Hearings

Assembly Standing Committee on Privacy and Consumer Protection

April 16, 2026
  • Rebecca Bauer-Kahan

    Legislator

    Welcome to the Assembly Privacy and Consumer Protection hearing. Before we welcome our first author to present, I wanna announce, that Assembly Member Aguiar-Curry will be joining the committee today in the absence of Assembly Member Pellerin.

  • Rebecca Bauer-Kahan

    Legislator

    Who is here to present her bill but will not be able to stay. So you'll be confused when she gets up to present. We and I will also add that AB 2027 award has been pulled by the author.

  • Rebecca Bauer-Kahan

    Legislator

    We have 18 bills on the agenda today with seven bills on the consent calendar. So thank you to the amazing staff, both of the committee and the Republican caucus who works together, get seven bills on the consent calendar.

  • Rebecca Bauer-Kahan

    Legislator

    Those are AB 1954 by Assemblymember Ward, which is due past due to appropriations. AB 2025 Pellerin due to appropriations. AB 2043 Calderon due to past due to appropriations. 2278 Ávila Farías due to past due to appropriations.

  • Rebecca Bauer-Kahan

    Legislator

    2545 by Schiavo due past appropriations. And 2583 by Hoover due past appropriations. So when we get a quorum, we can move the consent calendar.

  • Rebecca Bauer-Kahan

    Legislator

    To effectively manage our time today, we'll be limiting testimony two minutes for witnesses in support and two minutes in opposition on each bill. Each witness, can figure out hopefully how to navigate that, although I can help if necessary.

  • Rebecca Bauer-Kahan

    Legislator

    After the support witnesses and the opposition witnesses, we will, of course, allow anybody in the room to express their name, position, and, organization.

  • Rebecca Bauer-Kahan

    Legislator

    And also adding that on our, website, you can provide lengthy input to the bills, which all of us review, so we invite you to do so. So we will get started. We will take up miss Pellerin's bill first, which is AB 1988.

  • Rebecca Bauer-Kahan

    Legislator

    I did not call other Members. You were here waiting. When you're ready,

  • Gail Pellerin

    Legislator

    Good morning, Chair and Members. I'd like to thank the chair and committee staff for working diligently on the amendments that were recently processed for this bill.

  • Gail Pellerin

    Legislator

    AI companion chatbots are rapidly becoming a place where people turn to for emotional support including during moments when they are experiencing acute mental distress.

  • Gail Pellerin

    Legislator

    What often starts as an innocuous conversation as the chatbot helps with the user's daily tasks turns into conversations where users confide in the chatbots about their own mental health struggles.

  • Gail Pellerin

    Legislator

    For a society in which loneliness is recognized as a public health crisis, emotional support from chatbots is an easy answer.

  • Gail Pellerin

    Legislator

    Chatbots are available around the clock. They are immediate responders and can be a safe space for intimate expression without judgment. But artificial intelligence is not emotional intelligence.

  • Gail Pellerin

    Legislator

    Far from being therapists, AI chatbots are incident language simulators susceptible to producing false information and are often designed to agree with users rather than challenge them.

  • Gail Pellerin

    Legislator

    The committee analysis lists several instances in which chatbots were contributing factor in a user's suicide or act of violence against others. Since 2023, dozens of cases have been documented in which a chatbot encouraged the user to isolate themselves from others.

  • Gail Pellerin

    Legislator

    Validated suicidal ideation, gave detailed advice to the user on methods of suicide, drafted suicide notes, and even encouraged the user to kill themselves.

  • Gail Pellerin

    Legislator

    In other cases, chatbots reinforce the user's paranoia or a psychosis justified the user's decision to harm or kill others and help plan the user's attack. These cases have proven that even with an AI company establishes safety protocols, those safeguards are easily circumvented.

  • Gail Pellerin

    Legislator

    As people turn to chatbots for advice on acts of violence, it's paramount that we do not expect AI systems to regulate themselves.

  • Gail Pellerin

    Legislator

    This bill titled the preventing AI user self endangerment PAWS Act requires chatbot operators to establish minimum standards for addressing safety threats by users and ensures that prompts requesting dangerous advice are flagged for human review.

  • Gail Pellerin

    Legislator

    As part of those minimum standards when the user expresses harmful intent, the bill requires the chatbot display the 988 and crisis lifeline and a notice that the chat will pause if prompted again for this harmful advice.

  • Gail Pellerin

    Legislator

    If the system detects a second crisis expression from the user, AB 1988 requires that the chatbot display the 988 line and pause the chat until a human moderator reviews the content of the crisis expression and determines the appropriate course of action.

  • Gail Pellerin

    Legislator

    In doing so, AB 988 breaks the pattern of dependency, encourages users to call 988, and prevents the worst outcomes of AI use from occurring. With me testifying in support is Katrina Baker, a crisis counselor with the 988 suicide and crisis lifeline.

  • Katrina Baker

    Person

    Chair Bauer-Kahan and Members of the committee, my name is Katrina Baker. I work in technology, AI, and adult learning. My dad, Mark Baker, died by suicide. And for the past five years, I volunteered as a 988 crisis counselor with Didi Hirsch to honor his memory.

  • Katrina Baker

    Person

    I'm here today in support of AB 1988, a bill I drafted to address a gap I've seen both in technology and in crisis work. More people are turning to AI for emotional support.

  • Katrina Baker

    Person

    A recent nationally representative study found that about one in eight adolescents and young adults use chat AI chatbots for mental health advice and among 18 to 21 year olds, that rises to about one in five.

  • Katrina Baker

    Person

    At the same time, the research is clear that these tools are not equipped to handle crisis safely.

  • Katrina Baker

    Person

    Stanford reported that AI mental health tools can introduce failures with dangerous consequences, And Brown researchers found that chatbots can systematically violate core mental health ethics standards, including in crisis situations. AB 1988 is a measured response.

  • Katrina Baker

    Person

    Under the bill, when a companion chatbot detects a credible crisis expression, it must encourage immediate human support and other limited intervention requirements triggered only in high risk moments.

  • Katrina Baker

    Person

    These rely on capabilities companies already use today, including contextual detection, rate limiting, and session controls. These bill this bill does not ban companion chatbots. It creates a basic safety standard for foreseeable preventable harm.

  • Katrina Baker

    Person

    In moments of suicidal crisis, minutes matter and human connection matters. AB 1988 helps redirect vulnerable users away from prolonged chatbot engagement and toward real human support. I respectfully ask for your A vote. Thank you.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you. Anyone else in here in support of this bill, please come up name, organization, and position. Hold on, sir. I'm not sure that mic is on. Let's make sure it's on. There we go.

  • Tom Renfrie

    Person

    You got it. Okay. Sorry. Thank you. Tom Renfrie on behalf of the California Association of Alcohol and Drug Program Executives, in support of this bill. Thank you.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you.

  • Vanessa Kahina

    Person

    Thank you. Vanessa Kahina on behalf of the California Academy of Family Physicians here in support.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you.

  • Trevor Nelson

    Person

    Good morning, Chair and Members. Trevor Nelson with the California Alliance of Child and Family Services in support.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you. Anyone here in primary witnesses in opposition to this bill? Seeing none, anyone who wants to register opposition to this bill? Seeing none, we will bring it back to the dais. Okay.

  • Rebecca Bauer-Kahan

    Legislator

    Seeing no comments or questions, I wanna thank the author for her work on this. I know this is deeply personal to you and the world has changed and continues to change and focusing on how we can protect people from dying by suicide.

  • Rebecca Bauer-Kahan

    Legislator

    And frankly, the mental health crisis that surrounds it, I think is a passion for you. It is your life's work and it is so critically important. So I wanna thank you for your leadership in this space beyond just this bill because it will change the world.

  • Rebecca Bauer-Kahan

    Legislator

    As you know, I really struggled with this because I don't believe that I mean, there's a reason we have licensed professionals who are the ones who are supposed to be providing mental health care. Right?

  • Rebecca Bauer-Kahan

    Legislator

    We don't just let anyone put themselves out as a therapist and provide that service here in California. And so I don't believe the chatbot should be providing service a licensed professional is intended to provide in the first place.

  • Rebecca Bauer-Kahan

    Legislator

    And then you get into these horrific, horrific stories that both of you referenced where not only are they seeking mental health guidance, but then the chatbots as they are want to do start to hallucinate and provide advice and content that is just beyond the

  • Rebecca Bauer-Kahan

    Legislator

    pale of what should be safe. It's interesting. A few years ago on this committee, we were hearing testimony about a website that was guiding people to die by suicide. And now we're seeing it happen in these chat bots.

  • Rebecca Bauer-Kahan

    Legislator

    And any of that should be absolutely our duty to stop because our highest duty is to protect Californians, and especially our most vulnerable. And so I don't want them to even do this.

  • Rebecca Bauer-Kahan

    Legislator

    Right? I was like, they should be designed to never have these conversations. But we are at a place where those safety guardrails are not in place.

  • Rebecca Bauer-Kahan

    Legislator

    They are not foolproof and we are, you know, we have children in our own state like Adam Rain who have taken their lives as a result of these chatbots.

  • Rebecca Bauer-Kahan

    Legislator

    And so, I think that the model you have here that really starts to shut down the chatbot, which will force individuals into real relationship with humans who can help them, I think, is a first step.

  • Rebecca Bauer-Kahan

    Legislator

    But we have so much work to do in this space and we should be putting products in front of Californians that are safe by design and I think that is ultimately an additional piece that this need is needed here, but this is really important and I think will save lives.

  • Rebecca Bauer-Kahan

    Legislator

    So I thank you. With that, would you like to close?

  • Gail Pellerin

    Legislator

    I'm grateful to you for all your work in this space as well as the drafter of the nine eight eight originally. It's really changing lives every day and saving lives, and I respectfully ask for your Aye vote.

  • Rebecca Bauer-Kahan

    Legislator

    We do not have a quorum yet, so we will take a motion as soon as we do, but thank you.

  • Gail Pellerin

    Legislator

    Thank you so much.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you, Assemblymember. Mr. Lowenthal is here. Mr. Lowenthal, you are next. Are you ready? Perfect.

  • Rebecca Bauer-Kahan

    Legislator

    So we will hear AB 1709. Mister Lowenthal , when you're ready.

  • Josh Lowenthal

    Legislator

    Well, thank you, Madam Chair and Members. Thank you. Thank you for the opportunity to present AB 179, which would set a minimum age of 16 years old for users to create or to maintain a social media account on platforms that have been determined to have had to have

  • Josh Lowenthal

    Legislator

    harmful features for adolescents. This bill also establishes an Esafety Commission, a long overdue oversight authority tasked with implementing this policy along with advising the legislature on digital safety standards and initiatives going forward.

  • Josh Lowenthal

    Legislator

    I wanna begin by acknowledging that this bill is not an effort I've undertaken alone.

  • Josh Lowenthal

    Legislator

    I would like to thank the bipartisan group of joint authors and coauthors whose support and partnership have helped make this effort possible, and I would like to speak, more about this special coalition in my close.

  • Josh Lowenthal

    Legislator

    I also want to acknowledge the various stakeholders representing different perspectives for the countless hours that they have spent meeting with me and my staff, and that includes the Esafety commissioner in Australia, leaders representing marginalized

  • Josh Lowenthal

    Legislator

    communities, education leaders, experts in the field of pediatric medicine, science, psychology, and parents throughout the state.

  • Josh Lowenthal

    Legislator

    And let's not forget the platforms themselves who are full of conscientious and thoughtful people, so many of whom are parents as well.

  • Josh Lowenthal

    Legislator

    While there are many areas where we find where we struggle to find precise alignment, everyone claims that we need to do significantly more to protect kids online immediately. And I'm confident that through the year, we can find common ground on that.

  • Josh Lowenthal

    Legislator

    It's not just us in California that recognizes that this is an issue that needs fixing. The whole world with two dozen countries acting similarly in real time, multiple states in The United States following suit and courtroom setting precedent identifying the individual and

  • Josh Lowenthal

    Legislator

    collective harms. What's interesting is that the conclusions are the same regardless of continent, regardless of religion, system of governance, race, socioeconomic level, population size.

  • Josh Lowenthal

    Legislator

    It's rare that nations as diverse as Australia, Spain, Indonesia, Denmark, and Brazil align on breakthrough policy, and yet here we are. We can learn together, and we can learn from each other to keep up with the rapidly changing online world.

  • Josh Lowenthal

    Legislator

    So how did we get here? I cannot think of any other trillion dollar industry that we would allow to knowingly design products that exploit the developmental vulnerabilities of children, profit from compulsive use, and then claim no responsibility for the harm.

  • Josh Lowenthal

    Legislator

    Yet that is exactly what has happened with social media. A substantial and growing body of research shows that children 16 are especially vulnerable to addictive digital environments given that their brains have not yet developed the executive functioning skills

  • Josh Lowenthal

    Legislator

    necessary for impulse control, for emotional regulation, and long term decision making. So this bill recognizes a very simple truth. If a product is intentionally engineered to capture and hold a children's attention through compulsive design features, the legislature has a

  • Josh Lowenthal

    Legislator

    responsibility to step in and protect young people. Recent court decisions have helped to support this claim in a big way. One of the most groundbreaking cases was just a few weeks ago, 2026 Los Angeles Superior Court decision, KGM versus Meta et al.

  • Josh Lowenthal

    Legislator

    In that case, a jury found that Meta and Google could be held legally responsible for designing platforms in ways that addict children and contribute to mental health harms.

  • Josh Lowenthal

    Legislator

    Of note TikTok and Snap, both defendants in the case reached settlements with the plaintiff before the trial kicked off.

  • Josh Lowenthal

    Legislator

    For the companies that didn't settle, the jury concluded that they were negligent in how their products were designed and that these design choices were a major factor in causing depression, anxiety, and compulsive use.

  • Josh Lowenthal

    Legislator

    The plaintiff began using platform at age six and described being on social media, quote, all day long. What makes this case especially significant is that it was not about harmful posts or speech online. It was not about specific content.

  • Josh Lowenthal

    Legislator

    Instead, it focused on product features like infinite scroll, autoplay, and algorithms specifically designed to keep children engaged as long as possible.

  • Josh Lowenthal

    Legislator

    The ruling determined that social media companies may be held accountable for addictive product design even when the content itself is protected.

  • Josh Lowenthal

    Legislator

    The evidence of intentional design is overwhelming. Internal TikTok documents state plainly that, quote, the product in itself has baked into it compulsive use.

  • Josh Lowenthal

    Legislator

    Another TikTok executive acknowledged that children watch because, quote, the algorithm is really good, but warned that what it means for sleep and eating and moving around the room and looking at somebody's eyes.

  • Josh Lowenthal

    Legislator

    TikTok's own internal research group, TikTank, reported that compulsive usage correlates with, quote, loss of analytical skills, memory formation, contextual thinking, conversational depth, empathy, and increased anxiety, while also interfering with essential

  • Josh Lowenthal

    Legislator

    responsibilities like sleep, like schoolwork, and connecting with loved ones. These are not outside critics making accusations. These are the company's own internal findings describing the harms their products create. Meta's internal communications tell the same story.

  • Josh Lowenthal

    Legislator

    One internal email stated that the company's, quote, overall goal remains total teen time spent, end quote. While another summarized that youth strategy even more bluntly, quote, the young ones are the best ones.

  • Josh Lowenthal

    Legislator

    You want to bring people to your service young and early. Senior metadata scientists warned that colleagues that, quote, some of our users are addicted to our products and compared engagement tactics to slot machines because, quote, intermittent rewards are the

  • Josh Lowenthal

    Legislator

    most effective. And report enforcing behaviors excuse me, reinforcing behaviors that are hard to extinguish when they provide little value. And in another internal researcher chat, employees describe Instagram, quote, as a drug.

  • Josh Lowenthal

    Legislator

    Quote, we're basically pushers and warn that many users were trapped in, quote, mindless scrolling and ads. Again, these are not political talking points. These are admissions from the people who built these systems.

  • Josh Lowenthal

    Legislator

    Even Facebook's founding president, Sean Parker, publicly acknowledged, the business model years ago. He explained that the design philosophy behind these applications was to ask, quote, how do we consume as much of your time and conscious attention as

  • Josh Lowenthal

    Legislator

    possible? He described the use of likes and comments as a, quote, dopamine hit and called the system a, quote, social validation feedback loop that exploits vulnerabilities in human psychology.

  • Josh Lowenthal

    Legislator

    He further stated that the creators understood this consciously and did it anyway. That should alarm every policymaker responsible for protecting children.

  • Josh Lowenthal

    Legislator

    The science confirms what internal documents reveal. A 2026 chapter in the World Happiness Report by Jonathan Haidt and Zach Rausch concluded that social media is harming adolescents at its large a scale

  • Josh Lowenthal

    Legislator

    large enough to produce population level changes in mental health and well-being.

  • Josh Lowenthal

    Legislator

    A 2023 longitudinal MRI study published in JAMA Pediatrics following sixth and seventh grade students over three years found that the habitual checking of social media was associated with changes in brain development that increased sensitivity to social rewards.

  • Josh Lowenthal

    Legislator

    In other words, repeated checking behavior may train the adolescent brain to become more reactive to reward clues over time. Additional neurological studies are equally concerning.

  • Josh Lowenthal

    Legislator

    One study found the problematic Internet use was associated with structural alterations in the brain reward system, particularly among young females.

  • Josh Lowenthal

    Legislator

    Other students have found cognitive similarities between Internet addiction and smartphone addiction, particularly in areas involving cognitive control.

  • Josh Lowenthal

    Legislator

    A 2025 study further examined the neuropsychological impact of social media algorithms on teen addiction and raised significant ethical concerns about platforms that optimize engagement at the expense of adolescent well-being.

  • Josh Lowenthal

    Legislator

    These findings reinforce that this is not simply a matter of preference. It's not simply a matter of parenting style. It is a matter of brain development and public health.

  • Josh Lowenthal

    Legislator

    The mental health impacts are also clear. Studies consistently associate problematic social media use with anxiety, depression, poor sleep, and psychological distress.

  • Josh Lowenthal

    Legislator

    A study published in the internal, Inter International Journal of Environmental Research and Public Health found that problematic social media was linked to poor sleep quality and psychological distress.

  • Josh Lowenthal

    Legislator

    2025 study published in the International Journal of Mental Health and Addiction found that a fear of missing out and psychological distress can mediate problematic social media and smartphone use.

  • Josh Lowenthal

    Legislator

    Research also found that describe problematic Internet use as a growing concern for adolescent health in the digital era. When sleep declines, attention weakens, academic performance drops, and anxiety rises.

  • Josh Lowenthal

    Legislator

    The consequences are just not abstract. These consequences show up in our classrooms. They show up in our homes. They show up in our communities.

  • Josh Lowenthal

    Legislator

    So this bill establishes a minimum age of 16 because 16 is a reasonable and evidence based safeguard is determined by the pediatric community.

  • Josh Lowenthal

    Legislator

    By age 16, adolescents have stronger executive functioning, better emotional regulation, and a greater capacity to recognize manipulative systems than younger children.

  • Josh Lowenthal

    Legislator

    We already set age thresholds for products and environments that pose developmental risks. We do so not to punish youth, but to protect them during vulnerable stages of growth.

  • Josh Lowenthal

    Legislator

    Social media platforms built around compulsive engagement deserve similar common sense guardrails. Establishing a minimum age requirement is not a new concept. In fact, there's a long list of products that we determine are not safe for use by young people.

  • Josh Lowenthal

    Legislator

    We do not let minors gamble. We prohibit young people from buying alcohol or going to the bar until they're 21. We do not let minors buy an extensive list of other products or go certain places alone or operate a vehicle until they hit a certain age and can pass multiple

  • Josh Lowenthal

    Legislator

    tests proving they are ready. Notably, for this committee, we do not let minors vote. Kids do not have the ability to determine what is appropriate or safe for them to use.

  • Josh Lowenthal

    Legislator

    Social media has demonstrated to have inherent harms the way it is developed. That is why the bill carefully lays out what platforms are covered. If a platform wants to change its features and implement age appropriate designs and transform their algorithms, they can.

  • Josh Lowenthal

    Legislator

    They can carve themselves out of this bill by changing their algorithm and harmful features. This is a business decision. They may continue to serve under 16 if they carve out harmful features. Very simple.

  • Josh Lowenthal

    Legislator

    This bill also recognizes that current age restrictions have failed. Today, many platforms rely on self attestation, asking a child to click a button and claim that they are at least 13 years old. That's not age verification.

  • Josh Lowenthal

    Legislator

    It shifts the burden onto children and parents while allowing billion dollar companies to continue profiting from underage use. This legislation instead requires reasonable age assurance measures, prohibits the use of age verification data for advertising or profiling,

  • Josh Lowenthal

    Legislator

    and requires deletion of underage accounts and associated personal information. Importantly, the bill creates an Esafety Advisory Commission within the office of the attorney general because technology changes faster than the law.

  • Josh Lowenthal

    Legislator

    New platforms, new algorithms, new addictive design features emerge constantly.

  • Josh Lowenthal

    Legislator

    California needs a standing expert body to evaluate age assurance technologies, to monitor compliance, to assess privacy impacts, to gather feedbacks from parents and youth, to study harmful design practices, and to recommend future reforms.

  • Josh Lowenthal

    Legislator

    As consumers, we just have no control over product development, no way to meaningfully weigh in. This is the youngest group of Californians that we're talking about, and they are spending an extraordinary portion of their formative years online.

  • Josh Lowenthal

    Legislator

    The American Pediatric Association estimates that teenagers spend on average five hours a day on social media. That number is a conservative estimate. Other studies point to closer to eight to nine hours.

  • Josh Lowenthal

    Legislator

    This means even if we take the number of five hours a day, there are millions of children in California spending eight, nine, ten hours a day on social media that is more than school. I'm gonna say that again.

  • Josh Lowenthal

    Legislator

    There are millions of children in California that are spending more time on social media than they're spending in school. Millions. There is no other unsupervised environment where children spend that much time with so little accountability.

  • Josh Lowenthal

    Legislator

    When children are in school for those same hours, we demand train results. We demand safety standards, curriculum review, parental involvement, and public oversight. We rightly insist on rules because we know prolonged exposure shapes development.

  • Josh Lowenthal

    Legislator

    So why would we accept less protection in the digital spaces where our children spend just as much time if not more time?

  • Josh Lowenthal

    Legislator

    If a school knowingly expose students to an addict an addictive product linked to serious mental health harms and thousands of preventable deaths each year, no parent would tolerate it for a moment.

  • Josh Lowenthal

    Legislator

    Yet social media platforms operate with far less scrutiny. Parents have limited visibility, policymakers are always playing catch up, and no expert body is charged with keeping pace.

  • Josh Lowenthal

    Legislator

    Without a dedicated commission, enforcement will always lag behind innovation, and our children will continue to bear the cost. California has led the nation before on privacy and consumer protection. We now have the opportunity to lead on protecting children online.

  • Josh Lowenthal

    Legislator

    This bill is not about speech. It is not about content. It is about product design, and it's about public health. When companies admit they are engineering compulsion, targeting young users, and maximizing team time spent, we cannot look the other way.

  • Josh Lowenthal

    Legislator

    Before I turn this over to my witnesses, Madam Chair, I want to address concerns rain from organizations and advocates.

  • Josh Lowenthal

    Legislator

    I want to say that I hear you. I've read your letters and sincerely appreciate the feedback input, and I appreciate your advocacy. I appreciate the countless conversations you've had with me and my staff.

  • Josh Lowenthal

    Legislator

    These perspectives matter to me, and I validate the imaginable spread stress of young people living in oppressive or isolating environments who may rely on online spaces to find support, to find identity, to find community.

  • Josh Lowenthal

    Legislator

    It's fundamentally important to me that all young people are able to find connection, find their people, and be recognized and supported.

  • Josh Lowenthal

    Legislator

    So I share your concerns unequivocally. This bill is not about cutting young people off from the Internet. It's not about shutting them out or denying them access to critical resources.

  • Josh Lowenthal

    Legislator

    This legislation is meant to protect, not to exclude. It targets specific high risk platform designs that rely on addictive features and compulsive use patterns that are proven to harm young people.

  • Josh Lowenthal

    Legislator

    We should not accept a false choice between connection and exploitation. Young people deserve the ability to find community online, including all marginalized groups, but not in environments where harm is built into the business model.

  • Josh Lowenthal

    Legislator

    Kids cannot be harmed in the process of seeking support, and this is one of the reasons the Esafety Advisory Commission is such an essential part of this bill.

  • Josh Lowenthal

    Legislator

    The commission is intended to help ensure there are safe digital spaces where youth and marginalized communities can connect, can avoid social isolation, and access healthy resources.

  • Josh Lowenthal

    Legislator

    It will provide expert guidance, study harms, identify safe alternatives so vulnerable youth are supported.

  • Josh Lowenthal

    Legislator

    This bill also creates a clear path for platforms to change. If companies redesign their products so that they no longer have these addictive features that harm kids, they can remove themselves from the scope of this policy.

  • Josh Lowenthal

    Legislator

    We invite platforms to innovate and create safer products. California can protect children while preserving access to meaningful connection and community.

  • Josh Lowenthal

    Legislator

    With that, Madam Chair, I would like to turn it over to Dr. Eri1ca Kristoff Felsenthal, a licensed psychologist, critical and neuropsychology based in Los Angeles who specializes in brain health, stress, and the intersection of social media mental health.

  • Josh Lowenthal

    Legislator

    Her work integrates neuroscience, cognitive behavioral therapy, and mindfulness to help individuals and their families better understand and manage the psychological impact of today's digital world.

  • Josh Lowenthal

    Legislator

    And I also have Mr. Mark Berkman, the CEO of the organization for social media safety. They're both here to testify in support of AB 179.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you. Before we turn it over to you, we have a quorum. So before anybody leaves, I'm gonna establish a quorum, madam secretary.

  • Committee Secretary

    Person

    [Roll Call] We have a quorum.

  • Rebecca Bauer-Kahan

    Legislator

    Perfect. Now two minutes each.

  • Erica Kristoff Felsenthal

    Person

    Good afternoon, Chair Bauer-Kahan, Vice Chair Macedo, and distinguished members of the committee. I'm Dr. Erica Kristoff Felsenthal, and I'm a clinical neuropsychologist and also serve on the board of the organization for social media safety.

  • Erica Kristoff Felsenthal

    Person

    I'm also the parent of teenagers. In these roles, I see directly what social media is doing to our children. Cyberbullying, harassment, sextortion, fraud, middle schoolers describing exposure to extreme pornography, grooming attempts.

  • Erica Kristoff Felsenthal

    Person

    I sat with a 13 year old who didn't understand why a strange adult was asking her for photos. Beeps and pills offered directly to teens through social media. I've seen teen after teen begin with typical content, fitness, lifestyle, fashion.

  • Erica Kristoff Felsenthal

    Person

    Without awareness, the algorithm refines her feed, more idealized body content, more comparison, reinforcing dissatisfaction. She intends to scroll briefly, but she stays for hours.

  • Erica Kristoff Felsenthal

    Person

    Her sleep fragments. She reports anxiety and persistent self comparison. When she tries to stop, she feels irritable and restless. She's not using social media to connect. She's using it to cope.

  • Erica Kristoff Felsenthal

    Person

    These patterns are echoed globally by mental health professionals and reflected in advisories from The US surgeon general and the American Psychological Association, as well as research linking social media use to increased anxiety, depression, self harm,

  • Erica Kristoff Felsenthal

    Person

    compulsive use, educational deficits, and eating disorders in adolescents. Social media platforms are not neutral. They're engineered to maximize engagement using variable reward systems similar to slot machines that keep the brain anticipating

  • Erica Kristoff Felsenthal

    Person

    the next rewarding piece of content. That anticipation is driven by dopamine based learning systems, which are especially active in adolescence. This design conflicts with healthy development.

  • Erica Kristoff Felsenthal

    Person

    AB 179 creates a necessary pause on addictive social media use until the age of 16 when adolescents are better equipped to engage in a safer way.

  • Erica Kristoff Felsenthal

    Person

    I ask for your Aye vote today, not only as a psychologist, but as a mother who wants better for her children and for yours. Thank you.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you.

  • Marc Berkman

    Person

    I'm the CEO of the Organization for Social Media Safety, a national consumer protection organization safeguarding the public from the harms of social media. The reason for AB 179 must be explicitly clear.

  • Marc Berkman

    Person

    Good morning, Chair, Vice Chair, and distinguished members. Thank you for the opportunity to testify in support of AB 179. My name is Marc Berkman.

  • Marc Berkman

    Person

    Social media is harming our children, harming them at catastrophic scale. Nearly all teens use social media and millions of California's younger children are already on these platforms in our research with UCLA involving more than 16,000 teens, half report using

  • Marc Berkman

    Person

    social media for more than five hours a day. The harms are real. In addition to the overwhelming evidence finding substantial adverse mental health outcomes of adolescent use for addictive social media, We see acute harms that include cyberbullying,

  • Marc Berkman

    Person

    harassment, predation, drug trafficking, human trafficking, sextortion, violence, fraud, and dangerous challenges. These are not theoretical.

  • Marc Berkman

    Person

    They are real and impacting millions of California's children. From our work on the ground with students nationwide, we are seeing children harmed year after year while the industry tells this committee it is working on the problem.

  • Marc Berkman

    Person

    We have not seen meaningful improvement in the metrics, meaning ongoing acute injury to our children. Notably, the industry standing in opposition to AB 179 has disregarded these acute harms entirely.

  • Marc Berkman

    Person

    I would emphasize that the industry itself in its opposition cited research finding statistically significant links between adolescent social media use and adverse mental health outcomes and stronger associations when use becomes compulsive,

  • Marc Berkman

    Person

    which is exactly why we need this bill to protect our children from addictive forms of social media.

  • Marc Berkman

    Person

    AB 1709 is necessary to protect our children, and I respectfully urge your Aye vote. Thank you very much.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you. That was impressive. Right on the clock. Anyone else here in support of this bill? Come on up.

  • Rebecca Bauer-Kahan

    Legislator

    Name, organization, and position.

  • John Bennett

    Person

    John Bennett with the California Initiative for Technology and Democracy in support.

  • Jordan Curley

    Person

    Jordan Curley on behalf of Common Sense Media and strong support.

  • Crystal Quinns

    Person

    Crystal Quinns, behalf of the California Commission on Status of Women and Girls, cosponsor of this bill.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you so much. Do we have primary witnesses in opposition to this bill? If so, please join us.

  • Rebecca Bauer-Kahan

    Legislator

    There are plenty of chairs. I'm enjoying this large room. You all have seats. It's also warmer in here. And you're ready two minutes each.

  • Rindala Alajaji

    Person

    Hello? Alright. Good morning, Chair and committee Members. My name is Rindala Alijaji, and I'm here on behalf of the Electronic Frontier Foundation voicing our respectful opposition to AB 1709.

  • Rindala Alajaji

    Person

    Alongside a coalition of LGBTQ advocacy groups, reproductive rights, and youth youth groups EFF has submitted a detailed letter analyzing the constitutional and policy failures of this bill.

