more than once. So I've been down this road before, and I'm always happy to have your back and just appreciate you bringing this bill forward.
- Josh Lowenthal
Legislator
Yeah. And if I could, Madam Chair, respond very briefly. Thank you so much. The politics on this are incredibly tough. Why are they so tough? You know, we live in this system. We operate in this, you know, fishbowl environment where many people, just to get here, had to take pledges of not approving any other taxes whatsoever.
- Josh Lowenthal
Legislator
Think about that. So they've had to take a pledge in order to get elected. That's a really tough place to be because we live in a dynamic world and things are changing and the data is showing us some tough things. Nobody wants to make things tougher on small business owners, but small business owners are also parents. I'm a parent and a small business owner, and this is important to me.
- Gail Pellerin
Legislator
Thank you. I want to thank the author for bringing this bill forward. And, you know, as a mom, I'm just constantly concerned about what kids are being exposed to on social media. I just have a question. That the $100,000 cap on social media advertising spending, is that aggregate across all platforms or is it a per platform cap?
- Marc Berkman
Person
It is a per platform cap per the advertiser purchaser. And so of all the platforms that they can go to, that's 100,000 at each of those platforms.
- Rebecca Bauer-Kahan
Legislator
Thank you. Seeing no additional questions or comments, I want to thank the author. I think I'll start by saying I represent one of those most moderate Democratic districts in the state that does not like new taxes. And yet I authored a fee bill a few years ago that my community has thanked me for more times than I can count. And it was a fee that funds the 988 system, the mental health crisis response system here in California that every Californian now pays for.
- Rebecca Bauer-Kahan
Legislator
And as we face the budget deficit that we will be facing this year, Californians can sleep at night knowing that if they are in mental health crisis, that fund is safe and that they will have a mental health response. And so I come at this in a place where I don't like a lot of taxes. I think that California needs to be business friendly, like the author does.
- Rebecca Bauer-Kahan
Legislator
And yet I believe deeply that when you have a tax or a fee where the nexus is clear, where the fund is tight, that we know it will be protected and it won't end up in the General Fund to go God knows where, and that it is being spent on things that my constituents believe deeply in, that it is something I can support.
- Rebecca Bauer-Kahan
Legislator
And I will say that I think the nexus here is clear. I think that we know that social media companies are causing some of the harm that we are seeing in our youth. I had the privilege recently of touring one of the first wellness centers in the state in Marin County.
- Rebecca Bauer-Kahan
Legislator
And it was miraculous what they are doing at this high school. Bringing kids in, making them feel safe, providing them with mental health services. The kids are better for the service this school is providing. We have paid for those wellness coaches and those wellness centers out of the General Fund. That is where they have been paid for.
- Rebecca Bauer-Kahan
Legislator
They, at this high school, have provided the service for, I want to say a decade at least, and they cannot meet the demand at the high school right now because of the mental health crisis. And we as a state will not be able to up our funding, I'm sure, for those wellness centers. I will credit the Governor.
- Rebecca Bauer-Kahan
Legislator
He has protected those wellness centers through every year of budget cuts because he cares deeply about the mental health of our youth. But we are limited in what we can do. And if every California child had access to the kind of care that I saw at that high school, we would be better off.
- Rebecca Bauer-Kahan
Legislator
And so if this is allowing the people who are causing our kids to suffer to pay for quality care, there is no question that is something I can get behind 110%, that I can go home to my fiscally conservative district, explain to them, and that I know they will believe is to the benefit of them, of California, and of their children. And so I want to thank you for that.
- Rebecca Bauer-Kahan
Legislator
I know the bill has work to do. It is off to Tax. Our jurisdiction is not to write that tax fund. That will happen in the next Committee. And so our jurisdiction was really to ask the question of, did you define social media well, what is an access with social media, and I think that is well done in the bill. And it will be to them to take it to the next level. But I look forward to how it will evolve and how you will use these funds to protect California's children. With that, would you like to close?
- Josh Lowenthal
Legislator
I would. Thank you so much. The issue of the nexus I think is really critical one and interesting one. Do we worry about paying a little tax on a flight ticket when we know that the NTSB is funded by that tax? No, we're not. We want that safety. We value that safety.
- Josh Lowenthal
Legislator
Or a USF Fund associated with making phone calls so that we know that our relatives in rural districts have connectivity, which is critically important that everybody, the only way the system works is that everybody's connected. And so the nexus is vital. And I agree with you, Madam Chair, that consumers are okay with that nexus when they know where it's going and what it's being used for. And parents are upset right now. I also need to make mention of what's happening.
- Josh Lowenthal
Legislator
Yesterday, leaked budget draft revealed that the federal government has proposed to eliminate all funding, for example, of the 988 Suicide and Crisis Lifeline, for LGBTQ youth, $40 billion of HHS discretionary budget, $11.4 billion of grants for mental health programs. The money's going away while the demand for these things are increasing exponentially.
- Josh Lowenthal
Legislator
And we have to account for that. We are left holding the bag. We cannot continue to allow these platforms to get away with well documented harms that they caused, nor should we allow them to continue escaping responsibility for the damages they cause. Opponents of this bill will argue that the cost of this tax will ultimately fall on the businesses purchasing advertisements, as they notice, as they stated, which in turn will pass these costs on to consumers.
- Josh Lowenthal
Legislator
If your hesitation in supporting this bill is the cost to consumers, I urge you to think about the billions of dollars these mental health conditions are costing our health care system. The increased cost for families caring for their child who is depressed, anxious, or developed an eating disorder due to social media use.
- Josh Lowenthal
Legislator
Consider the thousands of dollars hardworking families are spending on doctor visits, therapies, treatments. This bill is all about consumer protection, which is what this Committee is charged with ensuring and upholding. It is essential that social media companies are contributing their fair share to clear the harms that the public and our children are experiencing. Let's be realistic.
- Josh Lowenthal
Legislator
This modest fee, and we could be talking about a fraction of a percent. This modest fee will not harm the bottom line for the platforms or for companies that have budgets to spend $100,000 or more on advertising. California has been a longtime leader in safeguarding children, and this bill is a critical next step in its leadership.
- Josh Lowenthal
Legislator
By establishing the Social Media Trust Fund, AB 796 will ensure that we have a sustained funding source to support our youth, protecting mental health, educating families, and holding social media platforms accountable. And with that, I respectfully ask for an aye vote.
- Rebecca Bauer-Kahan
Legislator
Thank you. I think we have a motion. Yes, we have motion and a second. So let's call the roll.
- Committee Secretary
Person
Item number seven, AB 796 by Assembly Member Lowenthal. The motion is do pass the Revenue and Taxation Committee. [Roll Call]
- Rebecca Bauer-Kahan
Legislator
That bill has seven votes. We'll leave it on call for absent Members. Would you like to go? We will hear Ms. Wicks's bills, so I guess she can choose which first.
- Unidentified Speaker
Person
Yeah, we're gonna take up AB 1043, first by Assembly Member Wicks. Okay.
- Buffy Wicks
Legislator
It also requires parental or guardian consent prior to a user under the age of 16 when downloading an app from the App Store, and requires that parents be connected to any parental features that are available in apps when the age signal indicates that the user's 18 years of age.
- Bob Cunningham
Person
I thought there was somebody else. There is someone else coming. That's why.
- Buffy Wicks
Legislator
But I think they will. They'll come. They'll get here. We can start. Okay. Okay.
- Buffy Wicks
Legislator
Madam Chair and Members. California's, as we've discussed many times, California's children are growing up with access to an online world that was not built with them in mind.
- Buffy Wicks
Legislator
This lack of meaningful consideration has left young users exposed to harmful content, manipulative design features, and inappropriate and dangerous online interactions. Research from the US Surgeon General, groups advocating for children's online safety, and social media companies indicate that unregulated digital environments have harmful impacts on children's mental health, safety and overall well being.
- Buffy Wicks
Legislator
However, as a parent of two young daughters, I do not believe that we should keep kids off the Internet. They rely on the digital world for education, entertainment and socialization.
- Buffy Wicks
Legislator
It is our job as policymakers to strike a balance in law that provides a safer online environment for children. Protect kids data privacy, and create guardrails that do not impede innovations or violate individuals constitutional rights. But this is not an easy task.
- Buffy Wicks
Legislator
But it is an important one. And 1one, that AB 1043 will help facilitate. By creating a framework to assess an online user's age. The Digital Age Assurance act will provide a crucial step in ensuring kids can explore the digital world more safely.
- Buffy Wicks
Legislator
Specifically, this Bill requires manufacturers of a computing device or operating system to have a mechanism for device owners to indicate the device user's birth date, age, or both devices at the time of setup, and send a digital signal to application developers indicating the device user's age range.
- Buffy Wicks
Legislator
The Committee analysis has raised a number of important concerns, including clarifying definitions and the provisions related to parental tools and parental consent. I'm committed to continuing to work to address those concerns raised by this Committee analysis and will work with the opposition and other stakeholders should this Bill move forward today.
- Buffy Wicks
Legislator
I will ask my witnesses to self identify and respectfully ask for your aye vote.
- Bob Cunningham
Person
Thank you Madam Chair. My name is Bob Cunningham and I'm the Director of Policy Engagement for the International Center for Missing and Exploited Children, a nonpartisan nonprofit. For years companies have tried to self regulate the protection of children online, but without centralized proper age assurance the problem can be insurmountable.
- Bob Cunningham
Person
That is why ICMEC strongly supports AB 1043, which would implement a device based age assurance mechanism to more effectively protect children online.
- Bob Cunningham
Person
This Bill holds all companies in the digital ecosystem responsible for child protection, and takes into account a child's online journey first. From the device and operating system where kids first get online to the applications and websites they visit.
- Bob Cunningham
Person
This Bill is privacy centric and technically feasible as no personally identifiable information is passed, and the technology required is already used millions of times each day. Having worked to keep children safe and to support their families for more than 30 years, I have seen the dangers of the online world become more prevalent.
- Bob Cunningham
Person
Rapid advancements in technology and the increase of device access have fueled a crisis of online child sexual abuse and exploitation. According to the National Center for Missing and exploited children, between 2021 and 2023 alone, the number of online enticement reports increased by over 300%.
- Bob Cunningham
Person
The International Center for Missing and Exploited Children provides training to law enforcement and frontline professionals on identifying and preventing online child sexual exploitation. Children too young are getting on these platforms and being tricked into sharing compromising photos by adult sextortionists.
- Bob Cunningham
Person
Medical and clinical professionals keep highlighting the devastating consequences of exposure to harmful, and adult content on children's self worth and relationships and the resulting destructive behaviors. Families can no longer effectively protect their children online by themselves.
- Bob Cunningham
Person
With children regularly using hundreds of apps and visiting many more websites, families Families need the online services companies to implement device based age assurance, to protect their children to help them protect their children. Less than a week ago you may have read that a girl from Kern County was enticed through online gaming platforms to meet up with an adult male and traveled with him, presumably for sexual purposes, the whole way to Elk Grove.
- Bob Cunningham
Person
This and countless cases like it, that we see across the US and around the world could have been prevented by AB 1043. Age assurance is the critical first step to build effective protections for children online.
- Bob Cunningham
Person
I urge you to be leaders in the age assurance discussion, and pass AB 1043 to prioritize the safety and well being of children.
- Naveen Radwan
Person
Good afternoon Chair and Committee Members. My name is Naveen Radwan, and I'm here to testify in support of AB 1043.
- Naveen Radwan
Person
When the pandemic forced our world to come to a halt in 2020, my then 16 year old daughter, a joyful high school student, decided to use her time at home to improve her health and stay in shape. She turned to Instagram and TikTok, searching for words like workouts and healthy eating and glow up.
- Naveen Radwan
Person
In return, the platform served her a stream of dangerous content like videos promoting starvation, inspiration, images and toxic challenges. In just days, her feed was flooded with pro anorexia posts and extreme diet tips like how to stay under 500 calories a day and even disturbing mantras like how to be thin enough to fit into a baby swing.
- Naveen Radwan
Person
She never searched for this content, but the algorithms aggressively pushed it on her. What happened next was devastating. She began secretly restricting food, exercising obsessively and spiraling into what would become a full blown eating disorder. Within three months she was hospitalized with a dangerously low heart rate.
- Naveen Radwan
Person
Over the next year, she endured multiple cardiac events, dissociative panic attacks and inpatient stays at hospitals and treatment centers. Including one six month stay that came only after she was airlifted in critical condition, we are not unique. The tech giants are fully aware of who uses their platforms and the harm their platforms can cause.
- Naveen Radwan
Person
I spent 25 years as an IT professional in the Bay Area and exercised every available resource to ensure my daughter had safe and supportive online experiences. But the parental controls these platforms tout as giving families the tools they need to keep kids safe are nothing more than smoke and mirrors.
- Naveen Radwan
Person
They are not easy to navigate and provide little more than a band aid for symptoms of a broken system. That's why we need AB 1043. It will close a critical loophole in the system by ensuring in a privacy protected manner that app developers know the age of platform users.
- Naveen Radwan
Person
For too long, lack of knowledge of users ages has permitted these platforms to avoid liability for harmful business practices while still building detailed profiles about kids for the purposes of advertising and promoting engagement. This this legislation will finally force companies to follow the dozens of laws we've passed to protect kids online.
- Naveen Radwan
Person
They'll be incentivized to employ to implement age appropriate safety features, time limits, mental health resources, and algorithm safeguards that prevent harmful practices from being pushed on kids like my daughter.
- Naveen Radwan
Person
My daughter almost died, she missed years of school friendships and milestones because an algorithm design decided that her desire to be healthy was an opportunity to push deadly content. AB 1043 can help prevent this from happening to other families. Let's pass it and send a clear message. Protecting kids is more important than the profits of giant tech companies.
- Rebecca Bauer-Kahan
Legislator
Thank you. Any other witnesses here in support of this Bill. Name, organization and position.
- Austin Heyworth
Person
Hi chair and Committee Members. Austin here with on behalf of InternetWorks. We have a supportive amended position. Suggesting, a number of things that can make. This important policy move in the right direction. Some more cover the analysis, and we look forward to working with the author. Thank you.
- Lishaun Francis
Person
Thank you. Lishaun Francis, with Children Now proud co-sponsors and in support of 1043. Thank you.
- Robert Singleton
Person
Good afternoon, Chair Bauer-Kahan, Members of the Committee, My name is Robert Singleton and I'm the Senior Director of Policy and Public Affairs at Chamber of Progress. We are a tech industry association supporting public policies to build a more inclusive society in which all people benefit from technological advancements.
- Robert Singleton
Person
I am here today before you in respectful opposition to AB 1043, which requires device manufacturers and app store providers to collect age information from users, transmit real time bracket signals to developers, and enforce complex new obligations related to parental consent and youth safety features across the entire digital application ecosystem.
- Robert Singleton
Person
In short, our concerns with this bill are threefold. Device manufacturers and app store providers should not be the ones managing aid signals broadly defined in this bill. The age banded signals are not sufficiently reliable for developers to avoid civil liability, but would lead unavoidadly- unavoidably to age verification which comes with its own unique privacy concerns.
- Robert Singleton
Person
The two largest app store providers and device manufacturers already provide a robust suite of tools for parents to control and manage their child's online experience. Mandating a one size fits all experience detracts from the legitimate and compelling business reasons for managing their app stores, operating systems and device production presently.
- Robert Singleton
Person
First off, we at Chamber of Progress share the commitment to working, share the commitment to making the Internet a safer place for young people. At the same time, we are strong advocates for preserving user privacy, which we believe this bill would put at risk.
- Robert Singleton
Person
While we support the efforts to strengthen pro- protections for minors online, we are concerned this bill's unique approach raises serious privacy safety, feasibility and constitutional issues that could ultimately undermine the very protections it's seeks to establish. First and foremost, device manufacturers should not be charged with filtering content.
- Robert Singleton
Person
Concerns related to content, obscenity, age appropriate design, et cetera are all better addressed at the platform level, where online platforms have developed their own clearly articulated definitions, terms of service, and specialized algorithms designed to identify hate speech and prevent the spread of information, amongst many other things.
- Robert Singleton
Person
In fact, online content platforms have entire teams of people with suites of moderation tools whose job is to curate an appropriate online experience for their users. This includes established relationships with law enforcement entities to best meaningfully address the types of dangerous content that AB 1043 seeks to control.
- Robert Singleton
Person
Thus, these platforms are clearly better suited to make end users safe on their own services,
- Robert Singleton
Person
consistent with the goals of this bill. Granular age bracket signaling increases risk for children. By requiring devices and app stores to not only transmit arbitrary age brackets 5 to 9, 10 to 12 and so forth to the entire app developer ecosystem, but also make difficult content decisions. AB 1043 could unintentionally create new dangers for young people online.