  • Rindala Alajaji

    Person

    AB 1709 jeopardizes the privacy of all users and and substitutes meaningful Internet safety possibilities with an over broadband that carries foreseeable harmful consequences. Chief among them, the silencing of the very voices this bill claims to protect.

  • Rindala Alajaji

    Person

    I witnessed this dynamic early in my career in legislative advocacy in Florida lobbying against HB 1557, what you may recognize as the Don't Say Gay bill.

  • Rindala Alajaji

    Person

    The reason that bill faced such fierce resistance is because of the young LGBT Floridians that use social media to organize, find community, and flood the halls of Tallahassee in protest.

  • Rindala Alajaji

    Person

    Had AB 1709 been law then, those students would have been silenced and would not have reached the masses the way that they did.

  • Rindala Alajaji

    Person

    Their movement would have lost its pulse way before it had even began. We have seen this power time and time again from the Parkland students who mobilized the March for Our Lives to teenage activists like Greta Thunberg who turned a solitary strike into a global movement.

  • Rindala Alajaji

    Person

    They all reached me and you through the the very social media platforms this bill aims to platforms are not merely entertainment apps. They are the modern day assembly grounds for the next generation of leaders.

  • Rindala Alajaji

    Person

    Research consistently shows that online safe spaces are vital lifelines, especially for marginalized youth.

  • Rindala Alajaji

    Person

    A 2021 national survey found that 70% of LGBTQ adolescents have had access to affirming communities online compared to just 50% at school and 34% at home. By cutting off access to the digital public square, we don't quote unquote protect youth.

  • Rindala Alajaji

    Person

    We isolate them and dismantle their ability to organize, form community, and participate in our democracy. As federal judges have already warned, banning young people from social media, quote, directly burdens those youth's rights to engage in access speech.

  • Rebecca Bauer-Kahan

    Legislator

    If you wanna wrap up. Thank you.

  • Rindala Alajaji

    Person

    California should lead the way by by empowering youth through digital literacy and civic engagement, not by following Florida's lead in restricting their voices. A blanket ban is not protection. It is a silencing of youth voices.

  • Rindala Alajaji

    Person

    Based on the concerns letter and the lived experiences of the young advocates, we urge you to vote no on seventeen o nine. Thank you.

  • Rebecca Bauer-Kahan

    Legislator

    Go ahead. Alicia did take a lot of your time.

  • Kate Sim

    Person

    Thank you. Can everyone hear me? Yep. This thing's on. Okay. My name is Kate Sim, and I'm the Director of Program for COSPR, which stands for Children's Online Safety and Privacy Research.

  • Kate Sim

    Person

    We were incubated at the University of Western Australia at the height of the social media band debate. So I'd like to share some learnings from Australia about what has been widely called a failed experiment.

  • Kate Sim

    Person

    All of the stakeholders agree that tech companies need to be held accountable for the harms they're causing to young people. There are plenty of research about that.

  • Kate Sim

    Person

    But the thing about the ban is that it is not fit for purpose. Age restrictions prohibit children's access to social life and information, place blame on already overburdened parents, allow age verification companies to craft public policy, and let social media corporations off

  • Kate Sim

    Person

    the hook. Early outcomes from the Australia's Esafety Commission's own report, which was published in March, from the seven in ten parents say that their kids are still on restricted platforms. In fact, parents are happy to support their kids being on it.

  • Kate Sim

    Person

    Kids say that the age checks are ridiculously easy to circumvent. And most importantly, Esafety Commission says that they have not observed a notable change in the number of cyberbullying and image based abuse complaints involving age restricted accounts.

  • Kate Sim

    Person

    It's too early to tell if it's a totally failed experiment, but what's abundantly clear is that the ban has had a negligible benefit at best, leaving behind a trail of damages, including tropes of sensitive public data personal data about children that are now vulnerable to

  • Kate Sim

    Person

    breaches as we saw with Discord. Most marginalized and vulnerable children without a lifeline, and the elderly, non English speaking adults, adults without documentation who have barriers to their digital lives.

  • Rebecca Bauer-Kahan

    Legislator

    If you could wrap up.

  • Kate Sim

    Person

    Yes. Please. This is a heated topic because everybody cares deeply about our children's digital futures. Our young people deserve the highest rigor and impact in what we do.

  • Kate Sim

    Person

    I urge you to take these lessons from Australia so that California can be an actual leader in implementing online safety measures that regulate tech, not children.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you so much. Anyone else here in opposition to this bill? Name, position, and organization?

  • Tracy Rosenberg

    Person

    Good morning, Chair and Members. Tracy Rosenberg with Oakland Privacy. We do appreciate the, amendments taken prior to this hearing, but we are, for the moment, still in opposition.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you.

  • Becca Cramer Mowder

    Person

    Becca Kramer. I've been asked to express respectful opposition on behalf of Advocates for Youth, The Trevor Project, If/When/How: Lawyering for Reproductive Justice, Educate Us, Fight for the Future, Woodhull Freedom Foundation,

  • Becca Cramer Mowder

    Person

    Seek Us Sex Ed for Social Change, and Secular Education Association.

  • Robert Boykin

    Person

    Good morning, Chair and Members. Robert Boykin with TechNet and respectful opposition.

  • Symphoni Barbee

    Person

    Good morning. Symphoni Barbee on behalf of the ACLU Cal Action in opposition.

  • Chris Micheli

    Person

    Morning, Madam Chair. Chris Micheli on behalf of the Civil Justice Association of California. Respectfully opposed. Thank you.

  • Aidan Downey

    Person

    Aidan Downey with the Computer and Communications Industry Association in respectful opposition. Thank you.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you.

  • Austin Heyworth

    Person

    Good morning. Austin Hayward on behalf of Internet Works. We had an oppose and less amended position. We're really encouraged by the scoping amendments that move the bill in a much better direction. So thank you.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you.

  • Robert Singleton

    Person

    Robert Singleton, Chamber of Progress, respectfully opposed.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you. Seeing and hearing no further opposition, we'll bring it back to the dais. Okay. We'll start with miss Petrie-Norris on the end and work our way over.

  • Cottie Petrie-Norris

    Legislator

    Well, thank you, Madam Chair. And I wanna start by thanking the author for your passionate commitment to protecting California children in the real and the virtual world.

  • Cottie Petrie-Norris

    Legislator

    I know how much this means to you, and I know, how hard you have worked on this issue, in your time here. And as a a parent of two teenage boys, I share so many of the concerns that you articulated in your your presentation today.

  • Cottie Petrie-Norris

    Legislator

    And I guess if if we could wave a magic wand and pass a ban and just keep kids off this stuff, I actually would be pretty happy about that.

  • Cottie Petrie-Norris

    Legislator

    I do have some concerns about whether or not this is in fact going to be an effective way to keep kids off the platforms that we're we're concerned about. So I think the opposition witness, walked through some of the early findings in Australia.

  • Cottie Petrie-Norris

    Legislator

    I think that there's been some concern expressed by, advocates that this could backfire and actually lead kids into places that are less safe.

  • Cottie Petrie-Norris

    Legislator

    So I've been really, proud to support and help coauthor some of, the the measures we've advanced to forward age appropriate design.

  • Cottie Petrie-Norris

    Legislator

    So I guess my question to you is, how do we make sure that if we're passing this ban, that we're actually encouraging companies to design their products more safely?

  • Cottie Petrie-Norris

    Legislator

    Because I'm concerned that if kids are smarter than we are. They're gonna get around this, and they're gonna be on these platforms anyway.

  • Josh Lowenthal

    Legislator

    Wonderful question. I'm I your earlier comments are really meaningful to me, so thank you very much to Assemblymember. And, look, a couple of things. First of all, I don't use the word ban. I don't like the word ban.

  • Josh Lowenthal

    Legislator

    This is not a ban. This is a delay. It is a delay until the pediatric and scientific communities has say that brain development is at a place where it is appropriate for kids to be able to process these things.

  • Josh Lowenthal

    Legislator

    We do that in a lot of spaces where kids still continue to find their way around it. For example, movies. Right? I certainly went into RAV movies when I was 11 and 12 years old.

  • Cottie Petrie-Norris

    Legislator

    Love to hear

  • Josh Lowenthal

    Legislator

    it. Right. It well, that happens in in many cases. And we really have to assess what are the goals of this legislation. The first way to do that easily is to acknowledge that there are two buckets of kids.

  • Josh Lowenthal

    Legislator

    The first bucket are the kids who are probably under age 11 that are not addicts right now, that have not had struggling with the situation that we have right now, that once we implement this and as we're seeing in Australia, which is not spoken about,

  • Josh Lowenthal

    Legislator

    that will be very effective for that group of kids. So about half the pool right now that we're speaking of. What we're talking about are the kids that are aged 13 to 16 right now. Right? That are that are addicts right now.

  • Josh Lowenthal

    Legislator

    And there's a lot there's a lot there. First of all, parents don't know what to do right now, and they're looking for a more rigid structure. I can tell you for somebody, and I appreciate the compliments has been working on this forever.

  • Josh Lowenthal

    Legislator

    I have three daughters. I don't know what to do. It's so challenging because I have at at my kids' school sports teams and clubs organized over Instagram.

  • Josh Lowenthal

    Legislator

    We worry about having our kids left be left behind, and whether or not it's socially acceptable to keep them off the platforms and what that does to them. And so parents are asking for a more rigid structure that they can follow.

  • Josh Lowenthal

    Legislator

    You know, in terms of, like, pushing kids onto other platforms, I don't find that to be a a a dangerous situation because we're not shutting off the Internet. This doesn't apply to gaming. It doesn't apply to messaging.

  • Josh Lowenthal

    Legislator

    It's not going to apply to many of the platforms even I know there was somebody speaking in opposition for the Trevor Project. Trevor Project has its own platforms, would not be subjected, for example, to this. Discord would not be subjected to this.

  • Josh Lowenthal

    Legislator

    It is really about the design features themselves, which we have now seen the scientific community, the legal community, now in court. It has been proven over and over again that this is harmful.

  • Josh Lowenthal

    Legislator

    We know from education leaders, I'm sure we're going to hear from colleagues on the dais on this topic as well, that is so harmful for our education system.

  • Josh Lowenthal

    Legislator

    And empirically empirically, this is the very first generation, first time in recorded history that is not performing better than the generation before it, academically, intellectually, IQ scores.

  • Josh Lowenthal

    Legislator

    So the question that you have is what's gonna happen to that second pool that are addicts right now? And we are have to approach this law with humility.

  • Josh Lowenthal

    Legislator

    The opposition spoke about what's happened in Australia with literally two months of data. When we pass this bill, assuming that this bill gets signed by the governor, we're gonna be in the first inning.

  • Josh Lowenthal

    Legislator

    It's not the eighth or ninth inning as most of the legislation that we pass here is. We have to have humility and understand the concerns that you're having.

  • Josh Lowenthal

    Legislator

    We need our Esafety Commission to be able to track and monitor not just when they're leaving platforms, where are they going, and what's their behavior after that, and what are the mental health outcomes to that, and what adjustments do we need to make?

  • Josh Lowenthal

    Legislator

    Because the status quo is untenable. And if you speak with with children right now on the by and large, they will say that that social media is worse for their mental health, particularly for girls.

  • Josh Lowenthal

    Legislator

    How it's 70% percent of girls say it's affecting their body image, body dysmorphia. In Australia, one of the major data points for whether or not to go with the social media delay was that seventy percent of girls over age 14 were stopped playing organized sports.

  • Josh Lowenthal

    Legislator

    We are we are not gonna get everything that we need from this legislation.

  • Josh Lowenthal

    Legislator

    It is a starting point. And we're gonna have to continue to do other things in this state to make sure that our young people are healthy, like investing in outdoor education, like making sure that kids who now are spending 35 to 40 hours a week on these

  • Josh Lowenthal

    Legislator

    harmful platforms have other options. Anecdotally, I hear very different things out of Australia. I hear how there's now an e bike problem in the streets of Sydney because so many kids are have moved to offline activities.

  • Josh Lowenthal

    Legislator

    We see that many kids have gravitated back towards, the platforms getting around, facial recognition and getting around some of the age verification, and that is a failure of the platforms.

  • Josh Lowenthal

    Legislator

    We should expect kids to be kids. We should never be punitive to kids. The platforms have the obligation to follow the law, and and we need to hold them accountable to that. So thank you for your questions.

  • Cottie Petrie-Norris

    Legislator

    Thank you.

  • Kate Sim

    Person

    And as I If I may quickly respond

  • Rebecca Bauer-Kahan

    Legislator

    No. It's the Assembly Member's time.

  • Cottie Petrie-Norris

    Legislator

    And yes. So and I appreciate that that thoughtful response. And I think particularly, I think your recognition that, you know, perhaps this is is a first step and work that we will need to continue to do together to ensure it's successful. So I will be supporting the the bill to

  • Josh Lowenthal

    Legislator

    Thank you, Assembly. I didn't mean to cut you off. I I just wanted to to underscore it. That is why we need this commission. You know, we're voting on 5,000 things in a year.

  • Josh Lowenthal

    Legislator

    We have skeletal staffs. Even those of us that are engaged in privacy and oversight issues, it is impossible for us to keep up with the dizzying pace of technology, the products that are introduced.

  • Josh Lowenthal

    Legislator

    We all know in this committee that the toys out in Christmas for kids this past year were completely different than the year before with chatbots baked into stuffed animals.

  • Josh Lowenthal

    Legislator

    It is incredibly challenging for us to be able to keep up. And that's precisely what the oversight entity would do.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you so much. Miss Wilson, you are recognized.

  • Lori Wilson

    Legislator

    Thank you, Madam Chair. To the author, I actually would echo the sentiment of my colleague in regard to your character as it relates as a as a legislature and how she characterized your position on these type of bills and your passion for keeping children safe

  • Lori Wilson

    Legislator

    online and, you know, and especially you as a father saying like, hey, I'm in this position to be impactful. Let me use my time well to be impactful for other parents. So agree.

  • Lori Wilson

    Legislator

    As I look at it, my own I'm, you know, a mom of adults. Right? And so all of this was burgeoning when my kids were young and thankful that I didn't have to deal with this issue when they were that age, that it was a burgeoning thing and there were still a lot

  • Lori Wilson

    Legislator

    more protections and people still didn't didn't go online as much. It was all new. We were trying to figure out which every app every week there was a different app and they hadn't taken off like the way that they have now entrenched communities online.

  • Lori Wilson

    Legislator

    But I also recognize I have a grandchild who is, going to be three very soon. And and if I leave my phone around, he can operate it very, very well. It's surprising to me how well a two and a half year old can get to the app that he wants to get, can call mom

  • Lori Wilson

    Legislator

    and dad, you know, can engage in ways that that is just astonishing to me. So I recognize protections can be need to be in place.

  • Lori Wilson

    Legislator

    And so I struggle with this bill in terms of effectiveness and it's mirroring after Australia that doesn't have a first amendment right. Like, we have a first amendment right.

  • Lori Wilson

    Legislator

    And so that is a distinct difference, I think, between us and Australia. Another thing I dis distinct between the testimony hearing is you noted, you discounted the testimony from opposition because it only had been in place in two months,

  • Lori Wilson

    Legislator

    but yet noted as ebike revolution, which we're seeing all over, that only been two months. And so I'd be careful, you know, kind of around that comparison when we only have two months of data. We can't discount and, you know, elevate at the same time.

  • Lori Wilson

    Legislator

    And so my question to you is then how do you address because you say it's not a ban, it's a delay.

  • Lori Wilson

    Legislator

    Can you talk a little bit more about why you believe it's not a ban when 16, they can't be on these platforms, and how do you then differentiate that addictive piece from other so other platforms that have a social media context and they because

  • Lori Wilson

    Legislator

    just liking liking people to like your things is addictive. Right? So can you explain a little bit more how you're piggybacking off of another bill and incorporating in here? Am I am I asking a wrong question? Yes.

  • Josh Lowenthal

    Legislator

    You're asking a great question. You're asking you're asking a wonderful question. Be before you do, Madam Chair, I just wanna thank you for your comments, Assembly Member. They're Yeah. Truly meaningful to me. And, Madam Chair.

  • Rebecca Bauer-Kahan

    Legislator

    Yeah. I just wanted to, clarify that we we did not frankly, I haven't looked at Australia's legislation because I don't think we are Australia. So this bill is really built for California, and so I don't think we should be I mean, obviously, it is always helpful when

  • Rebecca Bauer-Kahan

    Legislator

    other places lead on policy to look at the research, and I don't wanna discount that. On the other hand, we have designed this bill really to work within the code here in California and work within the way California functions.

  • Rebecca Bauer-Kahan

    Legislator

    So, it is not intended to mirror or be exactly like Australia. It is not.

  • Lori Wilson

    Legislator

    Chair, I didn't ask. I didn't.

  • Rebecca Bauer-Kahan

    Legislator

    No, no. I just wanted to no. You were the second person to reference it, so I was just trying to address that before it becomes the whole conversation.

  • Rebecca Bauer-Kahan

    Legislator

    This is not actually but and and so I just wanted to say that first, that I appreciate that we have Australia out here, but it's not exactly like what we've done here.

  • Rebecca Bauer-Kahan

    Legislator

    But the second thing is, to answer your question, the bill, used the uses the definition from a former Senator Skinner's age it wasn't called the age appropriate design code.

  • Rebecca Bauer-Kahan

    Legislator

    That was Buffy's bill, but her bill on social media addictive algorithms, to get at the addictive algorithms themselves.

  • Rebecca Bauer-Kahan

    Legislator

    And so what this does is it says children cannot be on apps that fall under those addictive features, and allows for anything that does not have those addictive features to absolutely be available to children.

  • Rebecca Bauer-Kahan

    Legislator

    And it doesn't, you know, say that Meta, for example, is necessarily in that bucket. They may not be, and they could provide a different, tool for children that doesn't have addictive algorithms.

  • Rebecca Bauer-Kahan

    Legislator

    And if you're asking what that looks like, I would, anyone my age remind you what Facebook looked like when it first started. It didn't have the algorithms.

  • Rebecca Bauer-Kahan

    Legislator

    It was it you did not stay on it long because you were just seeing people's plates, and it was boring. Let's be real. Right? So it was not addictive in the same way. It has evolved over time.

  • Rebecca Bauer-Kahan

    Legislator

    And so if they were to want to go back to a non addictive model like they had in the early days, that would be available to children. And you could maintain the current model for adults. This doesn't speak to adults.

  • Rebecca Bauer-Kahan

    Legislator

    But, it does allow for online spaces to be available, and it does use that algorithm, the addictive algorithm as the basis for that definition.

  • Rebecca Bauer-Kahan

    Legislator

    And then to the author's point, one of the important things that the bill does is it it also doesn't lock that in place because we know that the algorithms today are not what it's gonna look like in ten years.

  • Rebecca Bauer-Kahan

    Legislator

    So we have been very clear that is what we believe to be addictive, and it will be the age assurant it will be the Esafety Commission's role to then evolve with those definitions as technology evolves.

  • Rebecca Bauer-Kahan

    Legislator

    And so, it is meant to be evergreen in that way, but we've been really restrictive in what we think addiction is so that we're not giving and actually used the language from, the age assurance regulations that the AG did, that really limited his authority and

  • Rebecca Bauer-Kahan

    Legislator

    how he could do that, to to limit the scope of how they can expand. And, really, it's about who's in and who's out under the definition of addiction.

  • Rebecca Bauer-Kahan

    Legislator

    But that is how we dealt with it, and I think that is different in my mind from what I understand Australia has done because it really is focused on how do we get kids out of addictive spaces, not how do we get them off what we define as social media.

  • Rebecca Bauer-Kahan

    Legislator

    Because I think as the author said, online spaces to connect, especially, frankly, amongst our LGBTQ youth, is not necessarily a bad thing.

  • Rebecca Bauer-Kahan

    Legislator

    What is bad are the addictive features, I think, is where we have landed.

  • Lori Wilson

    Legislator

    And with respect to the Chair, opining on my opining, going back to the legislature, I mean, to the legislator and the author of this bill to, like, my actual question.

  • Lori Wilson

    Legislator

    I did a lot of opining, and I appreciate the authority of the the the role of the Chair to opine on my opining. But I really would like the author to answer the actual question that I asked after all my opinions was, how do you reconcile I was reconciling your testimony.

  • Lori Wilson

    Legislator

    I said, could you go a little deeper on how you're saying it's not a ban and but a delay based on piggybacking that you're that you're just taking language from another bill, that you're referencing another previous bill around addictive.

  • Lori Wilson

    Legislator

    And so you noted that you don't consider it a ban, you consider it a delay. And so I was asking as we reconcile that to that you're not changing definitions, you're ref you're referencing the definition that exists already in your bill.

  • Lori Wilson

    Legislator

    I wanted to understand that more because what people have talked about is it being a ban. And you specifically said, it's not a ban, it's a delay, and then you moved on. And so I wanted you to spend a little bit more time on how on that on on understanding that.

  • Josh Lowenthal

    Legislator

    There's a difference between a 13 year old child and a 16 year old child. In, and and maybe, actually, we could ask our expert witness.

  • Lori Wilson

    Legislator

    So I'll clarify. So you are so you do admit that it is banning under the age of 16. You where you're being more nuanced is is you're you're not we're not banning under the age of 16.

  • Josh Lowenthal

    Legislator

    We're delaying for under age 16 until they reach 16. That's not a ban. We're delaying.

  • Lori Wilson

    Legislator

    You're saying that I think it's just nuance. But

  • Josh Lowenthal

    Legislator

    Well, just to be clear.

  • Lori Wilson

    Legislator

    I mean, I just wanna be clear. Because I wanna I wanna be intellectually intellectually honest for the public. You're under the age of 16, and your platform that has been identified as being on here because you have this addictive, you cannot use it.

  • Lori Wilson

    Legislator

    It is banned for under age 16.

  • Josh Lowenthal

    Legislator

    We are saying that with the addictive features that are identified in the scope of this bill, the harmful features that

  • Lori Wilson

    Legislator

    You are not allowed to use it.

  • Josh Lowenthal

    Legislator

    That they would

  • Lori Wilson

    Legislator

    So that's a bad now you might be saying that you're delaying the use of a product until you're 16. But if you are 15, 14, 13, 12, 11, 9, go all the way down, my three year old or almost three year old grandson,

  • Lori Wilson

    Legislator

    you are not allowed to use this product if it's on this list, if it's been identified as harmful. Right? Which is okay.

  • Lori Wilson

    Legislator

    I just wanna you used the word delay and I wanted to understand that.

  • Lori Wilson

    Legislator

    And it sounds like you're you're being nuanced in a way that's not intellectually honest. And I wanna just clarify that. And so we don't have to belabor that point with everybody here. But that I mean, I think that's an actual statement.

  • Lori Wilson

    Legislator

    And so I don't think there's anything that people can say that would convince otherwise that if you're a 15 year old and it's on this list that you can't use that product, that you're against it's against the law.

  • Lori Wilson

    Legislator

    And the and the issue would be to the tech company, not the child. And that would be accurate.

  • Josh Lowenthal

    Legislator

    I think that the goal of this legislation is not to be punitive to anyone. The goal of this legislation is to follow the scientific and pediatric guidelines, which are very clear about what is appropriate at a given age.

  • Josh Lowenthal

    Legislator

    And we're simply saying that with the data points that are, overwhelming on what's happening to children at a specific age and what the scientific community is very clear about of what they're able to handle at that given age that is inappropriate for

  • Josh Lowenthal

    Legislator

    them to be subjected to, the harm that's taking place. And that once you reach a certain age that you have the cognitive abilities to discern, a lot more what's good for you and what's not, and how to be judicious about what you're investing in.

  • Josh Lowenthal

    Legislator

    And that's something that we do when we allow 16 year olds to drive. We start them with a permit when they're 15. Are we banning them when they're 15? We're saying that we're delaying their full ability to drive.

  • Lori Wilson

    Legislator

    When they're 14, and we're banning them from driving without a permit.

  • Josh Lowenthal

    Legislator

    Can I just continue, please? Let me continue my answer, please.

  • Lori Wilson

    Legislator

    But it I think the floor is mine. I wanna ask one I wanna note one last thing, and then I'm good. I think that there are is opportunity to continue to to to continue with this legislation and do some adjustments to scoping, to ensure that we're not,

  • Lori Wilson

    Legislator

    being onerous or creating more bureaucratic mess with this bill. And so I would continue I would urge the author to continue in that. Thank you for the dialogue.

  • Lori Wilson

    Legislator

    Thank you.

  • Rebecca Bauer-Kahan

    Legislator

    We will move to miss Irwin.

  • Jacqui Irwin

    Legislator

    Thank you. And and I want to echo what my colleagues have said. I really appreciate your, passion on this issue. Obviously, you have the lived experience of of seeing what has happened with your, with your children.

  • Jacqui Irwin

    Legislator

    And so I and today today, I will be voting for the bill because I think this is a conversation that needs to continue. In in this privacy committee, we have been talking for years about the harms of of social media.

  • Jacqui Irwin

    Legislator

    It happened that on Friday, I was at Simi Valley High School speaking to some a group of seniors, a large group of seniors, and I mentioned that this bill was coming forward and was asking asking them what they what they thought.

  • Jacqui Irwin

    Legislator

    And so they brought up a lot of things that I that have been mentioned by the opposition, issues of being able to get around the controls. Parents might might just use their phones to allow children to access social media.

  • Jacqui Irwin

    Legislator

    A lot of them and we heard this today about, communication for isolated teens. I think that's that's really important. I know you're saying that there are still spaces that they would be able to go that are non, non addictive,

  • Jacqui Irwin

    Legislator

    but I think it's important that we make sure that those their those faces are there. What they also mentioned is they get their news from social media. So where is it?

  • Jacqui Irwin

    Legislator

    Like, where would it be that you that they would go for information if not Facebook or Instagram or, I know, some some of the other platforms.

  • Jacqui Irwin

    Legislator

    There's concerns about and which were mentioned again by the privacy groups that if you are doing age assurance, how do you make sure it's not anti privacy and their information doesn't get get out?

  • Jacqui Irwin

    Legislator

    And then, of course, there's First Amendment issues. So you've heard all those who don't necessarily I know you're trying to address them.

  • Jacqui Irwin

    Legislator

    The thing that I that I really wanna understand better is you're saying that these platforms like Facebook and Instagram, that if they are able to change the platform to become not addictive, that they would that teens can use them again.

  • Jacqui Irwin

    Legislator

    How do you how is that really measured? Who would be proving that the platform has become nonaddictive? How often would that happen?

  • Jacqui Irwin

    Legislator

    Are these media companies going to be once a year, once every six months, be able to show the the efforts that they've made on making their platforms nonaddictive?

  • Jacqui Irwin

    Legislator

    And so does it become a situation where for 14 year olds, you know, for six months, they can use Facebook, and then it's addictive, and then they can't? So I'm just how do you envision that?

  • Josh Lowenthal

    Legislator

    Precisely why we need any safety commission to be assessing that on a real time basis, to be analyzing what's happening on the evolution of the platforms, to be having direct dialogue with the platforms themselves and talking about those product changes,

  • Josh Lowenthal

    Legislator

    to have the ability to request or demand data, not just from a specific platform, but from all platforms to understand where there's behavioral changes along those lines, to make recommendations, and to advise the legislature so that we can create broader rules.

  • Jacqui Irwin

    Legislator

    And do we have with the definition that we have for addictive platforms, which platforms would be considered right now addictive, or is there or have we not analyzed them?

  • Josh Lowenthal

    Legislator

    Have have we not analyzed those things?

  • Jacqui Irwin

    Legislator

    No. I'm talking about I'm talking about you you you referenced the Skinner bill has a definition of addictive, but which which of the current social media platforms would this apply to right now if they.

  • Josh Lowenthal

    Legislator

    Well, I cannot give you an exhaustive list. This this policy does not reference size or scope of the platforms. But in terms of what children are using in mass right now and remember, this legislation is about breaking a critical mass.

  • Josh Lowenthal

    Legislator

    Social media is really popular and certainly with children because all the other kids are there, and that's where they're going to meet to their detriment. So there are smaller platforms that I may not mention now, but I would say TikTok, Instagram, Snap.

  • Jacqui Irwin

    Legislator

    You didn't mention Facebook? What was that? Oh oh, I see. Okay. Alright. So I

  • Josh Lowenthal

    Legislator

    Again, not an exhaustive list. And and and, you know, first of all, you're asking wonderful questions, and this is a very healthy dialogue. So I appreciate your questions. You know, each of those platforms have teen versions.

  • Josh Lowenthal

    Legislator

    Those teen versions in those teen versions, they claim to be providing platforms that are less harm.

  • Josh Lowenthal

    Legislator

    But they're not really coming to and we don't have right now any sort of oversight authority where they could effectively say we would like to get a buy in from regulators effectively what qualifies as not providing harm and what doesn't.

  • Josh Lowenthal

    Legislator

    That's what this bill seek seeks to do. And as I said in my opening statement, and I wanna stand by this, this is their option.

  • Josh Lowenthal

    Legislator

    A platform that wouldn't that I mentioned before is like a Discord that does not have an infinite scroll addictive feeds, the chat bots, the things associated with that. Any one of the kids versions of these platforms could adopt that, and I hope that they do.

  • Josh Lowenthal

    Legislator

    You know, the goal here is for us to find alignment with the platforms, is for the platforms to hear what concerns parents, what concerns the medical community, psychological community, education community,

  • Josh Lowenthal

    Legislator

    and to change those designs so that they can be healthier for our kids. It's really that straightforward.

  • Jacqui Irwin

    Legislator

    Have you talked to the platforms to see if they are willing to have like, how difficult would it be for them to have a Instagram safe teen version? Have you have you asked them?

  • Josh Lowenthal

    Legislator

    Yeah. We're in constant dialogue with the platform's assembly member, and we would love to be able to talk to them about this. Those are gonna be internal business discussions that they have.

  • Josh Lowenthal

    Legislator

    This bill defines very clearly, what what qualifies, under those those matters. We do not address content whatsoever.

  • Josh Lowenthal

    Legislator

    This bill is very mindful of section two thirty, is very mindful of of the court case that just took place. As a matter of fact, that we're we're strictly about design features, and we're not about First Amendment rights.

  • Jacqui Irwin

    Legislator

    Okay. And then, I guess, just for the opposition, if maybe you you talked about areas where youth can communicate in safe spaces. What what are those type of apps, and and would they, in your mind, have addictive features?

  • Kate Sim

    Person

    Yeah. Thank you for the question. The thing is, you know, young people participate in various social spaces as much as adults do, and there isn't a clear line that delineates between what is a youth specific space and what isn't.

  • Kate Sim

    Person

    And the thing about young people's use of social media is that they are using it for things like news. So for example, last year in The UK when they passed age verification, what they found is that various, news related,

  • Kate Sim

    Person

    information was banned from young people's access, including things like reproductive health information, information, sexual health information, political news, and so on.