- Robert Singleton
Person
I won't dive too much into the details, but instead of handing over detailed age brackets to developers, an approach that better protects privacy would be to have app developers utilize the existing tools from app stores to design experiences appropriate for young people without collecting or accessing specific use of data.
- Robert Singleton
Person
If we imagine the App Store as a shopping mall or even a county fair, there are a variety of stores, experiences, amenities, and amenities that are all publicly accessible, including to children. We don't require that a mall or an outdoor plaza to check age requirements. We require the Chili's that serves margaritas,
- Robert Singleton
Person
check the ID of the people who are specifically ordering drinks. Whether at the App Store or app level. We caution the legislature to refrain from imposing explicit or De facto age verification mandates that they consistently proven to be litigious.
- Robert Singleton
Person
Instead of creating new hurdles, legislation should support recently- recent efforts by companies like Apple, which has introduced new tools to help developers enhance safety by enabling voluntary age restrictio-assurance APIs rather than disincentivizing those proactive policies. So for these reasons, amongst many others, we remain in respectful opposition to AB 1043.
- Rebecca Bauer-Kahan
Legislator
Thank you. Anyone else here in opposition to this bill? Name, organization and position.
- Rebecca Bauer-Kahan
Legislator
Thank you. Before I turn it over to Ms. McKinnor, I just am so confused because Chamber of Progress is absolutely the organization that has come in more times than I can count opposing platform level restrictions.
- Rebecca Bauer-Kahan
Legislator
So I guess when it's the platform you don't want us to do it there, and when it's the device you don't want us to do it there, you want us to do it on a platform. I guess it's whatever is convenient to the opposition.
- Rebecca Bauer-Kahan
Legislator
And I will just urge again and again that the opposition needs to come in here with solutions. We have memories that are longer than three minutes, so this isn't working. And with that I'll turn it over to Ms. McKinnor.
- Tina McKinnor
Legislator
And so thank you to the author again for protecting- coming up with some solutions to protect our children.
- Tina McKinnor
Legislator
Because you know, when- when- when the Internet, I'm old, so I'm gonna say when the Internet first came out, when the interweb, I was a mi- my family, we were a Microso- Microsoft family in the 90s and me and my husband helped to create the Microsoft Child Protection, but they didn't have targeting then. It- It wasn't even social media.
- Tina McKinnor
Legislator
They just- That was just for them. When they're searching the web, you can go in and put restrictions on what they can search. But when you look at, when I look up a face cream, all of a sudden on Facebook I have 100 advertisements of face creams. So we could do that, but we can't- we can't put in age verification.
- Tina McKinnor
Legislator
So I don't think it's that hard because that has to be pretty. A lot of data use that. All I did was look if I wanted to see one- what one face cream does. And then all of a sudden I have 100 advertisements on face creams. That's the type of targeting that's happening to our children.
- Tina McKinnor
Legislator
And we have to have those solutions. So you talk- you said that there are controls. Can you give me some examples of those controls?
- Robert Singleton
Person
Yeah. So Apple published February, 2 months ago, Apple published an entire comprehensive App Store safety suite of tools, including the ability for parents to control when kids can download apps, how they can access different parts of the App Store.
- Robert Singleton
Person
And so they've created a bunch of these tools proactively to try and increase that and improve that user online experience. And I would say Android has similar tools for their App Store as well. But both app stores are different, are different in terms of the standards for developers who's- who's- who's allowed to participate and submit apps.
- Robert Singleton
Person
And so given that there's different and dynamism and competitive advantages for different stores and different devices, the one size fits all approach here is just not- not as effective as working proactively with the companies.
- Tina McKinnor
Legislator
And then you also mentioned like the malls, when you go to the malls, you're still not being targeted. And when you go to Chili's and have a margarita, they ask for your ID by the way. That's the problem. You said that you guys are making it safer for children.
- Tina McKinnor
Legislator
Give me some- Give me an example of how your industry is making it safer for children.
- Robert Singleton
Person
Well, beyond the proactive tool set, the App Store developers, the folks who are being targeted by this legislation, are doing proactively. I do want to respond really quickly to the threshold question about, you know, if you're looking for a face cream, then you get ads for a face cream, right?
- Robert Singleton
Person
And so the- the claim is, is that clearly we know who you are if we can target ads. But the threshold for targeting an advertisement to you and having it not land, you don't buy the face cream, no one's harmed in that instance.
- Robert Singleton
Person
But when you're imposing civil liability to A certain verif, the verification of an actual age range. That's when it, it's the threshold for serving you an advertisement as little to no harm if we don't get it right. But we have to be certain with the ages if we're going to be held to a civil liability standard.
- Tina McKinnor
Legislator
Well, that's why. Well, I might leave that. You know what, I'm gonna let the- I'm gonna let the chair, she- she might want to answer that one. But for children, we're talking about 13 year olds, 10 year olds. That's different than an adult like myself who has the restraint not to buy these things.
- Tina McKinnor
Legislator
But if you have a- a kid that's trying to look up how to be healthy and then all of a sudden she's getting diet, maybe diet pills or things that are unhealthy, we need them, we need an age verification. And how hard is that? How much would that cost the company to do?
- Robert Singleton
Person
So we've talked about age verification and a lot of different- a lot of different bills and legislation and it's- it depends on how you're doing it. I mean, they're- the two De facto things of age verification we have right now would be a form of government ID or biometric data and that involves collecting more personal information. We just don't want to do that.
- Buffy Wicks
Legislator
Yes, I have a lot of responses. Would you like all of them or just to that specific comment.
- Buffy Wicks
Legislator
So- So, having worked in this space now since I got here, one of the biggest challenges as we're- as we're trying to create safer spaces for our children is we put forth all kinds of bill ideas and then the companies say, well, we don't know how old they are and how would we ever know. And when in reality we know that the companies have literally thousands of engineers devoted to knowing exactly who is on their platform because that's how they make money.
- Buffy Wicks
Legislator
It's in their- It's in their financial interest to know exactly who's there so they can sell them all the different things, right? They know. But it's hard to put that in code and- and- and figure out the liability piece of this. So the sort of knowledge standard has been one vexing issue in this space.
- Buffy Wicks
Legislator
That this is what this bill in its most simple terms is trying to- trying to establish a reliable knowledge standard. So as an example, when I, my 8 year old has a tablet, she has an Ipad, sorry Android, we're an Apple family.
- Buffy Wicks
Legislator
And when I set up her profile, I entered in her information, I entered in her age as the mom, right. I put in the different settings. As you can imagine, it's a very controlling environment for her and I enter that age in.
- Buffy Wicks
Legislator
What this bill would then do is if then she tries to go download Snapchat and she's 8 years old, there would be age signal sent to the apps at the App Store that says this person's under the age of, you know, they're under the age of 10, I think is what the back bracket was.
- Buffy Wicks
Legislator
So then the app would then or the- the- the- the- the platform would then definitively have knowledge knowing exactly what the age of the person is. In its most simple terms, that is what we are trying to establish. Once we can establish a knowledge standard and understand the age, we can then build all the regulation around keeping the kids safe online.
- Buffy Wicks
Legislator
So that's what we're trying to establish. Now, our opposition says it's better to work with the companies and do what they're doing. I am more than happy to work with these companies and have them. I also want something that can be implemented right. And this is incredibly technical.
- Buffy Wicks
Legislator
The first phone calls I made when I decided to do this was to Apple and Google, with whom I have spent many time, many hours with in this space and- and beg them to come to the table. And they have released age verification ideas. Some of that is worthwhile.
- Buffy Wicks
Legislator
Let's codify that then and let's bring that into the equation and put it into law. Because guess what? We also need regulation. We can't just have these companies voluntarily do this on their own. So far today, that has not created a safer environment. We need regulation and thoughtful regulation. I welcome conversation with the opposition to do that.
- Buffy Wicks
Legislator
I've talked to them many, many times. I view this as an upstream solution where you're tackling the age at the very beginning when the parent sets up the account. That way, as- as kids go through and are trying to download your average, I think teenager has 40 different apps on their phone.
- Buffy Wicks
Legislator
That age signal will be the most truthful one that also can't be changed.
- Tina McKinnor
Legislator
Like, what's the hesitation for the- for something like that? Is it the liability that the company has to take on now?
- Robert Singleton
Person
Well, it's- it's we have proactive measures that we're working on, but the app stores are different and they have different requirements and different conditions of being able to provide an app there. And so it's just not the one size fits all. And why is this bill focusing on absolving the content platforms for in lieu of punishing the device manufacturer?
- Tina McKinnor
Legislator
But no, I'm not asking that. I didn't. My question, I know you asked me a question, but I'm asking you a question. Is it the liability that the companies don't want to take on? Because once we have this, then the- then the company now has to take on liabilities when they don't do the right win in the right things.
- Tina McKinnor
Legislator
Because what we know, what I fight, is a good faith effort. So right now we're saying, okay, we're going to let the company take a good faith effort with our children. So is it the liability that the companies really don't want to have to deal with?
- Robert Singleton
Person
It's the liability, but it's also the liability that goes to- to developers as well for the applications to now receive this information and have to curate their experience.
- Rebecca Bauer-Kahan
Legislator
Yeah, thank you, Ms. McKinnor. I just wanted. You saw me react. I want to thank you. I'm sorry, I don't remember your name.
- Rebecca Bauer-Kahan
Legislator
Naveen. I want to thank you for being here. I turn to my staff as you were speaking, and I said, today is an endless stream of mothers that has been harmed by social media. And the fact that we can have.
- Rebecca Bauer-Kahan
Legislator
Each of us can do a bill on the subject and find a different mother that can come tell a horrific story about a child that is harmed is evidence that- that we're failing our kids. The companies have long failed our kids.
- Rebecca Bauer-Kahan
Legislator
But as a former regulatory lawyer, I can tell you right now, the companies I represented, their job was to maximize the bottom line. I actually respect that. That's their job. Our job on this dais is to protect our children. So, yeah, you don't want the liability. I get it.
- Rebecca Bauer-Kahan
Legislator
But it's our job to make sure you're doing the right thing. And so I want to thank the author. And I think that what I wanted to say is that you said there is no harm to serving up those ads. She just told a story that was heartbreaking about the harm that those algorithms are providing.
- Rebecca Bauer-Kahan
Legislator
And so I cannot let you just sit here and say there is no harm to what these apps are doing. It's just not true. And I want to thank her for bearing witness and allowing us to hear the story. One of I don't know how many.
- Rebecca Bauer-Kahan
Legislator
I heard a similar story, actually, from a colleague of ours who went on to search recipes to serve her teen daughter and all of a sudden started being fed all of this anorexia material. It is abhorrent, what is happening. And so, you know, we have a role in this.
- Rebecca Bauer-Kahan
Legislator
And I think, you know, you guys can come up here every five minutes and tell us you don't want us to do it, but we have to do something. And I want to thank the author for leading here. And so I want to say also that we are not letting the platforms off the hook.
- Rebecca Bauer-Kahan
Legislator
As was said last year, we had a bill that I was really excited by, a Republican bill by Assemblymember Alanis that would have age gated porn. It didn't make it through the process because there was no privacy protective way to age gate pornography.
- Rebecca Bauer-Kahan
Legislator
If you walk into a drugstore, you have to show your ID to buy porn on the Internet our kids are being served up porn that is causing them to choke women. And so this solution will be how we stop that. It is so critically important to so much of the harm that is happening.
- Rebecca Bauer-Kahan
Legislator
And the author, who is one of the best and is dedicated her time here in this building to protecting our children, will make sure that we can protect our kids from all of the harms. And that will come secondarily in many cases. But don't worry, we'll go after them as well. With that, Mr. Lowenthal.
- Josh Lowenthal
Legislator
Thank you, Madam Chair. I think everything that's in my heart and my head have already been said. I just want to thank the author so much. I'm so proud to be a joint author of this bill.
- Josh Lowenthal
Legislator
You have trailblazed for so long and paved the way for so many of us that are trying to do what the chair so eloquently said, which is protect children. And I want to reiterate the point that you made. You know, it's not enough that the app stores have these tools that are available that we need to regulate.
- Josh Lowenthal
Legislator
The app stores themselves don't seem to be defining what the take rate is, what the impact is, what are the defined goals and metrics associated with it. They're not measuring the imp- you know, that I'm aware of or not publishing, you know, what success is and what it isn't.
- Josh Lowenthal
Legislator
And, you know, to the point of the chair, and I believe the point of the author, we want 100% of children to be able to be protected by this. So it's not just about the availability. It's that every child is protected. And with that, I'll be supporting the bill today.
- Diane Dixon
Legislator
Thank you, Madam Chair. Some of you have been members of this committee, have been dealing with this longer than I have. And it's just kind of. It's like when you're doing something over and over again, there's something wrong with that. A couple of personal experiences that I believe technology must exist.
- Diane Dixon
Legislator
I mean, the technologists involved in these platforms are the smartest people in the world. I mean, this Is not literally, this is not rocket science. This in my opinion can be done. I told a story earlier about my grandsons on Ipad.
- Diane Dixon
Legislator
One of that same period of time when I was allowing them to play on an Ipad, they were on an app called Roblox and it's a children's nonviolent, all this kind of stuff. So when they exceeded their 30 minutes, I got a text from my daughter, their mother, and said, why are they still on their app?
- Diane Dixon
Legislator
So she knew technology, some setting she set, whether it was on her Ipad or when she set up the account. So I don't think this is beyond the reach of going to Mars. I mean, I think that the technology exists. I would like to come at this from a different way and I support this bill.
- Diane Dixon
Legislator
Like I mentioned in- I don't know if it's financial incentives. They don't need financial incentives. Their books have been written about the mental illness to children on the app. I mean there's a bestseller, it's been on the New York Times bestseller list, I think number two or three or four for the last six months.
- Diane Dixon
Legislator
People are wanting help to keep their children safe. So they're- we have these hearings every year. I would think that for the platforms would be racing to help us find a solution before we over regulate them. I mean that's the end game here. They're going to be regulated in a way that they- that they don't want.
- Diane Dixon
Legislator
That's why they've been resisting. Find a way to avoid being regulated, be the good guys and lead the world in finding ways to save our children. Lead the world, be the best in class because it exists.
- Diane Dixon
Legislator
I mean, when you have a Samsung or an Apple phone, the app developers create customized programming to address those different phone software systems in order to qualify for an app sale on Apple. Apple, you know, they go through rigorous testing, I mean to verify and validate efficacy and all those criteria that Apple has.
- Diane Dixon
Legislator
Let them be the solution. Let them drive the solution to this before they're over- over regulated or regulated at any point. But as this bill goes forward, this is the direction that a large number of people have. Why don't you, why don't you beat the legislature to the solution? Because you guys know how to do this.
- Diane Dixon
Legislator
We're just trying to, as I said earlier, thread this needle and we're still trying to figure it out. And this is why Assemblymember Wicks keeps going at this. There is a solution there somewhere. Somebody knows how to do this. So that's my sermon for the day.
- Rebecca Bauer-Kahan
Legislator
Thank you. They're so beautiful today. So thank you. We have a motion and a second. But Mr. Ward.
- Chris Ward
Legislator
Thank you. And I want to thank the author for also being a leader in the online protection of our- of our kids.
- Chris Ward
Legislator
I am very excited for what you are aiming to achieve here because at some point we do have to find ways to enhance our laws to be able to achieve exactly what you're going to be able to. What we're trying to achieve as well.
- Chris Ward
Legislator
And again, for the circumstances that sadly learning that you're hearing as well, full agreement as well that there's something better that we could be doing. That was ador- it was adorable.
- Chris Ward
Legislator
We all got different sneezes and so, and so it's like on its face, like I 100% see exactly where we're going and I know where you're headed. And there is a lot more work that we can be doing to make sure we're getting definitions right and we're thinking about like the nuance that's in here.
- Chris Ward
Legislator
And I'm reminded for a bill that we heard as well, I think before committee last year from former senator, that raised some challenges that we have for some members of our community. The coming from the LGBT community.
- Chris Ward
Legislator
You know, we get into, you know, some really deep concerns about privacy issues where you might have youth who are still thinking about their issues or not, not ready necessarily to be able to fully come out.
- Chris Ward
Legislator
But aside from what we all, I think would agree are is truly adult content, would want to try to be able to access resources there, whether it's through the Trevor Project or an LGBT center, to be able to understand more obviously helpful social information that is exactly what they're trying to be able to achieve.
- Chris Ward
Legislator
And whether that is going to be cross linked or automatically transmitted to parents could be alarming or maybe get ahead of a conversation that also should happen on its own time.
- Chris Ward
Legislator
And I know that you're aware of this issue too, and you've already been meeting with mem- members of the community and want to be able to continue to work on that.