  • Kate Sim

    Person

    So it isn't just about keeping young people away, but it's going to, A, keep them away from accessing information about the world that they're participating in, and B, it's gonna have detrimental repercussions for adults and other people,

  • Kate Sim

    Person

    who are now going to be limited in their ability to access their digital and public lives as well. And it seems like there's a lot of, attention being put into these the possibility of youth specific, products that tech companies are proposing.

  • Kate Sim

    Person

    I think it's quite telling that tech companies are very happy to comply with the possibility of a youth specific product that's additional product and revenue opportunities for them and that beckons a question of whether this policy really is effective in

  • Kate Sim

    Person

    curtailing their harmful predatory business practices. In fact, just a few weeks ago, I was consulted by WhatsApp, which was which announced their development of a 13 WhatsApp product, where anything on 13 app gets, it would be sent to a parent's account.

  • Kate Sim

    Person

    And, while that does give some parents a peace of mind, it does raise serious questions about young people's privacy rights.

  • Kate Sim

    Person

    And crucially, Meta said that while they would allow they would mitigate some safety features for 13 accounts, that Meta AI chatbot would still be an available feature.

  • Kate Sim

    Person

    So once again, we've just expanded the problem of tech companies, not actually being held to account, and now they are able to decide what is and isn't addictive. And I think that's that's the core thing.

  • Kate Sim

    Person

    No one is disagreeing that we need to regulate tech companies that are actively harming young people. We're banning young people is just simply not fit for purpose.

  • Kate Sim

    Person

    It's allowing tech companies to carve out exceptions. It's allowing them to set the terms for what is and isn't addictive rather than this public interest body setting the standards for what actually should be regulated.

  • Kate Sim

    Person

    And I think we can learn a lot from the Brazil example of ECA Digital, which was just, put into law last month, and they and they specify things like requiring platforms to remove infinite scroll, disable autoplay video, stop manipulative push notifications,

  • Kate Sim

    Person

    and stop targeted advertising for children. So it's that level of rigor and specificity that I think young people will really benefit from that puts the onus on the tech companies.

  • Rebecca Bauer-Kahan

    Legislator

    So I guess I would refer you to the language that that mentions addictive feeds, end of school, alt autoplay, and many of the things you notice. So it's here in the language what you're saying. Are you done, mister Warren? Okay. Thank you.

  • Rebecca Bauer-Kahan

    Legislator

    Mister Ward.

  • Chris Ward

    Legislator

    Thank you. I wanna thank the author for months of research and dedicated focus to this topic. The passion that you bring to it, I think, comes through several hats that I align with as well too.

  • Chris Ward

    Legislator

    We're both dads of kids that actually would be impacted by this bill. We represent a number of constituents, probably more or less, 70 to 80,000 of our constituents are under the age 16 and care very deeply about their, their environment, their well-being.

  • Chris Ward

    Legislator

    And I wanna talk a little bit more about issues specific to my community being a member of the LGBTQ community and our youth.

  • Chris Ward

    Legislator

    So I wanna start globally and just also commend you as well for, I think, you know, whether it's it may some probably would have noted it was an exceptionally long introduction, but a necessary one, because of the entire framing of the wealth research and

  • Chris Ward

    Legislator

    information that you've been able to piece together to be able to bring a bill of this magnitude and impact here for debate and the legislative process. So thank you for that.

  • Chris Ward

    Legislator

    You know, when you cover areas of making sure that some that the policy work that we're doing is evidence based, that's there. That you're thinking about linking it to other areas where we're looking at this as a potential solution because of this youth

  • Chris Ward

    Legislator

    specific harms that can come from using other products, driving a car, what have you. That's there. You're not dismissive or agnostic to some of the other concerns that I think also on their face are righteous that our opposition is bringing up too and

  • Chris Ward

    Legislator

    thinking through this balance of what are we know the negative effects and what are the positive effects. Right?

  • Chris Ward

    Legislator

    And how do we make sure that something's and what I like most about this bill, is that establishment of the Esafety Commission that should this become a law going forward, that is something that will continue to be a mechanism for ongoing review and

  • Chris Ward

    Legislator

    update of how this bill implements or how a law would implement over time, what comes on, what comes off. I think not to belabor. I'm not gonna try to repeat as long as this is going.

  • Chris Ward

    Legislator

    Many of the other comments that I do agree with here, but this is a mechanism for ongoing and, a sort of a iterative study, going forward. I wanted to focus in on issues that are particularly important to our caucus and and and myself as well,

  • Chris Ward

    Legislator

    my many in my home community. You know, we recognize for LGBTQ youth, it's a very scary time of transition, of unknowns for many who don't have a very supportive environment around them.

  • Chris Ward

    Legislator

    This is not unlike other communities too, those students who are living in rural communities or come from other marginalized communities as well.

  • Chris Ward

    Legislator

    And the positive, I guess, aspects of, you know, social media opportunities, well, providing them meaningful connection with others like them, providing inspiration or insight to acceptance, being able to find a sense of belonging.

  • Chris Ward

    Legislator

    All of those issues, right, are are certainly not lost on me us, and I know we're not lost on you.

  • Chris Ward

    Legislator

    And I'm wondering if you had a chance to review the opposition's letter as well and really recite for us as well what you appreciate about the perspectives that we're bringing here to be able to make sure that something is not lost for the benefit side of LGBTQ youth.

  • Josh Lowenthal

    Legislator

    You know, thank you, Assembly Member, and thank you for the time that you have spent with me. I wanna thank all the LGBTQ advocates, leaders in this state, outside of this state.

  • Josh Lowenthal

    Legislator

    I know that this legislation is tailored for The United States, but I was in Australia during the implementation. And I made a point of meeting with LGBTQ leaders while I was there as well to understand what the impacts are.

  • Josh Lowenthal

    Legislator

    I have read the letters, and I appreciate the feedback on this bill. This is we have received an immense amount of feedback from LGBTQ plus organizations.

  • Josh Lowenthal

    Legislator

    While online spaces can provide support, AB 179 does not eliminate access to the Internet broadly or to critical resources. It's it targets high risk platform designs, that amplify compulsive use and and harm.

  • Josh Lowenthal

    Legislator

    And the concerns that are raised regarding LGBTQ plus youth and other marginalized groups and others, they deserve serious consideration.

  • Josh Lowenthal

    Legislator

    They many young people just do not many young people do find support online, but we should not accept this false choice between support and exploitation.

  • Josh Lowenthal

    Legislator

    As I mentioned before, vulnerable youth deserve safe digital spaces. They deserve moderated communities, education networks, mental health resources, not algorithmic systems designed to maximize time online platforms.

  • Josh Lowenthal

    Legislator

    That is one reason why youth safety commission provisions originally proposed in AB 1700 were incorporated into this bill. California needs an expert body that studies the harms, identify safer alternatives.

  • Josh Lowenthal

    Legislator

    That is gonna be one of the mandates of that commission, is to identify those safer areas that marginalized communities can coalesce.

  • Josh Lowenthal

    Legislator

    California needs an expert body to study those harms, recommend best practices, and ensure that vulnerable youth continue to have access to healthy online resources.

  • Josh Lowenthal

    Legislator

    And my commitment to you, assembly member, is that we will just continue to have dialogue until we can get to a place where everybody feels heard and everyone feels that no marginalized youth feel isolated or do not have options for finding community information and so forth.

  • Chris Ward

    Legislator

    Thank you. And I know that that commitment is sincere. In fact, I'd, you know, evidence here. You've already taken amendments as well, and I to be able to address, some opposition concerns are out there.

  • Chris Ward

    Legislator

    And this is, even should it go forward, gonna continue to be able to have that same spirit of, you know, keeping people at the table, finding other ways to be able to, address those specific issues.

  • Chris Ward

    Legislator

    I would note this, and I'm looking at some, both from the Trevor Project's research as well, because we are focusing a lot of some, I guess, opposition concern on the positive benefits, which I echo. I share.

  • Chris Ward

    Legislator

    I'm fully aware of those as well too, that, LGBTQ youth and young people, well, first of all, they're also youth. Right? So they have the exact same underlying challenges as, youth generally do.

  • Chris Ward

    Legislator

    But for those for this community in the survey, 96% of those you said social media, positively impacted their well-being. So that's not should be lost on us. But it also said the same study, 88% said it negatively impacted their well-being.

  • Chris Ward

    Legislator

    So there's something there. And just because we can isolate some of the positive benefits that are important for marginalized communities does not negate should not negate our appreciation for the negative impacts as well that that that that are coming at them at the same time.

  • Chris Ward

    Legislator

    And we've we've gotta vet through that. So I you know, our our author is incredibly attuned to this issue, and I have full faith that, you know, we'll continue to keep everybody at the dialogue table to be able to address those issues.

  • Chris Ward

    Legislator

    The last comment that I would sort of note as well is that, you know, it's been been mentioned before that, you know, oh, well, other other companies are starting to be able to have a youth safe version of what they're doing.

  • Chris Ward

    Legislator

    And that's that's great, and that probably continue to, you know, observe improvements. But if, a bill like this, whether it's in motion as a bill or or something that, you know, hopefully would become law in in in in a better form, compels that to happen.

  • Chris Ward

    Legislator

    That's often what we do is to really sort of, like, hold those standards and really try to compel and and and hasten, the ability for industry to be able to meet the standards for which we set for our youth, then then, you know, it's an accomplishment, well achieved.

  • Chris Ward

    Legislator

    And that's why I hope it would be the, ultimate goal of this is is working closely with those so the Esafety Commission can review that and could be able to make sure that,

  • Chris Ward

    Legislator

    the positive aspects of these lines of communication aren't lost while minimizing or fully abating the negative consequences that are clearly documented for me to be able to support the bill here today. Thank you.

  • Josh Lowenthal

    Legislator

    Thank you, Assembly Member. And and I would just say that those discussions need to continue to happen in this committee as we continue to receive that data, receive that feedback as this is implemented over time.

  • Josh Lowenthal

    Legislator

    We need to understand the impacts. The technology is gonna continue to evolve. The products are gonna continue to evolve.

  • Josh Lowenthal

    Legislator

    It's going to not only affect the LGBTQ plus community, but other different communities in ways that we're not imagining right now. And that is the point. We need to be ready. We need to have that infrastructure set up.

  • Josh Lowenthal

    Legislator

    We we need to listen to the experts in this field, and we need to be mindful that we're not shutting anybody out under any circumstances at any time whatsoever.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you, Mr. Ward. Miss McKinnor.

  • Tina McKinnor

    Legislator

    Yes. Good afternoon. Is it up? Yes. Good afternoon. I'd like to thank the author for bringing this bill up.

  • Tina McKinnor

    Legislator

    I think it's extremely important for our young people to be protected. I also commend the the young people for coming in and testify. It's good to hear your voices, and see your activism.

  • Tina McKinnor

    Legislator

    A little bit about me, my I have two kids that are adults, but I also have a three year old grandson. Well, he'll almost be three year old grandson.

  • Tina McKinnor

    Legislator

    My son is in tech. He he's talking about AI. He's calls himself a tech pro, but he won't let my grandson unlike Assembly Member Wilson, my grandson never touches a cell phone. He never touches this thing. My son will not if I even, like, have it around him, he gets upset.

  • Tina McKinnor

    Legislator

    He doesn't want my grandson seeing us constantly on this the social media, and we don't around him. And so you see a guy that he spent his whole career in tech and in this industry, but he doesn't want his child doing this at such an early age.

  • Tina McKinnor

    Legislator

    Another comment comment is that social media is the only place where adults we're feeling comfortable and safe to have adults in the same space with kids being unsupervised.

  • Tina McKinnor

    Legislator

    There's nowhere in this country where parents allow their children to be in a place unsupervised with adults that they don't know. Nowhere in the world.

  • Tina McKinnor

    Legislator

    Right? And so we have to think about that, and I think that's why we need this type of legislation. When you look at PEP, the public health policy often asks acts on risk, not certainty.

  • Tina McKinnor

    Legislator

    Why should social media be treated differently than tobacco, alcohol, or any unsafe any other unsafe products? Because when you think about it, you have movies, PG 13 can't see them before 13.

  • Tina McKinnor

    Legislator

    Even though kids get around some, not all. Driving until you're 16, cigarettes until you're 18, alcohol until you're 21. What makes social media with its harmful, addictive products, what makes them different? And I'm asking this to the opposition than these products.

  • Rindala Alajaji

    Person

    I think one thing that I wanna highlight from my testimony is that social media is is unlike the other thing the other substances, frankly, that you mentioned is is a place where speech is shared.

  • Rindala Alajaji

    Person

    And like Member Wilson mentioned, we do have the first amendment in this country that we respect folks ability to provide their opinions regardless of how old they are.

  • Rindala Alajaji

    Person

    And I think that is a value of social media that should not be overlooked in this in this conversation as well, and where where social media set apart from from the substances that you mentioned.

  • Kate Sim

    Person

    Yeah. And I would actually argue that there are lots of spaces where very similar to online spaces where young people interact with with older people and older adults, and those interactions are not always predatory. And in fact, often they are not.

  • Kate Sim

    Person

    And this idea that talk, that there are these strangers who do not have the best interest of young people online and always characterizing online spaces as a dangerous space, I think ultimately sends a really harmful and disempowering message to young people.

  • Kate Sim

    Person

    In fact, we know that the greatest sexual harm that young people experience happen in the in the family system.

  • Kate Sim

    Person

    Ninety percent of young people who experience child sexual abuse are experiencing it through somebody that's already known to them. So the dangerous environments that we're worried about are actually happening inside.

  • Kate Sim

    Person

    So I think that is an an unfit analogy to be applying to the online spaces. If we are really worried about, young people having access to accurate information, again, that's why we're imploring, everyone to think about, how to make this proposal fit for purpose.

  • Kate Sim

    Person

    The kind of misinformation that young people are receiving, the kind of harmful interaction that young people are having, these require feature level design changes that put the onus on the tech companies instead of getting young people off the platform.

  • Kate Sim

    Person

    In fact, a 16 year old, social media and youth advocate in Australia, her name is Abby Jane, 16 year old, about three months out into the Australian social media ban. She wrote, I'm not sure that the ban has made young people safer.

  • Kate Sim

    Person

    It may have simply made the problem harder for adults to see. So we are delaying confronting the real issue, which again is with the social media company's predatory business practices, and not about regulating kids.

  • Tina McKinnor

    Legislator

    Just and and I want you to answer this, but I would never, as a parent, have my 10 year old unsupervised and with a with a group of adults, like, in a social space setting. My unsupervised 10 year old or eight year old would never be in a group setting. Yes.

  • Tina McKinnor

    Legislator

    In a classroom with a teacher that's that's in an adult or a teacher's aide, but I'm saying just like strangers in a socialized space, my eight or 10 year old would not be anywhere with. And and I'll just and I wanna hear from the author.

  • Josh Lowenthal

    Legislator

    I just wanna say, you know, it's incredibly important for us all to remember that this is being framed as a public health issue, and public health issues supersede first amendment rights when it comes to safety initiatives.

  • Josh Lowenthal

    Legislator

    We don't allow children at age 15 to determine whether or not they should wear a helmet when they're on a bicycle. We do not, say that that younger kids have the ability to not be in a car seat when they're in a car.

  • Josh Lowenthal

    Legislator

    We have not determined that they have the ability to go buy cigarettes so that they can smoke even if that's their expression. We have not given them the ability to not go to school.

  • Josh Lowenthal

    Legislator

    That is not their choice. So public health is a critical important here. We have heard from the medical experts. We all know that this is happening globally real time, which is why two dozen countries are acting on this simultaneously in the exact same fashion.

  • Tina McKinnor

    Legislator

    Thank you. The bill focuses on platform design and safety, not risk restricting speech. So how exactly does this violate their first amendment rights?

  • Rindala Alajaji

    Person

    Well, by nature of the young people not being having access to those platforms, they are not able to share information or access information as efficiently as any other person is. So thus they are cut off from from that speech in our perspective.

  • Rindala Alajaji

    Person

    I also wanna add a lot of your a lot of the analogies that you were just bringing up bring bring the question of parenting.

  • Rindala Alajaji

    Person

    I think this bill also takes a lot of that responsibility and empowerment that parents have to direct the upbringing of their children to decide when is an appropriate time for them to be on social media.

  • Tina McKinnor

    Legislator

    Should be around adults.

  • Rindala Alajaji

    Person

    This bill does take that away from them because some parents might decide that their young person is.

  • Rindala Alajaji

    Person

    Well, their young people have different levels of of maturity and might have different levels of being able to be on social media. There might there might be a parent who might not want their 18 year old on social media still.

  • Rindala Alajaji

    Person

    But the this our our point is that the government shouldn't be making those decisions for parents.

  • Tina McKinnor

    Legislator

    So we okay. Last question I had for you guys. Give me one minute, please. Sorry. I wrote my questions down.

  • Tina McKinnor

    Legislator

    I the bill doesn't silence young people. It protects them while they speak. And this is just my statement. Youth shouldn't have to risk their mental health just to practice in civil civic life.

  • Tina McKinnor

    Legislator

    They should be able to practice civic engagement and not be be in in but have a risk to their their mental health.

  • Tina McKinnor

    Legislator

    We can empower young voices and demand safer platform. That's not a contradiction. It's leadership protecting our youth. The question isn't whether youth can organize. It's whether we're willing to make sure that they can do it safely.

  • Tina McKinnor

    Legislator

    And so we I was an activist since I was 10 years old. There was no Internet then. And I used to organize my high school. We've organized things. They closed they used to have the west side of our building bathrooms closed, and we we stood up.

  • Tina McKinnor

    Legislator

    We went to the library, and we did a sit in. There were things you could do before the Internet was there and so or before social media was there. I think it's it's more important for us to protect the mental health of of young people, especially 16.

  • Tina McKinnor

    Legislator

    And I think 16 years old is a great a great age for this. And so you could you could still there are ways we could still organize.

  • Tina McKinnor

    Legislator

    There are platforms. Maybe you guys are gonna come up with some youth platforms where adults can't even get on there, and it's just you guys, would love to see that where we can make our youth safe. And with that, I will be supporting this bill.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you, miss Mckinnor. And, if I may just on the first amendment question, nobody's put me on the bench, and I'm no longer litigating, so I don't get to, weigh in the judicial branch.

  • Rebecca Bauer-Kahan

    Legislator

    But I'm so confused by the jurisprudence that says that social media platforms are the public square because as I learned in constitutional law, if it is the public square and it is a free speech space, then they cannot use an algorithm to suppress certain speech.

  • Rebecca Bauer-Kahan

    Legislator

    That would be a violation of the first amendment. So I hope some lawyers out there listening to this and go make goes make that argument because these are not First Amendment free speech spaces.

  • Rebecca Bauer-Kahan

    Legislator

    They are spaces where companies are deciding what speech is heard and what speech is not, which fundamentally would be a violation of the First Amendment if they were truly the town square.

  • Rebecca Bauer-Kahan

    Legislator

    So I just every time I hear this argument, I need to make that point. And with that, miss Ortega.

  • Liz Ortega

    Legislator

    Thank you to the Chair, author of this bill. I for one, am supporting it. I think talking about this issue in a as a public health crisis is spot on.

  • Liz Ortega

    Legislator

    As we learn more and more, from experts and research about the harms that a lot of these companies are purposely creating in these spaces, you know, I am, you know, more and more appalled actually that we've allowed this to go as far as it has.

  • Liz Ortega

    Legislator

    So I'm gonna just go back to the question on this issue of access versus banning.

  • Liz Ortega

    Legislator

    So 1709, your bill, focuses on account creation, not access to content. So can you explain to that explain that to me a little bit more How it would work?

  • Josh Lowenthal

    Legislator

    There will be a age verification process that the platforms are accountable to. This this bill actually references the the Buffy Wicks Assembly Member Wicks, bill that establishes age verification mechanisms.

  • Josh Lowenthal

    Legislator

    And the platforms will be accountable to making sure that anybody that is on that platform, if it is designated to have these harmful features by the safety commission, to be to ensuring that, there are nobody that falls beneath the age of 16 on those platforms.

  • Josh Lowenthal

    Legislator

    So they so if you were under age 16, you would not be able to create such a platform. If you were determined to already have an account, that you would have to you know, that that account would be lost.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you, Ms. Ortega. Well, Mr. DeMaio, I think was next, but I don't know. Okay. Mr. Hoover, Mr. Patterson, just one of you wanna speak? Mr. Patterson.

  • Joe Patterson

    Legislator

    Thanks. Well, unlike our Chair who's been in constitutional law, I have not been. So, you know, I mean, I say that with, you know, I expect the courts and things like that to make those determinations over time. You know, that's why we have litigation. That's why we have court system.

  • Joe Patterson

    Legislator

    But I have always kinda struggled with this, like, First Amendment argument. You know, I think about some of the features and some of these apps.

  • Joe Patterson

    Legislator

    I've you know, the first instance, and I mentioned this yesterday, in which I even had consumed the idea that social media could be an atrocious place for everybody, but also in some cases, but especially children, was when a neighbor of mine, Zach Didier,

  • Joe Patterson

    Legislator

    received fentanyl on Snapchat, which was which was intentionally designed to delete messages and intentionally designed to have a map feature in which predators could seek out children.

  • Joe Patterson

    Legislator

    So I'd like to ask the opposition, is that a First Amendment right that should be protected?

  • Rindala Alajaji

    Person

    I'm not an attorney, but I'm happy to have our legal experts.

  • Joe Patterson

    Legislator

    I'm just asking I'm just asking your opinion on whether that's a right that should be protected.

  • Rindala Alajaji

    Person

    I think in our legal opinions are that the these are, design features that they that similar to newspapers, you're able to put different headlines in different places that is a publishing free speech right for for publishers to have.

  • Rindala Alajaji

    Person

    The way we see it is similar to that for social media programs to have their own features and design priorities, but I can follow-up with your office after with our litigators who can go into way more detail than I can.

  • Joe Patterson

    Legislator

    I would love to hear that because I've actually, every time I've been in a hearing, this is only my fourth year in the legislature, and I'm hoping you don't fall into this trap.

  • Joe Patterson

    Legislator

    But I've regularly hear people say they'll follow-up with my office, and it's like nobody ever has. So I look forward to, that happening someday.

  • Rindala Alajaji

    Person

    I'll prove you wrong.

  • Joe Patterson

    Legislator

    But, I like to ask you, is that a First Amendment right for that design feature to be protected?

  • Kate Sim

    Person

    I am not a lawyer. But I think the fact that there is instances like that shouldn't mask the fact that there are lots of information that young people access through social media spaces.

  • Kate Sim

    Person

    For example, I work with young people who have experienced sexual abuse in their homes. Okay. Their ages range from 12 to 15. That's where That's where they are. So you went down that.

  • Rebecca Bauer-Kahan

    Legislator

    Not talk over each other, but it is the Assembly Member's time.

  • Joe Patterson

    Legislator

    I'm glad you went down that path, actually, because they're totally contradictory. In one case, you're using about how the small number of people who use that feature on Snapchat to cause harms is no big deal.

  • Joe Patterson

    Legislator

    But when you talk about how most sex predators are actually members of the family, that is actually a minority of parents. Despite it may despite maybe that's where harms come from.

  • Joe Patterson

    Legislator

    Every almost every fentanyl death I have seen from a kid has been obtained on social media. So you can't use those are contradictory arguments. A small number here equals this. A large number here equals that.

  • Joe Patterson

    Legislator

    The feature is being used or was being used in a way, and it was known and is a design feature that caused harm, and it was very obvious. And I don't think that's a first amendment right to be protected.

  • Joe Patterson

    Legislator

    And I think it's crazy that we just have to look at it as, like, they get carte blanche to do whatever the hell they wanna do because it's a First Amendment right. That is not right.

  • Joe Patterson

    Legislator

    And I and I've never actually heard anybody come to me and say, like, where's the limits to that? Nobody's ever said, and that's what's frustrating for me. They just say, you can't do this because it's a violation of the First Amendment.

  • Joe Patterson

    Legislator

    But this is actually a piece of legislation. I am happy to move forward. And when it passes the legislature and when it's signed by the governor, I know it will be litigated, and we will find out for sure whether it's a violation of the First Amendment.

  • Joe Patterson

    Legislator

    But in the meantime, we have to craft legislation in a way that meet we believe meets the standard. And so I wanna clarify some things because I continue to hear the same thing mentioned again.

  • Joe Patterson

    Legislator

    I've read the language of the bill. I assume most people have because I'm nice. Is there anything in this legislation that would stop any platform that does not have an addictive feature from remaining open and available to children?

  • Josh Lowenthal

    Legislator

    No.

  • Joe Patterson

    Legislator

    So we keep mentioning Australia and The UK and other countries that have socialist governments. But here in California, which I haven't you know, a lot of times, I get asked, like, if what my opinion is on what they're doing on the federal level.

  • Joe Patterson

    Legislator

    I can barely keep track of what we're doing on the state level. I'm definitely not keeping track of what's going on in The United Kingdom. But I appreciate you, Mr. Lowenthal, because you actually you took some of, in our meetings, some of the feedback that I had.

  • Joe Patterson

    Legislator

    Our statutory definition of social media includes act the the state definition, Telegram, Discord, you know, these sort of, like, messaging platforms.

  • Joe Patterson

    Legislator

    But this legislation is actually the amendments were crafted in a way in which those companies, first of all, that don't have an addictive feature would be excluded.

  • Joe Patterson

    Legislator

    But, also, the way I read this language, and please correct me if I'm wrong, it actually says the language in the bill says it says the legislate it points out that a user can specifically and unambiguously request specific information such as a news site. Is that correct?

  • Josh Lowenthal

    Legislator

    Yes.

  • Joe Patterson

    Legislator

    So nothing would this prohibit your language? It doesn't seem like it, but correct me if I'm wrong. What would stop me from joining a Facebook group of my friends of similar interest and chatting with people over Facebook or any other social media app,

  • Joe Patterson

    Legislator

    your language doesn't prevent that from happening, does it? It does not. And it your legislation also specifically points out main addictive feature.

  • Joe Patterson

    Legislator

    There's others including autoplay of videos and things like that, but the main addictive feature is a feed in which something else is deciding what's being fed to me, but it doesn't prevent a chronological timeline or information that would be given to me or

  • Joe Patterson

    Legislator

    information in which I selected I want to receive if I was a child, it doesn't prevent that from occurring. Correct?

  • Josh Lowenthal

    Legislator

    That's absolutely correct. And as a matter of fact, Assembly Member, I wanna say something reiterate something I said before. One of the voices of opposition, The Trevor Project operates their own social feed, their own social platform.

  • Josh Lowenthal

    Legislator

    It does not have any of these harmful products in there. It's a mechanism whereby community can be found and is determined to be safe.

  • Joe Patterson

    Legislator

    It bans specific features. Correct?

  • Joe Patterson

    Legislator

    So it seems like we actually have not gone the direction of Australia, and maybe perhaps because we've learned from some of the things. We use them as inspiration, but we're, I believe, improving what other countries have done because it doesn't, in any way, ban any app.

  • Josh Lowenthal

    Legislator

    That's absolutely correct.

  • Joe Patterson

    Legislator

    And, like the Chair, I'm also old enough, to remember when things were in chronological timelines. And so Aye, you know, I I don't think any of the apps are going away. I think they're all gonna continue to exist, and that's in and of itself kinda controversial.

  • Joe Patterson

    Legislator

    Because if you were to ask some people in my district, and the initial form of the bill that I thought maybe we could go, which was a straight up ban, there are actually people who responded to my Facebook post yesterday saying, why don't you just ban it?

  • Joe Patterson

    Legislator

    So this is a measured measured approach.

  • Josh Lowenthal

    Legislator

    The reason why that this is such a populist issue is because families are exhausted. People are totally and completely exhausted and need remedy. Now if you take a group of kids, I see it in my house all the time, friends that are coming over to play with my daughters.

  • Josh Lowenthal

    Legislator

    And they can be having an amazing time, and then you can take a device, a screen, and put it in the middle of the room, and they'll stop what they're doing, and they'll all go to the screen. We we are in a situation where families are asking government to provide remedy.

  • Josh Lowenthal

    Legislator

    During my time in Australia where I was there for the implementation, one of the most surprising things to me was how remarkably noncontroversial their policy was, how wildly populist it was, and how everybody understood that this is a social

  • Josh Lowenthal

    Legislator

    experimentation that has never been done before. To actually take a social addiction, this is like a sociology experiment that we have allowed to to take place and no fault to anybody's. By the way, I also wanna point out the platforms themselves didn't envision this.

  • Josh Lowenthal

    Legislator

    They tested and learned over time that this engagement was wildly, wildly profitable, and so they stepped on the gas. And in Wall Street with the the expectations and the pressure to constantly perform every quarter better than the quarter before, better than the year

  • Josh Lowenthal

    Legislator

    before has made that pressure totally and completely untenable.

  • Josh Lowenthal

    Legislator

    And so we have perverse incentives right now. As I mentioned in my opening, there are conscientious, thoughtful people leading those companies who are also parents, who are concerned about this.

  • Josh Lowenthal

    Legislator

    Many of which you hear about don't allow their children on their own platforms, which speaks volumes to this.

  • Joe Patterson

    Legislator

    You know, I'll just wrap up with with, two separate points. I don't think my, all my colleagues would necessarily, agree with this. But during during Covid people were being shut down on their opinions.

  • Joe Patterson

    Legislator

    People were being kicked off the apps for for having opinions on or their posts were being blocked or deleted because of opinions they had about government's role in how we responded to the government or to the Covid pandemic.

  • Joe Patterson

    Legislator

    And, you know, that impacted, in that case, a lot of conservative families, that were censored.

  • Joe Patterson

    Legislator

    And even, and I gotta give credit to Facebook for recognizing that, moderation panels within the companies was a terrible idea.

  • Joe Patterson

    Legislator

    And it's just kind of interesting because you know, and I think the Chair kinda mentioned this, but, like, how is that not a violation of free speech?

  • Joe Patterson

    Legislator

    You know, it's like it only free speech only applies in this case, at least in the arguments, the opposition to the platforms. Like, they can do whatever they want.

  • Joe Patterson

    Legislator

    They can have a feature where predators can seek out children to sell them drugs, and we have to protect it.

  • Joe Patterson

    Legislator

    I don't believe that for one second. And one other thing I wanna say is and I and I mentioned this yesterday, but, you know, as a parent with too many kids, they're all blessings. Just I you know, I had a full head of hair when the first one was born.

  • Joe Patterson

    Legislator

    Is I think the difference with video games and even other applications on the phones, and I don't necessarily think this per se is gonna stop a kid from staring at their phone and maybe messaging or doing other things.

  • Joe Patterson

    Legislator

    I'm more concerned about the addictive features and the harms that are result of that that intentionally draw you to the feeds.

  • Joe Patterson

    Legislator

    But, like, when I was a kid, I wanted to play my Nintendo or Sega Genesis. I'd come home and I'd play until my eyes were bleeding, and my mom finally came in and said, like, hey. You gotta get off your video game.

  • Joe Patterson

    Legislator

    And I can even do that to an extent with my kids now as I can shut off their access to screen time. And and in fact, I think one of the opponents had written about how, like, parents are tired of requesting give more screen time.

  • Joe Patterson

    Legislator

    That is true. I am tired of it, but I do because of safety of my child and being on the phone all the time. So I'm happy to do it after I yell at them for stop by asking me again.

  • Joe Patterson

    Legislator

    But the difference with social media versus video games is if I were to give my child access to social media when they because a lot of people say, like, well, why don't you just do better parenting?

  • Joe Patterson

    Legislator

    Well, once they leave unless I'm, like, looking over what they're saying or doing or what kind of predators are reaching out to my children, unless I'm doing that, I there's no way to restrict or to even know what's going on.

  • Joe Patterson

    Legislator

    So parents actually can't be more involved in what's going on with, what's going on with in their lives. So I also don't think it's a it's a really good argument to say, like, parents need to need to monitor their kids more because it it's impossible to do unless you're

  • Joe Patterson

    Legislator

    watching every feed, unless an app is providing me everything that my kid is doing, which would definitely be an invasion of privacy of what's going on. So I'm really happy to support this.

  • Joe Patterson

    Legislator

    I think you've you well, from the get go, we've worked on so much legislation around this area, and I'm very pleased to do so. You've taken input that I've provided, and I think you've struck a very, very nice balance to address many of the concerns.

  • Joe Patterson

    Legislator

    Because, again, I'm a say it one last time. This is in no way a ban of any app. It's no way a ban of any app. Kids can continue to seek out information. The bill specifically says that people can kids can search for information.

  • Joe Patterson

    Legislator

    One might argue ban altogether, but that's not what we're doing. You found a balance, and I think it's great work. And I really look forward to supporting it as if that was a question because I'm a joint author on the bill, but I look forward to voting yes shortly.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you. Assembly Member, Mr. Demaio, you ready?

  • Carl DeMaio

    Legislator

    There we go. So I come from the more of the libertarian wing of the Republican Party, and I am a hawk when it comes to new regulations. I don't like them.

  • Carl DeMaio

    Legislator

    I think a news organization calculated that I'm the number one no vote in the assembly because there's not a lot of good legislation that I come across. But for this bill, I'm inclined to support it because I do believe that it strikes a a good balance on a very difficult question.

  • Carl DeMaio

    Legislator

    And there are first amendment issues, obviously, that are being raised. There's big government questions, big brother, that people can be concerned about. But we have imposed age restrictions on a number of other activities and and products.

  • Carl DeMaio

    Legislator

    Obviously, tobacco being one of them. The movie industry self imposed age restrictions and policed movie theaters. I remember growing up, and you you couldn't go to a rated R movie.

  • Carl DeMaio

    Legislator

    It that you have to you'd have to show your ID, and these platforms are simply being asked to make sure that they have an ID check, an age verification. A couple questions on some issues in the bill. First, on civil liberties.

  • Carl DeMaio

    Legislator

    Florida has already implemented a similar restriction that begins with an age restriction of 14 or younger. What the eleventh circuit court ruled, did it have to deal with the age restriction or other elements of that bill?

  • Josh Lowenthal

    Legislator

    Thank you for your your your questions, Mr. Demaio. I appreciate your very thoughtful comments, and it's very meaningful to me. And I know how closely you parse through everything that you're voting on.

  • Josh Lowenthal

    Legislator

    And so I know how serious you're taking this. The first thing I wanna say about Florida before I get into the the court ruling is that prior to the implementation of the law they have, the governor vetoed a very similar res legislation that we're considering right now, again, bipartisan.

  • Josh Lowenthal

    Legislator

    The Florida law, for anybody who is is unfamiliar with it, prohibits users 14 from creating accounts. Their law has been in effect since January 1, 2025. Eleventh Circuit Court of Appeals denied an attempt to block Florida's, ban on accounts for kids 14, finding that the law was

  • Josh Lowenthal

    Legislator

    content neutral, and likely to survive, intermediate scrutiny. But like AB 179, it focuses on the platforms, not on the content itself.

  • Carl DeMaio

    Legislator

    Okay. So, you know, the blanket statements that somehow it's gonna be an easy this is against the First Amendment. There's already some litigation. There's already some court rulings.

  • Carl DeMaio

    Legislator

    And to my colleagues who've said, look, there we're not we're not ignoring these First Amendment questions, but we are also saying that there's a process for us to work through those.

  • Carl DeMaio

    Legislator

    And, it's it's not necessarily clear cut, a violation of the First Amendment likely is actually gonna be sustained. I actually think that it it is likely to be sustained because there are documented public interests that can be, tied to the age verification or the age restriction.

  • Carl DeMaio

    Legislator

    Second, I just wanna say thank you for eliminating private right of action here. If there's an enforcement issue, it's taken on by duly elected law enforcement prosecutors, our attorney general, the district attorneys, city attorneys.

  • Carl DeMaio

    Legislator

    So it's not, like we're gonna see people try to weaponize this unless there's a legitimate concern about noncompliance.

  • Carl DeMaio

    Legislator

    Third, miss Wilson had expressed a concern about banning, and your response was, well, it's not a ban, but it's a restriction. In essence, these platforms could very well be made to be available to people 16 provided that they don't have the features on that version of the platform.

  • Carl DeMaio

    Legislator

    So YouTube versus YouTube, what they call it, youth? YouTube youth?

  • Josh Lowenthal

    Legislator

    YouTube kids.

  • Carl DeMaio

    Legislator

    YouTube kids. Kids. So you're not banning these platforms. What you're simply saying is that the version of the platform with these features, we're gonna hold off on providing those features to those kids until they meet the age requirement.

  • Josh Lowenthal

    Legislator

    Assembly Member, I know that our law here is different than the Australian law. But since it is the fur they're the first country that's moved on this, I would point out that their Esafety Commission has, or has determined that YouTube, the adult version, is in bucket and

  • Josh Lowenthal

    Legislator

    has those features, and YouTube Kids is not. Yep. And so kids are able to utilize that.

  • Carl DeMaio

    Legislator

    You're not banning kids from swimming in the pool. You're just simply saying if they're gonna do it at that age, they need to have floaties, and we need to make sure that there's certain guardrails.

  • Carl DeMaio

    Legislator

    Fourth, the the the big issue that hasn't been raised here, and it's it's more of a practical issue. I can see a situation where if, we simply say let's leave it to the parents, let the parents decide, and I'm all for parents rights. Believe me.

  • Carl DeMaio

    Legislator

    Can you imagine sitting there as a kid, 13 years old, and a group of your your your friends in school are able to use social media devices because their parents are, like, fun and fancy free and maybe don't understand the the the risks in the online environment.

  • Josh Lowenthal

    Legislator

    Or not present.

  • Carl DeMaio

    Legislator

    And you're you're one of the 10% or 15 of the kids whose parents have said, no, no, I don't want you to do this. You're ostracized. You're marginalized.

  • Carl DeMaio

    Legislator

    You feel left out. And that sort of peer pressure and social stigma can be hard for a kid. So, you know, from a practical standpoint, I'm setting aside the constitutional issues and the regulatory issues.

  • Carl DeMaio

    Legislator

    From a practical standpoint, it's probably gonna be a lot easier for these kids if it's just yeah. All of us who are 16 don't get to use the device. You're not being left behind. You're not you're not being marginal marginalized from the cool kids.

  • Carl DeMaio

    Legislator

    And so from a practical standpoint, this might be a very good public policy. A couple of things in terms of refinement. I know we're going through the process, and I know that Mr. Lowenthal has been very open to input. The amendments reflect that.

  • Carl DeMaio

    Legislator

    So people who oppose the bill, particularly industry, you need to step up and come up with common sense suggestions. You're not dealing with an author who's not willing to hear solutions.

  • Carl DeMaio

    Legislator

    But a couple elements that might make the bill stronger is if we can continue to work through the process on a clarification of addictive features. There seems to be some legitimate concern that it may not be clear enough in terms of definition.

  • Carl DeMaio

    Legislator

    Second, I would love to see some language in this bill before it's passed that would create an opportunity for a helmet provision. We didn't ban bicycle riding from from kids. What we simply said is you have to wear a helmet at a certain age.

  • Carl DeMaio

    Legislator

    For the technology companies, I think you can invent a helmet, particularly because your profit margin might be on the line. So I'd like to see you step forward and invent what would be the helmet version for social media for these kids.

  • Carl DeMaio

    Legislator

    And perhaps some language could be included that if the commission determines that a proper helmet can be developed, that they are instructed to either come back to the legislature or that they can issue some regulatory guidance that says, if a platform uses the

  • Carl DeMaio

    Legislator

    be, exempted. That language may may be the whole, you know, put up or shut up technology companies. If you think you can develop a helmet, and the commission would sustain the helmet, this is your opportunity.

  • Carl DeMaio

    Legislator

    But I don't think the social media companies will develop a helmet unless we actually move down the road on the age restriction. I do believe that social media companies will develop a helmet because they're gonna want to continue to service this audience.

  • Carl DeMaio

    Legislator

    And then finally, if you would be so kind to explore the commission potentially being asked to come back within the first twelve months on a very specific question.

  • Carl DeMaio

    Legislator

    And that is there are certain social media platforms that are not necessarily under the addictive definition that I believe from a public safety and a public health and a child protection standard needs to be these platforms need to be looked at for age verification and

  • Carl DeMaio

    Legislator

    age restriction. And that is online dating platforms like Grindr and Tinder. I believe present a risk to children that would substantiate an age restriction.

  • Carl DeMaio

    Legislator

    And so if not including it as part of your bill, at least telling the commission, here's a question that the legislature wants to put at the top of your agenda. Please report back if you believe that an age restriction should also be applied to these platforms.

  • Carl DeMaio

    Legislator

    I don't know if the addictive element would cover those platforms. It probably doesn't, maybe it does.

  • Carl DeMaio

    Legislator

    But at least this kinda gives an indication to those platforms. We're watching these platforms. We also believe that the content, and the activity, and the behavior on those platforms are such that we do not want kids to have access to those without a verification.

  • Carl DeMaio

    Legislator

    This has not been easy for you. It's not an easy topic. So I appreciate the thoughtful approach, the very balanced approach that you have taken to the bill. It might come as a surprise to some that I'm gonna be supportive of it.

  • Carl DeMaio

    Legislator

    But that isn't that is a testament to how much I believe this author has developed a balanced and common sense approach here. And that's why I appreciate, the leadership and the work that you've done on this this topic.

  • Josh Lowenthal

    Legislator

    Thank you, Assemblymember. Just in the interest of brevity, I just wanna, say how meaningful your comments are. I'm, you know, looking forward to going down that journey with you as it relates to other areas or crossover areas where this could apply.

  • Josh Lowenthal

    Legislator

    I think that the the dating platforms are certainly in need of attention given the effect and impact it can have on young people. I'm excited to the establishment of the Esafety Commission and to task them with looking at those things specifically and

  • Josh Lowenthal

    Legislator

    I'm also looking forward to collaborating with you on legislation that can make a meaningful impact on those things, without taking away civil liberty. Thank you so much.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you and I just want to note that after hearing we did last year on online violence against women, which actually did highlight the point you made about, dating apps, I believe our colleague Assemblymember Davies is looking at that question.

  • Rebecca Bauer-Kahan

    Legislator

    So, whether we do it here or elsewhere, I think it's an important point, and thank you for that. Mr. Hoover, you're up.

  • Josh Hoover

    Legislator

    Thank you. Alright. Let's see here. Thank you. I just wanna thank the author for all your work on this.

  • Josh Hoover

    Legislator

    I know this has been quite the process. It's obviously a a very big bill, very complex, a lot of nuances you've talked about. I appreciate you bringing it forward. I think I wanted to start some of my questioning, for the opposition, actually, if I may, particularly for Dr. Sim.

  • Josh Hoover

    Legislator

    I was hoping that you could, tell me a little bit more about your organization, and what, is there COSPR, what is your mission and purpose?

  • Kate Sim

    Person

    Thank you for your question. COSPR, which again stands for children's online safety and privacy research, It's a research program that was incubated at the University of Western Australia.

  • Josh Hoover

    Legislator

    Thank you. And, I think just had had some questions about where your funding comes from. I read online here that you are funded by a coalition of tech companies. Just wanna see if that is accurate. No. That's If you ever get any funding from any tech companies of any kind.

  • Kate Sim

    Person

    No. That is not correct.

  • Josh Hoover

    Legislator

    So where does your funding come from for the most part? Is it mostly public?

  • Kate Sim

    Person

    We currently have seed funding up until next year, and we're currently in the process of looking for other funding opportunities. But but we have a very strong commitment to not take tech companies' money, so we'll be looking at public funding avenues.

  • Josh Hoover

    Legislator

    Okay. That's that's good to hear. I I did notice too in your bio that you used to work for Google. Is that is that accurate?

  • Kate Sim

    Person

    Yeah. That's true. I used to work in Google's child safety public policy, and I saw very closely the ways in which tech companies choose profit over actually doing what's right for safety.

  • Kate Sim

    Person

    So I think a lot of the revelations that have been exposed by many of my whistleblowing colleagues, I very much have had a shared experience as them.

  • Josh Hoover

    Legislator

    So do you I mean, do you ever have concerns as a conflict of interest given your previous employment and sort of the research you're now working on?

  • Kate Sim

    Person

    Yeah. I appreciate your question. So, actually, my research topic about the intersection between safety, particularly in regards to tech policy go far beyond my experience with Google. I got my PhD from the Oxford Internet Institute where I researched how sexual assault survivors, particularly young survivors,

  • Kate Sim

    Person

    use different digital tools to seek help, and access resources. And I ended up thinking that I could make meaningful difference at Google. So worked there for three years. So all the ways in which I may have been naive and have not been able to do that.

  • Kate Sim

    Person

    And I saw over and over again how tech companies choose again their profit incentives over doing what's actually evidence based and rights respecting that actually would have made their products much more safe for young products much more safe for young people.

  • Kate Sim

    Person

    And it's actually from that disillusionment that I decided to go back to my academic routes, to continue doing my further studies. So I appreciate concern about conflict of interest, but I feel confident that there isn't any monetary or moral conflict of interest.

  • Josh Hoover

    Legislator

    Appreciate that. And and I think it I appreciate you pointing that out. And and those that that disillusionment, those concerns, I think those are concerns that have been validated, from a number of different people that have worked in the social media space or in the tech space.

  • Josh Hoover

    Legislator

    I ask, and I'll shift gears a little bit here because the number one principle that your website has listed of of all the principles in in in what your organization seeks to pursue is that, the young people matter more than anything else.

  • Josh Hoover

    Legislator

    That's the number one principle you list on your website, and I completely agree with that statement.

  • Josh Hoover

    Legislator

    I think that's why I find it interesting that you're here in opposition to the bill today. So I guess I just want to ask you plainly, do you think that social media platforms are a healthy place for young people to be in general?

  • Kate Sim

    Person

    I believe I have been pretty clear during my opposition statement today that I agree actually with, I believe everyone in this room that I think tech companies are engaging in predatory and harmful business practices that make online spaces extremely dangerous and harmful to young people.

  • Kate Sim

    Person

    My opposition comes not from the spirit of this proposal, but rather from the execution. I believe that the way that it is currently framed and the lessons that we can draw from how age verification measures have been implemented in other jurisdictions like Australia mainly,

  • Kate Sim

    Person

    but we're seeing in Brazil and The UK and other efforts with digital identification, provide a really telling example of of the ways in which all the harms, that can be implicated with a poor execution of age verification.

  • Josh Hoover

    Legislator

    So do you think those harms by, you know, let's say, the imperfections, right, with public policy on this topic, in attempts that are being made to regulate social media companies, do you think those harms outweigh the harms of social media itself? On children?

  • Kate Sim

    Person

    I believe the harms are significant. And I think the harms actually cut across not just young people, but for older people. And actually, we have not been talking about the elderly as well. But we're seeing early results that elderly people are disadvantaged by the execution of age assurance measures.

  • Josh Hoover

    Legislator

    So I appreciate that. And and so I guess what I would like to ask next would be, I hear a lot in your testimony about your your concerns with the policies that are being put forward by this bill, some of the concerns that have been put forward in the policies in Australia.

  • Josh Hoover

    Legislator

    So I guess my question for you would be what limits should exist? I think there is an acknowledgment that there should be limits. Right? Even the companies themselves have acknowledged this.

  • Josh Hoover

    Legislator

    For example, TikTok, does not allow, kids on their platform under the age. I believe it's of 13.

  • Josh Hoover

    Legislator

    There's other companies that are moving in the direction of creating children's based accounts, for 16 and under because they're acknowledging, obviously, a concern with what is going on regarding children.

  • Josh Hoover

    Legislator

    So what what do you believe are the limits that should exist, if not this bill?

  • Kate Sim

    Person

    Thank you for the question. I believe there are actually, a a trove of really wide expansive opportunities that I would really love to see the Californian government be a leader in implementing.

  • Kate Sim

    Person

    Like I mentioned, I really think the Brazilian example of ECHA Digital is a really great example, which actually does include age verification and smartphone bans in the school system.

  • Kate Sim

    Person

    But along with it, a really comprehensive and robust children's privacy code that really practices data minimization for young people that closes all the loopholes that currently exist with the existing student data protection regimes.

  • Kate Sim

    Person

    And it includes very specific ways of measuring, social media companies behaviors from before ECHA digital and after mainly by things like, you know, stopping targeted advertising to children, stopping manipulative push notifications, disabling autoplay videos,

  • Kate Sim

    Person

    and requiring platforms to remove infinite scrolls. I understand that technology will continue to evolve, but I think these features specifically getting at the addictive elements of the algorithmic feed, which I also grew up back when the feed didn't have algorithmic components.

  • Kate Sim

    Person

    So I have a very good understanding of what it has been before and how commercial interests have completely shaped online spaces. So these measures can be really specifically targeted. And in terms of other measures, I would love to see more attention put to EdTech.

  • Kate Sim

    Person

    There's a lot of EdTech to AdTech, data extraction from our very own schools that make young people's data an extremely useful commodity for tech companies to fuel, their advertising business model. I also think we all saw during Super Bowl the ways in which,

  • Kate Sim

    Person

    the sports gambling industry had flagrant advertisements. In fact, from Common Sense Media, which I think is one of the, sponsoring, entities that they've done a research report recently about the fact that I believe 11 to 17 year old

  • Kate Sim

    Person

    adolescent boys and boys in The US, they encounter sports gambling from YouTube.

  • Rebecca Bauer-Kahan

    Legislator

    I think we've left the subject of this bill because we actually have a bill by Assemblymember Schiavo that is sponsored by Common Sense Media moving on exactly the topic you're talking about.

  • Rebecca Bauer-Kahan

    Legislator

    California has the strongest privacy laws for children in the nation, including specific privacy laws that relate to education systems that, honestly, people have been trying to weaken over the past years, and this committee has held the line on.

  • Rebecca Bauer-Kahan

    Legislator

    And so, I think that more knowledge around California's laws would be helpful, but we should really retain our focus on this piece of legislation.

  • Kate Sim

    Person

    If I was answering the question. Yeah.

  • Josh Hoover

    Legislator

    I can move on. I appreciate that. I think it's helpful to point out. Right? And I do appreciate the Chair asking to move on because I do think, you know, I wanted to make the point that I it's interesting to me that you're here opposing this bill,

  • Josh Hoover

    Legislator

    and yet a lot of the things that you claim to support are actually in this bill.

  • Josh Hoover

    Legislator

    A lot of the things this bill is actually trying to do, are actually parts of, the current language of this bill. But I did want to really touch on and emphasize the harms.

  • Josh Hoover

    Legislator

    I think the author of the bill emphasized a lot of these in his, in his opening, but the actual harms that are being caused to the kids because I think that's something that is just, simply needs to be acknowledged.

  • Josh Hoover

    Legislator

    This if if for anyone that has read The Anxious Generation, this great rewiring, moving kids away from a play based childhood to a phone based childhood that the author points out, kids are now spending an average of five hours per day on social media.

  • Josh Hoover

    Legislator

    And and this becomes particularly problematic for me as the father of a daughter, my only daughter, particularly what Meta has done when it when it comes to taking advantage of girls and their teen body image and mental health insecurities, documented cases of targeting

  • Josh Hoover

    Legislator

    vulnerable teens with ads that that make them feel worthless, that make them feel helpless, and and targeting them, for example, with beauty products, for example, when they post certain content on their feeds.

  • Josh Hoover

    Legislator

    I could read through this list. I know we need to move on, and and, we all know that there are, I think, many well documented harms. And that's why I think it's continually frustrating, to sort of hear some of the excuses that are brought up.

  • Josh Hoover

    Legislator

    I did wanna touch on on my colleagues, from San Diego, Mr. Demaio point as well about this idea of parental rights and and and all these issues.

  • Josh Hoover

    Legislator

    You know, this really is and and by the way, I was I agree with you on the Phone Free Schools.

  • Josh Hoover

    Legislator

    I was the proud author of the Phone Free Schools Act. And the large reason that we I authored that bill and that we're continuing to refine that bill is that it is critical that we get all teenagers on the same page.

  • Josh Hoover

    Legislator

    It's really critical that we see, this happen across the board, because that's where it's going to have the most impact.

  • Josh Hoover

    Legislator

    I had my daughter had friends in second grade with phones, and and it created a lot of questions in in in our own home, because why can her friends have those phones and not not herself? This is something where we can really back parents up, and so I appreciate that.

  • Josh Hoover

    Legislator

    I've mentioned, you know, a father of a daughter, but I really am tired of the excuses.

  • Josh Hoover

    Legislator

    But I'll just close by saying, you know, I am a joint author on this legislation, because this is not a partisan issue. I really believe this is a parent issue, and I'm very proud to stand with, my colleagues, on both sides of the aisle in support of this bill.

  • Josh Hoover

    Legislator

    This this is not about banning products, and, you know, I think it's actually it's about keeping our kids safe online. And I think what we've we've learned in this committee today, is there's a lot of things.

  • Josh Hoover

    Legislator

    I think someone brought up movies. That might have been you, mister DeMaio. We don't ban r rated movies in this country. We simply age restrict them. I think this is exactly what this legislation is trying to do.

  • Josh Hoover

    Legislator

    We're not banning, platforms. We're not ban banning apps. We are simply age restricting, creating age appropriate times, for people to actually use these apps and use these services just like we do in a myriad of other cases.

  • Josh Hoover

    Legislator

    I think we we've talked about I think when we were putting this bill together, we talked about timing. When is the best timing for this bill?

  • Josh Hoover

    Legislator

    And I really feel that if it's not now, then when? Because I truly believe we're gonna look back in twenty years in disbelief that we didn't regulate this sooner, that we didn't age restrict these products sooner,

  • Josh Hoover

    Legislator

    that our kids ever, our 12 year olds, our 13 year olds, our 14 year olds ever had access to these platforms.

  • Josh Hoover

    Legislator

    The these addictive platforms at such a young age when their young minds were still growing, and that we expose them to the harms, that they're currently being exposed to and they're well documented.

  • Josh Hoover

    Legislator

    So with that, I just wanna thank the author for bringing this forward. Look forward to supporting the bill today.

  • Josh Hoover

    Legislator

    Thank you.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you. Before I turn it over to Ms. Wicks, I just wanna point out that one of the criticisms we've gotten so far today on the bill is, the age verification process.

  • Rebecca Bauer-Kahan

    Legislator

    And I don't believe this bill would be possible without the work that Ms. Wicks did last year of doing age signaling and ensuring that we have device level age signals that are being sent.

  • Rebecca Bauer-Kahan

    Legislator

    And next week, we'll hear a bill, that she is presenting to update that to include websites, which is critical to this effort, but I wanna turn it over to her.

  • Buffy Wicks

    Legislator

    Thank you. Thank you, madam chair. And I wanna thank the author and his tremendous leadership on what I think will be a seismic bill and will be passed into law. So thank you for all of that, and I'm proud to be a joint author on this.

  • Buffy Wicks

    Legislator

    I also wanna take a moment and just point out the alignment on this committee on this issue of a very diverse ideologically, politically diverse group of people who are coming together to say enough is enough, and we have to keep our kids safe.

  • Buffy Wicks

    Legislator

    I don't honestly know that I've ever seen this level of alignment on this. And so to the parents out in the world, this is your government trying to solve a public health crisis and actually working together to do that. And to the tech companies watching this, take note.

  • Buffy Wicks

    Legislator

    We are frustrated and enough is enough. We have to keep our children safe. With that, I wanna talk about some of the public health issues, and I have a question for the opposition.

  • Buffy Wicks

    Legislator

    As I know has been stated and we are I don't know, an hour or two of this conversation, but everyone knows mental health risks double when kids spend more than three hours or more on social media. Teen girls are disproportionately harmed.

  • Buffy Wicks

    Legislator

    One in fourteen girls say social media has hurt their mental health. Teens themselves are increasingly alarmed.

  • Buffy Wicks

    Legislator

    48% of teens now believe social media has had a mostly negative impact, for them. And teen sleep and productivity takes a major hit.

  • Buffy Wicks

    Legislator

    Four in ten teens say their social media hurt use hurts their social media use hurts their sleep, and the list goes on and on. And the companies themselves know this data.

  • Buffy Wicks

    Legislator

    As per their internal documents, they understand that this is what's happening when young people use their product.

  • Buffy Wicks

    Legislator

    This is a mental health problem, and it is our job as lawmakers. Our number one job is to keep our community safe, specifically our children. So that is why we are taking action now.

  • Buffy Wicks

    Legislator

    I was I didn't I was in my office, and so I caught some of the debate, but I haven't heard all of it. But I did overhear and I just wanna make sure I heard this correctly.

  • Buffy Wicks

    Legislator

    I think and you're from EFF. Right? I was watching some of the conversation. I believe you said something to the effect of, in your last question that was asked, parents should have the ability to determine if their child is mature enough to be on social media.

  • Buffy Wicks

    Legislator

    So if they're if a parent determines their child is 14, they should have the ability to to see if they're to allow their child to be on social media.

  • Buffy Wicks

    Legislator

    Is that your today's I wanna wanna make sure I'm I'm representing that accurately.

  • Rindala Alajaji

    Person

    Yeah. We believe parent should be empowered to make that decision.

  • Buffy Wicks

    Legislator

    Okay. So, I mean, I view this as a public health issue. Now, by that same logic, do you think if a parent decides that their 13 year old should be able to drive a car, that they should be able to drive a car?

  • Rindala Alajaji

    Person

    I don't that I don't think is a similar analogy since that is a, you know, other it it involves other people's health and safety.

  • Buffy Wicks

    Legislator

    Okay.

  • Rindala Alajaji

    Person

    I think that is something that would it would involve different conversations as well.

  • Buffy Wicks

    Legislator

    Okay. So, to buy cigarettes in California, you have to be 21. If a parent says my 16 year old should be able to go buy cigarettes, do you think that would be okay?

  • Rindala Alajaji

    Person

    I think similarly, I answered to Assemblymember McKennor. Those are all sub the the the analogy to substances, I think, is a different conversation because it does not involve speech and their ability to access information and share their own opinions as well.

  • Buffy Wicks

    Legislator

    Okay. So to buy a gun in California, you have to be 21. Do you think if a parent says my 12 year old should be able to buy a gun, they should be able to go buy a gun?

  • Rindala Alajaji

    Person

    Again, as I mentioned, Assemblymember Wicks, I I don't think that it that involves the young person's speech or, first amendment rights. So, I don't think it would align in this

  • Buffy Wicks

    Legislator

    But the premise that you're saying is that the parent should be empowered to make this decision.

  • Rindala Alajaji

    Person

    Yes. But also that is in relation to their ability to access information and guide the upgrading of their child when it comes to information access and their own child's growth and and how they want their child to turn up eventually.

  • Rindala Alajaji

    Person

    I don't think that involves other people's livelihoods or ability to stay safe and

  • Buffy Wicks

    Legislator

    So in your view, a parent should be empowered to make a decision on this, but not on those other things.

  • Rindala Alajaji

    Person

    I think the law currently says so. Yeah. Okay.

  • Buffy Wicks

    Legislator

    Well, I view this like those other things as a as a public health issue, and that's why we put in those guardrails on those issues similarly to the guardrails we need to put as it pertains to social media.

  • Buffy Wicks

    Legislator

    So, you know, I have been at this for this is my eighth year, and I've been round and round with the tech companies. I've worked with all the advocacy groups.

  • Buffy Wicks

    Legislator

    I've worked with many of you here trying to figure out how we can create the right kinds of safety standards for our children. I authored the age appropriate design code.

  • Buffy Wicks

    Legislator

    I had many, many, many, many hours working with the tech companies trying to actually create a policy that they could implement, that they said they could wrap their arms around, that they said would provide the safeguards that they need to then turn around

  • Buffy Wicks

    Legislator

    and have those same tech companies that fund, the trade associations sue to stop that in its tracks in the courts. And it's very frustrating when we are trying to create some level of safety standard that parents across the globe are literally demanding, Democrats and Republicans.

  • Buffy Wicks

    Legislator

    And we are having the hardest time doing it. And I think that is what is being reflected here is that we have been trying to do this for a very long time. And it's not a fringe issue.

  • Buffy Wicks

    Legislator

    This is our former surgeon general calling for this. This is well researched, documented public health issues as referenced Jonathan Haidt, the anxious generation, and many other researchers across the globe are saying, we have to keep our kids safe.

  • Buffy Wicks

    Legislator

    I don't want to come to this committee anymore and hear from parents who've lost a child to suicide because of the impact of social media. We shouldn't have to hear those stories anymore.

  • Buffy Wicks

    Legislator

    We shouldn't have to hear from parents who say their children are depressed, their children are addicted, Their children are suffering.

  • Buffy Wicks

    Legislator

    Their children are self committing self harm. Their children are, feeling left out and feel like they're not part of the cool kids club because they see on Snapchat that they're not at the party that everyone else is at.

  • Buffy Wicks

    Legislator

    And so that is why I think we are so frustrated and committed, and it's not this is not without complication. And I do think we have to really sit down and understand who's in scope, who's out of scope. We have to learn from what's happening in Australia.

  • Buffy Wicks

    Legislator

    There's been some really, I think, legitimate important points raised by committee here on questions. And one thing I do have tremendous faith in is this author to figure out the right course of action, because what happens here in California is gonna be replicated across

  • Buffy Wicks

    Legislator

    this country. I have absolutely no doubt in my mind. And so we have a real opportunity here to do it the right way to make sure that our kids are protected. And so I appreciate the opposition's position.

  • Buffy Wicks

    Legislator

    There might just be a fundamental disagreement on what we view as a public health issue. There might be other valid points we need to work through and think through, and I always welcome conversation with opposition because I think you get actually better policy that way.

  • Buffy Wicks

    Legislator

    But doing nothing is not acceptable anymore. We have to keep our kids safe. So with that, I'm proud to be a joint author and stand with these parents.