- Chris Ward
Legislator
And I think it's that broad definition there of what gets captured here, you know, and then also what constitutes a risk to minors, when should this apply is something that really needs to be worked out and is difficult to work out in language. Right.
- Chris Ward
Legislator
Because we want to capture everything that we intend to capture while making sure that, you know, reasonable activity is allowed to continue unimpeded. You know, I, I'm curious for some of what you're trying to achieve here as well, under parental controls. You know, I know to a degree we have some ability to have parental controls today.
- Chris Ward
Legislator
In fact, parents aren't probably doing enough on their own right now to exercise those to be able to on Roblox, set time limits or other issues that you want to be able to control these devices for.
- Chris Ward
Legislator
And I'm thinking about, you know, if somebody wanted to access information, say, from Planned Parenthood or wanted to download an application, is that going to bounce over and require for parental consent? That's over there, too. So, general thoughts.
- Buffy Wicks
Legislator
I- I think. Yeah. Yeah. So I think we need to work on the parental consent piece because I share some of those concerns as well. And you know, this bill enjoys support from a couple LGBTQ organizations. And I'll be continuing to meet.
- Buffy Wicks
Legislator
We're meeting, I think, on Thursday with Equality California and the Trevor Project because I want to be very mindful of how do we create the right guardrails but not also have negative unintended consequences for folks who may need resources that maybe their parents don't agree with, you know. And it's sort of striking that balance.
- Buffy Wicks
Legislator
And so, and you and I have had the opportunity to talk a little bit about that, but I'll keep having those conversations. And again, this- the most important aspect of this bill, from my perspective, is- is the creation of the knowledge standard so that the apps then know the age of the person they're dealing with.
- Buffy Wicks
Legislator
There's other aspects of the bill that I think we need to continue to keep working on, specifically the parental consent piece.
- Chris Ward
Legislator
I really appreciate that and I'm happy to offer courtesy support here today because I know exactly what you're trying to achieve. And the detail that we're getting in, you know, the final language is something I want to watch closely as well.
- Chris Ward
Legislator
Caucus members that align with me as well are going to be trying to make sure that we get this right so we don't have inadvertent unintended consequences on bona fide information that can be accessed through websites or through applications. Right.
- Chris Ward
Legislator
That are sensitive, not necessarily that are not adult content, but might get entrapped in how we're defining some of this, too.
- Buffy Wicks
Legislator
And I also think. I- I appreciate that. I also think it speaks to a broader issue. This bill is not opining on content. That is not the goal of the bill. When you start regulating content, obviously, then you- then you fly in the face of the Constitution and other things.
- Buffy Wicks
Legislator
So we'll make sure that we're mindful of those things as we move forward.
- Rebecca Bauer-Kahan
Legislator
Thank you. Seeing no other comments, questions or concerns, I just want to thank you. I think this is really important work, and I appreciate you taking it on, as I mentioned. And if it gets out of here today, I would also like to be out as a co author, if you'll have me. Madam.
- Buffy Wicks
Legislator
Yes. Thank you. Appreciate the conversation, the debate. I also want to say, Assemblymember Josh Hoover is also co author of this bill.
- Buffy Wicks
Legislator
You know, this committee has historically been very bipartisan in nature, and it's one of the things I really appreciate about this committee because I think all of us that come to this are parents primarily, or folks who care about our- our young ones.
- Buffy Wicks
Legislator
And so I want to honor that spirit and make sure I'm intentional about saying that here in the committee. This is a very tough piece. It's a foundational piece of the broader conversation we're having. One that I think is really, really important.
- Buffy Wicks
Legislator
I think we actually have the opportunity to do it right here in California, take into account all the different aspects that have been raised today and serve as a model for the rest of the country on how this can get done. And with that, respectfully ask for an aye vote.
- Rebecca Bauer-Kahan
Legislator
Thank you. We have a motion and a second. And I will note that Assemblymember Patterson is recusing himself from this vote, so we will not call his name.
- Committee Secretary
Person
Item number nine, AB 85. I'm sorry, this was 10. Item number 10, AB 1043 by Assemblymember Wicks. The motion is do pass to the Judiciary Committee. [CALLING OF VOTE].
- Rebecca Bauer-Kahan
Legislator
That has 10 votes. So it is out. But we will leave the roll open for absent members.
- Buffy Wicks
Legislator
It's gonna sound a little familiar because we had this last year. Died a mysterious death, so we're bringing it back. Okay, here we are again, team. It is. It's very cold.
- Buffy Wicks
Legislator
Madam Chair and Members. AI technology provides new opportunity opportunities to grow the economy and when used properly, can improve efficiencies in everyday lives and industries. However, with new developments of AI technologies, there are concerns surrounding safety and transparency that have been raised with AI.
- Buffy Wicks
Legislator
For those watching at home, it is freezing in here. Okay. Yeah. Thank you.
- Buffy Wicks
Legislator
One of the significant issues that has been raised is transparency of the content that is produced. Specifically, AI technologies have been evolving rapidly and there are technologies that have been developed to make it easier for images, audio and video to be created, manipulated and edited.
- Buffy Wicks
Legislator
Bad actors can use these AI technologies in creating scams, creating fraudulent impersonations and disseminating harmful content of women and children, and spreading disinformation and deepfakes which impacts public trust and information.
- Buffy Wicks
Legislator
There have been a number of bills from previous sessions that have aimed to add some of the transparency concerns raised by AI. Including my own from last year on this topic that unfortunately did not make it through the Senate at 11:40pm last night.
- Buffy Wicks
Legislator
And AB 853 would build upon the work of previous legislation by requiring more transparency of content on large online platforms and Capture devices. Specifically, AB 853 would require large online platforms to retain provenance data that is provided or posted on the platform and make that information available to users.
- Buffy Wicks
Legislator
And it would require capture devices to offer the ability to include provenance data in content. Testifying in support of Representatives and the sponsor of the Bill from cited, Ken Wang and David Evan Harris.
- Ken Wang
Person
All right, Good evening Chair Members. My name is Ken Wang and I'm the Senior Policy Advisor with the California Initiative for Technology and Democracy, a project of California Common Cause. We're proud to sponsor AB 853 which would extend providence requirements under SB 942 from last year the California, AI Transparency act to large online platforms and capture devices.
- Ken Wang
Person
Sighted was established to seek state level solutions to the threats that disinformation, AI and other emerging technologies pose to our democracy. Through a cross disciplinary approach advised, by leaders from civil rights and civic engagement. Law and public policy, industry and tech and more. It fights for a digital democracy that works for all.
- Ken Wang
Person
To that end, Sighted is proud to sponsor AB 853, which would add important tools to our arsenal to help stem the tide of online disinformation. This Bill builds on the important foundation. Laid by SB 942 by strengthening the law's existing provenance requirements through extending it though recording devices capturing human generated content.
- Ken Wang
Person
This Bill also increases utility of provenance information by requiring large online platforms to make provenance available to access by users. We hope these urgent policy interventions will help rebuild trust in our information ecosystem. Given the absence of meaningful federal policy, California must continue to lead on this critical issue.
- Ken Wang
Person
We'd like to thank Assemblymember Wicks for your continued leadership on this important issue and with that I will turn it over to cited's technical advisor David Harris to walk through the technical aspects of the Bill.
- David Harris
Person
Chair, Vice Chair Members it's an honor to speak with you today. In strong support of AB 853, a Bill that will help Californians differentiate between authentic and AI generated content online. My name is David Evan Harris and I'm here in my capacity as a senior policy advisor.
- David Harris
Person
I also teach at UC Berkeley and I'm a senior advisor for AI and elections to the Brennan Center for Justice at NYU. I've advised the White House, Congress, the EU, the UN and NATO on AI. I also from 2018 to 2023, worked at Facebook and Meta as a researcher on the civic integrity and responsible AI teams.
- David Harris
Person
A lot has changed in the year since we last testified before you hear about provenance. Sharing of AI generated content on social media platforms has increased. Barriers to producing realistic imagery decrease every month. Realistic real time AI generated audio and video are here nonetheless.
- David Harris
Person
The Coalition for Content, Provenance and Authenticity, the most prominent group developing provenance tools, has continued to improve upon its technology, strengthening its resilience against bad actors. Integration of provenance tech into cameras, another crucial requirement of the Bill, has also increased. Leica, Sony, Canon, Nikon, Fujifilm all now support C2PA.
- David Harris
Person
Major platforms including Meta, TikTok, Amazon and LinkedIn also now nominally support C2PA. But alas, big tech companies continue to break the promises they've made in voluntary commitments at the White House, and the Munich Security Conference to meaningfully implement provenance technology.
- David Harris
Person
Without legislation like AB 853, we absolutely cannot count on tech companies to keep their promises to implement provenance technology. Please support AB 853 to protect women and children from the threat of non-consensual intimate imagery, to protect the elderly from AI scams. And to protect the integrity of our information environment and our democracy.
- Rebecca Bauer-Kahan
Legislator
Thank you. Anyone here in opposition to this Bill, come on up. We really do need a frequent flyer program.
- Rebecca Bauer-Kahan
Legislator
Thank you. Anyone else here in support of this legislation, come on up. Name, organization and position. Thank you. Thank you.
- Robert Boykin
Person
All right. Good evening, Chair Members of the Committee. Thank you for opportunity to testify today. My name is Robert Boykin with TechNet. While we support the goal of improving transparency around synthetic media, we are opposed to EB 853 in its current form. Last year's SB 942 Becker, which takes effect in 2026, has not yet been implemented.
- Robert Boykin
Person
We believe more time is needed to evaluate the existing framework and how they would apply to consumer focused products. As most don't support this technology natively. Manufacturers and platforms are actively working through industry led coalitions such as the Coalition for Content Provenance and Authenticity to develop Providence standards.
- Robert Boykin
Person
These technologies are still evolving and many of the bill's requirements, especially for capture devices, are not yet technically or commercially feasible. A phased approach could be - could be a better balance consumer choice and implementation realities the bill's retention requirements also raise operational and privacy concerns as provenance data can be lost unintentionally.
- Robert Boykin
Person
Clarifying platform responsibility, especially for embedded or third party content, will also help avoid confusion. We appreciate the conversation and look forward to working with the author's office as the Bill moves forward today.
- Aiden Downey
Person
Thank you for the opportunity to speak. I'm Aiden Downey. I serve as the State Policy Manager for the Computer and Communications Industry Association and International none for Profit Tech Trade Association. As we look ahead to the future of digital content and authenticity, Providence and watermarking technologies will be essential tools.
- Aiden Downey
Person
Right now, manufacturers of capture devices and major online platforms are leading the development of industry wide standards in this space. These technologies are still emerging and the standards supporting them are being thoughtfully shaped by the organization's best position to ensure their success.
- Aiden Downey
Person
That's why we support a flexible phased approach to adoption, one that allows innovation to continue without imposing unnecessary costs on consumers or stifling progress. If there are significant costs to developing and incorporating provenance features, these costs shouldn't fall on users who don't want them.
- Aiden Downey
Person
At the same time, large online platforms are actively participating in collaborative, multi stakeholder efforts to build a scalable, interoperable ecosystem for provenance. Many are Members of key industry groups such as C2PA, which are working to develop consensus based standards that offer meaningful transparency into synthetic and manipulated content.
- Aiden Downey
Person
But as we build towards interoperability, we must be clear eyed about the risks, especially to user privacy. Meta data and provenance data are critical for enabling trust and transparency, but they can also reveal sensitive information device identifiers, timestamps, locations, even user identities. When content moves across interoperable systems, that Metadata also moves with it. Often sorry moves with it.
- Aiden Downey
Person
Without strong safeguards, these data points can be aggregated to track behaviors, infer relationships, or build profiles which raise serious privacy concerns for consumers. Interoperability should not become a backdoor to surveillance. Finally, we should be cautious about mandating rigid compliance too early in the process.
- Aiden Downey
Person
Doing so could undermine the thoughtful collaborative work already underway to ignore the broader ecosystem, particularly fringe or noncompliant actors who are unlikely to adhere to provenance standards voluntarily. Narrowly targeting major platforms risk giving a false sense of security while leading Leaving major gaps in enforcement and coverage.
- Aiden Downey
Person
We should be aiming for a balanced approach, one that supports innovation, protects privacy and brings everyone to the table and building a trustworthy digital future. We appreciate the Committee's considerations of the comments and request a no vote. Thank you.
- Rebecca Bauer-Kahan
Legislator
Thank you. Anyone here in opposition to the Bill besides obviously those who've spoken. Seeing none. We'll bring it back to the Committee. Any questions, comments or concerns? Do we have a motion. Yes we do madam Vice Chair.
- Diane Dixon
Legislator
I'm just going. To ask a question. If the platforms are working towards the solution, could you project estimate when we'll be there?
- Aiden Downey
Person
I cannot. Right. I think that that's a. It's a very nuanced conversation from a lot of different platforms, a lot of different interests and you know, I think not to sound sort of referring to previous conversations. Right. I think I've heard a lot today about how we're looking for companies to lead. Right.
- Aiden Downey
Person
And interjecting legislation could potentially halt that collaborative approach. Companies that are afraid of some sort of liability might scramble to create compliance and sort of potentially disrupt interoperability standards. And so I think currently allowing this collaborative approach to continue is probably the correct approach moving forward.
- Diane Dixon
Legislator
Well, I appreciate your response. It's just we're going to be here again. It's either going to be regulated, mandated, prescribed, or help come up with a solution. I mean, you have two options. Either accelerate your development of your technology platform and share that if it's collaborative. That's fantastic.
- Diane Dixon
Legislator
You know, there's a desire here for the second or third year in a row to determine the authenticity of something and so people can discern what is AI, or what is original content. And it's becoming, as the author said, it's just becoming more pervasive and we see it every day. It's almost becoming frightening.
- Diane Dixon
Legislator
So we're left with no choice. I mean, I'm an anti regulation type person. I think people should just do the right thing and hopefully we have fewer laws and regulations, but help us help you. So that's where I am right now.
- Buffy Wicks
Legislator
for the second year in a row. Would you respectfully ask for an aye vote.
- Rebecca Bauer-Kahan
Legislator
Thank you. Thank you, Madam Vice Chair. Seeing no additional comments or questions, we have a motion and a second. Would you like to close
- Committee Secretary
Person
Item number nine, AB853 by Assemblymember Wicks. The motion is do pass to the Judiciary Committee. Bauer-Kahan, aye. Bauer-Kahan, aye. Dixon, not voting. Dixon, not voting. Bryan, aye. Bryan, aye. Demaio, aye. Demaio, aye. Irwin. Lowenthal. aye. Lowenthal, aye. Macedo, not voting. Macedo, not voting. McKinnor, aye. McKinnor, aye. Ortega. Patterson. Pellerin.
- Committee Secretary
Person
Patterson. Pellerin. Petrie-Norris. Ward. Wicks, aye. Wicks, aye. Wilson, aye. Wilson, aye.
- Rebecca Bauer-Kahan
Legislator
The Bill has six votes. We'll leave it on call for absent Members. Thank you, Mr. Brian. Any interest in going next? Great. Perfect. When you are ready, Mr. Brian.
- Isaac Bryan
Legislator
Thank you Madam Chair and colleagues, I'm here to present AB1349, a Bill that among other things, ends the practice of speculative ticketing by requiring that sellers of tickets own or have a contractual right to sell the ticket before listing it on a resale platform.
- Isaac Bryan
Legislator
Before I begin, I want to thank the Committee for their work on the Bill and accept the Committee amendments.
- Isaac Bryan
Legislator
Every year, fans across the state who are trying to see their favorite artists are deceived by sellers that don't have tickets and don't have a right to sell those tickets, but list those tickets online for sale anyway at a markup. This harmful practice is known as speculative ticketing and it's inherently anti-consumer.
- Isaac Bryan
Legislator
In the vast majority of the cases, the seller does not disclose to the consumer that it's a speculative ticket. And when they click buy now, fans aren't actually buying anything tangible.
- Isaac Bryan
Legislator
In fact, unknowingly, fans are making a calculated bet paying up front that a bot or a scalper will be able to buy at some point a ticket at a lower price and then repost it for the price that that consumer paid. And in many instances, fans are left without tickets having been delivered at all.
- Isaac Bryan
Legislator
And in the most extreme cases, showing up to venues believing that they had bought a ticket, leaving small venues to have to clean up the mess for something they did not create. There are many examples of fans getting price gouged by the practice of spec ticketing. Sellers spec ticketed, listed, and sold Taylor Swift era tickets.