  • Buffy Wicks

    Legislator

    We're lawmakers who are parents trying to figure this out before we're Democrats and Republicans. And I'm happy to support the bill, and if it hasn't been moved, I'll move it, as soon as

  • Rebecca Bauer-Kahan

    Legislator

    So you get to make the.

  • Buffy Wicks

    Legislator

    I get to make the motion to move the bill.

  • Rebecca Bauer-Kahan

    Legislator

    I will give Mr. Demaio the second on this one. And the Vice Chair, the floor is yours.

  • Alexandra Macedo

    Legislator

    Thank you, Madam Chair. And I know that this has been a long debate, but I wanna thank you personally for calling me last night. I don't get a lot of those kinds of phone calls of having a meaningful interaction on a bill, and I don't support a ban as it stands right now.

  • Alexandra Macedo

    Legislator

    But you made some really good points that really made me ponder this. I wanna thank you because, I thought back to my own experience with social media, and I was in the Myspace era, and I shared this story with you.

  • Alexandra Macedo

    Legislator

    But I grew up very sheltered. I went to private school. I had a flip phone. I did not have access to the things that my parents did not want me to have access to. But David and Tina Macedo, if you are watching, turn it off.

  • Alexandra Macedo

    Legislator

    I made a Myspace account when I was 12, and I just lied and said I was born in 1993 instead of 1994. And, you know, I had a Myspace for years. So Ali from the Valley will live on forever, and I'm grateful for that.

  • Alexandra Macedo

    Legislator

    But when I think about this, that's my main concern, is how are we verifying this these kids' information? I know you've done some wonderful work on this that I think we have a long way to go.

  • Alexandra Macedo

    Legislator

    Because when I think about in the elections committee, something like scanning an ID for things with secretary of state, they have concerns with that. And if it's just putting in a birthday, how are we verifying that?

  • Alexandra Macedo

    Legislator

    Now I know there's algorithms and things that social media can infer ages, but I doubt that that's perfect. And if it is if it's it is perfect, I would love to hear more about that. But my main concern here is around the age verification point of it.

  • Alexandra Macedo

    Legislator

    Taking that a step further, I can tell you as a 16 year old, I had lots of questions about where I stood politically, where I stood with my religion, where I stood with my beliefs about the world.

  • Alexandra Macedo

    Legislator

    And I think that because when you turn 18, you do have the opportunity to make some of these big decisions, It's important to have access to that information.

  • Alexandra Macedo

    Legislator

    I grew up in very rural Tulare, California, so I didn't necessarily get that same information that somebody is going to get in some of these bigger cities.

  • Alexandra Macedo

    Legislator

    So I really appreciate, and I can tell you that I hear so much passion in this argument, and I understand it, and I totally sympathize with it. I'm in my thirties and can tell you it's tough to be on social media.

  • Alexandra Macedo

    Legislator

    And so I can't imagine being a teenage girl and going through it, let alone a parent feeling helpless in how you can help your child. I just think we have a little ways to go, but my ask is please I get to do this again in Judiciary, so I'm not gonna touch any of the First Amendment

  • Alexandra Macedo

    Legislator

    stuff today. But please continue the conversation with me because I think that there is a path here. I just don't agree with where we're at today.

  • Alexandra Macedo

    Legislator

    But, truly, my utmost compliments for your work on this, and, truly, I think this is just the start of a very big mountain we're all gonna climb together.

  • Alexandra Macedo

    Legislator

    So thank you, madam chair.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you. And Mr. Bryan is gonna close us out, and everyone will have spoken at that point.

  • Isaac Bryan

    Legislator

    I just wanna thank the author. And and, yes, I feel like if the difference between everybody on the committee speaking is me closing it out, then I'll get a couple comments in because it's not often that the member from San Diego and I agree on anything.

  • Isaac Bryan

    Legislator

    But listening to my colleague from Taleri speak, it reminded me that she and I are probably the only members up here who grew up with social media in school. And I remember my top eight on Myspace. And I remember how bad it felt for me not to be in my friend's top eight.

  • Isaac Bryan

    Legislator

    And that was the extent of how that emotionally and psychologically impacted me as a young person. I couldn't imagine what it's like today on smartphones with all of the access, the group chats, all of the different ways kids are interacting, we've gotta get a handle on this.

  • Isaac Bryan

    Legislator

    And so while I don't have children myself, I remember growing up with social media, and I wanna thank you for advancing this conversation forward. I will also be seeing it in judicious. So I want you to know now you have my support today and then.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you, Mr. Bryan. You win the conciseness award today. So I will make a few comments before I give you the opportunity to close, Mr. Lowenthal.

  • Rebecca Bauer-Kahan

    Legislator

    So, I guess I will start with the First Amendment argument because I think I guess I'm gonna start with thanking my staff. When we started having this conversation, we knew we were gonna have to rely on the brilliant people that work, for this committee and across the

  • Rebecca Bauer-Kahan

    Legislator

    legislature and, frankly, the attorney general's office and elsewhere to try to craft a proposal that truly got at this without having the negative side effects that we've heard opposition, say that we're gonna have here today, which is you know, I'm very concerned,

  • Rebecca Bauer-Kahan

    Legislator

    and I think you share my concern about kids going on chatbots that right now could be really sick of antif and addictive.

  • Rebecca Bauer-Kahan

    Legislator

    And so saying you can't be here, but go over there wasn't something that you and I wanted to move forward.

  • Rebecca Bauer-Kahan

    Legislator

    And so we have really, you know, crafted a bill that right now focuses on the things we find harmful and saying those are the things we don't want our kids to have access to, and that isn't to say any online space in and of itself is per se harmful.

  • Rebecca Bauer-Kahan

    Legislator

    So I look forward to them reading the bill so that they see that that is what we have achieved in the amendments here today. And, you know, it really was through the hard work of this committee staff that I think we landed where we are,

  • Rebecca Bauer-Kahan

    Legislator

    It is the features, which actually, frankly, is what I've heard the opposition say over and over and over again today, which is we should be focused on the addictive features.

  • Rebecca Bauer-Kahan

    Legislator

    And then I wanted to address the First Amendment claim. The analysis, which I mean, how many pages is it, Josh?

  • Rebecca Bauer-Kahan

    Legislator

    and so I wanna start by expressing my gratitude to them. They are not getting enough sleep right now, but one more week and they will be able to sleep. So, which is why you saw the coffee arrive in the middle of the hearing.

  • Rebecca Bauer-Kahan

    Legislator

    It's 23 pages, which is amazingly in-depth talking about the harms we're trying to address here, talking about this policy, explaining why we go where we go, does a really, I think, eloquent job of dealing with the Eleventh Circuit case that was cited, by my colleague from San Diego.

  • Rebecca Bauer-Kahan

    Legislator

    And this committee read, I believe, every single ninth circuit case in this area of law to craft the piece of legislation that is before you today so that it will stand up in the court of law because we understand that there are first amendment protections,

  • Rebecca Bauer-Kahan

    Legislator

    but as the law states, we get to make the decision to pass a piece of legislation when, and I will quote, it advances important governmental interests unrelated to the suppression of free speech.

  • Rebecca Bauer-Kahan

    Legislator

    As as Assemblymember Wood said, there is nothing more important to me or to this body than our children, and that is as it should be. And you've heard that from both sides of the aisle here today.

  • Rebecca Bauer-Kahan

    Legislator

    That's the public health concern you heard discussed so much today and does not burden substantially more speech than necessary to further those interests.

  • Rebecca Bauer-Kahan

    Legislator

    And there is no question in my mind as an attorney that this bill hits that mark because it has such a critical public health imperative in it to say our children's health, their mental health, their well-being.

  • Rebecca Bauer-Kahan

    Legislator

    So our governmental interest is clear, and I think that the way we have crafted it such that the free speech rights that and I'm the mother of teenagers too who do find benefit in online spaces, and I know that the same is true of the author.

  • Rebecca Bauer-Kahan

    Legislator

    And I want them to be able to get news in ways that relates to them, although I'm pushing them to explore more old school options to get more depth of knowledge. But, you know, it's okay.

  • Rebecca Bauer-Kahan

    Legislator

    We can get different information from different spaces. And, you know, one of my son my son finds other people who explore the same extracurricular activity from him and has been able to do online debate tournaments with people he's met.

  • Rebecca Bauer-Kahan

    Legislator

    And so there are really positive elements, but those things can exist without the addictive and harmful features. And I will note that, a few weeks ago, we did a hearing in this committee with on the question of parental controls and online spaces for children.

  • Rebecca Bauer-Kahan

    Legislator

    And four of the major tech companies were here, and every single one of them sat in this committee and talked about their commitment to creating safe online spaces for children. They every single one of them called it a work in progress.

  • Rebecca Bauer-Kahan

    Legislator

    I felt like, and maybe they would disagree with this, they were inviting us to be in that conversation with them as the public policymakers that wanna design define what is safe. That is our job as was said here today by the opposition, frankly, and that is what this bill does.

  • Rebecca Bauer-Kahan

    Legislator

    And so I think and I'm you know, the the amendments came out not long ago because, again, a lot of work happening in this committee. But what I am starting to hear is that that direction is one that is welcome, and so I really appreciate the amendments here today.

  • Rebecca Bauer-Kahan

    Legislator

    And as you know, I think the social media restrictions are the sexy part of this bill. The Esafety Commission is the less sexy part of the bill.

  • Rebecca Bauer-Kahan

    Legislator

    But, honestly, you and I have talked about we think it's the more important part of the bill because the government serves the function and the point has been made by many of my colleagues to provide consumer protections, to provide safety.

  • Rebecca Bauer-Kahan

    Legislator

    When you think about and I've said this many times in this conversation with you directly. When you think about banking, right, we don't just let the banks run away and do whatever they want with people's money. We have a regulatory entity that provides consumer protections

  • Rebecca Bauer-Kahan

    Legislator

    to Californians in the banking space because it is an important space. And there is no question in my mind that we should be doing the same exact thing with the online environment, which is allowing it to thrive as the banks do, but saying these are the guardrails we

  • Rebecca Bauer-Kahan

    Legislator

    want for Californians, and we are gonna provide a regulatory entity to do so. And my hope for this entity is that as this bill progresses and as it comes into fruition after its signature, and I'm just speaking that into existence, that it is custom consumer facing.

  • Rebecca Bauer-Kahan

    Legislator

    That it is a place for consumers to go to come to us as government and tell us what they need to stay safe online, to keep their kids online. That when we pass a bill that says that you have to take down nonconsensual pornography on websites and that's not

  • Rebecca Bauer-Kahan

    Legislator

    working for Californians, they have a place to go to say, I need your help. The law says this, and this is when this is not happening in online spaces.

  • Rebecca Bauer-Kahan

    Legislator

    That you can't sell illicit drugs in newspapers, just so we're clear to the answer to that question, mister Patterson. It is not a first amendment right to sell drugs to kids under any court in any part of this nation.

  • Rebecca Bauer-Kahan

    Legislator

    That was a very easy yes, no question, and the answer is no. So you cannot sell kids' drugs and the answer is no. So you cannot sell kids drugs online. You cannot sell kids drug illicit drugs in the real world. You cannot sell them illicit drugs in the newspaper.

  • Rebecca Bauer-Kahan

    Legislator

    And if it is happening, we need to be responsive to that, and this agency really is the space for that. So I am super excited about the direction this bill is taking, and I wanna thank you for your partnership.

  • Rebecca Bauer-Kahan

    Legislator

    I wanna thank you for your leadership, for your commitment. Our kids are almost exactly the same age, and we are going through this together as parents and, the bipartisan group of coauthors here today. We are all parents.

  • Rebecca Bauer-Kahan

    Legislator

    We lead first as parents, and we're not saying leave it to the parents, because we know that this is so hard. And in the same way that we have said that we have decided that you can't ride a bike without a helmet, and you can't buy tobacco, and you can't buy a gun despite

  • Rebecca Bauer-Kahan

    Legislator

    the fact that our federal constitution says second amendment is in there, and yet we still do not allow kids to buy guns.

  • Rebecca Bauer-Kahan

    Legislator

    So I don't really actually see the distinction between that and the first member protection and what we're doing here today. I thought that was an incredible point, Assembly Member Wicks. We have to continue to lead in this space.

  • Rebecca Bauer-Kahan

    Legislator

    Children are dying. And I really wanna close. Victoria Hinks was amongst one of the many parents that was here last year who spoke about her daughter dying by suicide after going down the rabbit hole on social media. And she tried and she tried, and she was living in a

  • Rebecca Bauer-Kahan

    Legislator

    day and age that still exists where it was on her as a parent to try to figure out how to do this. And they did everything they could, and it wasn't enough.

  • Rebecca Bauer-Kahan

    Legislator

    And her daughter didn't graduate from high school, and her daughter didn't go to prom, and her daughter will not live to be the beautiful woman she deserved to be because of the harms that exist in social media. And that cannot happen to any more children.

  • Rebecca Bauer-Kahan

    Legislator

    Full stop. And so it is an honor to be a joint author. It is an honor to see this bill move out of this committee. And with that, would you like to close?

  • Josh Lowenthal

    Legislator

    Well, Madam Chair, I'll never forget that. You know, a a a few things. First of all, I would like to acknowledge the the group of joint authors that have coalesced around this bill. Assemblymember Hoover, Assemblymember Patterson, Assemblymember Wicks,

  • Josh Lowenthal

    Legislator

    Assemblymember Alvarez, Chair Bauer-Kahan, Assemblymember Bonta, who is our health Chair, Assemblymember Muratsuchi. These aren't just parents.

  • Josh Lowenthal

    Legislator

    These are people who have been leaders in the various areas that this legislation touches. And in the case of Assemblymember Wicks and our Chair have been leading nationwide groundbreaking legislation to protect children and families.

  • Josh Lowenthal

    Legislator

    I'd like to thank the committee staff for the unbelievable thoughtful work, and we are threading a needle here. As many people have spoken about today, this is about making sure that we are honoring the First Amendment while cracking down on harmful features that

  • Josh Lowenthal

    Legislator

    are killing children, that are breaking families apart. And as Mr. Jonathan Haidt says, that are depriving children of the very important playtime that they need to grow up and be healthy.

  • Josh Lowenthal

    Legislator

    I want to acknowledge the survivor families such as miss Hinks and everything that they've been through. I'd like to acknowledge the education leaders who've been speaking with a bullhorn throughout this state for years on this topic and raising the alarms at how

  • Josh Lowenthal

    Legislator

    children are not performing academically, intellectually, in ways that they should. I'd like to thank and acknowledge pediatric medicine leaders who say the very same thing. I'd like to acknowledge LGBTQ plus leaders, disabled access leaders, residents of rural communities.

  • Josh Lowenthal

    Legislator

    You are heard. Everything that you're concerned about concerns me, and we will continue to listen and make sure that your concerns are incorporated into the tenets of this legislation that is front of mind for the Esafety Commission, and you have my commitment to continue

  • Josh Lowenthal

    Legislator

    to work on those issues. And I would like to acknowledge all of the families in the state of California. No. It's time that we start from a place of safety and not allow the platforms to determine when this problem has been solved.

  • Josh Lowenthal

    Legislator

    It's time for us to determine when this problem has been solved. And with that, I respectfully ask for your Aye vote.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you. We have a motion and a second. Madam secretary, will you call the roll?

  • Committee Secretary

    Person

    Item number one, AB 1709 by Assemblymember Lowenthal. The motion is due passed to judiciary committee. [Roll Call]

  • Rebecca Bauer-Kahan

    Legislator

    The bill has 12 votes. It's out, but we'll leave it open for absent members. Thank you, Mr. Lowenthal. And with that yep. Will somebody make a motion on the consent calendar?

  • Rebecca Bauer-Kahan

    Legislator

    Moved and seconded. You got that. It was Macedo moved and Ortega seconded. Please call the roll.

  • Committee Secretary

    Person

    [Roll Call]

  • Rebecca Bauer-Kahan

    Legislator

    The consent calendar has 13. It is out, but we will hold it open for absent members. Moving, if anybody would like to make a motion on the Pellerin bill, AB 1988. We heard that one.

  • Rebecca Bauer-Kahan

    Legislator

    K. We have a motion from Aguiar-Curry and a second from Ortega. Let's call the roll.

  • Committee Secretary

    Person

    And item number 17, AB 1988 by Assembly member Pellerin. The motion is do passed to the health committee. [Roll Call]

  • Rebecca Bauer-Kahan

    Legislator

    That bill has 9 votes. It's out, but we'll leave it open for absent members, mister Haney. And I think you can be shorter than Mr. Lowenthal. We've set quite the standard so far today.

  • Rebecca Bauer-Kahan

    Legislator

    It's kind of right, but we're trying.

  • Matt Haney

    Legislator

    Permission to use a prop? That's the first time I've ever asked that.

  • Rebecca Bauer-Kahan

    Legislator

    Without objection. But if you could work with the sergeant, it looks like it's quite large. So look. If they could help you. It's okay with me.

  • Rebecca Bauer-Kahan

    Legislator

    And I don't have an objection. I don't believe him. Okay. Yes. Oh, and just yeah.

  • Rebecca Bauer-Kahan

    Legislator

    The surgeons will help because we can't block the view of the public. Mr. Haney, when you're ready.

  • Matt Haney

    Legislator

    Alright. Thank you, Madam Chair and Members. I wanna first start by thanking you and your staff for your work on this bill and accept the committee's amendments and also just note this incredible analysis that your staff did. 21 pages.

  • Matt Haney

    Legislator

    Any question that you had or thought that you had about why this bill is so needed is in these 21 pages. So I know how I saw how thoughtful and diligent this committee is. I know you all read it, so we should have no problems here.

  • Matt Haney

    Legislator

    But it's incredibly well done, and I think it draws on an informational hearing also that this committee did in in 2024, which, drew many of the conclusions that that led to, the need for this bill.

  • Matt Haney

    Legislator

    AB 1720 is the California Fans First Act, which will protect fans from excessive ticket price gouging by capping resale prices at no more than 10% above what, someone paid for it, including fees for concerts and other live entertainment events.

  • Matt Haney

    Legislator

    Live events are vital to California and to the lives of all of our constituents. They generate billions of dollars in economic activity, support tens of thousands of jobs, and bring culture, community, and connection to our state.

  • Matt Haney

    Legislator

    Tens of millions of our constituents experience these events and want to experience these events. They are an important even as an essential part of our lives. For decades, fans could access events in a very simple way.

  • Matt Haney

    Legislator

    They would line up at the box office and buy tickets for some of the biggest acts or a local, band they love for reasonable prices.

  • Matt Haney

    Legislator

    But the shift to online sales has fundamentally changed the system. Ticket scalping has become a highly profitable industrialized scheme built around facilitating speculating and gambling that is pricing out fans from the market.

  • Matt Haney

    Legislator

    hard work of the folks who work there, and clean the bathrooms and provide for the concessions, that's what you are purchasing. The folks who are getting these tickets and selling them in the secondary market at huge markups have done nothing to contribute to those events.

  • Matt Haney

    Legislator

    When you purchase a ticket, it's not that you own something physical. What you're purchasing is the opportunity to go to a certain place and time and experience art, the hard work and creativity of artists, the entrepreneurship of live venue owners and operators, the

  • Matt Haney

    Legislator

    It's pure speculation and gambling, and it is not contributing any way to the supply of tickets or to these events and those who who put them on.

  • Matt Haney

    Legislator

    If what was happening online today happened in person, it would be absolutely unacceptable and in May many cases already illegal. Imagine if you were to show up at a box office to see a show for a band that you love.

  • Matt Haney

    Legislator

    You line up, and the person in the front of that line buys the remainder of the tickets for a price you are prepared to pay. The tickets are now gone.

  • Matt Haney

    Legislator

    They're sold out, and that person immediately starts going down the line and selling these tickets for five or six times the price they actually pay for it. You would likely wanna start a fight with that person. You would call the police.

  • Matt Haney

    Legislator

    You would say that this is totally unacceptable and should not be allowed.

  • Matt Haney

    Legislator

    That person did nothing to contribute to the event, and the five or six times markup that they're taking is put in their pocket and contributes nothing to the people who actually put the event on. We would never tolerate that. It's not a free market, but it that is exactly what is

  • Matt Haney

    Legislator

    happening today online. Professional scalpers purchase large volumes of tickets the moment they go on sale, often driving these events to sell out and then immediately list them on secondary platforms. Often, they use bots to do so.

  • Matt Haney

    Legislator

    As a result, over 90% of resale tickets are sold by these professional scalpers and fans, and fans are paying by per these professional scalpers, and fans are paying on average over 200% above face value for tickets on the secondary market.

  • Matt Haney

    Legislator

    We wouldn't allow this for many other similar types of experiences. If there was a dinner that you wanted to go to at a new restaurant that just opened and somebody went online and made all of the reservations for themselves and then forced you to pay them a fee in

  • Matt Haney

    Legislator

    order to get one of those spots at the restaurant, you would again probably call the police. Well, that is what is happening, every single day, in in live events all over our state from major arenas to local theaters.

  • Matt Haney

    Legislator

    Just last week, the LA Times reported resale tickets for Coachella weekend one reached $4,000 to $5,000. And for weekend two, resale platforms are posting online bragging about listing the most expensive Coachella tickets on record.

  • Matt Haney

    Legislator

    These tickets were originally 500 or $600. Still a lot of money if you purchase them directly. But I think there's no doubt for those who've looked at it that the reason why it's sold out is because scalpers purchased these tickets and used them as an opportunity to

  • Matt Haney

    Legislator

    speculate and gamble and price out fans. Notably, Coachella is not a Ticketmaster Live Nation event. We also just hosted Sam Smith in San Francisco for a 20 show residency at the Castro Theater.

  • Matt Haney

    Legislator

    Tickets were sold at a face value of for a $120. They sold out nearly immediately. And if you wanted to go to one of those concerts, at any point during that month, you had to now pay $700, $800 dollars.

  • Matt Haney

    Legislator

    That extra $600 or $700 dollars does not go to the venue or the artists or the workers. They go directly to the pockets of professional scalpers, many of whom are out of state who contributed nothing to those live events.

  • Matt Haney

    Legislator

    They do not build venues. They do not employ workers. They do not create art. Yet they are extracting profit directly from the pockets of our constituents and and contributing nothing to the artists and the venues, who make this art possible.

  • Matt Haney

    Legislator

    And I wanna address, some of the issues that I know folks have raised about the relationship between this, effort and the Live Nation Ticketmaster, monopoly.

  • Matt Haney

    Legislator

    There are some who claim that somehow put pricing a cap on the price of resale tickets is only helping this monopoly. That is entirely false. As the analysis states, secondary resellers and platforms are not competing with Ticketmaster in the primary market.

  • Matt Haney

    Legislator

    Resellers are actually the customers of Ticketmaster since they very often purchase the tickets they resell from the company, thus contributing to its success.

  • Matt Haney

    Legislator

    Secondary markets like StubHub have operated for over two decades, yet they have failed to break the monopoly as the opposition claims they would.

  • Matt Haney

    Legislator

    In fact, the rise of these secondary platforms has tracked directly with the rise of the Ticketmaster monopoly. These two things have happened at the same time, and they are codependent, in creating the situation we are in.

  • Matt Haney

    Legislator

    I wanna say, yesterday, the in the antitrust lawsuit against Live Nation, the jury found that Live Nation is illegally monopolizing the ticket market. That is not yet in the, the analysis because it just happened.

  • Matt Haney

    Legislator

    The decision in this lawsuit will be leading the way to break up this powerful monopoly, and that does not mean that we do not need to act on the scamming and profiteering happening in the secondary market.

  • Matt Haney

    Legislator

    You can look at that decision, and you can see that many of the things that we are also concerned about will be addressed by the judge in that decision.

  • Matt Haney

    Legislator

    A key conclusion from this committee's informational hearing on ticketing in 2024 was that the current ongoing efforts to break up Live Nation are separate from reforming the secondary market, and both can coexist.

  • Matt Haney

    Legislator

    There are more than a dozen states who are moving forward to cap resale prices this year, including New York, Wisconsin, Washington. We know from many other countries around the world that this does work. It does bring down the cost of tickets for fans.

  • Matt Haney

    Legislator

    It does support, venues and artists, and we cannot continue to absolve ourselves of the responsibility of regulating the ticketing market just because Live Nation has a and Ticketmaster have a huge share over the primary market.

  • Matt Haney

    Legislator

    I will close on that particular point with noting what is in the the the the analysis at the very beginning where it says too often these policy debates have been framed as a false choice with Live Nation on one side and the predatory resale industry on the other side.

  • Matt Haney

    Legislator

    and events in our state. With me to testify in support of the bill are is Randy Nichols, artist manager at Fly South Music and a board member of the National Independent Talent Organization, and Joe Rinaldi, owner of Music Box San Diego.

  • Matt Haney

    Legislator

    The journalist, Andy Kush, has described this as Godzilla versus King Kong battle. He points out just because the two monsters are fighting doesn't mean one of them is the good guy.

  • Matt Haney

    Legislator

    These are two issues that we have to address to make sure that our constituents can afford, to attend live events and not be priced out by speculators and scalpers and gamblers who are stealing from the artists and the venues and from the fans, and hurting, access to shows,

  • Rebecca Bauer-Kahan

    Legislator

    Thank you. Two minutes each, gentlemen.

  • Randy Nichols

    Person

    Thank you, Madam Chairman, Madam Chair, and Members of the committee. My name is Randy Nichols. I'm an artist manager, and I serve on the board of the National Independent Talent Organization, as he just said, and represent we represent artist managers and

  • Randy Nichols

    Person

    agents across the live entertainment industry. I'm here to strongly support AB 1720. As we know, a jury yesterday confirmed that Ticketmaster is an illegal monopoly.

  • Randy Nichols

    Person

    The real competition to that monopoly is not StubHub, Vividsee, or the other scalper marketplaces. Their competition is Access, Dice, Seatickets, Eventbrite, and other primary market ticketing companies fighting for the rights to sell tickets from that monopoly.

  • Randy Nichols

    Person

    Scalper marketplaces have no box office software, no access controls, no tools to facilitate an initial ticket sale. They are platforms that are built for industrial scale, arbitrage, profiting from the gap between the artist's initial pricing and what the market will bear.

  • Randy Nichols

    Person

    Artists subsidized ticket prices by design to keep shows accessible, to build lifetime value with fans. Scalpers exist solely to capture the gap between that and make as much profit as possible and exit the room.

  • Randy Nichols

    Person

    If Live Nation and Ticketmaster are to be broken up into 10 different companies tomorrow, the scalper ecosystem is completely unchanged. Scalpers have successfully used the monopoly as a cover for their own harmful practices.

  • Randy Nichols

    Person

    Every dollar that a fan overpays to a scalper is never received by the artist, the crew, the venue, or the local restaurants in that community where a show happens. Ticket scalping is not a mom and pop business.

  • Randy Nichols

    Person

    It is a private equity backed $10 billion a year industry operated by professional financing, proprietary bots, virtual credit card generators, all tools that are openly on display at conferences that this scalper industry purports to be consumer facing protection

  • Randy Nichols

    Person

    events while simultaneously selling tools at these events to rip off consumers. These marketplaces are not fan to fan resell platforms. They have become unregulated equities platforms with everything from hedge funds investors to short sellers.

  • Randy Nichols

    Person

    One example of this would be StubHub CEO Eric Baker, who simultaneously to being the CEO of StubHub runs a hedge fund called Andro Capital. This hedge fund is is registered in The Cayman Islands where they have their what is literally called the Cayman

  • Randy Nichols

    Person

    Islands feeder fund channeling hundreds of millions of dollars into ticket speculation. You can also look at Coachella this past weekend as he mentioned where you had short sellers selling tickets to these shows, and they couldn't cover their shorts, and fans were left

  • Randy Nichols

    Person

    unable to enter the venue. This is a financial infrastructure built to extract value from artists and fans and buy private jets and yachts for scalpers and their investors. A jury confirmed the monopoly.

  • Rebecca Bauer-Kahan

    Legislator

    I don't know. Are you also speaking? Okay. Then we need you to wrap up. Yeah.

  • Randy Nichols

    Person

    Yeah. I'm on my last line. A jury confirmed the monopoly. Now confirm that scalpers are harming fans and not consumers. I urge your support.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you.

  • Joe Rinaldi

    Person

    Good afternoon, Chair and Members. I'm Joe Rinaldi, President of the California chapter of the National Independent Venue Association and managing partner of Music Box San Diego.

  • Joe Rinaldi

    Person

    We are supremely grateful to Assemblymember Haney as he has described the mechanics of this broken market. I'm here to describe the aftermath inside our venues.

  • Joe Rinaldi

    Person

    I represent 650 independent stages, promoters, festivals in the state who are currently witnessing a market failure, not a free market success.

  • Joe Rinaldi

    Person

    In a healthy market, resale solves problems like a missing babysitter, but today, we face a negative sum game driven by diversion. Bad actors use predatory technology to intercept inventory before it ever reaches the public. This isn't supply and demand.

  • Joe Rinaldi

    Person

    It is an extractive tax on our entire ecosystem. When a scalper flips a ticket at 250% to 3000% markup, They aren't just overcharging a fan.

  • Joe Rinaldi

    Person

    They're often killing a seat. My staff stands behind a bar looking at a sold out floor that is 20% empty. These are ghost fans, people who wanted to be there but were diverted by a deceptive Google search and priced out.

  • Joe Rinaldi

    Person

    For a 500 capacity room, a 100 empty seats is is a direct hit on our ability to pay security bartenders and the artist. We are seeing a total erosion in consumer confidence.

  • Joe Rinaldi

    Person

    We spend our days at the box office explaining to fans that the $800 ticket that they bought on a secondary site doesn't actually exist. This Wild West atmosphere means that fans feel cheated before the lights even go down.

  • Joe Rinaldi

    Person

    We are trading the long term health of California's cultural economy for a one time middleman profit. The proposed 10% price cap is the surgical intervention we need. It acts as a disinfectant by removing the speculative upside.

  • Joe Rinaldi

    Person

    We fundamentally disincentivize the professional scalpers. If there is no 300 profit margin to be had, the bad actors leave the room, leaving behind a true secondary market just for fans.

  • Joe Rinaldi

    Person

    Finally, Claiming that 1720 favors monopolies is a manufactured smoke bomb. Independent venues support AB 1720 because this we refuse to be complicit in our market that bleeds our fans and starves our business. I urge your Aye vote.

  • Joe Rinaldi

    Person

    Thank you.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you. And just so the opposition knows, I did lose track of time, but I will give you equal time. So I apologize that. But anyone else here in support of the measure?

  • Rebecca Bauer-Kahan

    Legislator

    Oh, wait. The mic's not on. Just pause one second. There we go.

  • Alex Torres

    Person

    Awesome. Madam Chair and Members, Alex Torres with Golden Bear Strategies, echoing some support from NEVA members that couldn't be here today.