- Isaac Bryan
Legislator
That's a very well known case for thousands of dollars above face value in instances in those cases, many fans did not have tickets at all. This happens to all genres. Interestingly enough, I went to Dreamville Fest in North Carolina a few weekends ago. I saw Erykah Badu, I saw J. Cole, I saw Wale, I saw
- Isaac Bryan
Legislator
JID, I saw Keisha Cole. And then I took a 2am flight for a meeting with the assembly member from Richmond at 12 o'clock that Monday from North Carolina straight to the Capitol. And I loved watching Keisha Cole, grew up with Ms. Cole. What's interesting is if you looked up Keisha Cole tickets right now, 2025.
- Isaac Bryan
Legislator
And by the way, I do this before every hearing. It's a lot of fun. There's listings on the spec market for the August 2nd concert in Lincoln, California. What's crazy about that is is that pre sale tickets for the August 2nd concert in Lincoln, California, don't start until 10am tomorrow.
- Isaac Bryan
Legislator
This is unacceptable and there's no way for those tickets to be listed at a price right now that is not marked up from the price that they will go on sale at 10am tomorrow. It would be bad business practice for it to be anything but. Fans who buy those tickets, I feel bad for them.
- Isaac Bryan
Legislator
It is an anti-consumer practice the fact that we allow these tickets to go on sale before they are actually on sale. AB 1349 prohibits speculative ticketing and requires ticket sellers to own, possess or have contractual rights to sell the tickets before listing them.
- Isaac Bryan
Legislator
It prioritizes transparency by requiring both sellers and resellers of platforms to disclose seat locations to consumers. Additionally, secondary platforms should maintain records of those ticket sales, deposits and refunds.
- Isaac Bryan
Legislator
AB 1349 also bans websites that mimic official event platforms that confuse and trick consumers saying things like sold out before tickets have even gone on sale or 3% left before tickets have even gone on sale. It increases penalties for violators to make sure that consumers are always front of mind. This Bill prioritizes transparency.
- Isaac Bryan
Legislator
It protects consumers, it supports fans and artists and the experience that they all share. With me to testify is Jim Cornett, the owner of Harlow's and the Starlet Room here in Sacramento, and Ron Gubitz, who's the Executive Director of the Music Artist Coalition.
- Jim Cornett
Person
Thank you Chair Members. My name is Jim Cornett and the owner and operator of Harlow's, the Starlet Room, as well as Cafe Colonial here in Sacramento. I'm also the President of the National Independent Venue Association California Chapter, a trade associate representing over 500 venues and festivals throughout California.
- Jim Cornett
Person
As venues, in dealing with ticket issues, we are the first responders. We sell the tickets, we staff the box office, we handle the rope lines, we book and promote the show, and we provide all the logistics necessary for the artists that perform on our stage.
- Jim Cornett
Person
We are involved in every aspect, including having to speak to guests who may have bought a fake ticket or an overpriced one for the secondary platform. Thinking it was from our website, Abundance would have you believe that empowering the secondary market will increase competition and promote ticket freedom. This is not the case.
- Jim Cornett
Person
In doing so, they articulate will increase the likelihood of predatory practices, thus diminishing the fan experience attending a show. The opposite of this measure also argues that the proposal strengthens the monopoly hold on the industry and they have continuously referred to us, our venues like mine, as tentacles of the monopoly. This is also not true.
- Jim Cornett
Person
I sit here today as a small business owner representing an organization that is the largest source of competition to Live Nation. We are truly independent venues. This measure addresses the major challenges independent venues and promoters face in regard to fraudulent tickets or massively overpriced tickets on third party platforms that greatly hurt our reputation with our valued customer.
- Jim Cornett
Person
One of the most impactful pieces of this measure is the disclosure that when someone goes to a secondary site, they need to be told that those platforms are not the original seller.
- Jim Cornett
Person
Consumers are especially at risk because these sites use our venues like this and without disclosure, many fans will not go to our website where tickets may have a face value of $25 as compared to $40 or $50 on the resale sites. These secondary platforms are predatory middlemen. They have no skin in the game.
- Jim Cornett
Person
They do not pay artists, employee production crews, or engage the communities. They inflate ticket prices, confuse fans, and redirect revenue away from our small business. Venues and creators are the backbone of California's cultural economy. AB 1349 goes a long ways addressing these issues and puts consumers, artists and venues first. For these reasons, we urge your support today.
- Ron Gubitz
Person
Hi, my name is Ron Gubitz and I'm the Executive Director of the Music Artists Coalition, or MAC. We're an organization that fights for music creators to have a voice at this table in policy discussions that directly impact their lives and careers. So thank you for that opportunity to be here at this table today.
- Ron Gubitz
Person
Simply put, we believe that the people making the music are the ones who should be the main drivers determining how their tickets are sold. We strongly support AB 1349 because it strengthens consumer protections and ticket sales and it improves artist protections in the live performance marketplace.
- Ron Gubitz
Person
This Bill recognizes that artists have a fundamental right to determine how their creative work is presented and that the relationship between artists and fans is sacrosanct. It must be protected from exploitation, whether these are from small punk bands to hip hop artists to community productions of the Nutcracker, Pink, Pearl Jam, Dave Matthews, Stevie Nicks, whoever it is.
- Ron Gubitz
Person
These artists are investing their time and their energy and their money to deliver a memorable live entertainment experience for their fans. No one cares more about the fan experience than the artists and so this ban on speculative ticket sales is crucial. Resellers listing tickets that they don't actually possess leads to price inflation potential fraud.
- Ron Gubitz
Person
It disrupts the artist fan relationship. I stood in line this week behind people who had fake tickets to the Phish concert and these people had traveled into town and were not able to get in,
- Ron Gubitz
Person
in Portland just this week. This bill's requirement that ticket sellers must own, possess or have a contractual right to sell those tickets before listing them is crucial and frankly just seems obvious. You should own it if you are going to sell it.
- Ron Gubitz
Person
Ticketing should not be a futures market where shows are hedged and speculated like grapes, almonds or cattle. We strongly support the provisions in the Bill about deceptive marketing practices of websites created to trick consumers and unfairly drive up prices. And I'll close by just saying musicians create songs and then they create a show.
- Ron Gubitz
Person
They hire caterers, bus drivers, roadies, electricians and venue staff. Shouldn't the money from ticket sales go to those people not siphoned off to others? Thank you.
- Rebecca Bauer-Kahan
Legislator
Thank you. Anybody else here in support of this Bill? Come on up, name, organization and position.
- Gabriel Docto
Person
Hi, my name is Gabriel Docto. I'm a Member of NIVA, the California Chapter, as well as a venue operator in San Francisco, and I'm in strong support of this Bill. Thank you.
- Alex Torres
Person
Madam Chair and members Alex Torres, wanted to read off a quick list of folks. Who were wanted, who wanted to be able to be here today in support. With the indulgence of the chair, Another Planet Entertainment based in Berkeley. They managed the Greek in Berkeley, the Independent San Francisco, Bill Graham Civic as
- Alex Torres
Person
well as the new Channel 24 here in Sacramento, as well as the Bellwether in Los Angeles in support. Thank you.
- Josh Lieberman
Person
Hi. Josh Lieberman, General Manager of August Hall in San Francisco, a recent constituent of Assembly Member Wick's district. Strongly supporting on behalf of all defrauded patrons and artists at our venue. Thank you.
- Carl London Ii
Person
Madam Chair and members Carl London here on behalf of the Recording Industry Association of America. These are all the major record companies. In support of our artist partners. Thank you.
- Qiana Akinro
Person
Hello. Qiana Conley Akinro, Senior Executive Director of The Recording Academy, home of the Grammys. We're most known for our grammy awards, but we also support music creators and professionals and other parts of the music community. We have about 4,800 Members in the State of California alone and we are in support of AB 1349. Thank you.
- Eloy Garcia
Person
Madam Chair and members Eloy Garcia for Live Nation Entertainment in support.
- Dylan Hoffman
Person
Hi. Dylan Hoffman on behalf of California Arts Advocates. Appreciate the author and the Committee for the amendments now in full support. Thank you.
- Kelly Hitt
Person
Kelly Hitt on behalf of the Golden State Warriors. We support in concept and we look forward to continuing to work with the author. Thank you.
- Robert Herrell
Person
Thank you, Madam Chair and members, Robert Herrell, I'm the Executive Director of the Consumer Federation of California. I'm, I'm not going to read a statement. I'm governed by something that you said about three bills ago and something that Assembly Member Mckinnor said about four or five bills ago. Number one, companies wish to maximize profit.
- Robert Herrell
Person
That should seem tautology, self evident. I say that because the context of why we're here is we've got a monopoly in this, in this marketplace and there's 39 states plus the District of Columbia, including California, who have sued against that monopoly.
- Robert Herrell
Person
So we believe that a freer market with more competition against that monopoly would be good for consumers. The other thing I'm governed by is Assembly Member Mckinnor this morning and earlier today in this hearing talked about solutions.
- Robert Herrell
Person
And so since the Assembly Member and I encountered one another in between this building and the swing space, I'd like to focus on if this Bill just dealt with speculative ticketing, which the Consumer Fed has worked on for years. We've supported language on spec ticketing. We've worked on language both here in California and at the national level.
- Robert Herrell
Person
There's language that we've been supportive of that's pending in a National Bill right now. That would be one thing. The problem is that the Bill goes much further than that. It includes a number of provisions that wind up whether intended or not. I'll give the benefit of the doubt to the author helping the monopoly in the marketplace.
- Robert Herrell
Person
Now, he asked for some receipts and I'm going to take him up on the offer for me and other supporters, other opponents of the Bill to meet with him and go in more detail. Happy to do that and I appreciate that offer very much.
- Robert Herrell
Person
It looks like the result of 22502 and 2250102.1 would be to do away with these so called concierge services. I'm not being defrauded, but I don't want to spend 5 hours clicking refresh so that I can get shut out of tickets or when I get into the room, all that's left are $700 VIP seats.
- Robert Herrell
Person
It looks like that's whether intended or not , the impact. Also in 22502 you've got references to ticket, and the challenge here is the terms and conditions that are always embedded in the agreement that if you don't agree to the terms and conditions, you don't get a ticket to the show. That includes some really egregious terms and conditions.
- Robert Herrell
Person
For example, the Sacramento Kings. If you are a season ticket holder and you resell your ticket on any secondary site other than Ticketmaster Zone, they can not only take away your season tickets, they can demand a refund, they can demand you back. You won't be able to get season tickets in the future. So some of these are.
- Rebecca Bauer-Kahan
Legislator
Your sidekick is going to get no time unless you wrap it up.
- Robert Herrell
Person
Okay, I can go into more detail. I won't. But we're happy to continue to talk with the author and others about this issue. I think we share a common goal that is lost sometimes in these ticketing wars, but today we ask for a no vote. Thank you.
- Ruben Guerra
Person
Thank you, Madam Chair and committee. And I'll be short. I'm going to read mine because it's been a long day. Good afternoon. My name is Dr. Ruben Guerra and I am Chairman of the Latin Business Association.
- Ruben Guerra
Person
For more than 50 years our organization has helped support all small Latino owned business develop tools and networks they need to be competitive and successful. Being able to compete for customers is key to success. But when one company has a monopoly, it is able to leverage that to prevent competition.
- Ruben Guerra
Person
And Ticketmasters monopoly has a financial stake in everything that live events, including where consumers can buy their tickets, to who is selling food at events, to the type of bottled water sold. Latino vendors, suppliers and promoters can't compete with the colossus that is Ticketmaster. AB 1349 is another swipe at a small Latino owned business.
- Ruben Guerra
Person
It puts into law provisions that further entrench Ticketmaster's stranglehold of live events. It's anti-competitive, anti-small business and anti-consumer. In California we're about entrepreneurship and we're about competition, not monopolies. For this reason, I respectfully urge your no vote.
- Jaime Minor
Person
Jaime Minor, on behalf of StubHub. Opposed unless amended. Thank you.
- Rebecca Bauer-Kahan
Legislator
Thank you. Any other witnesses here in opposition to this Bill? Name, organization and position? Although I called the opposition.
- Courtney Jensen
Person
Courtney Jensen on behalf of SeatGeek and TickPick in opposition.
- Nora Canetti
Person
Nora Canetti on behalf of Multicultural Business Alliance and Hispanic 100 in opposition.
- James Jack Iv
Person
Madam Chair and members James Jack here on the behalf of the Coalition for Ticket Fairness in Opposition. Thank you.
- Anthony Butler-Torrez
Person
Anthony Butler Torrez with the California Hispanic Chambers of Commerce in opposition. Thank you.
- Rebecca Bauer-Kahan
Legislator
Thank you. Seeing no additional witnesses here in opposition, we will bring it back to the dais. Perhaps I'll start with a question for the author. It's my understanding you don't like monopolies. Assembly Member being one of the Most progressive members of our body. Would you like to address the support you are apparently espousing for monopolization?
- Isaac Bryan
Legislator
I actually think that that's the most hilarious part of all of this, because I don't think there's a Member of this Legislature who believes that I'm doing the bidding of some evil monopoly as opposed to the everyday fans and consumers.
- Isaac Bryan
Legislator
And I kick it back to you, Madam Chair, perhaps your consultants, to perhaps share the amendment that I didn't take on this Bill, which is what he says that the Bill already does. In fact, I turned down the amendment that this Committee suggested I might want to take , that does the very thing you said.
- Isaac Bryan
Legislator
And I appreciate the opposition for seeing me in the hall and me asking, are there any specifics? And the specific that you found from that time to this time is not what this does. In fact, I protected this Bill from that very thing.
- Isaac Bryan
Legislator
But we should have a proper conversation outside of Committee or in passing to go over my intentions and where I'm coming from. I'm coming from this as a consumer, as an active fan who goes to many shows.
- Isaac Bryan
Legislator
As somebody who used to buy four tickets and sell two of them so I could pay for the dinner before I went to the show back in college. But recognizing that two wrongs don't make a right. You can be against the monopoly, but price gouging consumers with things you don't own isn't right.
- Joe Patterson
Legislator
Yeah. This is a very strange Bill because the opponents of the Bill were also the people, you know, that testified over here were also the companies that do some of the, I assume, resale of the tickets, which typically, all the time, I've supported their positions.
- Joe Patterson
Legislator
It's such a weird Bill to me that all the sides are all kind of messed up. So it's very confusing. I feel like I'm doing the wrong thing. But I, I think at the end of the day, I
- Joe Patterson
Legislator
I think you're going to work out the issues of, you know, the consumer federation, what their issues are, because I think that you're trying to protect. I mean, just the other day I tried to buy tickets for something, and I went on the second it opened, and I couldn't get.
- Joe Patterson
Legislator
It wasn't even that I couldn't, like, wait in a queue, concierge service. I would have hired a concierge service if I had any chance of getting tickets. They were sold out the minute they opened. And so Kendrick's a hot ticket. I don't want to say what, what concert it was because it's kind of embarrassing. I'm just kidding.
- Joe Patterson
Legislator
But, you know, so I think the intent of the Bill and where you're trying to go is something that I support and something that we should be doing to, you know, not only protect the consumers, but also protect the artists and protect the people putting on the shows.
- Joe Patterson
Legislator
And it is very interesting because the people putting on the shows or the venues or, you know, they have agreements with, you know, Ticketmaster, which I've voted against them, and other bills in this Committee, you know, but I think this one is the right Bill to do.
- Joe Patterson
Legislator
And, you know, I think some of these issues you need to work out.
- Joe Patterson
Legislator
But I'm very confused by the opposition, honestly, just to be completely honest, and I'd love to what transpires from this, because I definitely don't think Assembly Member Bryan is trying to, you know, him and I have disagreed on a thing from time to time, but I don't think he's trying to help the, you know, any kind of monopoly or something like that.
- Joe Patterson
Legislator
But, but where you're trying to go with this Bill and I think what it accomplishes right now, and maybe some of the language needs to be smoothed out, is something I can get behind and I'd really like to be added as a co-author should this Bill move out of this Committee.
- Buffy Wicks
Legislator
Okay, so I'm gonna break out in hives a little bit. It's a little triggering from what happened last year with all these ticketing bills, but here we are. Yeah, I know. I'm like, I share the concerns with opposition. I don't at all doubt your intent though. Right. I don't think you're shilling for Ticketmaster at all.
- Buffy Wicks
Legislator
I think you are an active music goer. I'm impressed by your music attendant schedule, in fact, as like the middle aged mom on the dais who hasn't been to a show in a really long time. So I don't doubt what you're trying to do.
- Buffy Wicks
Legislator
And you and I had the opportunity to talk about what the intent of the Bill is, and we've had, you know, a conversation last week, we had conversations today. I do think there's language in the Bill that's problematic.
- Buffy Wicks
Legislator
That from my perspective, seems to enshrine some of the monopolistic behaviors that Ticketmaster has been promoting in other bills, et cetera. But I think we can work some of that stuff out. And I guess I would ask, I'll move the Bill or I'll move the Bill Sure.