  • Alex Torres

    Person

    The Ramona Main Stage, Goldfields in Roseville, the Canyon Club in Agoura Hills, and then the UC theater in Berkeley as well as the freight and salvage in Berkeley all in sport. Thank you.

  • Rebecca Bauer-Kahan

    Legislator

    I love the freight and salvage.

  • Jordan Curley

    Person

    Jordan Curley on behalf of the Music Artist Coalition and prod cosponsor. Thank you.

  • Jim Cornett

    Person

    Jim Cornett, owner of Harlow's, The Starlet Room, Cafe Colonial and the Colonial Colonial Theater, all independent music venues here in Sacramento here in support.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you.

  • Kendra Begley

    Person

    Kendra Begley on behalf of the City of Thousand Oaks in support.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you.

  • Shane Guzman

    Person

    Shane Guzman on behalf of SAG-Aftra in support.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you. For anyone who doesn't know, Bobby McFerrin does a sing along every Monday at the Freight and Salvage. So if you're in Berkeley, it's pretty amazing. And now we will go to prior position. Again, I gave them almost six minutes, so I will give you the same when you're ready.

  • Nicole Harding

    Person

    Thank you for allowing me to speak today. My my name is Dr. Nicole Harding. I'm a criminologist from The UK. I'm the Former Director for the Center of Crime, Law, and Justice at Lancaster University, and I'm the Director and Founder of the Financial Crime Lab.

  • Nicole Harding

    Person

    I'm here to talk to you about the price caps, yes, definitely, but their relationship to fraud and financial crime, particularly ticket fraud.

  • Nicole Harding

    Person

    I've conducted multiple research studies and reviewed the evidence from jurisdictions such as The UK, Ireland, and Victoria in Australia. Where there are price caps, there is a fourth fourfold increase in ticket fraud, and it's a serious problem.

  • Nicole Harding

    Person

    What this happens because of displacement. So when we put a price cap on something, the demand is still there. People still want to tell to sell those tickets.

  • Nicole Harding

    Person

    People still wanna buy those tickets, but they can't do them on a regulated resale market because they wanna sell them for the prices they wanna sell them for. So they move.

  • Nicole Harding

    Person

    They displace to places like social media and other unregulated spaces that don't have any consumer protections such as money back guarantees, etcetera.

  • Nicole Harding

    Person

    What the price cap does is by keeping it under a 110% of the original price is that it keeps what would be normally a too good to be true offer by a fraudster, which we tell people to look out for to try and avoid ticket fraud, it levels the playing field and allows fraudsters to

  • Nicole Harding

    Person

    scam at will on these sites. The research I've done found that when we tried to buy tickets on social media, three and five were all scam tickets.

  • Nicole Harding

    Person

    We were also still able to find and touted or or scalped tickets in Ireland when we did the study there. It didn't solve the problem of scalping. It just sent it underground.

  • Nicole Harding

    Person

    That's further evidenced by the fact that in Ireland, since the cap's been in place, there's been no prosecutions of scalpers. Whereas in The UK, we currently don't have a cap, and we do frequently prosecute touts and more and more frequently as we go on.

  • Nicole Harding

    Person

    I've spoken directly to fraudsters who've taken part in ticket frauds to find out their MO and and how they do it and and why they're incentivized to do it. And they told me that, actually, they're priced under because they can sell that ticket 10, 15, 20 times over.

  • Nicole Harding

    Person

    They don't actually have the ticket. It's all deceptive. And that's fans who never get to be in the room, but they've spent the money to try and be there.

  • Nicole Harding

    Person

    So fraud is such a huge problem in The UK and beyond. I wanted to help you learn the lessons because, honestly, fraud is everybody's problem, but it's often nobody's responsibility, and I don't want you to responsibilize California residents with the problem of fraud.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you. Wait. You're not on. There you go.

  • Erin Niemela

    Person

    So inexperienced in this. Madam Chair and Members.

  • Rebecca Bauer-Kahan

    Legislator

    I don't believe that.

  • Erin Niemela

    Person

    Erin Niumala representing StubHub in opposition to the bill. We are one of a small handful of companies that actually comprise the competition to Ticketmaster. This handful of companies represents a total of 6% of the marketplace that is not Ticketmaster.

  • Erin Niemela

    Person

    I'd like to start by actually agreeing with the author of this bill on the history of competition. It is true.

  • Erin Niemela

    Person

    We used to have a competitive marketplace until Ticketmaster consolidated that marketplace to the 94% they now control. That was the basis of that lawsuit. And that is why prices have gone up a 120% since that occurred.

  • Erin Niemela

    Person

    I would also like to agree with the author on we used to have paper tickets until Ticketmaster, the entity that controls 94% of the marketplace, implemented SafeTix technology to actually control all electronic tickets and prohibit normal customers from

  • Erin Niemela

    Person

    being able to transfer even a paper ticket to a friend at will. We oppose this bill for a number of reasons. But the the foremost reason among those is that Ticketmaster is exempt from this bill entirely. In fact, they are exempt from this chapter of law.

  • Erin Niemela

    Person

    This entire chapter in Section 22503.5, any primary ticket seller in this chapter is exempted from all of the regulations relating to ticketing. That is not something proposed in the author's bill that's in the chapter.

  • Erin Niemela

    Person

    It was adopted in 1986 when the legislature saw fit to exempt Ticketmaster from California ticketing laws.

  • Erin Niemela

    Person

    While this bill today considers a proposal to eliminate the competition for Ticketmaster because that's what this would do. Yesterday, as the author pointed out, a jury found that Ticketmaster is guilty of being a monopoly.

  • Erin Niemela

    Person

    The case was led by our California AG and 30 other states. It found its impetus in the Biden administration challenging the Ticketmaster monopoly.

  • Erin Niemela

    Person

    And in a weird bipartisan twist, the Trump administration, even after gutting Biden's DOJ, even after pardoning the key testimony in this case with through a criminal pardon, even after Kellyanne Conway being added to Ticketmaster's board, even after that,

  • Erin Niemela

    Person

    the Trump DOJ proposed a settlement agreement to break up Ticketmaster and also open up Ticketmaster to retail competition.

  • Erin Niemela

    Person

    There has been a lot of discussion this year and appropriately so on monopolies. Even the Trump DOJ said this was the number one monopoly k. In the country.

  • Rebecca Bauer-Kahan

    Legislator

    Now I've let you go longer. See, I'm really not doing my job up here.

  • Erin Niemela

    Person

    Can I wrap it up, ma'am?

  • Rebecca Bauer-Kahan

    Legislator

    Yes, please. Sorry.

  • Erin Niemela

    Person

    So this bill has been introduced in 26 states supported by Ticketmaster, and it has succeeded in none. So we are asking you today to not tilt the scales in favor of Ticketmaster and let the courts do their work. Thank you.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you. Any other folks here in opposition? Name organization in opposition. Go ahead.

  • Courtney Jensen

    Person

    Madam Chair and Members, Courtney Jensen on behalf of SeatGeek, TickPick, and Game Time in opposition.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you.

  • James Jack

    Person

    Madam Chair, Members, James Jack here on behalf of the Coalition for Ticket Fairness in opposition. Thank you.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you.

  • Robert Boykin

    Person

    Chair, Members, Robert Boykin with TechNet in opposition.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you.

  • Christopher Sanchez

    Person

    Christopher Sanchez with the Consumer Federation of California in opposition.

  • Doug Kessler

    Person

    Doug Kessler for Patone 924 in opposition.

  • Rebecca Bauer-Kahan

    Legislator

    I accidentally wore Dodgers blue today, so to be clear, still a Giants fan.

  • Estea Kessler

    Person

    Estea Kessler. I'm a school board member with representing the Central Valley Latino Mayors and Elected Official Coalitions, and we're in opposition.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you.

  • Nora Kanetti

    Person

    My name is Nora Kanetti, and I am here on behalf of the Multicultural Business Alliance, the Latin Business Association, the Hispanic one hundred, the Latin American and Caribbean Business Chamber of Commerce,

  • Nora Kanetti

    Person

    and the Hispanic Chambers of Commerce of San Francisco in opposition to 12 excuse me, AB 1720. Thank you.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you.

  • Anthony Torres

    Person

    Good afternoon. Anthony Butler Torres on behalf of the California Hispanic Chamber Commerce in opposition. Thank you.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you.

  • Austin Heyworth

    Person

    Good afternoon. Austin Hayward on behalf of Internet Works. Multiple members in opposition.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you.

  • Juanita Martinez

    Person

    Juanita Martinez on behalf of the California Live Events Equity Alliance in opposition along with the California Black Chamber. Thank you.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you.

  • Delilah Clay

    Person

    Delilah Clay on behalf of California LULAC and NAN Sacramento in opposition. Thank you.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you. Okay.

  • Rebecca Bauer-Kahan

    Legislator

    Bringing it back to the dais. I do wanna make one point before I hand it over to my colleague, Mr. Bryan. This committee did move a bill by mister Bryan that addressed some of the things that were in your opening remarks related to the tickets that were no not yet available

  • Rebecca Bauer-Kahan

    Legislator

    and things like that. And so, I think there is a more global solution that's moving and just wanted to point that out.

  • Rebecca Bauer-Kahan

    Legislator

    And, also, I wanted to ask one question, which is, I don't believe what, miss Niemola said in her opening remarks that the entire chapter exempts the primary market holders is your intent.

  • Rebecca Bauer-Kahan

    Legislator

    We are looking into that. But if the secondary market that Ticketmaster has just so everyone's clear, Ticketmaster holds both a primary market role and a secondary market role.

  • Rebecca Bauer-Kahan

    Legislator

    I don't think your intent is to exempt their secondary market from this bill. Is that right, mister Haney?

  • Matt Haney

    Legislator

    Absolutely not. I don't know where this came from. That's the first fantastical assertion of that that we've heard. It absolutely would apply to Ticketmaster.

  • Matt Haney

    Legislator

    The Ticketmaster is one of, if not, the biggest resellers, and their resale market would be capped in the same way as all of the other resell would would under the bill.

  • Rebecca Bauer-Kahan

    Legislator

    And I assume if we needed technical changes to make that Yes.

  • Matt Haney

    Legislator

    Absolutely.

  • Rebecca Bauer-Kahan

    Legislator

    Perfect. Thank you. And now, Mr. Bryan.

  • Isaac Bryan

    Legislator

    Thank you. No. And and and Madam Chair, I had a similar thought. Well, first of all, I I saved all my questions on the last bill so that I can have some fun here.

  • Isaac Bryan

    Legislator

    I had a similar thought because it seems like StubHub picks and chooses when it's a competitor Ticketmaster and when it's completely different. Mentioning 6% of the competition to Ticketmaster, I have a couple questions for StubHub.

  • Isaac Bryan

    Legislator

    Do you have any artists sign this up to StubHub?

  • Erin Niemela

    Person

    We do not.

  • Isaac Bryan

    Legislator

    Do you have any Do you not operate in the venues that have contracts with StubHub?

  • Erin Niemela

    Person

    Absolutely not.

  • Isaac Bryan

    Legislator

    Do you have any logistics that you put on to facilitate concerts, shows, or entertainment performances?

  • Erin Niemela

    Person

    No. We are not a monopoly.

  • Isaac Bryan

    Legislator

    Finance tours or any part of the entertainment industry at all? No. Do you play any instruments?

  • Erin Niemela

    Person

    Actually, well, StubHub does not.

  • Isaac Bryan

    Legislator

    The point I'm getting at is is that I wouldn't argue that six per that StubHub is 6% of anything that has to do with putting on live entertainment. It's not the creators of the entertainment. It's not the venues that are hosting. It doesn't help with the logistics.

  • Isaac Bryan

    Legislator

    It doesn't finance any of the tours. It's not the artists who create. It's not the fans who show up. I would argue that StubHub is bottom feeding on the person to person transactions that should be happening between fans and consumers and taking its

  • Isaac Bryan

    Legislator

    percentage and created what has turned into such a large 6% of a market that it doesn't contribute to in a way that has now created this issue.

  • Isaac Bryan

    Legislator

    Because StubHub, what used to be I buy a ticket, I go to a show, I can't make it to the show, I sell it to Assembly Member Haney, now gets muddied by the gross bot buying that is absolutely taking place,

  • Isaac Bryan

    Legislator

    the speculative ticket buying that is absolutely taking place until we pass our bill later this year.

  • Isaac Bryan

    Legislator

    And and I and I just don't think that it's fair to always point the finger at Ticketmaster without looking at the practices that are happening with StubHub, and I think that's the reason bills like this are existing.

  • Isaac Bryan

    Legislator

    I have a question for the author. What do you say to the idea of the rise of potentially underground illicit markets, which I don't think I had heard before, but to some degree makes some logical sense.

  • Isaac Bryan

    Legislator

    If I can sell this ticket for five x, but I can't do it online for five x, why wouldn't I go to some other means that we just had a a bill we just heard about online targeting of young children and keeping kids off the Internet.

  • Isaac Bryan

    Legislator

    How do we know that Snapchat doesn't turn into the new the ticket selling space if we if we do something like this?

  • Matt Haney

    Legislator

    Well, as as you said, some of this is happening now currently, and we've seen we've seen this recently with Coachella, with tons of examples of folks being scammed.

  • Matt Haney

    Legislator

    I mean, issues related to stopping this type of fraud and these types of scams exist currently, and they're happening off on different types of platforms and and all of that. So that that is a that is a concern. It's one that exists right now.

  • Matt Haney

    Legislator

    In the analysis that they did in in the in these other countries that have had some types of caps, they haven't been able to demonstrate in any way that the caps were the cause of any additional type of fraud.

  • Matt Haney

    Legislator

    That that is not a part of their analysis, and there's been no analysis that actually shows that caps increase more fraud in that way. I do think that what what we wanna be clear about is that under this bill, you can still, sell, resell, and these platforms will still exist.

  • Matt Haney

    Legislator

    And what what would be different is that you will have to also upload the original ticket so that we know exactly how much you paid for it, and there's actually more confirmation to prevent fraud that will be required as a result of this bill on these platforms.

  • Matt Haney

    Legislator

    In countries that have similar types of caps, they still have these platforms. In fact in fact, in Ireland, more of these platforms came about after after their caps went into place.

  • Matt Haney

    Legislator

    And so these will still be the trusted place where people can get a ticket. If you go on to social media or you go in right now, that happens, and there's a ton of risk involved with that.

  • Matt Haney

    Legislator

    And people should know that there's a ton of there will be a ton of risk involved with that, especially if you know as a consumer that the law now says you're not supposed to pay more than 10% above, what the the the person or broker paid for it initially.

  • Matt Haney

    Legislator

    And if you're going on and buying a ticket that you know is 400%, 500% more than what the face value is, you could be pretty sure there's a decent chance that something shady about that because they're already doing what they shouldn't be doing.

  • Matt Haney

    Legislator

    So there's some more clarity that it will exist for consumers because they will know that it should only be 10% more than what the face value or total price would that was paid.

  • Matt Haney

    Legislator

    K. So so that was I think there right now, it is a free for all because there are no rules about reselling currently. So people are getting these kind of sort of on social media and other other places because people don't know the rules of what

  • Matt Haney

    Legislator

    they should actually expect to pay and have the verification of that, which will be required under this bill.

  • Isaac Bryan

    Legislator

    Do you worry at all that that some consumers and fans are going to be punished by the shameful practices of the secondary market? And I'll give you an example. Adele had a residency in Vegas. I got tickets to the last show of the residency.

  • Isaac Bryan

    Legislator

    I had to prove I was an Adele fan. It was a lottery process, which I think belong in her artist rights. She can make sure real fans can buy the ticket. I couldn't make it to the show. I was heartbroken.

  • Isaac Bryan

    Legislator

    I sold it for substantially more than I paid for it because that's what the market dictated for Adele's last show in Vegas. That couldn't happen under this bill. Right?

  • Matt Haney

    Legislator

    That could not happen under this bill. You can still have special access for real fans, and and I feel bad for the person who paid that huge huge markup to who is a who is a fan, but you would still be able to resell your ticket.

  • Matt Haney

    Legislator

    You would still be able to go through that process to buy the buy the ticket. What would be different is you could not then turn around and sell it for a huge huge markup.

  • Matt Haney

    Legislator

    You would sell it for up to 10% more than what you paid for it so that a a real fan could have access to it.

  • Matt Haney

    Legislator

    Right now, over 90% of the tickets though on these platforms are from, as you know, from these brokers and scalpers, they're not the situation that you're describing.

  • Matt Haney

    Legislator

    And even though you may have had that one situation, all of the other concerts and all of the other times you wanna see folks, you're also getting screwed by this overall.

  • Matt Haney

    Legislator

    So whatever you made on the net on that, you've paid back many times over and all the other events that you've had to go through this process and have to contend with these scalpers and and the way that they extract from real fans.

  • Matt Haney

    Legislator

    So that would that would not be allowed, although, really, this is about targeting these industrial resellers. We're very explicit about that in the bill.

  • Matt Haney

    Legislator

    The enforcement would be from the attorney general. So with the committee's amendments, it's about having sites where you'll be required to upload the ticket and be very transparent about it.

  • Matt Haney

    Legislator

    It's not about going after, Assembly Member Isaac Bryan who couldn't make a concert, which you'd still be able to resell it for sure, but not at a huge markup.

  • Matt Haney

    Legislator

    And there would be another Adele fan who would like yourself, a superfan who would be able to see it at a a slightly more affordable price.

  • Isaac Bryan

    Legislator

    And and the last thing I'll say is just the reference you made about King Kong and Godzilla and maybe there are no good actors. I think that was a perfect analogy, for this situation.

  • Isaac Bryan

    Legislator

    If I support this bill today, it's only gonna be because I think the author is fantastic, and I think the secondary markets, political, and business practices are shameful.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you. And I will say through the quick work of committee staff, there is some ambiguity. And this is why the legislature legislative process is so important.

  • Rebecca Bauer-Kahan

    Legislator

    And so we will be recommending a couple technical amendments to make sure the secondary market by the primary market holders is included.

  • Matt Haney

    Legislator

    And absolutely. And to be clear, it sounded like that was something that was already in law. It was not something we were proposing. Yes. So Right.

  • Matt Haney

    Legislator

    Absolutely

  • Rebecca Bauer-Kahan

    Legislator

    We can just exempt this section from that piece, which will be easy to do. So thank you for raising that with us, and we will clear that up. Appreciate that. Miss Wicks?

  • Buffy Wicks

    Legislator

    Thank you, madam chair. My favorite topic, ticketing. So I have kind of really just sort of questions both for the supporters and the opposition. And I know this is like a very complicated space. I have the scars to prove it.

  • Buffy Wicks

    Legislator

    So one, to the author, I think you're trying to solve a real problem. Like, I totally agree that this problem exists. I did a, I think, a Zoom last week with some of the venues in my district and some of the other folks who've worked on this.

  • Buffy Wicks

    Legislator

    There's absolutely this problem, and it's pretty shameful actually, and who suffers is the consumer ultimately. Right?

  • Buffy Wicks

    Legislator

    And I like the term industrial real resellers. I think that's a good way to put it. And you pay people people basically just, like, profiting off of this. It doesn't help the artists. It doesn't help the fans.

  • Buffy Wicks

    Legislator

    It doesn't help venues. It doesn't help anyone. So I think that I appreciate that you're trying to solve a problem. So I wanna start with that. To the point about what what mister Bryan had said, is there a way are there other alternatives to craft policy?

  • Buffy Wicks

    Legislator

    And I don't mean to sort of put you on the spot here, and I would actually ask this of the opposition and the supporters, to craft a policy that can go after these industrial real resalers without going after Mr. Isaac Bryan.

  • Buffy Wicks

    Legislator

    Since we use he offered himself up as an example to allow for an individual who can't go, you know, wants to resell their ticket. The market's dictating a certain price.

  • Buffy Wicks

    Legislator

    So allowing these sort of, like, one off sort of individual I don't wanna say exemptions, but something to that effect while still targeting these, like, the bots and the industrial resellers and the people who are really driving up the price and really focusing the

  • Buffy Wicks

    Legislator

    policy change on that universe of participants in this ecosystem?

  • Matt Haney

    Legislator

    Well, a few things with that. You know, one is absolutely we are still allowing for tickets to be resold. So in the case of of of Isaac Bryan, he's he's being used now as a as a as a We can tell some things

  • Buffy Wicks

    Legislator

    about him while he's not here.

  • Matt Haney

    Legislator

    Theoretical Adele superfan, who happens to be an Assembly Member from Los Angeles. The you would still be able to resell the the ticket.

  • Matt Haney

    Legislator

    And there are currently I mean, I had a show I got tickets to a show a theater show in San Francisco recently, and I couldn't make it. They canceled on me.

  • Matt Haney

    Legislator

    And so I had to I had to then re resell the tickets. I wanted to resell the tickets. Actually, that theater doesn't allow you to resell tickets at all, and so I just had to take the loss there.

  • Matt Haney

    Legislator

    So we are allowing for tickets to be resold, and you wanna make sure you're selling it at a fair price, but also one that is for a real fan. And so that's the first part of it.

  • Matt Haney

    Legislator

    We are allowing that in in that case. You're not able to, though, turn around and make a huge profit off of it, whether you're a reset a scalper broker, a reseller, or an individual because we wanna make sure these are accessible to fans and they're not

  • Matt Haney

    Legislator

    being used for speculating or or gambling. You're not gonna make a extract a huge profit simply because you got there first when you had nothing to do with the show or the art or the or the venue.

  • Matt Haney

    Legislator

    Right? You're just making it because you're basically you got there first, and now you're able to extract from somebody else who actually wants to have the experience.

  • Matt Haney

    Legislator

    With all of that said, the bill is very clear that this is about, in terms of the enforcement, would be with the attorney general and about these industrial resellers and not having these massive by design operations that utilize these huge platforms where they're

  • Matt Haney

    Legislator

    they can use them to extract huge profits. And and they're gonna have to be able to verify on those platforms that folks are are are charging not more than 10% of what they paid for it.

  • Matt Haney

    Legislator

    So it's in allowing the resale and allowing the enforcement, but I guess we can differ on the the question of whether that was fair, what Assembly Member Bryan did. But the fundamental point here is any enforcement, any the real issue is the industrial resellers.

  • Matt Haney

    Legislator

    And if an individual wants to can't make it, they can still resell their ticket, but it's about creating accessibility for fans, not even for an individual about making profit for yourself for an event that you'd you'd really didn't contribute to.

  • Buffy Wicks

    Legislator

    Because and I'm happy to hear from other through the Chair if you allow ideas from both the opposition and the and the supporters around other alternatives because I get what you're trying to do.

  • Buffy Wicks

    Legislator

    I do what I do worry about with this bill, though, is it will exacerbate the monopoly of Ticketmaster. And so is there a way to tackle the problem you're trying to tackle, which is a real one and a legitimate one, by going after creating a policy that goes

  • Buffy Wicks

    Legislator

    after the industrial resellers, but doesn't do it by doing that, basically, put out of business all the other ticket sellers, which is likely to happen, I would assume.

  • Randy Nichols

    Person

    We currently have a bunch of different companies in the market. There's Cash or Trade. There's Twikits. There's Tixel. There's a bunch of companies that are fan to fan ticket marketplaces.

  • Randy Nichols

    Person

    They typically charge, like, a 10% fee, the 15% fee for the ticket sale, and they allow fans to resell the tickets at face value, and it's a viable business. They're just not publicly traded or large private equity backed businesses.

  • Randy Nichols

    Person

    They're simply tools to allow fans to pass along tickets.

  • Randy Nichols

    Person

    So the question is, are we looking to allow companies to exist to help fans pass along their ticket when they can't go, or are we looking to protect these large private equity backed businesses to rip off fans with 40, 50% fees.

  • Randy Nichols

    Person

    Because we we can make it work and it does work.

  • Randy Nichols

    Person

    In Australia, for instance, there's a company called Pixel, and they're now in The States as well. And they operate perfectly fine with the ban on resale there and or the ban, you know, with the cap.

  • Randy Nichols

    Person

    So it it works, and companies can exist. StubHub can exist. Will they make as much money as they do today?

  • Randy Nichols

    Person

    No. Because currently, they charge 40% fees on their tickets. Those fees are then used for SEO to go out and buy every spot on Google. When an artist tries to list their show, they have to pay more money than StubHub, which they can't afford.

  • Randy Nichols

    Person

    So fans get tricked into going to StubHub to buy the ticket. So there there are viable solutions today. It will just cut their profits and their ability to own SEO.

  • Rebecca Bauer-Kahan

    Legislator

    And if Assembly Member may I jump in here?

  • Rebecca Bauer-Kahan

    Legislator

    And if I may because I actually have something to add a question for you. So before you do so I will say this committee looked at the question you're asking. One of the problems is if you start to put a cap on the number an individual sells. Right?

  • Rebecca Bauer-Kahan

    Legislator

    So let's say I imagine maybe Isaac sells more than 10 a year, but, like, if you were to say, okay.

  • Rebecca Bauer-Kahan

    Legislator

    This only applies. Nothing would stop these industrial real sellers from just basically starting new entities every time they hit 10. So that's the giant loophole we were worried about.

  • Rebecca Bauer-Kahan

    Legislator

    But the question I wanted to add for you before you so you can say two things at once was I don't think it is the author's intent. It surely wasn't this committee's intent to put StubHub out of business.

  • Rebecca Bauer-Kahan

    Legislator

    I don't think that's what anyone wants to do, and it's why the bill explicitly allows for fees to be charged so that there is a business model.

  • Rebecca Bauer-Kahan

    Legislator

    So I don't know if it's I mean, I know you don't like the bill at all, but is there is there a, a fee percentage that would be more comfortable for StubHub that would allow you to thrive

  • Rebecca Bauer-Kahan

    Legislator

    but would allow us to continue with this policy forward in addition to answering Ms. Wicks' question?

  • Erin Niemela

    Person

    I actually think, Madam Chair, the more comfortable conversation would be to have a conversation about the entire ecosystem. There is nothing in this bill that says there should be a 10% cap on fees that Ticketmaster charges.

  • Erin Niemela

    Person

    There is nothing in this bill that says there should be a 10% cap on, ticket prices across the board, over which venues and artists are paid. And these are all the things, by the way, that are the subject of the lawsuit that the AG in 30 states just won yesterday.

  • Erin Niemela

    Person

    And going forward in this process, that is what is going to be explored because the flywheel that is Ticketmaster, is the the it very accusation here is that they do control prices, that they raise prices, that there is no face value, that they increase prices.

  • Erin Niemela

    Person

    You have a scarce resource in essence. It's finite. And you have one player that is deciding how many are available, and what cost, and what artists are being paid, and what venues are being paid.

  • Erin Niemela

    Person

    And the Assembly Member touched on something that was really key, which is he purchased a ticket, And he was unable to get rid of that ticket. He was actually prohibited from it.

  • Erin Niemela

    Person

    There are six other states, including New York and Illinois that allow consumers to transfer their tickets. As we talked about, Assemblymember Wicks had a bill that actually created transparency in the ticketing space where retailers would

  • Erin Niemela

    Person

    compete against each other for customers and the best price. And that was actually a subject of the settlement agreement proposed by the Trump administration. And in which in theory will be a part of this discussion now, secured by our AG and those 30 states.

  • Erin Niemela

    Person

    So the answer is really not to put your finger on the scales, but to allow for this entire ecosystem to be scrutinized in reforms.

  • Rebecca Bauer-Kahan

    Legislator

    And then I know that I had interrupted the answer to miss Wicks' question. I don't know if you wanted to address what she had said about the industrial versus the individuals.

  • Buffy Wicks

    Legislator

    Yeah. Are there other alternatives that would actually get to that that either of you maybe know that would get to this problem of the industrial reseller?

  • Nicole Harding

    Person

    I think for for me, obviously, I'm here to talk about fraud and the relationship. One of the earlier statements was that there's no research that demonstrates that there's a correlation between price caps and fraud. There is.

  • Nicole Harding

    Person

    That's the research that I've been doing, and I can evidence that. The problem is is this displacement.

  • Nicole Harding

    Person

    So the thing that's gonna be protective against those, fraud increases is by keeping consumers doing the transaction in these safe spaces that can be regulated.

  • Nicole Harding

    Person

    The key problem is that when we do put a price cap on and people know, especially when it's in recent memory, that they can go and charge far higher, they'll go to spaces where nobody's policing whether they do that or not.

  • Nicole Harding

    Person

    And that could be in person, it could be online, it can be to, like, friends or friends of a friend, it can be in private groups, or it can be in in the public mainstream.

  • Nicole Harding

    Person

    But where it won't be is on reseller sites that are adhering to the laws that you set because they won't be able to accept anything over the 110% cap. So that's why the displacement happens, and that's why fraud grows.

  • Nicole Harding

    Person

    So whilst there are ticket platforms in places like Australia as Isby mentioned that do do this, they have still seen this four times increase in fraud.

  • Nicole Harding

    Person

    They ticket in in a comparable economy. Ticketing fraud in The UK is around 3.5%. In Australia and Victoria, it's around 13%. So

  • Rebecca Bauer-Kahan

    Legislator

    But do you have an answer to her question about alternatives?

  • Nicole Harding

    Person

    But yeah. But I think it comes back to the there are ways of making that arena more transparent like interoperability, showing the consumer from a behavioral point of view that if they know what the ticket was, what it cost in the first place,

  • Nicole Harding

    Person

    they can make more informed decisions. That's not something that's currently happening, and it may make them to, you know, understand not to move over to those displaced arenas.

  • Matt Haney

    Legislator

    Can I address something from your question?

  • Rebecca Bauer-Kahan

    Legislator

    Well, let me just make sure yes. But let me just make sure miss Wicks is complete before we I totally derail what she's asking.

  • Buffy Wicks

    Legislator

    It's an active conversation. I love it as it always is in ticketing. So and then also I know I believe Massachusetts had a similar law on the books, which they don't anymore. Can anyone give context to that?

  • Erin Niemela

    Person

    Sure. It it was passed in 1924. Oh, wow.

  • Buffy Wicks

    Legislator

    Before yeah.

  • Erin Niemela

    Person

    So kind of vaudeville era, I guess. I don't know. And then it was repealed in 2024 because it was determined to not be operational. You know, the secondary market doesn't have transparency,

  • Erin Niemela

    Person

    so you can't really implement a cap when you don't know what the face value of a ticket is when the face value keeps changing because it depends on what the primary ticketer wants to charge at any given point in time.

  • Rebecca Bauer-Kahan

    Legislator

    So just for the record, I don't know if opposition wants to speak to this. My understanding from my staff is that it's sunset after a hundred years. So it wasn't pulled back intentionally. But I don't know if the Well Yeah.

  • Randy Nichols

    Person

    It's just it's it's a law that they just haven't addressed yet, but this is it was a law written before the digital era of tickets, obviously, from the nineteen twenties, and they haven't corrected the situation yet. It wasn't pulled because of a specific issue.

  • Erin Niemela

    Person

    Actually, there was an entirely new law passed that dealt with ticketing transparency, price transparency. They actually passed a complete and comprehensive reform act.