- Buffy Wicks
Legislator
I will vote for the Bill today under the pretense that you and I can work on amendments as the Bill goes into preparations Committee. And I'd like to bring the opposition into those conversations so that we can land on a product that we can all wrap our arms around as it moves forward.
- Buffy Wicks
Legislator
Because I do think your intent is a noble one and it's the right one. I just want to guard against some of those concerns that I read. And, you know, I started marking up the language myself, but I'll save the details for later.
- Buffy Wicks
Legislator
But I think getting to some of the concerns that were raised by opposition I do think is important.
- Rebecca Bauer-Kahan
Legislator
Second, and I will just ask that this Committee stay involved as that.
- Isaac Bryan
Legislator
On the record, I mean, on the record, I'm happy to talk to anybody. And we talked before and would like to talk on the next Committee, for sure. I think. Yeah. It's actually kind of like a little bit offensive the way this gets framed.
- Isaac Bryan
Legislator
It's just like there's the Ticketmaster side and the StubHub side, and it's like, what about those of us who just like going to good shows and the artists who put on the shows and trying to figure out what the best way is to do that at a time where their livelihood is so baked into that because of other issues we're dealing in this, dealing with this, dealing with in this Committee around streaming and AI and license and protection, that's on that side.
- Isaac Bryan
Legislator
And then on our side, affordability is such an issue in the Legislature that the idea of going to do anything fun and paying money to do it seems like something that so few families or working mothers get to do on a regular basis. And so that is my impetus for coming into this.
- Isaac Bryan
Legislator
Walking into the ticketing war is not at all something I'm interested in. Solving real issues for real Californians is something I'm interested in. And I think together we have in the past, and we will on this and other things for sure.
- Tina McKinnor
Legislator
To the author. He is a big music fan, but as a grandmother who is a big music fan as well, I've been going to concerts since I was 13 years old, and it was very cool when we could just go to the box office and stand in line.
- Tina McKinnor
Legislator
And I've camped out overnight for tickets and I've done the thing. So now I think it's easy assemblymember just to get into a queue because now I don't have to sleep outside to get my tickets. I could just get in the queue for 30 minutes and get my tickets.
- Tina McKinnor
Legislator
And so it's refreshing to hear Assembly Member Wicks talk about everybody getting together and working on the solution. I think that's how we solve problems in California where everybody. We have people that are really suffering now with affordability.
- Tina McKinnor
Legislator
And so to bring joy to a family, to go to a concert, can you, you know, to buy a ticket for your daughter to go see Taylor Swift? You have to be pretty rich now to even take a family of four to go see Taylor Swift. I had the,
- Tina McKinnor
Legislator
I was fortunate as a grandma to be up to see Taylor Swift, but it costs a lot of money, and we want to get it affordable. We want to make sure that it's affordable. And so I think that speculating the speculative tickets is just crazy.
- Tina McKinnor
Legislator
To be able to buy a ticket and resell it and you don't even have the ticket. It's just not. It's not good for our consumers. And so I know that you guys will work with the author, and I commend the author for making sure that we can hear good music. And, yes, I'm going to see Kendrick Lamar.
- Tina McKinnor
Legislator
And so I commend you for this Bill and making sure that families can go hear good music. Thank you.
- Diane Dixon
Legislator
Where I come down on this issue is I support the little guy. These are the music artists, the theaters, the local theaters in Orange County. There's a wonderful local venue called the Coach House. I don't know if you've been there, but Coach House, you know the Coach House. And you buy.
- Diane Dixon
Legislator
You go online to their website, get the tickets, and there's no reselling. I mean, I don't know anything else other than doing it that way. You get your tickets. I remember, though, over the time that this Bill has been circulating, I heard the issue.
- Diane Dixon
Legislator
I don't remember where it came from, but that the ownership of the ticket is property, is an asset of the venue owner. I don't know. I don't want to say Ticketmaster, because I'm just suggesting that could be. I don't know if it is or not. Is that still an issue?
- Josh Lowenthal
Legislator
Yeah, I'm going to be really quick. You know, taking on anything in ticketing is not for the faint of heart. So I applaud you as. As do I, you, Assembly Member Wicks, for you know, taking this on on behalf of consumers. And I just want to. I'm definitely supporting the Bill. I know that it needs work.
- Josh Lowenthal
Legislator
I have utmost faith that you're going to be able to work with all stakeholders, as you always do every time. Speculative ticking isn't just bad because there's a risk for the consumers that think they're buying the right thing. It's bad because it can inflate the wholesale price for everybody else.
- Josh Lowenthal
Legislator
So that's costing even legitimate buyers, legitimate sellers, a lot more. Or for legitimate sellers, it can deflate the price at the same time. Right. So it harms the entire economy associated. With that, and it certainly harms the artist brand in every single way.
- Josh Lowenthal
Legislator
So I think this, you know, I think you will find the right secret sauce here, and I'm happy to support today.
- Rebecca Bauer-Kahan
Legislator
Thank you. Okay. Seeing no further comments or questions on the Bill, I want to thank the author for wading into this crazy world. I both was someone in college who my side hustle was sleeping overnight and people paid me and I made money getting other people tickets.
- Rebecca Bauer-Kahan
Legislator
So I think that the service that has been around for decades of buying people tickets is a real thing. But I was transparent. I didn't tell people that I had a ticket and then sell it to them for a lot of money. They paid me to sit in line, so you can still do that.
- Rebecca Bauer-Kahan
Legislator
But I think the transparency that a consumer knows what they're getting should be clear for anything that they buy. And so I think what you're trying to do here makes a ton of sense. This is such a complicated space because there is not enough competition in the primary marketplace. That's true. I don't disagree with that.
- Rebecca Bauer-Kahan
Legislator
We also have a secondary marketplace that makes their money on the back of consumers, where brokers are buying up all the tickets and selling them for 4.5x the cost of the ticket, and the artists are seeing zero of those dollars. The small venues in our communities are seeing $0 from that.
- Rebecca Bauer-Kahan
Legislator
And so the people who put their blood, sweat and tears into these productions are not benefiting off of that. The Coalition for Ticketing Fairness, which is the brokers are the ones who are making all that money.
- Rebecca Bauer-Kahan
Legislator
And so I think we just need to be really careful, because what I have attempted to do through these entire conversations, and I know you will do, is to center the consumer first, the artist second, our small businesses, and let it play out.
- Rebecca Bauer-Kahan
Legislator
If those are the people who are benefiting, then I think we will get it right. And, you know, so we have to be careful, because there's a lot of different interests that want a lot of different things that make a lot of money off of selling a $200 Taylor Swift ticket for $22,000.
- Rebecca Bauer-Kahan
Legislator
And as a mom who had to tell her daughter that she failed to get a Taylor Swift ticket, I know that we can do better with that. Would you like to close?
- Isaac Bryan
Legislator
Yeah. Thank you, Madam Chair, and thank you all for the robust conversation. The reason I stepped into the space this year is because I didn't want us to abandon it, because the Giants, the Titans, went at each other and both fell down.
- Isaac Bryan
Legislator
Because I think when that happens, we lose sight of who's really impacted and directly impacted both by the status quo and our inability to wrap our hands around this complex issue. I got involved in this issue because I have friends who are artists. Some of the greatest jazz musicians in the world come out of my district.
- Isaac Bryan
Legislator
Kamasi Washington and Terrace Martin and others. I have friends who put on shows, and I'm a frequent concert goer, as is my wife. We are constantly looking for shows. And it blows my mind that you can sell something that you don't own at a markup that's greater than it would go on sale for.
- Isaac Bryan
Legislator
In fact, I think artists are ridiculous for not jacking up their prices so that it's impossible to speculatively sell it for a margin because consumers are. Are hesitant to even pay what they're already posting it at. I also don't want to see that world, but I think that's what the status quo needs.
- Isaac Bryan
Legislator
And I know there's this fear that, oh, you're just trying to take out the secondary market. I am not. I've used the secondary market. I will. I'm not going to tell you how much my wife made selling a ticket to Adele's last show in Vegas because I couldn't go with her.
- Isaac Bryan
Legislator
This is about taking out the speculative market, a market that shouldn't exist because the commodity that they are selling does not yet exist.
- Isaac Bryan
Legislator
And I think if we can take that collective, pragmatic step, it's part of the reason why the warriors and so many others are engaging in this conversation in this way, which is different than previous posture for many, many stakeholders to come to this table.
- Isaac Bryan
Legislator
I would love to come to the table with those who are on the other side. I think there's got to be a way that we can land this and continue the conversation. I think the fans and the consumers in California deserve for us, too, as do the artists and everybody involved in this process.
- Rebecca Bauer-Kahan
Legislator
Thank you. We have a motion and a second, so we will call the roll
- Rebecca Bauer-Kahan
Legislator
No, move the bill. I'm happy to keep it short, trust me. All right. How do you make it to soccer practice? Which one are you doing? Which one do.
- Rebecca Bauer-Kahan
Legislator
Hi, welcome home. Nice to see you too. All right, proceed. Thank you, Madam Vice Chair and Members. And I have to say I started the day presenting my menopause bill and I'm ending my day presenting an abortion rights bill. I feel like it really represents that we care deeply about the reproductive spectrum at every stage.
- Rebecca Bauer-Kahan
Legislator
So thank you, Madam Vice Chair and Members. I want to thank the Committee, as always, for their amazing analysis and hard work. This Bill is really important because since the fall of Roe, we know that access to reproductive health care has been under threat.
- Rebecca Bauer-Kahan
Legislator
And when Roe fell, we actually didn't know whether California would receive a lot of out of state patients. We are far in the West Coast. We thought maybe we would not be high on the list. We have the second most number of patients traveling into California to access reproductive health care.
- Rebecca Bauer-Kahan
Legislator
And that is thanks to the incredible work of our physicians who serve those patients. Every single this body has done a lot to protect the privacy of those patients as they access reproductive health care here in California. But we haven't done it all, which is why we're here today. This bill is simple. It does two things.
- Rebecca Bauer-Kahan
Legislator
It protects the data that is collected through our research at our California institutions related to reproductive health care. It also prevents geofencing around our reproductive health clinics, except for allowing geofencing for security purposes. If it is needed for the safety and security of the people inside, that is fine.
- Rebecca Bauer-Kahan
Legislator
But for any other purpose, you are not allowed to geofence and find out who is traveling in and out of our abortion facilities. With that, I will turn it over to Dr. Dan Grossman, who is a doctor, UCSF.
- Daniel Grossman
Person
Thank you so much. Thank you to the Chair and Members of the Committee for Discussing AB45 today. My name is Daniel Grossman.
- Daniel Grossman
Person
I'm a practicing OBGYN physician, Professor in the Department of Obstetrics, Gynecology and Reproductive Sciences at UC San Francisco and the Director of Advancing New Standards in Reproductive Health, which is a policy oriented research program at UCSF. On behalf of the University of California, I am here as a proud sponsor to express our support of AB45.
- Daniel Grossman
Person
I provide comprehensive reproductive health care, including abortion care at San Francisco General Hospital, particularly when I provide care to A patient who's traveled from a state with restrictive policies.
- Daniel Grossman
Person
I feel confident that there are laws in place from HIPAA to several California laws that protect that patient's health information from a subpoena by someone located in another state who may seek to punish her for seeking care that is legal here in California but possibly illegal in her home state.
- Daniel Grossman
Person
But I do not have that same level of confidence when I perform research outside of a health care setting.
- Daniel Grossman
Person
In the course of my research, people who live in states with restrictive policies may report in surveys or in interviews that we perform experiences such as traveling for abortion care or helping someone else travel for such care or possibly self managing an abortion.
- Daniel Grossman
Person
And I am concerned that an overzealous prosecutor in a state with an abortion ban might try to subpoena my research data and use it to criminalize such a person. At the moment, the only protection against such an action is a certificate of confidentiality from the National Institutes of Health.
- Daniel Grossman
Person
However, these certificates have limitations in their protections and they may be difficult to obtain if the research isn't funded by Nih. In addition, the current Administration has defunded many studies for political reasons and the future of NIH as an independent scientific body is uncertain.
- Daniel Grossman
Person
In the aftermath of the US Supreme Court's Dobbs decision, access to reproductive healthcare has been decimated in many states. As we just heard, research is critical to understanding whether or how people are obtaining the care that they need and how barriers to access affect health outcomes.
- Daniel Grossman
Person
We are grateful to Assemblymember Bauer-Kahan for authoring AB45, which provides additional legal protections for research data that are very much needed to ensure the privacy and confidentiality of study participants. And I respectfully urge you to vote yes on this important bill. Thank you very much.
- Diane Dixon
Legislator
Just getting my worries. Getting my binding gear. Thank you. Do we have any speakers in support? Please come forward. State your name and affiliation and your position.
- Delilah Clay
Person
Good evening. Delilah Clay on behalf of Planned Parenthood Affiliates of California and support.
- Becca Cramer Mowder
Person
Becca Kramer Maude with Kaiser Advocacy on behalf of Electronic Frontier foundation in a support if amended position. Thank you.
- Sam Hood
Person
Sam Hood with Capital Advocacy on behalf of California Hospital Association in support today.
- Diane Dixon
Legislator
Very good. Do we have witnesses in opposition? Please come forward. Or anyone speaking in opposition? No. All right, we'll bring it back to the Committee. Comments. Assembly Member Pellerin, move the bill.
- Gail Pellerin
Legislator
Second. Thank you. Just want to thank the author for bringing this important bill forward. We need to protect women looking after themselves and getting basic health care. I'd be honored to be added as A co author.
- Diane Dixon
Legislator
Any other questions? Those who are still here? I have a question. You and I spoke about this. I support the concept of your bill, what you're doing. I'm concerned about the geofencing and how it could extend into areas non reproductive health related into preventing law enforcement and other matters not relating to the purpose of your bill.
- Rebecca Bauer-Kahan
Legislator
So we have an express exemption right now for security of the facilities. And so we think that covers it, but we'll continue to look at it and I will also reach out to law enforcement directly and make sure they don't have concerns because my. My intent is absolutely to ensure that I have access to the information.
- Rebecca Bauer-Kahan
Legislator
Respectfully ask for your Aye vote. And I want to thank Dr. Grossman for all of his great.
- Committee Secretary
Person
Item number 13. AB 45 by Assembly Member Bauer-Kahan. Motion is do pass to the Judiciary Committee. [Roll Call]
- Diane Dixon
Legislator
5 1. And we will keep it open. Okay, that means the next one. AB1018.
- Rebecca Bauer-Kahan
Legislator
Yeah. Like, which one's that? Hi, guys. Thank you. Thank you, thank you. Thank you. Madam Vice Chair and Members, I'm proud to present AB1018 and AB1018. For those of you who have been on the Committee before and voted on the floor on this bill, it is my third attempt at this.
- Rebecca Bauer-Kahan
Legislator
And part of the reason I refuse to give up is because as a woman, I know the value of this. I worked in an industry that was predominantly male. Law firms, they're not predominantly female.
- Rebecca Bauer-Kahan
Legislator
For anybody in the room who's surprised by that fact, and when I first learned about automated decision systems and bias in them, one of the first things I learned about was an Amazon press release or study that they had put out. Amazon had created a tool for hiring and it was intended to hire engineers.
- Rebecca Bauer-Kahan
Legislator
They had put in their favorite engineers into the system and the tool was supposed to give them which of the applicants were the best. As will surprise nobody in this room, the engineering Department at Amazon at the time, and I imagine still today, was predominantly male.
- Rebecca Bauer-Kahan
Legislator
The tool then learned to select for men because they thought that was the characteristic that Amazon preferred. Amazon, to their credit, put out this information said they were not to use the tool, but warned that these tools that are now used by 99% of companies could create this level of bias. And we don't want that.
- Rebecca Bauer-Kahan
Legislator
And so I introduced this bill, when I introduced it three years ago, I thought this was going to be a really easy bill. Here I am three years later, but in part because the conversation I had with some of the best in the business is that they do this, they test for this.
- Rebecca Bauer-Kahan
Legislator
Nobody's going to buy their products if they're going to be on the hook for civil rights violations because they're using a tool that is discriminatory. And so they are testing, they are ensuring for the consumer that it is not biased.
- Rebecca Bauer-Kahan
Legislator
And so us bringing everyone up to that standard, to ensuring a lack of bias in automated decision tools was something that I thought we could go arm in arm and do together. But here we are three years later and it has been hard and I'm surprised by that.
- Rebecca Bauer-Kahan
Legislator
But today, I really hope you will support this bill because we have to get to a place where California can prove that we care whether there's discrimination in these tools that are used in consumers every single day. I am working with, I'm excited to have sponsors this year that's new. So welcome aboard team.
- Rebecca Bauer-Kahan
Legislator
But also continue to work with some of the opposition, some of the deployers, some of the business entities that use these tools to make sure that they can trust them. We've had productive conversations with those that have been willing to sit down with me and talk about how we can make this bill more workable.
- Rebecca Bauer-Kahan
Legislator
But we will continue to do so as we move forward. With that, I will turn it over to my sponsors, Kimberly Rosenberger, Esq. Of SEI California and Samantha Gordon, Chief program officer for Tech Equity.
- Kimberly Rosenberger
Person
Thank you. I have good afternoon. But I think we're at evening at this point. We appreciate the opportunity to speak on this legislation. Kimberly Rosenberger with SEIU. We have been in dialogue. I don't know if you heard about this, but for years on this bill, and not always in support, but now we're sponsors.
- Kimberly Rosenberger
Person
And that's because this bill and this author worked really hard to get things right. Words matter, definitions matter, enforcement matters. And this bill achieves that. We as labor are often painted as anti technology or Luddites, which as a side note, Luddites were right. The machine is kind of coming.
- Kimberly Rosenberger
Person
But especially in the public sector, we're usually the first adopters of technology. We are the beta that has to implement clunky technology, new technology and see if we can make it work for Californians, for millions of people that are relying on these support services.
- Kimberly Rosenberger
Person
So we see every day in our health care workers, in our school bus drivers, our custodians, our public sector AI and ADS is in every one of our Members daily professional lives. And ideally, technology works best when the worker is at the table and is able to help develop it.
- Kimberly Rosenberger
Person
But it also works when there is protections in place where there is necessary guardrails and responsibilities, especially of the developers are put front and center. This bill, I'm going to skip ahead because it's been a long day. This bill does that. This bill is a reflection of many experts in the field.
- Kimberly Rosenberger
Person
It reflects even what the governor's most recent AI Frontier workgroup says. It has thresholds for policy interventions, disclosure requirements, third party assessments, adverse event reporting. That's what we need, especially as California, 32 of the top 50 AI companies are here. We know federally that is not a priority. It's the inverse.
- Kimberly Rosenberger
Person
And California needs to stand by its values. And this bill does that. And for those reasons, we are very proud to sponsor this bill. Thank you.
- Samantha Gordon
Person
Good evening Members of the Committee, Madam Vice Chair, thank you for the opportunity to speak. My name is Samantha Gordon. I'm the Chief program officer at Tech Equity. We are also proud to sponsor this bill and work with this author.
- Samantha Gordon
Person
We're a research and policy advocacy organization focused on ensuring that tech is responsible for building prosperity for all of us in California. I won't go on a long thing. I know you guys have been here all day. I think there are ample examples, ample examples.
- Samantha Gordon
Person
A lot of examples of where this technology can be beneficial to people, but also a lot of examples where it has caused harm. Just a few, to name them. For folks that aren't familiar, there are tenant screening systems that have denied people housing because they were on public assistance.
- Samantha Gordon
Person
There's a patient care tool that gave worse care recommendations to black patients because it used health care spending as a proxy for health. We see this repeatedly in lots of different use cases.
- Samantha Gordon
Person
Research from the Markup found that home lending algorithms in California were nearly twice as likely to deny a black loan applicant compared to a white one, even when controlling for income, for debt and other financial characteristics. And like my colleague Kim said, AB1018 is, we believe, really well scoped to actually address this problem.
- Samantha Gordon
Person
I think a lot of times on technology we get policies that are sort of operating at the surface. And we're really proud of this bill because it really recognizes how these technologies are used in people's everyday lives.
- Samantha Gordon
Person
So I know all of you are familiar with the bill, but just quickly to say some of those components that we think are really important is that it requires developers and in some cases deployers when they change the technology to test these tools to ensure they're accurate and they don't discriminate before their sold and are used on the public.
- Samantha Gordon
Person
I will just say I have off the record conversations with people inside the tech companies all the time, practitioners to underscore the author's point. They do this right now, right? I think we hear a lot from representatives, you know, from the business community that this is unworkable.
- Samantha Gordon
Person
But when I talk to people and senior engineers inside the companies who aren't authorized to speak on the record, they're doing this work, they're investigating this, they're working really hard to do this.
- Samantha Gordon
Person
And by not setting a standard, by not enacting these regulations, we're allowing for bad actors to undercut those companies that are doing this work and doing the right thing voluntarily.
- Samantha Gordon
Person
So second, it mandates clear notice to people when these tools are used to make critical decisions about their lives and it provides an explanation of how these tools arrived at the decision. This is critical. I say this every time I talk about these bills. Without that explanation, people cannot enforce their existing rights.
- Samantha Gordon
Person
We have very good discrimination laws on the books. These tools obfuscate those rights. People need those explanations. And fourth, it gives people critical rights around this technology. The right to opt out of the use of ads and the right to correct information. So we appreciate Assemblymember Bauer Cahan's leadership on this issue and we urge an aye vote. Thank you.
- Diane Dixon
Legislator
Okay, so do we have any other speakers? Any speakers in support, please come forward. State your position. Your name. Affiliation.
- Justin Brookman
Person
Hello. Justin Brookman, Consumer Reports, in support of the bill.
- Unidentified Speaker
Person
Good evening. Apologies in advance for a very long list, the following organizations are in support of this bill.
- Unidentified Speaker
Person
The California Initiative for Technology Democracy, California Employment Lawyers Association, the Consumer Attorneys of California, La Defensa justice to Jobs Coalition, Asian Americans Advancing Justice, Southern California Electronic Privacy Information Center, End Poverty in California and the Western center on Law and Poverty. Thank you.
- Becca Cramer Mowder
Person
Becca Cramer Mowder, with Kaiser Advocacy on behalf of Privacy Rights Clearinghouse in support.
- Elmer Lizardi
Person
Good evening. Chair Members Elmer Lazardi here on behalf of the California Federation of Labor Unions in support. Thank you.
- Doug Subers
Person
Thank you. Madam Chair Members Doug Subers on behalf of the California Professional Firefighters in support.
- Nevneet Perrier
Person
Nevneet Perrier on behalf of the California School Employees Association in support.
- Unidentified Speaker
Person
Yadi with Oakland Privacy and Support and also expressing. Support on behalf of the California Community Foundation.
- Liana Liang
Person
Liana Liang on behalf of Asian Americans advancing justice Southern California and strong support.
- Marissa Hagerman
Person
Marissa Hagerman with Trattan Price Consulting registering support on behalf of economic security California action. Thanks to the author
- Jp Hannah
Person
Good afternoon. Jp Hannah with the California Nurses Association. We actually have a support if amended specifically on the narrowing the definition of a medical emergency. But want to applaud the author and all the stakeholders for all the hard work you guys have put into the bill.
- Diane Dixon
Legislator
Thank you. Any other speakers, any speakers to come to oppose Any primary witnesses would oppose. If you come up here, Blake, hold. I'm going to steal your. I'm losing my ability to talk. Yeah.
- Rebecca Bauer-Kahan
Legislator
I know, I know, right? Maybe we can get some AI that controls the temperature. Okay, Please proceed. Thank you.
- Ronak Daylami
Person
Thank you. Thank you. Madam Vice Chair Members. Ronak Daylami with Cal Chamber in strong opposition to AB1018.
- Ronak Daylami
Person
This is our third year testifying on this bill, but the first year that it has been made a cost driver due to the inclusion of increasingly problematic provisions that have unfortunately turned an impact assessment bill into a De facto restraint on technology that exposes small businesses to tremendous legal liability.
- Ronak Daylami
Person
That said, we do continue to believe that there is a deal to be had on this bill and we think it's important that we reach that deal because the business community takes bias and discrimination very seriously because we believe algorithmic discrimination is discrimination under current laws. Bless you. Such as FEHA and UNRUH.
- Ronak Daylami
Person
Businesses have all already have strong incentives to be proactive on this issue and we believe impact assessments can be very useful tools that can be used and we do use them to check for and prevent potential biases and discrimination.
- Ronak Daylami
Person
Where we've diverged from the author is a belief that the bill must focus on high risk use cases to avoid overregulation of these tools which carry many beneficial uses such as expanding access to credit, enabling real time fraud detection, fostering job creation, addressing major societal challenges, or even advancing new life saving treatments.
- Ronak Daylami
Person
Overregulation also runs the risk of disincentivizing both the development and use of ads, practically ensuring that bias and discrimination continue by way of human decision making, where bias is often more subtle and harder to detect, let alone correct. Unfortunately, AB1018 has that exact effect.
- Ronak Daylami
Person
Starting from an overly broad scope of the bill and how it goes far beyond impact assessments and actually alters our discrimination laws to how it impacts businesses of all sizes and industries and applies to all pre existing and future ads with both high risk and lower risk applications.
- Ronak Daylami
Person
Also contributing to the problem is the infeasible opt out, as well as pre and post use notice and appeal provisions which are not required for impact assessments.
- Ronak Daylami
Person
It's unclear to us how a staffing agency, for example, that researches the web for candidates would would offer prior notice, an opportunity to opt out before even finding candidates, or why an employer must tell hundreds of rejected job applicants the precise reasons a tool screen them out when they don't have to if they reject applicants in absence of a tool, together with the cost prohibitive and imbalanced third party Auditor provisions, concerns around multiple enforcement entities, lack of local preemption, these are just some of the issues that would need to be addressed just to make the bill workable.
- Ronak Daylami
Person
There are other reasons we also oppose, but for these reasons we must strongly oppose and ask for your no vote. Thank you, thank you.
- Dean Grafilo
Person
I'm Dean Grafilo with Capital Advocacy representing California Life Sciences and Association of more than 1300 organizations including academic and research hospital institutions. I'm also speaking on behalf of a broader healthcare coalition including physicians, hospitals, health systems researchers and health plans. We appreciate the intent behind AB1018.
- Dean Grafilo
Person
However, we are opposed unless amended because of its overly broad scope and significant unintended consequences it would have on California's healthcare system and our patients. Healthcare AI is fundamentally different from other uses of AI. These technologies have the power to accelerate drug development, expand access to care and support life saving interventions.
- Dean Grafilo
Person
On average, bringing new medicines to market costs $2.6 billion, takes 10 to 12 years. With a 92% failure rate, AI has the potential to bring all those numbers down.
- Dean Grafilo
Person
More importantly, AI promotes health equity by analyzing millions of anonymized data points and provides optimal site selection to maximize diversity and ensuring treatments are tested across broader populations, resulting in sound clinical trial outcomes. Currently, there are significant federal regulations and audits on healthcare AI products from MRIs to CT scans and now more than 1000 devices.
- Dean Grafilo
Person
From pacemakers to advanced diagnostic tools. The FDA has been regulating AI enabled technologies for decades. The FDA also aligns with international regulatory frameworks, something state level approaches may not fully account for. Since the Biden Administration's AI Executive order, at least seven federal agencies have released more than 20 AI specific guidelines.
- Dean Grafilo
Person
Additionally, the Safe Medical Devices act, the E Government act, and the HITECH act all already provide strong safeguards. In California, healthcare AI is subject to regulation by dot, HHS and the DPH under the California Medical Information Act. Given this extensive oversight, we respectively request an amendment to exempt healthcare data and entities governed by CMIA and hipaa.
- Dean Grafilo
Person
Without this amendment, the Bill duplicates existing administrative requirements and ultimately drives up health care costs for Californians at a time when affordability is a top concern. More importantly, it will delay the deployment of AI tools that support early interventions, improve outcomes, and help prevent medical emergencies impacting patient care, in some cases costing lives.
- Dean Grafilo
Person
We support responsible AI development and believe AB1018 can be improved to reflect the unique nature of healthcare applications. For these reasons, we oppose the bill unless amended. Remain committed to working with the author and this Committee to ensure AB1018 protects consumers without compromising access to life saving health care.
- Diane Dixon
Legislator
Thank you. Thank you very much. Any speakers in opposition, please come forward. Please. OH my gosh, I'm so cold. You guys.
- Chris Micheli
Person
You don't have a blanket like your colleague over here? Madam Chair. Chris McKayley on behalf of my client Society for Human Resource Management, SHRM, and also my colleague from American Property Casualty Association asked me to express her opposition as well. Thank you, Madam Chair.
- David Gonzalez
Person
Thank you Madam Chair, Members. David Gonzalez on behalf of America's Physician Groups with an opposed unless amended position. Thank you.
- Max Perry
Person
Chair, Members. Max Perry, on behalf of The College Board, also in opposition. Thanks.
- Aodhan Downey
Person
Aodhan Downey representing the Computer and Communications Industry Association in respectful opposition. Thank you.
- Claire Conlon
Person
Hi. Claire Conlon with Biocom California. Oppose unless amended. And we really appreciate the author agreeing to work with us on definitions.
- George Soares
Person
George Soares with the California Medical Association, oppose unless amended and appreciate the conversations thus far and look forward to continuing them. Thank you.
- Naomi Padron
Person
Good evening. Naomi Padron on behalf of the California Credit Union League. We have an opposed unless amended position. Thank you.
- Mary Diaz
Person
Good evening. M.J. Diaz on behalf of Kaiser Permanente. We have an opposed unless amended position.
- Samuel Mahood
Person
Hello. Sam Mahood with Capital Advocacy on behalf of the Security Industry Association with an opposed position and the California Hospital Association with opposed unless amended position. Thank you.
- Kelly Hitt
Person
Good evening. Kelly Hitt with Business Software Alliance. We have an opposed unless amendment position and we look forward to continuing the conversations. Thank you.
- Matt Moretti
Person
Matt Moretti on behalf of the Association of National Advertisers. In opposition.
- Jack Yanos
Person
Jack Yanos on behalf of the Advanced Medical Technology Association, opposed unless amended. Thank you.
- Crystal Strait
Person
And I'm so sorry. Crystal Strait, on behalf of Common Sense Media, actually in support. I didn't mean to. Sorry, I didn't mean to cut in front of it.
- Michael Robson
Person
Mike Robson here on behalf of the California, California Staffing Professionals and the American Staffing Association. Opposed. Thanks.
- Edmund Velasco
Person
Edmund Velasco, President of Musicians Local Number 7 in Orange County and Long Beach. And we do support this Bill.
- Unidentified Speaker
Person
Oh, good thing I told you to wait for him. I thought he was posing.
- Diane Dixon
Legislator
You certainly have awakened everybody at this hour. All right. Bring it up here. Committee Members, do you have any comments to make? Assemblymember?
- Cottie Petrie-Norris
Legislator
Thank you, Madam Vice Chair. And I know it's late in the hearing day and I've had some conversation with the author about this Bill and I think, if I understand correctly, I think your goal is to ensure a limitation or an elimination of, in bias, in the way that AI and automated decision systems are developed and implemented.
- Cottie Petrie-Norris
Legislator
I think that the opposition testimony, particularly from the life sciences industry and kind of the range of opposition from so many sectors I think does illustrate how enmeshed in just our modern world, not just in the last couple of years with the advent of AI, but in the world for the last 20 years, automatic automated decision engines are, so from financial services to health care to the development of new drugs to based on the folks that were here with the insurance industry.
- Cottie Petrie-Norris
Legislator
And so I feel like a much more surgical approach is needed to tackle the challenge that sounds like you're trying to tackle. And so as I've shared with you, I can't support this today.
- Cottie Petrie-Norris
Legislator
I know that you're committed to continuing conversations with folks in opposition and trying to figure out how to tailor the solution to the problem statement, but look forward to seeing that move through subsequent committees.
- Diane Dixon
Legislator
Thank you. Any other comments? Seeing none. I'll just make a concluding comment. I agree with Assemblymember Petrie-Norris. Just by the long list and here in our data and then the long list, a lot of people are affected. A lot of businesses, a lot of organizations, a lot of entities, public and private, are touched by this Bill.
- Diane Dixon
Legislator
And I know your intent was not to create any, you really want to find a solution here. I think it's very broad. Maybe I think you used the word surgical. That's a good word to narrow this down so we don't create problems for business over regulation. That's an important issue I care about in California.
- Diane Dixon
Legislator
We can't overregulate businesses to drive them out. And it just becomes, and then national businesses who do business in California. It's just going to create potential issues. I think you can work this out and I look forward to it.
- Diane Dixon
Legislator
I know your spirit is there to figure out a solution because I know and I respect the fact this is important to you. I just can't go along with it right now. All right. So any other comments? Do we have a motion? Second. Okay, let's call the vote.
- Rebecca Bauer-Kahan
Legislator
No, no, no, I appreciate that and I'll be brief, obviously. No, I appreciate that. And you know, I look forward to conversations, as you heard from CMA, from some of the others that have, you know, we, before we dropped this Bill, we asked everyone to come in and take a look at it and look at our definitions.