  • Erin Niemela

    Person

    It doesn't include all the elements we would like to see or Ticketmaster or any of the other interest groups, but they did pass a subsequent bill in 2024.

  • Buffy Wicks

    Legislator

    So I'll just wrap up and then the fact that Ticketmaster's supporting this bill gives me pause because it makes me think this is a competitive advantage for them.

  • Buffy Wicks

    Legislator

    If this goes into law, they like that, and they have proven to have monopolistic behavior as per the court decision yesterday. So I have concern, although I do appreciate the desire to try to fix the problem.

  • Buffy Wicks

    Legislator

    I'm gonna lay off for today, but I'm also happy to work with the author and the supporters and the opposition to see if we can figure out a way to really target those industrial resellers.

  • Buffy Wicks

    Legislator

    As this bill moves through the process, I assume it's gonna get through today, and I wanna offer if you want it.

  • Buffy Wicks

    Legislator

    A seat at the table, try to figure out that piece of it too, mister Haney, in the hopes that I can support it down the road.

  • Rebecca Bauer-Kahan

    Legislator

    Mister Haney?

  • Matt Haney

    Legislator

    Yeah. Absolutely. And a few things on this on that particular issue. You know, we put language in there that any enforcement will be targeted at industrial resellers. We'd love to work with you to to even strengthen that and clarify it further.

  • Matt Haney

    Legislator

    That really is the in intent here, and we're getting a tricky space when you're talking about the individual and such because that's really not the focus, of the bill.

  • Matt Haney

    Legislator

    I wanna say a few things about this sort of Ticketmaster, issue, because I know it comes up a lot. You know, all of those examples that I gave here, the Coachella, the to the Taylor Swift one, the the Sam Smith one, these are not Ticketmaster Live Nation venues.

  • Matt Haney

    Legislator

    So this is obviously a a huge problem with the secondary market, the speculation, the gambling that's happening even aside from the Ticketmaster issue.

  • Matt Haney

    Legislator

    I think one thing that has changed as of yesterday is the lawsuit was decided and found that Ticketmaster is a monopoly.

  • Matt Haney

    Legislator

    That means that there's gonna be a sig significant set of changes as it relates to Ticketmaster and Live Nation that's gonna happen because of that court case. They're gonna be able to to the judge is going to to possibly break up Ticketmaster Live Nation.

  • Matt Haney

    Legislator

    There's issues of fees and venues and their role with artists. A lot of the concerns that we have with what has hap happened with the primary market will be addressed with that court case, and that's and that's very important.

  • Matt Haney

    Legislator

    In fact, the folks who are actually sponsoring our bill are hugely supportive of that lawsuit and also have their own issues with Ticketmaster.

  • Matt Haney

    Legislator

    The same folks who want to see this bill address the issues with the secondary market also have those same concerns as it relates to the primary market. So that is a game changer there.

  • Matt Haney

    Legislator

    And, again, in terms of the the competition just and your and this this analysis said it many, many different times in many different ways. Right? They're very clear.

  • Matt Haney

    Legislator

    Secondary resellers and platforms are not competing with Ticketmaster in the primary market. Resellers are the customers of Ticketmaster. These are not competitors.

  • Matt Haney

    Legislator

    They wanna keep on saying that, but they are buying tickets at whatever price Ticketmaster puts up and wanting to charge a whole lot more with with brokers and and and scalpers who are doing that on these platforms.

  • Matt Haney

    Legislator

    The platforms will still exist, but we wanna get in between there is the extraction from fans and the extraction from artists contributing nothing to it and pricing folks out.

  • Rebecca Bauer-Kahan

    Legislator

    Yeah. Thank you. And, I mean, the fact that federal antitrust law worked is very exciting for me. So I do think that a lot of good will come from that lawsuit, and I agree with the, opposition that that's really important.

  • Rebecca Bauer-Kahan

    Legislator

    And it will do a huge amount to to change this ecosystem in a way that is protective, hopefully, once we see what the consent decree and all, entails.

  • Rebecca Bauer-Kahan

    Legislator

    I will add that one of the things that this committee has, hoped for in this ticketing space is transferability, is really locking into law that, of course, as the opposition said, once it is your ticket, whether it is paper or otherwise in this digital age,

  • Rebecca Bauer-Kahan

    Legislator

    you have the absolute right to give it to your friend or do whatever you want with it. It is your good, you paid for it.

  • Rebecca Bauer-Kahan

    Legislator

    This bill doesn't address that, but, hopefully, either the federal case will or will get there because I actually do agree that's a really important consumer protection that at least California has not addressed to date. With that, mister Hoover.

  • Josh Hoover

    Legislator

    Thank you. I just have a brief comment. You know, I think I appreciate the author bringing the bill forward. I do agree with a lot of the problems that you've identified. And I think there there are problems that definitely need resolutions, need solutions.

  • Josh Hoover

    Legislator

    Unfortunately, I think, this solution, is one that sort of uses a sledgehammer where a scalpel would be more appropriate and has the potential to harm consumers in a couple big ways.

  • Josh Hoover

    Legislator

    The first of which is not allowing, super fan, Assembly Member Bryan to sell his ticket or resell his ticket any any price that he would that the market would bear. I think that consumers right? This is this is not a comment about scalpers.

  • Josh Hoover

    Legislator

    There's obviously issues when it comes to scalpers, but consumers themselves should be able to participate in that market.

  • Josh Hoover

    Legislator

    And then, also, I do I do worry pretty substantially about the potential for fraud because what this bill certainly does not do is it does not eliminate that market that is created by the scarcity, right, of these tickets.

  • Josh Hoover

    Legislator

    The demand for these tickets is simply higher than the supply.

  • Josh Hoover

    Legislator

    That is going to create a market that allows consumers and, in many cases, scalpers to get a price for those tickets that is more than the initial selling price is just by simple the simple reality of that scarcity that exists.

  • Josh Hoover

    Legislator

    So, you know, I think because that market will always exist, people will always find a place to sell tickets at those market based prices.

  • Josh Hoover

    Legislator

    I think that does and will push, you know, well meaning consumers to aftermarket or black market options to attempt to sell those tickets, and that will hurt the consumers that ultimately have the potential to purchase tickets that aren't real.

  • Josh Hoover

    Legislator

    And so for those reasons, unfortunately, we'll not be able to support the bill today. Thanks.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you, Madam Vice Chair.

  • Alexandra Macedo

    Legislator

    Thank you, Madam Chair. First of all, I wanna say sorry that your date stood you up. If you're watching, shame on you. Secondly, broadly, I just oppose price caps. I don't personally think they work, but I also think it's not been stated enough for me that I just

  • Alexandra Macedo

    Legislator

    don't think you can regulate downstream competition without upstream effects.

  • Alexandra Macedo

    Legislator

    And I agree with my colleague. This needs a scalpel to figure out. Now when I'm looking at that chart, I think we need to target the bots that are buying these tickets and figuring out how we can limit that.

  • Alexandra Macedo

    Legislator

    But I for example, I sell clothes on Poshmark all the time. I may buy something at Marshalls for $15, but then all of a sudden, it goes viral on TikTok, and I can sell it for a $150.

  • Alexandra Macedo

    Legislator

    And so I don't necessarily think that going after the secondary sellers is how to fix this. I agree it's a problem. So with that, I with miss Wicks, I hope we continue to work on this to figure out how we're targeting the people that are buying up these tickets that

  • Alexandra Macedo

    Legislator

    have no intention of ever going to the concert to eliminate that, but I just don't think this is quite the solution. Thank you.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you, Madam Vice Chair. Well, we all know that Taylor Swift changes the world, and this is just further example of that. This whole conversation started after, I believe, the Taylor Swift debacle, with her tickets.

  • Rebecca Bauer-Kahan

    Legislator

    And, again, prices just skyrocketing on the secondary market and people not being able to take advantage of that tour.

  • Rebecca Bauer-Kahan

    Legislator

    And I think part of why it was such an example was because she was taking the money she was bringing in as the artist and really, you know, people have talked widely about how she was giving bonuses to her truck drivers and her other support on the tour.

  • Rebecca Bauer-Kahan

    Legislator

    And so I think people wanted the artist in that situation to be getting the benefit of her massive labor that she was putting into this amazing tour.

  • Rebecca Bauer-Kahan

    Legislator

    And so, you know, I think it's a really important conversation of how do we uplift the artists, the venues, the people who do this work every day, and the fans who wanna go enjoy this.

  • Rebecca Bauer-Kahan

    Legislator

    I the other day, I talked about on Holocaust Remembrance Day, I talked about spiritual resistance, and then in this moment, we need to be finding joy. And I know music is one way that many of us find joy, so we gotta make sure fans can get there.

  • Rebecca Bauer-Kahan

    Legislator

    And so I really appreciate this effort. I think, obviously, this has been years in the making conversation, and I'm glad that it is continuing. And I wanna thank you for continuing it. This is the first stop in your journey.

  • Rebecca Bauer-Kahan

    Legislator

    And as I've heard, I think that work will continue. We'll make sure we recommend those amendments to make sure all the entire secondary market is covered, by this bill if there's any question, left around that.

  • Rebecca Bauer-Kahan

    Legislator

    And I hope that the opposition will work with the author on how we can get to a better place with this bill, especially in light of the fact that we now have a court that I do believe and I'm hopeful will deal with the primary market question,

  • Rebecca Bauer-Kahan

    Legislator

    which is so critically important, but it leaves the secondary market really there's no reason that court would address the problems that are happening on the secondary market, and so that's what this bill is here to address.

  • Rebecca Bauer-Kahan

    Legislator

    And with that, would you like to close?

  • Matt Haney

    Legislator

    Yes. And thank you.

  • Rebecca Bauer-Kahan

    Legislator

    I'm sorry. Mr. Ward wants to speak.

  • Chris Ward

    Legislator

    And I'll be very brief in the interest of time. I just wanna note that this was heard in the committee on arts and entertainment, sports, and tourism, and I'll just, like, you know, reflect on those comments there, and I'm happy to move the item. Thank you.

  • Rebecca Bauer-Kahan

    Legislator

    K. We have a motion and a second, Mr. Haney.

  • Matt Haney

    Legislator

    Thank you so much again to you, Madam Chair, and your committee and your staff. Did an extraordinary job working with us, on, the amendments and also, looking at, again, this incredible analysis,

  • Matt Haney

    Legislator

    which I think for the for some of the comments that were raised as to as to why this is a solution and what it actually will solve. It looks at these questions of whether there's another way to do this.

  • Matt Haney

    Legislator

    There's a reason why these types of caps actually exist in many, many other countries around the world. In fact, we are somewhat of an outlier on this.

  • Matt Haney

    Legislator

    And when you look at those countries where they have restricted this the market in this way, including price caps, the price of tickets, accessibility for fans, which is the goal here, is significantly lower than in The United States, including in

  • Matt Haney

    Legislator

    countries where Ticketmaster has a large share of the market. We have to fix the issues with the primary market. The lawsuit is a big part of it. There's other things that we can do.

  • Matt Haney

    Legislator

    But as long as we allow folks to come in and swoop up all the tickets before real fans can get there and charge you a huge up upsell on it, pocketing all of those profits, not putting them into venues and artists, we are gonna continue to have the problems

  • Matt Haney

    Legislator

    we have that that that price out fans and that don't support these incredible artists and venues.

  • Matt Haney

    Legislator

    So, this is a step forward, I hope and I absolutely, will commit to working with anyone, on making sure we're targeting the the the most egregious examples and the larger resellers who are profiting the most and also driving up the prices out of the

  • Matt Haney

    Legislator

    reach of fans. So with that, respectfully ask for your Aye vote.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you. And thank you for your nice comments about the committee. I'll note that as the opposition said, we we agreed that we needed to look at the entire ecosystem.

  • Rebecca Bauer-Kahan

    Legislator

    And as you said, we put on a hearing to that subject that was incredible. And so I wanna thank Julie for her her hard work on this over the years.

  • Rebecca Bauer-Kahan

    Legislator

    With that, let's call the roll.

  • Committee Secretary

    Person

    Item number two, AB 1720 by Assembly member Haney. The motion is due passed to appropriations. [Roll Call]

  • Rebecca Bauer-Kahan

    Legislator

    Bill has three votes. We'll leave it open for absent Members. I think everyone's out having lunch. And now with Mr. Zbur, who has been so patient, the floor is yours when you are ready. And this is AB 169.

  • Rebecca Bauer-Kahan

    Legislator

    And before you start, since you're taking a minute to get ready, I wanna thank you for your partnership on this and your willingness to work with the committee. I think the bill has come really far, and I'm eager for the conversation.

  • Rick Chavez Zbur

    Legislator

    Can't say that there are other committees that have more interesting bills before them. So anyway, madam

  • Rebecca Bauer-Kahan

    Legislator

    We think so, but we're biased.

  • Rick Chavez Zbur

    Legislator

    Madam chair, members, I'd like to start by thanking you personally and the committee consultants for really the extensive amount of assistance and engagement that we've had on this bill.

  • Rick Chavez Zbur

    Legislator

    It is a work in progress, and, the one thing I will say is that we know we have more work to do, but we have been dedicated in working with all of the various folks that have expressed concerns, and we'll continue to do that over the course of the, of this bill should it get out of committee today. You know, this bill, I'm proud to present AB 1609, which is sponsored by the Communication Workers of America District Council Nine.

  • Rick Chavez Zbur

    Legislator

    The bill restores a basic expectation: when Californians need help, especially with essential services, they can reach a a real human being in a reasonable amount of time.

  • Rick Chavez Zbur

    Legislator

    Technology should make life easier, not block people from getting help. You know, during the COVID pandemic, I spent more than four hours on hold on the phone trying to get medication for my then 98 year old mother. After getting nowhere and being on hold, I ended up driving down to the pharmacy to deal with the situation myself and actually showed them how long I had been on hold that day as they were not answering the phone.

  • Rick Chavez Zbur

    Legislator

    At that time, you know, I was forced to go out in public at the height of the pandemic, risking contracting COVID myself and actually bringing that, COVID back in and exposing my 98 year old mother, which made that a which which made, you know, Telephonic Customer service a really important goal. That could have been prevented if I had been able to reach a human being that day.

  • Rick Chavez Zbur

    Legislator

    That is not the only you know, it's not only COVID that this is an important issue. People who are trying to achieve, get to basic services, get medications. There are people that are housebound that can't get out and drive to a location need to have the ability to get their needs met. Today, too many people are trapped in phone trees, AI chatbots, and endless hold times when they're dealing with health care, utilities, housing, or travel emergencies.

  • Rick Chavez Zbur

    Legislator

    Being able to reach a human customer service agent can be a critical or life-threatening at times.

  • Rick Chavez Zbur

    Legislator

    Customers need to be able to promptly fill a medication to present to to prevent their utilities from being shut off and to deal with medications that they need or to deal with change in a travel schedule and a plane ticket. AB 1609 ensures meaningful access to live assistance by requiring large businesses to offer access to a live human representative during business hours.

  • Rick Chavez Zbur

    Legislator

    Limiting hold times after a telephonic call or online customer service inquiry is answered, it requires transparency, including clear disclosure of AI use and prohibiting AI from being presented as human, and it, requires promptly displaying a phone number if one is made available for live customer assistance. AB 1609 does not ban automation. AI can be an effective tool in facilitating efficient responses, but studies also show that AI and automated systems consistently underperform or fail to resolve more difficult complex problems that consumers face.

  • Rick Chavez Zbur

    Legislator

    Under this bill, businesses may continue using AI and automated systems. However, automation cannot replace real and vital workers or be used as a barrier when that prevents people from reaching prompt effective help. The bill not only provides needed customer protections when customer service is needed, it also recognizes the critical importance of human workers. With me today and speaking momentarily will be CWA District Council Nine, who's the sponsor of the bill.

  • Rick Chavez Zbur

    Legislator

    I'm proud to be joined by CWA as they have a long and laudable history of bargaining over new technologies, limiting their negative impacts on workers, customers, and the public while ensuring that workers win a fair share of economic gains when new technology moves forward.

  • Rick Chavez Zbur

    Legislator

    So, while this is primarily a consumer protection bill, it's also a worker protection bill and making sure that workers are not eliminated. Workers that are needed to serve consumers, are continued to be made available. Today, you'll hear from opposition that there continue to be concerns with this proposal. I also believe that you'll that you will additionally hear how hard I've worked with them to communicate with them, listen to their concerns, and address those concerns.

  • Rick Chavez Zbur

    Legislator

    I amended AB 169 significantly prior to this hearing.

  • Rick Chavez Zbur

    Legislator

    And, again, I wanna thank the committee consultants for working with us on this to address high level concerns from the prior version of the bill and to show that I have been been and will continue to work in good faith with the stakeholders.

  • Rick Chavez Zbur

    Legislator

    Some of the amendments include adding reasonable effort standards, extending each of the time threshold significantly, adding a callback option as allowable, clarifying in certain terms that this proposal is not requiring telephonic customer service if that is not currently a customer support if that's not currently offered on an online customer support platform, a new exception for unseen circumstances where specific time frames cannot be met.

  • Rick Chavez Zbur

    Legislator

    And then we've also accepted the chamber suggestion regarding hours of operation limiting it to existing ten hours during existing operating hours for those businesses. Madam chair and members, this bill is is basically complex in some ways, but very simple in others. Given the accelerated deployment of AI and increasing difficulty trying to reach an actual person, this bill ensures that we could that we can talk to a human when we most need human customer support help.

  • Rick Chavez Zbur

    Legislator

    I also wanna thank all of the, the folks that have expressed concern. I really appreciate the fact that they have come into our office and been working with us cooperatively, and extensively, and we'll continue to do that assuming the bill moves forward. So with that, I ask for your aye vote at the appropriate time. And with me today to testify in support of the bill is Ignacio Hernandez representing the bill sponsor Communication Workers of America District Council Nine.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you. And since you only have one witness, you can have all four minutes.

  • Ignacio Hernandez

    Person

    In light of the long day, I may not take all of it.

  • Rebecca Bauer-Kahan

    Legislator

    We would. I do appreciate that.

  • Ignacio Hernandez

    Person

    Good good afternoon, madam chair, members. Ignacio Hernandez on behalf of the Communication Workers of America District Nine, which covers California, Nevada, Hawaii, and Guam. We are the sponsors of the measure. First of all, I wanna thank the author for taking on this, big topic. And it's a big topic because this problem is ubiquitous.

  • Ignacio Hernandez

    Person

    We have all experienced this problem. Our friends, our families being stuck on, long wait times, being stuck on these loops of going through, phone trees and never getting to a live person. I've talked with friends and family, in every office that we went into over the last few weeks. We have heard stories of different industries with the same problem. You know, strangely, last week,

  • Ignacio Hernandez

    Person

    I was, trying to call a company, and I was put through a phone tree. And every time I finally hit the button to get to a live person, it would hang up on me. That happened three times. I started thinking it was personal. But, you know, those are the types of challenges that folks have.

  • Ignacio Hernandez

    Person

    And this is a serious issue, I think, as the author explained, it could be the difference between somebody getting access to services that they really need in a timely fashion. It's not just a matter of convenience, so that's part of it.

  • Ignacio Hernandez

    Person

    And then there are stories that I hear from folks where they're on hold for long periods of time and maybe they can only call during work hours, and they only have maybe their, you know, their break, you know, or their lunch period to make these calls. You know, we're very fortunate in this world to have flexible but very busy schedules during the day.

  • Ignacio Hernandez

    Person

    But other folks only have very limited time to call and take care of business and maybe for their family members, for their children.

  • Ignacio Hernandez

    Person

    So having shorter wait times and being able to get a human being, is important. It's also important to remember that this this bill is an investment, as we said, in workers, but also in investment in the value of human beings to solve problems. All of us have gone through the chatbots, and none of the answers provided fit exactly our situation. And the only way we can address that is talk to a human being.

  • Ignacio Hernandez

    Person

    And so this bill reinvest in that and highlights the importance and value of that.

  • Ignacio Hernandez

    Person

    As CWA, our workers have been fighting for call centers in our our industries that we cover through our membership for a variety of reasons, but it has been that. It has been the core that our customers that we deal with, they want to talk to us because they want to solve problems. They don't wanna be on on calls forever. And I have to remind you, I'll close by saying this. There was a time where we didn't have chatbots.

  • Ignacio Hernandez

    Person

    There was a time where we didn't have endless loops of phone trees where we could get to a live person much quicker to solve problems. And so this is, you know, something that can be done. It's been done before, and there's something that we should we can do now. So I really appreciate the author taking this bill on, and I appreciate the committee considering it. And, also, I appreciate the work the committee did in making some amendments to this bill, and we ask for support.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you. Anyone here else here in support of this bill? Name, organization, and position. Surprise more people who've haven't just had customer service problems aren't getting up. Yes.

  • Mitch Steiger

    Person

    Thank you. Mitch Steiger with CFT, a union of educators and classified professionals in support.

  • Mariko Yoshihara

    Person

    Mariko Yoshihara on behalf of Tech Equity Action in support.

  • Shane Gusman

    Person

    Shane Guzman on behalf of Teamsters California in support.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you.

  • Sara Flocks

    Person

    Sarah Flocks, California Federation of Labor Unions in support. Thank you.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you. Looks like we have two primary witnesses in opposition. One was more eager to come up than the other. But, so you guys each have two minutes when you're ready.

  • Rebecca Bauer-Kahan

    Legislator

    You have to press on.

  • Ronak Daylami

    Person

    I have to press on.

  • Ronak Daylami

    Person

    Not used to be in this room. Thank you. Thank you. Ronak Daylami with Cal Chamber in opposition to AP 1609. First, we do wanna thank the author and his staff, Sheila, for their concerted effort to be responsive to industry.

  • Ronak Daylami

    Person

    And we wanna thank them as well as madam chair and the committee staff for the recent amendments, which do meaningfully address some of the issues that we have raised. That said, we do remain opposed due to some significant concerns. I will try and quickly kinda go through the the recent amendments. To start, for example, we greatly appreciate the improved exemption for unforeseen circumstances, which better capture not only telecom and systems outages, but also other real world disruptions.

  • Ronak Daylami

    Person

    Also, while it may need some expansion, we acknowledge that the fraud and financial harm exemption language is a step in the right direction.

  • Ronak Daylami

    Person

    Shifting gears, the good faith effort standard combined with the expanded limits on hold times, and they, of course, noticeably improved previously and feasible if not cost prohibitive requirements, but they aren't fixes per se. Implementation and compliance concerns do remain. Even if they're more feasible than before, such limits still impose significant burdens and costs, and it's unclear how the ADU would measure, good faith from an enforcement perspective.

  • Ronak Daylami

    Person

    $10,000 fines for for isolated agent errors under new liability structure under the new liability structure is concerning, as is the open ended authority for AG regulations. Next, two of our core issues do remain partially unresolved.

  • Ronak Daylami

    Person

    First, it's critical that companies not be required to provide telephonic customer service, and we do recognize some of the improvements improvements made on that front. Second, the bill, we do feel it's important that it recognize multiple mechanisms by which customer support can be, provided, and we do appreciate some of the improvements on that. But again, there's still more work to be done on that.

  • Ronak Daylami

    Person

    Lastly, for today, as noted in our letter, it's both critical that we have clarity that companies may use automated systems and chatbots to address in route customer concerns prior to escalation to a human where appropriate, including AI powered support assistance, and that we have expressed exemptions for business only lines for employees and b to b, or government lines.

  • Ronak Daylami

    Person

    And in close, we just wanna note that we remain concerned about a one size fits all approach across industries, and we're still evaluating how the revised framework deals with that concern.

  • Ronak Daylami

    Person

    Certainly, if the bill does move forward, we look forward to working with this author and this office. Really appreciate the work that's been done. So thank you.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you. And I will note the motion today will be to judiciary on the enforcement issues. I appreciate

  • Ronak Daylami

    Person

    Yeah.

  • Austin Heyworth

    Person

    Chair members, Austin Hayward on behalf of Internet Works, an association of 30 middle tech companies supporting thousands of California small businesses and entrepreneurs. We appreciate the author's amendments. As noted, he's a delight as always to work with, particularly clarifying scope, of scope of certain businesses and limiting this to patent, goods and services rather than sweeping in free services. This is a meaningful improvement. However, we must still respectfully oppose AB 169 that it retains a rigid, one size fits all mandate.

  • Austin Heyworth

    Person

    It does not reflect how online platforms providing digital services operate or where there's real true space for improvement in consumer quality consumer service quality. It's a mistake to assume phone service is superior or more protective of consumers, and prioritizing speed over accuracy may further negative negatively impact the consumer experience. This bill still requires a human support human support within specific time frames, strict hold time limits, and mandatory phone access regardless of the nature of the service.

  • Austin Heyworth

    Person

    Even with a narrower scope, these mandates will simply be cost prohibitive for the many, many online platforms that only charge a few dollars a month. This requirement would fall hardest on small and medium sized platforms, hustling to compete and dedicate their resources to where consumers value most.

  • Austin Heyworth

    Person

    For those reasons, IW respectfully remains opposed to the bill.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you so much. You are so eager and yet so brief. Anyone yes. Miss McKenna, thank you. Anyone else here in opposition?

  • Rebecca Bauer-Kahan

    Legislator

    Name, organization, and position, please.

  • Robert Boykin

    Person

    Hi. Robert Boykin with Technet in respectful opposition.

  • Annalee Akin

    Person

    Annalee Augustine with the Civil Justice Association of California. Still respectfully opposed, but very appreciative of the recent amendments. Thank you.

  • Sarah Bridges

    Person

    Sarah Bridges on behalf of the California Manufacturers and Technology Association. Appreciate the author willing to work with us in the recent amendments, but we're still respectfully opposed.

  • Laura Curtis

    Person

    Good afternoon, chair and members. Laura Curtis on behalf of the American Property Casualty Insurance Association. Again, we also thank the author and his staff in this committee for the proposed amendments. However, we are still, respectfully opposed. Thank you.

  • Yarelie Magallon

    Person

    Good afternoon, committee chair members. Yarelie Magallon with political solutions on behalf of the California Travel Association. Still in opposition, but really do wanna appreciate the author for his continued work with us. Thank you.

  • Aidan Downey

    Person

    Aidan Downey on behalf of the Computer and Communications Industry Association. Wanna continue to echo the appreciation for the author. Thank you.

  • Rebecca Bauer-Kahan

    Legislator

    He didn't even say he was opposed, but I think he just forgot.

  • Ryan Elaine

    Person

    Ryan Elaine with the California Retailers Association. No official position. I have concerns, but I've been working with the author's office. Thank you.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you. K. Seeing no additional opposition in the room, bring it back to the dais. Start with Mister Ward.

  • Chris Ward

    Legislator

    Thank you, madam chair. And I wanna thank the author for bringing this forward. I I think it'll be one that if we can get across all the way, it will be widely celebrated. I think, to answer the testimony that we heard from your, supporting witness is something that we've all experienced. I didn't wanna really recite so many of those cases, but I they're probably, you know, too numerous for me to remember.

  • Chris Ward

    Legislator

    And I imagine there might be a counterargument out there that, you know, well, okay. You know, if you don't like that a business is using this and there's no way to, you know, be able to access efficient, you know, human based con conversations and really just get on with your day, solve your problem, get on with your day, then you don't have to choose that business. But sometimes you are incredibly beholden or you need an answer if you're trying to solve.

  • Chris Ward

    Legislator

    I'll just cite a couple that came to memory. You know, I don't wanna change my cable provider, but I just wanna fix the thing.

  • Chris Ward

    Legislator

    And it shouldn't take me two hours of either navigating, like, you know, some kind of a menu that kicks you back to, like, you know, square one with no option. You try to type in operator. It doesn't understand. It's like, how can I help you? You try to type in, can I talk to an agent?

  • Chris Ward

    Legislator

    And it's like, it just is round and round. You know, solving a health insurance question that they overcharged you on something, and you just need to solve it. It's so obvious it could take a human thirty seconds, but you just get bogged down in that. So I I appreciate the narrowing that you've already done. I know it's gonna apply to very, very large corporations that can, you know, hybrid a model.

  • Chris Ward

    Legislator

    And that's not to say that AI and chatbot systems wouldn't be able to be an assist either to that human, agent or, to the customer itself as maybe, you know, sort of a Step A. But you wanna be able to make sure that, like, we can actually, have that meaningful contact and and resolve consumer issues. So very much support your bill and happy to make the motion today.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you, Mister Ward. Miss Petrie-Norris?

  • Cottie Petrie-Norris

    Legislator

    Well, I actually wanna thank the author for, the considerable work that you've done on this bill. I think it was reflected in, the comments of the folks who stood up, in Me Too Opposition. As I shared with you, I've been really, trying to wrap my brain around kind of, where does sort of, you

  • Cottie Petrie-Norris

    Legislator

    know, the line between customer service and kind of a business practice end and become kind of a consumer protection issue. So I don't think that, you know, us as lawmakers should be defining detailed customer service practices for private businesses, and I do. As mister Ward said, now I think that becomes a function of the market if you're offering crappy customer service. People vote with their feet and leave. But I also recognize that there are some instances where it does cross that line into consumer protection.

  • Cottie Petrie-Norris

    Legislator

    So because I'm still grappling with that with where I think that that line should be drawn, but do wanna thank you for the work that you've done thus far. And I know that you are committed to ensuring that this is a common sense policy that works for California.

  • Rick Chavez Zbur

    Legislator

    Thank you.

  • Rebecca Bauer-Kahan

    Legislator

    Miss McKinnor.

  • Tina McKinnor

    Legislator

    Yes. I'd also like to thank the author, for this bill because really and truly, I have my senior parents that live with me at home, and, boy, do they have a hard time doing anything. You know, they don't these are people who still pay their their bills via telephone. They don't even go online and pay their bills, so they're in their eighties. We have a lot of these folks, you know.

  • Tina McKinnor

    Legislator

    And so we have to make sure that they could still operate and get good customer service. And it gets very, very frustrating when you actually, even if you know how to operate the Internet and operate online things. When you pick up the phone

  • Tina McKinnor

    Legislator

    to make a call to get customer service, you really just wanna talk to somebody really quick and get off. And it's it's become really, really difficult for so with that, I'll be supporting the bill today.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you, Miss McKinnor. Anybody else? Mister Lowenthal.

  • Josh Lowenthal

    Legislator

    Thank you so much, assembly member, and I'm very proud to support this bill today. Prior to my time in the legislature, I I was an entrepreneur and executive in the tech sector as president of freeconferencecall.com, a free product. And we did all of our customer service live in person in Long Beach, California. And you know what? It was the most incredible part of our business because of the humanity that people want.

  • Josh Lowenthal

    Legislator

    It was it was incredibly good for our business. And I try and get my arms around why there's this need seemingly need to cut cost at every opportunity. When consumers don't want that, they will pay for humanity. And matter of fact, I I think of it the most in our tipping culture. You know?