- Rebecca Bauer-Kahan
Legislator
We've made some significant changes to the definitions this year. It was really a lot. I don't know if I got it right, but listening to what we'd heard last year and when you try something new, you don't know that you hit it on the mark, but you try a new approach. And that's what we did here.
- Rebecca Bauer-Kahan
Legislator
I really want to express my immense gratitude to the Apartment Association, CMA, and others that have been in our office talking to us about how they see this playing out. Because as I said earlier on somebody else's Bill, we can only be as good as the people who are providing us with feedback.
- Rebecca Bauer-Kahan
Legislator
And since the Life Sciences canceled their last meeting with us, I'm glad it's back on the calendar because I obviously look forward to those conversations. With that respectfully ask for an aye vote.
- Diane Dixon
Legislator
7, 7, 7-2. It is open. All right. Is this our last and final? No?
- Rebecca Bauer-Kahan
Legislator
Yes. Oh, no. We have Ward after me. I thought we had one more. I have one more and then one more.
- Rebecca Bauer-Kahan
Legislator
Oh, thanks. Then I'll be quick. Thank you, Madam Vice Chair. I want to start by taking Committee amendments that I definitely have to do. And this is a really important bill because it starts the conversation around how do we approach AI safety? And I decided to really start with our kids.
- Rebecca Bauer-Kahan
Legislator
We've had more conversations today than probably at any time in my history on this Committee about how critical it is for us to protect our kids. So as I started to think about how California should approach AI safety, I wanted to start with children.
- Rebecca Bauer-Kahan
Legislator
This puts forth what I hope will be a blueprint for how California approaches AI safety. It really is founded on what is happening in the EU, which I think is critically important because companies are already have to do that. They have to comply with the EU AI Act.
- Rebecca Bauer-Kahan
Legislator
And this follows a very similar approach of deciding what the risk level is. If you're a Netflix recommendation engine, I'm not so concerned about you. You're probably a low risk tool. You go, do you. If you get a bad movie, nothing bad is going to happen. I mean, it's a waste a couple hours, but that's it.
- Rebecca Bauer-Kahan
Legislator
But if you're a tool that is a chatbot. And you will hear from a witness who, to be honest, it was too hard to be here today who lost her son by suicide because the chatbot coached him to take his own life.
- Rebecca Bauer-Kahan
Legislator
That is an incredibly high risk AI tool that needs to be treated differently than a Netflix engine. What this would do is it would create a board that would decide, is this a low risk tool? Is it a high risk tool or is it a middle risk tool?
- Rebecca Bauer-Kahan
Legislator
Based on that, it would make recommendations of how we approach things. For low risk tools, you go, do you? That's where innovation should be at its best. Create things that are fantastic and innovate and try things. But if you're a high risk tool, we're not going to let you do that on our kids.
- Rebecca Bauer-Kahan
Legislator
They are vulnerable human beings and we are not going to let you market this tool to kids. If we think it is a risky tool, those will be banned. And then everything in the middle, we will make sure their biometric data and other things are not being exposed. That is really the model we are setting up here.
- Rebecca Bauer-Kahan
Legislator
It is a work in progress. It is one that I really am looking forward to more conversations on because I think it is really critical that we start to think about how to keep kids safe as they approach AI in our classrooms and in their homes and everywhere else.
- Rebecca Bauer-Kahan
Legislator
But I think it's a really great approach that I hope this Committee will support. And with me today, on behalf of our sponsors, Common Sense Media, is Tracy Pizzo Frey, senior advisor for Common Sense Media.
- Rebecca Bauer-Kahan
Legislator
Sure. And Tracy will be reading the statement from our other witness, Megan Garcia.
- Tracy Frey
Person
And I apologize if my teeth are chattering. It's so cold. Okay, so I'm going to read this letter first and then we will hear my testimony. Dear Assemblymember Bauer-Kahan, My name is Megan Garcia. Last year my 14 year old son, Sewell Setzer III, took his own life in our home in Orlando, Florida.
- Tracy Frey
Person
In the months prior to his death, Sewell became isolated and suffered from depressive mood disorder and anxiety, which was in complete contrast to the happy and sweet boy he had been all his life. At the time, I didn't understand why his behavior had so drastically changed.
- Tracy Frey
Person
After his death, we discovered that Sewell had been communicating with several AI chatbots on a popular app and website called Character AI developed and operated by Character Technologies incorporated.
- Tracy Frey
Person
The chatbots, powered by a large language model trained on an Internet's worth of data, encouraged my child to engage in sexual role play and provided unlicensed mental health therapy to my child. Sewell had expressed his suicidal ideations to a romantic companion chatbot modeled on a popular fictional character and received no help or intervention.
- Tracy Frey
Person
In his last interaction with this particular chatbot, she encouraged Sewell to come home to her. This extended period of harmful engagement with an AI generated companion chatbot was the catalyst for my son's isolation, deterioration, and ultimately his death.
- Tracy Frey
Person
Knowing what I know now about companion chatbots and ultimate consequences of this technology, I can tell you definitively that unregulated companion chatbots are addictive, manipulative and dangerous for children.
- Tracy Frey
Person
They engage vulnerable users in inappropriate romantic and sexual conversations, encourage self harm and harm to others without alerting parents or authorities, and in many instances falsely present as licensed therapists. And these are just the harms we currently know. There will likely be others in the future.
- Tracy Frey
Person
I am thankful that your office and Common Sense Media have introduced AB 1064. This legislation would put safeguards in place to protect young users from a rapidly developing digital landscape with almost no oversight. Leadership on this issue couldn't come at a more crucial time, and I appreciate the momentum this legislation is creating.
- Tracy Frey
Person
Specifically, I commend this bill for prohibiting harmful AI companions for children that including emotionally manipulative AI such as chatbots, requiring written parental consent before a child's personal information can be used to train AI models and requiring risk level assessments and reporting by developers.
- Tracy Frey
Person
I believe this law would provide meaningful oversight, parental education and tools, and ensure accountability and responsible design in chatbot products. Our family has been devastated by this tragedy that ripped away my son from us so suddenly and so viciously, but I'm hopeful that we can keep other children and other vulnerable users safe through this important legislation.
- Tracy Frey
Person
I look forward to your continued efforts to strengthen protections for children and I thank you for your leadership in bringing awareness to this important issue. Best regards, Megan L.
- Diane Dixon
Legislator
Garcia and thank you very much. Do we have any speakers present?
- Rebecca Bauer-Kahan
Legislator
Common Senses I'm sorry, what? This was our witness that couldn't be here and she's going to do some common sense. I didn't understand that. I am not Megan Garcia.
- Tracy Frey
Person
Okay. My name is Tracy Pizzo Frey and I strongly support AB 1064. I'm a senior advisor on AI to Common Sense Media where I lead our AI risk assessments.
- Tracy Frey
Person
Previously, I spent 11 years at Google where I founded and ran Google Cloud's responsible AI work and contributed to policies like the EU AI act and NIST AI risk management framework. Through this work I bring a uniquely informed perspective on the importance of building ethical AI for kids.
- Tracy Frey
Person
I've conducted over 500 reviews of AI tools and worked directly with the innovators behind the technologies we now rely on. From this experience, a few things are clear. Responsible AI is the key to innovative, safe and successful AI.
- Tracy Frey
Person
Building with ethics and responsibility by design is the only way to ensure trust when the full range of the human experience is assessed in context. With AI development, the best possible decisions can be made for a product. AI harms are real and they are happening today.
- Tracy Frey
Person
AI systems scale outcomes fast and when they're flawed, the impact on kids can be devastating and far reaching. Across across every prohibited and high risk use of AI named in the Lead for Kids act, there are countless examples of harms happening to our children. AI Companion Chatbots are proliferating at an extremely high rate.
- Tracy Frey
Person
From our own testing, they've encouraged teens to drop out of school, run away from home, harm their parents and others, obtain drugs, alcohol and weapons, and pursue a sexual relationship with adults. They've also reinforced delusions, dangerous impulses and conspiracy theories.
- Tracy Frey
Person
Emotion detection technology lacks scientific evidence, often misinterpreting facial expressions across cultures, individuals and contexts, and shows clear bias, wrongly labeling black and disabled students as more aggressive or negative in schools. This risks reinforcing existing inequities. Biometric data is highly sensitive it cannot be changed and it cannot effectively be anonymized.
- Tracy Frey
Person
Collecting this data for uses beyond basic identification puts our children's most sensitive data at risk for hacking, misuse and exploitation. Surveillance tools that collect or track children's facial data or social behavior can chill expression, compromise safety, and limit autonomy.
- Tracy Frey
Person
AI using pupil assessment or discipline has been likened to educational redlining, exacerbating student disparities in education by wrongly punishing kids, outing LGBTQ students without consent, triggering law enforcement involvement and AI is a team sport. It works best when technologists collaborate with experts in ethics, social science and human rights.
- Tracy Frey
Person
This bill creates the Lead for Kids Standards Board to ensure diverse, informed voices shape policy through transparent decision making.
- Tracy Frey
Person
I'm a mom of two teenagers. I don't get days off from these risks. And our laws shouldn't either. California has demonstrated its ability to lead the country in both safety and technology. Lead for Kids helps us do just that by ensuring AI innovation with kids safety. Thank you very much.
- Diane Dixon
Legislator
Thank you. Do we have any speakers in main witnesses in opposition? Please come forward or support. I didn't do support. My apologies. Support. Please come forward at the microphone.
- Ken Wang
Person
Ken Wang, on behalf of the California Initiative for Technology Democracy and support. Thank you.
- Diane Dixon
Legislator
Okay. Seeing none. Do we have a witness in opposition? Please come forward to the table if you'd like.
- Aiden Downey
Person
Yeah, it's right here. I could feel when I walked up I started shaking.
- Aiden Downey
Person
Thank you for the opportunity to speak today. I'm Aiden Downey. I serve as State Policy Manager for the Computer and Communications Industry Association and International not for Profit Tech Trade Association. While CCI agrees with creating measures to protect children from potential harm, we have concerns about the mechanics of the bill.
- Aiden Downey
Person
The bill does not provide definitions that are clear enough to enable businesses to comply. For example, ongoing emotional attachment is undefined. Despite being critical to understanding when an AI system can interact with a child, most concerningly, harmful and harmful ways also remains undefined.
- Aiden Downey
Person
Harmful can differ greatly depending on each person's lived experience, political ideology, or any number of human factors that a developer could not possibly account for. The uncertainty around what may be considered harmful with the private right of action this legislation creates is a recipe for an abundance of lawsuits that actually harm innovation.
- Aiden Downey
Person
The vague use of harmful ways, combined with the wide potential scope of liability due to the the ability of the board to add new categories of risk and the lack of other narrowly tailored definitions could create an incentive for businesses to simply prohibit minors from using AI services rather than face potential legal action and hefty fines for non compliance.
- Aiden Downey
Person
An artificial intelligence system that detects the emotions of children cannot be presumed to be harmful, as stated in the bill. For example, detecting frustration in a child can help a learning program understand when to modify its teaching techniques to address such frustration or otherwise improve the interaction of the system.
- Aiden Downey
Person
Labeling these capabilities as a prohibited risk feels short sighted. The bill also asked the Board to create guidance around age verification, which is currently being litigated in several states. Section 22 of the bill would require developers to provide any additional information specified by the board to a publicly accessible registry.
- Aiden Downey
Person
This authority is not confined to information necessary to assess the impact of the system on children, as some other provisions are, but expands without limit. This unconfined scope of regulatory authority would allow a board to force AI developers to publicly disclose sensitive personal, personal or commercial information, their trade secrets, and many other types of information.
- Aiden Downey
Person
And because the disclosure would be public, at least some developers are likely to avoid subjecting themselves to the jurisdiction of the board by not providing AI products to California's entirely. The mechanism in which this board is financed is also a point of concern.
- Aiden Downey
Person
The board is currently to be funded by fines collected by the Attorney General's Office, which creates conflicting interests within the board structure.
- Aiden Downey
Person
If every business is in compliance with the regulations, then there will be no funding source available for the group to operate, incentivizing the board to create stricter guidelines in order to collect fines, regardless of the realistic impacts of the AI system. We appreciate the sponsor's office willingness to work with us and the Committee's consideration of these comments.
- Chris Micheli
Person
Good evening, Madam Chair. Chris McKayley with the Civil Justice Association of California in respectful opposition to the author's measure. I wanted to raise two issues with you. The first is in 22757.26.
- Chris Micheli
Person
In addition to towards the end of the bill, in addition to the AG's authority to bring forth an action including $25,000 civil penalties, CJAC objects to the private right of action, including the amounts that could be recovered, actual damages, punitive damages, attorneys fees and costs, injunctive relief, et cetera, especially in light of it's for covered products.
- Chris Micheli
Person
And if you look in 22757.21 subdivision H, the definition of covered product is intended to or highly likely to, both of which are very subjective standards. And we are very concerned that that would lead to excessive litigation as to what might be intended to or highly likely to.
- Chris Micheli
Person
The other item that we wanted to raise with you is in section 22757.22 Subdivisions B and C, where there is a tremendous amount of authority granted to this new board.
- Chris Micheli
Person
We think that that type of stuff should be done by the Legislature in statute, that the Legislature is giving away too much of its rule make its lawmaking authority to an Executive Branch entity. So for those reasons, CJAC respectfully is opposed. Thank you.
- Diane Dixon
Legislator
Any other speakers in opposition, please come to the microphone. Identify yourself. Seeing none. Oh, here comes one.
- Ronak Daylami
Person
Ronak Delami, on behalf of Cal Chamber, respectfully opposed. Thank you.
- Diane Dixon
Legislator
Thank you. All right, let's bring it up here. Any comments, Ms. Petrie-Norris?
- Cottie Petrie-Norris
Legislator
Good evening again, Madam Chair. So both of the opposition witnesses raised concerns related to, I think what is kind of a combination of some uncertainty and vagueness coupled with a private right of action, which I think they seem to think is sort of a recipe for a lot of litigation. I'm sympathetic to those concerns.
- Cottie Petrie-Norris
Legislator
What are your thoughts about that particular piece of the bill.
- Rebecca Bauer-Kahan
Legislator
Thank you. Go ahead. Thank you, Matt. Sure. Thank you, Assembly Member. So, as was mentioned by the opposition, and as I said in my opening remarks, actually, I really am trying to set forth a way to approach AI safety. And so I really do look forward to further conversations.
- Rebecca Bauer-Kahan
Legislator
We are just getting specifics about some of the definitional problems they have, so we'll continue to work on all of. As a former litigator myself, the last thing I want is unclear definitions, as both of you know.
- Rebecca Bauer-Kahan
Legislator
And I do want to give Chris McKayley a shout out for no notes with all of that presentation, by the way. And then as for the private right of action and the enforcement, we do have, as was mentioned by Mr. McKayley, several options in the bill right now.
- Rebecca Bauer-Kahan
Legislator
So that is also something that will be open to negotiation as we figure out how to move the bill forward. For sure.
- Gail Pellerin
Legislator
Thank you again. This is another great bill. Everything we can do to protect kids, I'm all in. So I'd like to be at it. As a co author.
- Diane Dixon
Legislator
I would love to have you over on this side. Any questions, comments? All right. I will say I really admire and respect your intentions, I think, and all of your bills that have kept us here till 7:00.
- Diane Dixon
Legislator
But. And we all care about children. I just don't think this is ready for prime time. But keep working on it, and I certainly will be willing to help you in any way. Thank you. I just think there's just a lot of areas to tighten it up, but there's a future there somewhere. I don't know when.
- Diane Dixon
Legislator
All right, no more comments. Do we have a motion and a second? Do we? All right, ready to vote.
- Committee Secretary
Person
Item number one, AB 1064 by Assembly Member Bauer-Kahan. The motion is do pass to the Judiciary Committee. [Roll Call]
- Diane Dixon
Legislator
Okay, this is the last. Oh, excuse me. 8 to 2. Still on call, right? No, is. I'm sorry, what? We're leaving it open, right? Yes. On call. Yeah. Mr. Warren.
- Chris Ward
Legislator
Well, thank you, Madam Chair and Members, for allowing me to present the last bill for today's agenda. I'll be brief. Californians are more vulnerable to digital exploitation than ever before. Today, mobile devices are ubiquitous in our daily lives, with the most consumers keeping their phones with them at all times.
- Chris Ward
Legislator
These devices have an incredible power to track a user's location and generate a shockingly accurate record of a user's whereabouts and routines throughout the day. Additionally, technologies like automated license plate readers and facial recognition cameras have become ubiquitous in public spaces to provide services without the need for direct consent or as a condition of entry into certain establishments.
- Chris Ward
Legislator
And this means that even if a consumer takes steps to reduce their personal device, they are not able to avoid near constant surveillance while interacting in public spaces. In the last five years, the FTC has filed numerous complaints and lawsuits exposing the conduct of large location data brokers, with four cases filed in 2024 alone.
- Chris Ward
Legislator
In their complaints, the Commission alleged that location data brokers collected billions of location data points and timestamps that could offer insights into people's movements. This information is then repackaged and sold to their clients, who often use it to trace the movements of individuals to and from sensitive locations.
- Chris Ward
Legislator
These could include medical facilities, places of religious worship, domestic abuse shelters, and welfare and homeless shelters, among other sensitive places. Location data is extremely sensitive and when collected en masse, it can expose every aspect of a consumer's life.
- Chris Ward
Legislator
The sale of this data undermines our civil liberties and puts our most vulnerable populations at risk of stigma, discrimination, and violence. This bill, AB 1355, the California Location Privacy Act, would safeguard the privacy of Californians by placing restrictions on the collection, use, and sale of location data.
- Chris Ward
Legislator
Specifically, the bill would make it unlawful for covered entities to do any of the following, collect more precise location information than necessary to provide the goods or services requested by the individual, retain location information longer than necessary to provide the goods or services requested by the individual, sell, rent, trade, or lease location information to third parties, or derive or infer from location information any data that is not necessary to provide the goods or services requested by that individual.
- Chris Ward
Legislator
AB 1355 takes bold action at the state level to safeguard our consumer privacy and ensure that the safety of all Californians is made a top priority. With me to speak in support is Justin Brookman, the Director of Technology Policy for Consumer Reports, and Lan Le, the Policy Advocate at Asian Americans Advancing Justice in Southern California.
- Justin Brookman
Person
Thank you very much, Assembly Member. My name is Justin Brookman. I'm here at behalf of Consumer Reports, where I'm Director of Technology Policy. I'm here as a sponsor of AB 1355, which would establish common sense protections around collection of geolocation information. I submit this should not be a controversial idea.
- Justin Brookman
Person
If an app on your phone needs access to your location, great, but then it shouldn't be selling that information on to data brokers. Location information is incredibly sensitive. It can reveal where you worship, where you go to the doctor, who you're spending the night with, when you're at a protest.
- Justin Brookman
Person
Because this is so sensitive, we have seen policymakers around the country start to take this on. Last year, Maryland enacted a very broad prohibition on selling sensitive data, including geolocation information. This year, lawmakers in Oregon and Massachusetts are considering similar bills. While the CCPA does cover geolocation information along with other personal data, those provisions in the CCPA are difficult to use in practice. CCPA gives you the right to opt out of data sharing, but you have to do it site by site, app by app.
- Justin Brookman
Person
So you have to configure every app on your phone and tell them, no, please don't sell my geolocation information. Other devices now can also collect geolocation information. If you have a car made in the last 10 years, it can collect geolocation. Do you know how to opt out of your car selling data?
- Justin Brookman
Person
I don't, and it's actually my job. Same goes for your Fitbit, your smartwatch, your e-bike, all have the capacity to collect this. The CCPA is a great start, a great foundation, but it was designed to be improved upon over time, and this would establish just basic protection so you can trust the apps on your phone to use geolocation just for the reason you installed it. For that, Consumer Reports is proud to sponsor AB 1355.
- Lang Le
Person
Good evening. My name is Lan Le. I work for Asian Americans Advancing Justice Southern California, and for many years I have worked directly with survivors of domestic violence, human trafficking, and sexual assault, many of whom are immigrants with limited English proficiency.
- Lang Le
Person
In a moment of crisis, survivors fleeing violence should not have to stop and wonder if using their phones to text someone for help, find directions, or request a ride might further endanger them, especially when the stakes are already so high. For many of us, asking for help is difficult enough. Imagine how difficult it is to ask for help in a language you don't speak, let alone try to navigate complex terms of service, privacy settings, or how to understand your personal information and how it's shared.
- Lang Le
Person
Even when language isn't a barrier and a survivor takes every possible precaution to stay hidden, change their name and address, move to a secure shelter, start a new job, enroll their children in a different school. None of these efforts matter if their location data is sold without their knowledge. For survivors, the sale of their location data is more than just an invasion of their privacy. It is a direct threat to their safety because a handful of data points can lead an abuser and a trafficker straight to their door.
- Lang Le
Person
As both an advocate and a survivor, I ask you to vote for AB 1355 to stand with survivors, advocates, and other vulnerable community members, including immigrants, students, and the LGBTQ plus individuals who are living in your districts, who are living in fear. Your support would affirm that their lives are worth protecting, their dignity worth defending, and their futures worth safeguarding. Thank you.
- Rebecca Bauer-Kahan
Legislator
I froze. Literally. Thank you. Anyone else here in support?
- Ken Wang
Person
For the last time, Ken Wang, on behalf of the California Initiative for Technology and Democracy, proud co-sponsor of this Bill. Thank you.
- Unidentified Speaker
Person
Oh my gosh. That's one way to get the air conditioning off.
- Becca Cramer Mowder
Person
Becca Kramer Mater, on behalf of PFLAG Sacramento, Tech Oversight California, Electronic Privacy Information Center - EPIC, Access Humboldt, Electronic Frontier Foundation, Privacy Rights Clearinghouse, ACLU California Action, Secure Justice, CALPIRG, and Tech Equity Action, in support.
- Yadi Younse
Person
Yadi Younse, with Oakland Privacy, in support, and also expressing support on behalf of the California Community Foundation and Consumer Federation of California.
- Elmer Lizardi
Person
Elmer Lizardi, on behalf of the California Federation of Labor Unions, in support. Thank you.
- Rebecca Bauer-Kahan
Legislator
Starting to think everyone who's tracking us doesn't want us to hear this Bill.
- Rebecca Bauer-Kahan
Legislator
Thank you. Do we have primary witnesses in opposition to this Bill? We have two. If you just want to move down one chair, that'd be great. Thank you. I know.
- Ronak Daylami
Person
Thank you. Ronak Daylami, with Cal Chamber, in opposition, respectfully, to AB 1355. As this Committee knows, the CCPA represented a massive shift in public policy, excuse me, in the state, to protect all personal information, including geolocation information, in a comprehensive, technology-neutral and industry-neutral manner.
- Ronak Daylami
Person
Voters expanded this in Prop 24, adding precise geolocation information, as a form of sensitive PI, with additional rights, such as the right to limit the use and disclosure of that information.
- Ronak Daylami
Person
As a result, consumers now have extensive controls over their data, most relevant to this Bill, that relate to the collection, processing, use, sales, sharing, disclosure, deletion, and access of geolocation data and more. Service providers, vendors, and third parties also share many of those rights and obligations, as well.
- Ronak Daylami
Person
I want to note that third parties, like data brokers, actually have to provide explicit notice and opportunity to opt out, before further selling a person's information. This was something that we added in the CCPA in 2018, under Section 1798.115, Subdivision D, in the Civil Code.
- Ronak Daylami
Person
That was something that was specifically added to address the issue of data brokers and when your information is passed on, making sure that it is not further passed on without your knowledge and your consent, or at least your opportunity to opt out. That was something we specifically added in this Committee.
- Ronak Daylami
Person
AB 1355, however, now seeks to separate—separate geolocation data—as uniquely defined under this Bill, from the CCPA, governing it under a separate statutory scheme with new rules. For example, the Bill neither recognizes the CCPA's existing opt-out, nor allows an opt out, not—opt in, right, excuse me—nor does it provide any other necessary exemptions that the CCPA has, that are essential to making that law workable for such a broad law dealing with all kinds of PI.
- Ronak Daylami
Person
Even the newly amended language regarding fraud and security, for example, fails to actually operate as an exemption for these purposes.
- Ronak Daylami
Person
And by failing to delete any geolocation data references from the CCPA, the Bill effectively ensures a dual statutory scheme that will only confuse businesses.
- Ronak Daylami
Person
Compounding these issues is the inclusion of significant liability compared to the CCPA's limited private right of action for data breaches and a requirement for newly implementing regulations by the Privacy Agency, which we have talked about recently in this Committee, is facing sufficient issues under its existing authority.
- Ronak Daylami
Person
In the end, instead of taking a surgical approach to any issues, AB 1355 dramatically undermines the purpose and efficacy of the CCPA. Having a standalone statute is not warranted in this case, certainly not without providing adequate time for implementation of the law that was recently enacted.
- Ronak Daylami
Person
Notably, one of the considerations in determining whether or not legislation will be in furtherance of the purpose intent of Prop 24 is the impact it has on businesses. The impact of the spill on businesses will be severe and it extends far beyond this issue.
- Ronak Daylami
Person
At some point, I urge this Committee to ask itself whether unraveling this landmark legislation and making compliance more difficult for businesses truly benefits consumers and makes our laws more or less protective. But for these reasons we must unfortunately oppose. Thank you.
- Steve Carlton
Person
Madam Chair and Members and Assembly Member Ward. Steve Carlton for CTIA. We're the trade association for wireless communications industry. Location information plays an indispensable role in protecting consumers from security issues, fraud, illegal activities. It provides support for law enforcement and provides consumers with a vast array of beneficial uses and services.
- Steve Carlton
Person
We understand Assemblymember's—Board—goal here, but we do believe the measure is overbroad and could benefit from a more surgical approach. Couple of points. This would affect critical security and safety uses of location information, including routine fraud detection and prevention operations and information sharing, on identifying and preventing fraud.
- Steve Carlton
Person
Realize that there's an amendment that addresses that, but we don't think it goes far enough. Providers analyze location information about where a consumer logs into online accounts and where a consumer's cell phone is located, to determine if there is fraudulent activity. The amendments, previously referred to, missed the mark.
- Steve Carlton
Person
Strict limitations on the use of location information, including an unreasonably short retention period, may not be sufficient and probably won't be sufficient, in order to accomplish security activities.
- Steve Carlton
Person
Prohibition on disclosing location information to the government, without a valid court order, could disrupt the current method with which we deal with law enforcement, in emergency and exigent circumstances, putting consumers at risk of death and physical injury. The Bill defines individuals based on where they are located, not where they reside.
- Steve Carlton
Person
This could have anti-privacy and anti-security outcomes, by leading to more, not less, location tracking, because companies may need to track location for compliance purposes, where they otherwise may not. Highly granular disclosures, including disclosing the entities of certain service providers and third parties and specific data retention schedules, could be a roadmap for bad actors.
- Steve Carlton
Person
The onerous requirements would require a one-size—unwieldy, one-size-fits-all notice at the point where location information is being captured—would be difficult and, at times, impossible for many.
- Steve Carlton
Person
Okay. To the extent data location is required to provide a service, how about mobile telephone service?
- Steve Carlton
Person
Would the notice have to be constantly displayed? Wanted to follow up with—on—Ms. Daylami's point about the interaction with CCPA, we believe that, as we're trying—and I'll finish in a second—as we're trying to navigate through CCPA, we're also having a large, standalone, very difficult—very difficult measure to comply with and I think the private right of action creates a concern.
- Rebecca Bauer-Kahan
Legislator
We'll take additional opposition in the room. Name, organization, and position.
- Cory Salzillo
Person
Madam Chair and Members. Cory Salzillo, on behalf of the California State Sheriff's Association, in opposition. Thank you.
- Robert Boykin
Person
Good evening. Robert Boykin, with Tech Net, in opposition. Thank you.
- Aiden Downey
Person
Aiden Downey, representing the Computer and Communications Industry Association, in respectful opposition. Thank you.
- Naomi Padron
Person
Good evening, Chair and Members. Naomi Padron, on behalf of the California Credit Union League, in opposition. Thank you.
- Max Perry
Person
Max Perry, on behalf of the California Police Chief Association, also in opposition. Thanks.
- Matt Muraney
Person
Matt Muraney, on behalf of the Association of National Advertisers, in opposition.
- Sam Ode
Person
Sam Ode, with Capital Advocacy, on behalf of the Security Industry Association and California Retailers Association. Respectfully oppose the Bill today.
- Rebecca Bauer-Kahan
Legislator
Thank you. Seeing no additional opposition in the room, we'll bring it back to the dais. We got all the motions, and all the seconds, and Ms. Pellerin has a question?
- Gail Pellerin
Legislator
My coworker here gave me—so, in the opposition letter you mentioned that emergency alerts such as the Amber Alerts would be negatively impacted by this Bill, but our understanding is that the Amber Alerts and national weather alerts are disseminated over a wireless emergency alert program, which is operated by the Federal Emergency Management Agency.
- Gail Pellerin
Legislator
So, are you saying that the WEA is predicated on the sale of our location data? Because on the FCC's website, it specifically says WEA does not, and is not, designed to track the location of those receiving the alerts. Could you explain that to me, please?
- Ronak Daylami
Person
There's a lot of things on this that I can explain off the top of my head. I don't want to mislead you on this one. This is an example that I was given from our members. So, I'm happy to follow up with you after this. Yes.
- Rebecca Bauer-Kahan
Legislator
Ronak's an expert in a lot of things. Apparently, emergency communications was not one of them.
- Gail Pellerin
Legislator
It's my experience through Geofencing and not through location data cells. So, that's why it's not a good.
- Rebecca Bauer-Kahan
Legislator
I actually appreciate that answer, personally. Any other? No further questions or comments. I want to personally thank the author for this. I think, you know, the CCPA, as was mentioned by the opposition, does grant us more rights than anyone else in the nation. That's an amazing thing.
- Rebecca Bauer-Kahan
Legislator
But as someone who actually does pay a service to opt-out for me, constantly, because that's what it takes. I mean, this is not an easy system to actually utilize. And I commend—I can't remember who wrote the Bill that will make it easier, that got vetoed last year. Was that you, Mr. Lowenthal? We heard—yeah, Mr. Lowenthal.
- Rebecca Bauer-Kahan
Legislator
He brought it back, so hopefully it'll be easier in the future, but for now it's not. And this is really sensitive information. And so, I think this is important.
- Rebecca Bauer-Kahan
Legislator
And as someone who supports law enforcement, nothing—I want to be clear—that nothing in this Bill stops them from getting a warrant to get the information that's necessary to keep each and every one of us safe. And it's confusing to me that they would say it's too hard to get a warrant. That's the process.
- Diane Dixon
Legislator
Well, I saw in the opposition letters that the Sheriff's Association is opposed.
- Diane Dixon
Legislator
Yeah. Well, that's right. They spoke. So, I am concerned about the law enforcement aspect, on cell towers and GPS and geofencing, or just GPS location.
- Diane Dixon
Legislator
So, did I read this correctly, that the agency would have to get a Court Order to obtain that information?
- Chris Ward
Legislator
As it has already been under current law, this Bill would prohibit a covered entity but does include an exception for state or local agencies, such as our police enforcement agencies, as well, which would be subject to a Court Order.
- Chris Ward
Legislator
There is, I know, ongoing, I think, both state and local conversation around the ability to utilize it. The guard rails you'd want to be able to put on the procurement, the utilization, the data retention, and destruction around that information.
- Chris Ward
Legislator
So, I think that we have already begun, at both the state and local level, to start to work on in that space. I'm sure there's additional work to be done. But that's...
- Diane Dixon
Legislator
With your Bill, is that what you're saying? You're talking with them?
- Chris Ward
Legislator
No, this does not have to do with automated data—automated license plate readers.
- Chris Ward
Legislator
Thank you, Madam Chair and Members. I know it's been a very long day. We've covered a lot of subjects, but I appreciate that we're ending on a very important and strong note. You know, it's traveling again, as all the enhancements that this technology has been able to bring into our lives.
- Chris Ward
Legislator
And there are times when you would need to be able to turn on that geolocation data to be able to access information about where the nearest restaurant is or to be able to utilize an app and its full functionality.
- Chris Ward
Legislator
You never would have thought that that data being on would be eligible to be subject for sharing to other third-party entities, as well. And as we've seen, our location data brokers start to use this as an opportunity to get your personal sensitive information and trade it to another broker and then another broker.
- Chris Ward
Legislator
Something has left the barn, so to speak. And so, this Bill would be able to pick up where the FEC has left off, for all of those complaints that we know have been registered and are growing, but we don't expect Washington is going to act anytime soon. Would respectfully ask your "Aye" vote.
- Rebecca Bauer-Kahan
Legislator
Thank you. We have a motion and a second. Let's call the roll.
- Rebecca Bauer-Kahan
Legislator
That Bill has a votes. It is out. But we will leave it open for the absent Member. With that, we will Move to add ons. Gold star for Assemblymember Lowenthal. He might be frozen, but he survived. Do we have confirmed, Mr. Lowenthal? Okay, we will start at the top of the calendar. Oh, perfect.
- Rebecca Bauer-Kahan
Legislator
Thank you. Love you, Ms. McKinner. This hearing is now adjourned. Will you gavel for us? Somebody has to gavel.