  • Josh Lowenthal

    Legislator

    We don't have to do it. There's nothing compulsory about it. We spend anywhere between 18 and 25% more of what we're consuming to hook up workers because that feels right. And it's good business, and it's good karma, and it's part of our culture in California. And, so I I absolutely think that this is consistent with that culture, and I'm very proud to support this.

  • Josh Lowenthal

    Legislator

    And I thank you for bringing it forward.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you. Madam Vice Chair?

  • Alexandra Macedo

    Legislator

    I will keep this extraordinarily brief because, like, 90% of the bills, I think, that come here, I'll see this in judiciary again. I my mother is gonna scream at me for saying this because she yells at the phone all the time really pissed off that she keeps getting booted to another person that is not a real person. And I so I appreciate that part of the bill. The part that I have a little bit of a rub on is the five minutes just because we're legislators.

  • Alexandra Macedo

    Legislator

    Our five minutes, we all know how that goes.

  • Alexandra Macedo

    Legislator

    So we could just work on that a little bit. I'd love to be able to support it in judiciary or on the floor, but for those reasons, I won't be able to support it today. But it sounds like you're doing great work, so please continue. Thank you.

  • Rick Chavez Zbur

    Legislator

    So may I respond to that just really quickly? Because it may may may affect how you view the bill. The five minutes so what the current bill currently requires is that the system be designed to make a good faith effort to connect someone with a human being within fifteen minutes now after a request for a human being is made. Once you're connected to a human being, that doesn't mean that the person has to stay on the human being and has to be resolved immediately.

  • Rick Chavez Zbur

    Legislator

    It allows additional holds for up to a cumulative of one hour after that.

  • Rick Chavez Zbur

    Legislator

    So you can actually be on with a human being. The person can go back and check things that they need to do, put you on hold intermittently, and come back and resolve that person's problem. So we've actually really, you know, resolved that set of you know, we we've made that much more flexible and to address the issues that you were raising.

  • Rick Chavez Zbur

    Legislator

    Welcome.

  • Alexandra Macedo

    Legislator

    Thank you so much.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you, madam vice chair. And I will just echo what your witness said and what I've heard here today. I recently tried to make a dermatology appointment at my health system and could not get to a person and never got to the appointment because you either had to they could do it if I was a current patient of the dermatologist or a new patient entirely, but not if I was a new patient to this doctor, but in the health system.

  • Rebecca Bauer-Kahan

    Legislator

    There was no way, and you couldn't get to a person, and I ended up having to, as my colleague said, leave. I literally couldn't get an appointment, which I know is not what businesses want, and so they, you know, are want to do this.

  • Rebecca Bauer-Kahan

    Legislator

    And so I know this frustration, and I really wanna reiterate what I said at the beginning, which is I really appreciate the work you did on this because I agree with my colleague from Orange County that there is a line between what is appropriate for consumer protection and what is just frankly good business practice and the companies should do because they wanna earn customers, and they will do because they wanna earn customers.

  • Rebecca Bauer-Kahan

    Legislator

    And I think that we are moving towards that in this bill with the amendments today, but I agree with you that more work is needed, but think that you are getting at something that truly our constituents want, which is, you know, we've done I personally have done a couple bills in this space around where, you know, the first one I did was actually with money services, money transfer services that didn't have customer service but were holding people's money.

  • Rebecca Bauer-Kahan

    Legislator

    And for the unbanked Californians, they couldn't pay their rent because they couldn't if something was wrong or a password was not working, they couldn't get to their money. And that was a clear line of consumer protection. It was actually a fairly noncontroversial bill because I think people were like, yeah.

  • Rebecca Bauer-Kahan

    Legislator

    No. If somebody's holding your money, you'd be able to get to it. And so, you know, this body has agreed that there are certain lines that are clear for consumer protection. You are doing a much broader bill here, and we need to get that line right. But I think you've made huge strides, and so I wanna thank you for that.

  • Rebecca Bauer-Kahan

    Legislator

    And with that, would you like to close?

  • Rick Chavez Zbur

    Legislator

    So first of all, I wanna thank the the committee chair and the consultants again and also the members. I know I've had many conversations with members here today and just wanna appreciate the time you've taken. I will sort of respond to just a couple things and that is, you know and I know people haven't had a chance to look at all of the amendments in a lot of detail. But, for example, we did, agree to remove free services.

  • Rick Chavez Zbur

    Legislator

    We've agreed that business to business lines are would not be subject to the bill.

  • Rick Chavez Zbur

    Legislator

    We have restricted the application to businesses that have over a half $1,000,000,000 in revenue every year, so this isn't small applying to smaller businesses. And we're continuing we're willing to continue to do more. We realize that a a bill this broad, that there are things that we actually have to do to make sure that it's workable.

  • Rick Chavez Zbur

    Legislator

    The goal is really to try to make sure that large businesses, when they're looking at their customer service, standards are designing their systems so that people can actually get to a human being when they need it in a reasonable amount of time. We're, we're not trying to remove AI completely from this.

  • Rick Chavez Zbur

    Legislator

    I mean, we understand the AI can be a positive thing. It can resolve some things quicker, obviously, where someone doesn't have to wait on the phone. But there are times when human beings are required in order to address to address the the needs that consumers have. I'll say that this bill is the bill that more of my constituents are focused on.

  • Rick Chavez Zbur

    Legislator

    When I go into a town hall, when I've gone into neighborhood groups, anytime I talk about it, and even when I don't talk about it, people have heard about this bill and people break into applause.

  • Rick Chavez Zbur

    Legislator

    So I think that there's a our constituents see a problem out there. I think it has been accelerated by the fact that AI now is being substituted for what had been human support before. And I think we need to you know, it is a consumer, protection measure, to, try to address the concerns and the needs of our constituents. So with that, I just wanna thank everyone again. I wanna thank the opposition.

  • Rick Chavez Zbur

    Legislator

    And with that, I ask for an aye vote.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you. We have a motion. Do we have a second? Thank you. Two seconds.

  • Rebecca Bauer-Kahan

    Legislator

    Madam secretary, will you call the roll?

  • Committee Secretary

    Person

    Item number 3AB1609 by Assembly member Zbur. Motion is due passed to judiciary. Bauer-Kahan.

  • Rebecca Bauer-Kahan

    Legislator

    Aye.

  • Committee Secretary

    Person

    Bauer-Kahan, aye.

  • Committee Secretary

    Person

    Aguiar-Curry? Macedo? Macedo, no. Bryan? DeMaio?

  • Committee Secretary

    Person

    Hoover? Irwin, Lowenthal?

  • Josh Lowenthal

    Legislator

    Aye.

  • Committee Secretary

    Person

    Lowenthal, aye. McKinner.

  • Tina McKinnor

    Legislator

    Aye.

  • Committee Secretary

    Person

    McKinner, aye. Ortega. Patterson? Patterson, no. Petrie Norris.

  • Committee Secretary

    Person

    Ward? Ward, aye, Wicks? Wilson?

  • Rebecca Bauer-Kahan

    Legislator

    Bill has four votes. We'll leave it open for absent members. Thank you. And we are gonna move on to mister Ward's bill. I assume we're gonna start with 1542, but you can choose.

  • Rebecca Bauer-Kahan

    Legislator

    Okay. We'll start with AB 1542. And just as a reminder, we will not be hearing AB 2027 this week.

  • Chris Ward

    Legislator

    Alright. Thank you, Madam Chair and colleagues. Here to present AB 1542 simply because Californians that we know are incredibly more vulnerable to digital exploitation than ever before. Mobile devices are ubiquitous in our daily lives, and most consumers, keep their phones with them at all times, as you can see. These devices have an incredible power to track every aspect of our daily lives and generate a shockingly accurate record of a user's day to day activities.

  • Chris Ward

    Legislator

    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. And this means even if a consumer takes the steps to be able to reduce their personal device use, they're not able to avoid constant surveillance while act interacting in public spaces.

  • Chris Ward

    Legislator

    Now in the past six years, the FTC has raised the alarm filing multiple complaints against major data brokers, exposing how they collect and sell billions of data points that map people's lives out in disturbing detail. In their complaints, the commission alleged data brokers collect billions of data points and time stamps that could offer insights into people's movements, and this information is then repackaged and sold to other clients. This kind of surveillance doesn't just violate privacy.

  • Chris Ward

    Legislator

    It puts real lives at risk. It opens the door to stigma, discrimination, and even violence amongst the most vulnerable among us, including, of course, immigrants, LGBTQ individuals, survivors of domestic violence, and people simply trying to access health care or practice their religion.

  • Chris Ward

    Legislator

    And there's no more evidence necessary than the immigration rates conducted last month across Los Angeles where federal agencies use vast quantities of geolocation data to detain dozens and spread fear throughout our immigrant communities.

  • Chris Ward

    Legislator

    So AB 1542, the California Data Privacy Act, would safeguard the privacy of Californians by placing a clear ban on the sale and share, sale and sharing of sensitive data as defined under the CCPA, including but not limited to a consumer's precise geolocation, immigration status, race or ethnic origin, religion, health and genetic data, sexual orientation, and Social Security number. Now the FTC has made it clear in their reports that this conduct undermines our civil rights, and it puts all consumers in danger from exploitation.

  • Chris Ward

    Legislator

    However, with the change in the federal administration, it's become clear that bold action must come from the state level to safeguard 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 the Consumer Reports, and Lang Lei, the policy advocate at Asians Americans Advancing Justice in Southern California.

  • Alexandra Macedo

    Legislator

    Thank you. You'll each have two minutes. You have to click the microphone there.

  • Justin Brookman

    Person

    Thank you. Sorry. Consumer Reports is proud to sponsor AB 1542 to definitively ban the sale or sharing of consumer sensitive personal information to third parties. In recent years, a massive ecosystem has built up of data brokers that collect all sorts of very sensitive personal information, including precise geolocation information about our health and sex lives, religious beliefs, immigration status.

  • Justin Brookman

    Person

    California has been a leader on privacy, being the first, state to enact comprehensive privacy legislation, coming back and passing new protections like the Delete Act, laws on mental and sexual health apps.

  • Justin Brookman

    Person

    However, more broadly, sensitive data is one area where California actually lags behind most of the other states. Many states require affirmative consent before a company can process or share your personal information.

  • Justin Brookman

    Person

    The CCPA is an outlier, relies on opt outs for the sort of sharing. I'll say even the stronger opt in regimes really haven't been sufficient to stem the unwanted tide of of sent information flowing to data brokers and big tech companies.

  • Justin Brookman

    Person

    Many companies seem to think that consent to share in the first place with one service, like a health app, implies consent to do whatever they want once they have that data. Others force consumers through annoying cookie consent screens, so they have to, click accept all just to use the service without really getting explained what's going on behind the scenes.

  • Justin Brookman

    Person

    We shouldn't have to constantly navigate constant tedious choices to try to safeguard our personal, especially our sensitive, personal information. There is a better way and AB 1542 is that way. It simply prohibits the sale of of sensitive data consistent with consumer expectations.

  • Justin Brookman

    Person

    Fortunately, this is a trend in in policy making now, not to subject people to constant choices, just to put clear rules of the road in place. Maryland was the first state to enact the ban on sense sharing sensitive data.

  • Justin Brookman

    Person

    Oregon, then followed suit. Just this week, Governor Spanberger in Virginia passed a a law, assigned a law banning the sale of precise geolocation information. For these reasons, we urge an aye vote on AB 1542. Thank you.

  • Alexandra Macedo

    Legislator

    Thank you. You have two minutes. Oh.

  • Lang Lei

    Person

    Thank you. The sale and sharing of sensitive personal information hits the most vulnerable the hardest. And at AJ SoCal, we witness these consequences firsthand. Each year, we serve more than 15,000 individuals and organizations, including immigrants and survivors of domestic violence, human trafficking, sexual assault, and stalking. For our clients, data privacy is not abstract.

  • Lang Lei

    Person

    It is directly tied to their safety, dignity, and the ability to navigate the world without fear. The moment our clients realized that their phones were collecting sensitive information like immigration data and the, a precise location, everything shifted.

  • Lang Lei

    Person

    For example, after the ICE used commercially available information data to fill the rates in Los Angeles where our organization is based, our health care access programs enrollment dropped by half, and that's because community members were afraid and were losing trust in the system.

  • Lang Lei

    Person

    Constant headlines about data breaches have only deepened this mistrust, and that fear changes behavior. Survivors now hesitate to file for protection orders or even seek shelter.

  • Lang Lei

    Person

    Immigrants become reluctant to engage with systems for essential care. Routine court check ins have become all day efforts as our attorneys must reassure clients that it's safe to appear in court. Because the phones our client depends on puts them at risk, they now worry that the data these devices collect could expose them to detention, deportation, family separation, often without access to legal representation.

  • Lang Lei

    Person

    As a cosponsor, immigrant, and survivor, I urge you to vote for AB 1542 to safeguard trust, safety, and basic human dignity for the most vulnerable in your community. Thank you.

  • Alexandra Macedo

    Legislator

    If I may say, you have such a pleasant voice. Anybody else in the room in support, please come to the mic. Name, organization, and position, please.

  • Mariko Yoshihara

    Person

    Mariko Yoshihara expressing support for TechEquity Action, the California Coalition for Worker Power, California Work and Family Coalition, Equal Rights Advocates, Western Center on Law and Poverty, and the Warehouse Worker Resource Center. Thank you.

  • Alexandra Macedo

    Legislator

    Thank you.

  • Tracy Rosenberg

    Person

    Tracy Rosenberg on behalf of Oakland Privacy in support and also conveying support for, from Consumer Attorneys of California, the Coalition for Humane Immigrant Rights or CHIRLA, LGBT Tech, and Secure Justice. Thanks.

  • Becca Kramer

    Person

    Becca Kramer with Kaiser Advocacy expressing support on behalf of Privacy Rights Clearinghouse and Electronic Frontier Foundation. I've also been asked to, express California Immigrant Policy Center, Electronic Privacy Information Center or EPIC, and Ultraviolet Action support.

  • Alexandra Macedo

    Legislator

    Thank you.

  • Ivan Fernandez

    Person

    Well, Madam Chair, Ivan Fernández on behalf of the California Labor Federation in strong support, also here to register support for AAPIs for Civic Empowerment, End Child Poverty California, Jewish California, and Reproductive Freedom For All. Thank you.

  • Alexandra Macedo

    Legislator

    Thank you.

  • Keshav Kumar

    Person

    Thank you, Chair and members. Keshav Kumar with Lighthouse Public Affairs on behalf of Reproductive Freedom For All.

  • Alexandra Macedo

    Legislator

    Thank you.

  • Monica Madrid

    Person

    Monica Madrid with the Coalition for Humane Immigrant Rights, CHIRLA, in support. Thank you.

  • Beth Malinowski

    Person

    Good afternoon. Beth Malinowski with SAU California in support.

  • Alexandra Macedo

    Legislator

    Thank you.

  • Nichole Rocha

    Person

    Nichole Rocha expressing support for Tech Oversight California, California Domestic Workers Coalition, the Southeast Asia Resource Action Center, Women's Foundation California, and Alliance of Californians for Community Empowerment Action. Thank you.

  • John Bennett

    Person

    Great. Good afternoon, committee. John Bennett with the California Initiative for Technology and Democracy, a cosponsor on this bill and some proud support. Also, registering support on behalf of CURS California, CALPURG, Indivisible California State Strong, and the Privacy Defense Alliance. Thank you.

  • Alexandra Macedo

    Legislator

    Thank you.

  • Jp Hanna

    Person

    Good afternoon, Chair and members. JP Hanna on behalf of the California Nurses Association in support.

  • Alexandra Macedo

    Legislator

    Thank you. And I appreciate the opposition being ready. You have two minutes.

  • Ronak Daylami

    Person

    Thank you. Thank you, Vice Chair, members. Also, thank you to the author and his staff for their open door. Ronak Daylami with CalChamber in opposition to AB 1542. Since it was enacted in 2018, the CCPA has always been premised on the concept of placing control over personal information in the hands of the consumer.

  • Ronak Daylami

    Person

    AB 1542 shifts away from that framework by replacing consumer choice with a categorical prohibition on the sale or sharing of sensitive PI to third parties. We understand the concerns over some, over some consumers not fully understanding or exercising their rights in their best interest, but that does not justify taking control of their data away from them. Even if some consumers do not exercise their rights, eliminating the choice of rights to those who do.

  • Ronak Daylami

    Person

    Solutions that should start with more targeted concepts like improving awareness, education, or even strengthening the default mechanisms, like transitioning to an opt in, not a blanket ban that removes consumer rights. In other contexts where individuals hold important rights, we do not respond to low engagement or imperfect decision making by eliminating the choice altogether.

  • Ronak Daylami

    Person

    And so we focus on improving awareness and informed participation. The same principle should apply here. And while the bill allows businesses to sell or share with service providers or contractors, this applies only in scenarios where contracts can be used for limited business purposes. If a business could simply contract a seller share with third parties for any purpose, that would create a loophole that swallow the bill. It's also important to remember that terms like sell in the CCPA are intentionally broad.

  • Ronak Daylami

    Person

    It includes many forms of data sharing for valuable consideration, not just traditional sales for monetary value. So in the car crash scenario where the, where the precise location is sent to a first responder third party, a company is arguably receiving a built in emergency response feature for its product in exchange for enabling the data flow. I'm not planning to say that this is a sale. I'm just saying that there's an argument that there could be a thing of value and unintended consequences.

  • Ronak Daylami

    Person

    And while the CCPA is a law largely applicable to certain businesses, third party scopes and nonprofits and governmental entities and other organizations that realistically rely on third party data for many uses.

  • Ronak Daylami

    Person

    Again, restricting these data flows has broad impacts and implications that should give strong pause before a ban is considered. As such, we must strongly oppose AB 1452 in its current form. Thank you.

  • Rebecca Bauer-Kahan

    Legislator

    Two minutes on the dot.

  • Rebecca Bauer-Kahan

    Legislator

    We wanna know if you timed yourself both times. You've been on the dot. When you're ready.

  • Simran Bowa

    Person

    Thank you, Madam Chair and members of the committee. My name is Simran Bowa. I'm a California resident, and I serve as legal counsel at InMarket, a California founded company. We oppose AB 1542 unless amended. InMarket is a digital advertising company that uses location data to help businesses reach consumers at the right time and place, often when making real world purchasing decisions.

  • Simran Bowa

    Person

    We employ more than 300 people and have supported more than 900 California brands and businesses. Our concern with this bill is threefold. It overrides consumer choice, raises cost for Californians, and undermines competition. First, consumer choice. To handle smartphone operating system policies, Californians must opt in at the device level before any smartphone or app can access precise location data, and they have opt out and delete rights under state law.

  • Simran Bowa

    Person

    When location data is used today, it reflects the consumer's affirmative decision. AB 1542 rejects that consumer's decision by banning this entire data ecosystem even when a consumer understands the issue and still chooses to say yes. Second, affordability. Many Californians rely on relevant offers and discounts to manage everyday costs. Those are often delivered through advertising that is supported by location data.

  • Simran Bowa

    Person

    Advertising also helps fund free or lower cost apps and services. Banning this data risks raising cost and reducing access to free services for Californians. Third, competition. The largest platforms already have vast amounts of first party data that is collected directly as consumers use their services every day. The big tech companies do not rely on the types of practices that this bill restricts, but smaller companies and the California businesses that we support do.

  • Simran Bowa

    Person

    This bill will reduce competition and increase market consolidation. Our proposed amendment is straightforward. Rather than a blanket ban, allow consumers to affirmatively opt in to the use of precise geolocation for advertising and marketing.

  • Simran Bowa

    Person

    Just this morning, the author's office conveyed that an opt in approach may be possible with more protections that were not specified. We urge the committee not to advance a bill with such massive implications without a workable compromise. We respectfully urge the committee to amend this bill accordingly. Thank you.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you. With that, any other opposition in the room? Name, organization, and position.

  • Ryan Perini

    Person

    Thank you, Chair and members. Ryan Perini on behalf of ATA Action, in oppose unless amended position. Thank you.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you.

  • Annalee Akin

    Person

    Thank you, Annalee Augustine with the Civil Justice Association of California, also opposed. Thank you.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you.

  • Robert Boykin

    Person

    Robert Boykin with TechNet in opposition.

  • Naomi Padron

    Person

    Good afternoon, Chair and members. Naomi Padron on behalf of California's credit unions. Respectfully opposed.

  • Aodhan Downey

    Person

    Aodhan Downey with the Computer and Communications Industry Association in respectful opposition.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you.

  • Ryan Allain

    Person

    Ryan Allain with the California Retailers Association in opposition. Thank you.

  • Laura Curtis

    Person

    Good afternoon, Chair and members. Laura Curtis on behalf of the American Property Casualty Insurance Association in respectful opposition. Thank you.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you. Seeing no additional opposition in the room, I'll bring it back to the dais. Oh, Mister Lowenthal.

  • Josh Lowenthal

    Legislator

    You know, I wanna thank the author for this bill. I share the, the mindset that our digital footprint is, should be inalienable human right that it is our own intellectual property. That that belongs to us. I think, fundamentally, that's what this bill, takes on. And, just very briefly, I'm very proud to support.

  • Josh Lowenthal

    Legislator

    I'm also very heartened to hear that there may be a pathway for negotiation on opt in, and so I encourage that conversation to continue to take place. And I should also point out that once you have an opt in mechanism for something like this, it's a pathway for consumers themselves to participate in this economy, which we don't have now. Right? So I hope that continues, but I'm certainly gonna be voting for this bill today. Thank you.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you, Mister Lowenthal. Miss Petrie-Norris.

  • Cottie Petrie-Norris

    Legislator

    So I also have a a question related to the opt in conversation because right now, we've got an opt out construct. This would would jump to a straight ban, which I'll say, at first blush, when you read the line, you shouldn't sell sensitive information, that sounds like it certainly shouldn't. But as I've dug into this, realize now that the word sale doesn't always mean sale. It kinda means transfer, which is is somewhat a different situation.

  • Cottie Petrie-Norris

    Legislator

    And, I guess, what, what are your thoughts about this kind of middle ground, which is opt in, particularly given that, as Mister Lowenthal said, it sounds like, you know, you two believe that one's digital footprint is something that that we own.

  • Cottie Petrie-Norris

    Legislator

    Doesn't that lead you to the conclusion that, therefore, like, an individual should be able to opt in rather than having lawmakers say, nope. It's off the table.

  • Chris Ward

    Legislator

    I think what we're trying to do is make sure that we have certain class of information that we would, you know, agree as a state policy that, you know, aren't for sale, shouldn't be transferred, are inherently sensitive and very personal information. Now how that could be used out there for pro consumer benefits or for under any individual's benefits, what we have found is that in other states, opt in systems actually don't provide the necessary guarantees to continue to protect people's information or otherwise can be misleading.

  • Chris Ward

    Legislator

    You think you're clicking on something, and then the allowance there, for what could be shared for some of that information, is a lot greater than your understanding of that terms and conditions, and where that information goes. And then all of a sudden, you've, you know, let all the horses out of the barn. So any I've, we, we've been having those conversations.

  • Chris Ward

    Legislator

    We wanna continue those conversations because any pathway that would allow for this must have those very strong conditions under which somebody can opt in, you know, the full transparency, a a very robust mechanism for understanding how their information might be used going forward. So those are ongoing conversations that, you know, would commit to continue going forward. And I don't know if my witness wanted to add as well.

  • Justin Brookman

    Person

    Yeah. I guess I, I have some concerns around it. Like I said, we mostly we have like, 18 states do have opt in mechanisms, and we've seen they don't really work in practice. We see lots of dark patterns. You have to click agree.

  • Justin Brookman

    Person

    People have no idea what they're doing. The example brought up by InMarket is really good. Like, if you consent to give an app your geolocation. Okay. I need this to go find my map. Right? Well, then now they think, no. That means I have consent to do whatever I want with it.

  • Justin Brookman

    Person

    And I can sell it to, like, the 300 data brokers behind the scenes. Right? I would argue that's not really opt in. That's not, like, that's not a a mechanism that I think people really want.

  • Justin Brookman

    Person

    There should just be bright line rules of the road and not force people in these these really, I don't wanna have to go to every single website and make, like, a dozen privacy choices. That's really annoying and tedious for consumers.

  • Cottie Petrie-Norris

    Legislator

    Okay. Alright. So I I think I guess it sort of gets back to, again, the line of, is this about consumer choice, or is this about what you think is right? And I think that this needs to be about consumer choice. So while there are, there are, there's actually certain data elements in here that I would actually to the author agree, yeah, maybe we should just take those things off the table altogether.

  • Cottie Petrie-Norris

    Legislator

    I think that there's a lot more nuance to this policy than, I think, you know, the the proponents are acknowledging. So I do look forward to being able able to support this, you know, as the work continues, but I can't, I can't support it in committee today.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you, Miss Petrie-Norris. Yeah. Mister Patterson.

  • Joe Patterson

    Legislator

    Great. Thank you. Well, I appreciate that question because the answer to it almost, like, solidified my position, unfortunately, you know, because it, it seems to appear what the philosophical position is on this bill, and that's to not allow people to opt in. And, and also the response about, you know, you don't wanna go to a million websites and choose, you know, privacy options, that must mean you don't agree with the CCPA because I can't go to it, I can't go to my doctor's website.

  • Joe Patterson

    Legislator

    I can't go to my dog catcher's website, like, without opting into some kind of privacy policy. You know? And, and you say, accept all cookies. And then next 400 times you go to the website, it asks you to accept all the cookies again. But, you know, I think I do just generally speaking.

  • Joe Patterson

    Legislator

    I mean, I like, the philosophy of what I would like the bill to get to, you know, is, is a good one. And I do have some concerns about, you know, the just, I do have some actual concerns about opt ins, which is, you know, when you go to, you know, agree to, like, a terms of service or something, like, when I go my app updates or something and it asks me to, like, accept the terms of service.

  • Joe Patterson

    Legislator

    Like, I don't actually go back and read the 40 pages of the legal document. I, you know, just wanna, like, open my checking account to look at it, but I have to read through 40 pages. But I don't.

  • Joe Patterson

    Legislator

    I just click I opt in. So but because of the philosophical view that, like, I shouldn't even have the right to do that as a grown man, it does, it does bother me a little bit, particularly when it comes to location because I do think consumers benefit a lot from from opting into certain services in which I can be geolocated, and provide valuable services to me, whether even, like, when I'm in the and it's getting better.

  • Joe Patterson

    Legislator

    I mean, I could be, like, in a grocery store or some other thing. It'll say, like, hey, you're next to the bag of chips, you know. Get this one. It's on sale.

  • Joe Patterson

    Legislator

    So so I think this bill can maybe be worked out. I don't know. I don't really know, and feel free to respond what your intention is, but I would say the answer by your witness didn't instill confidence that we will be able to get there.

  • Rebecca Bauer-Kahan

    Legislator

    And I think it's worth the author commenting because I actually heard and the Vice Chair and I agree on this. We heard two different answers from the author and the witness. So I think if the author wants to clarify his intent around like, the witness clearly didn't wanna look at the opt in. I heard you being willing to have that conversation. So let's clear up who's making the decision and what the decision is.

  • Chris Ward

    Legislator

    I will. No. But I do agree, I think, I think what he, I think what my witness is underscoring is that, you know, this has been largely insufficient in other states and for the same reasons that we are seeing some traps here.

  • Chris Ward

    Legislator

    That doesn't mean that California being the leader in the space that we can't go back and continue to be able to look at any potential pathways that would allow for all these conditions to be met. But as it stands right now, those are conversations continuing right now, and I'll be open to an idea if we can make sure that in yeah. Individuals' information remains sufficiently, safeguarded.

  • Rebecca Bauer-Kahan

    Legislator

    Got it. Thank you. Madam vice chair.

  • Alexandra Macedo

    Legislator

    Thank you, Madam Chair. I wanted the opposition to expand a little bit on this opt in. How would this work? What, you know, what are your thoughts? I just want clarity on this. I'm very confused right now.

  • Ronak Daylami

    Person

    Sure. I, I would say on the opt in, it's certainly something that we're happy to have a conversation about with the author as well. We have had some conversations with the staff already about this. I think it's important to remember the opt in discussion is broader than just precise geolocation information. There's a lot of other types of information that fall under sensitive personal information that we need to have conversations around.

  • Ronak Daylami

    Person

    So that's the first thing I would point out. In terms of the summit conversation that just happened about concerns about how this is operating in other states, I would again remind that California does have not only the first landmark piece of legislation in terms of the comprehensive data privacy law in the nation, but we have the strongest. We also have rules around dark patterns and things like that. So I don't know the dark pattern laws off the top of my head. I can't recite that.

  • Ronak Daylami

    Person

    There's a lot I can recite about the CCPA off the top of my head. That's not one of them, but we do have rules around that. So that's, that's one of the things I would point out. The other thing I would point out is I I do understand that with an opt in, there are still concerns about certain types of sharing for things that might happen. I know there's been concerns around sharing with law enforcement, immigration concerns, and we understand those concerns.

  • Ronak Daylami

    Person

    I do wanna point out there have been recent bills in recent years that we can also look to for other models that we could potentially draw on. One of the things we commented on in our letter, there was a bill in 2023, 1194, that went through this committee that was signed. It was a Carrillo bill.

  • Ronak Daylami

    Person

    It amended the CCPA to limit exemptions that allowed permitting businesses from disclosing data to law enforcement if it, had information related to accessing, procuring, or searching for services regarding contraception, pregnancy care, prenatal care, dealing with concerns that were kind of going on around that time with, that data being shared with other states and how that might be used.

  • Ronak Daylami

    Person

    So there's other things that we can draw on that I think my point being, there's, there's different things that we can draw on and do policies that would that would come short of just doing a ban.

  • Ronak Daylami

    Person

    So maybe it's an opt in plus something else, but I think we should have conversations before we just go to saying that people shouldn't have control over their data. When we pass the CCPA, again, I can't emphasize this enough, that we, we emphasize the point of it should be about consumer control, and an opt in really puts that control back in the hands of consumers.

  • Rebecca Bauer-Kahan

    Legislator

    And did, did you want the InMarket witness to also comment?

  • Alexandra Macedo

    Legislator

    Yes, please.

  • Rebecca Bauer-Kahan

    Legislator

    Okay. Yeah.

  • Alexandra Macedo

    Legislator

    Particularly around the geolocation data.

  • Simran Bowa

    Person

    Our proposed amendment is narrowed to just precise location data, and our position is that consumers should get clear notice and then make that decision for themselves. And we're only talking about for the use of advertising and marketing purposes. We are not talking about any other purpose or activities that could really impact a consumer's life. So we our proposed amendment is very narrow to those use cases.

  • Alexandra Macedo

    Legislator

    Thank you. Thank you, madam chair.

  • Rebecca Bauer-Kahan

    Legislator

    Yeah. Yeah. Thank you. Seeing no further discussion or debate, I did wanna clarify one thing, which is nothing in this bill relates to the relationship between you and the entity you've decided to share that location with. It really relates to that.

  • Rebecca Bauer-Kahan

    Legislator

    Now I've decided I wanna share it with Safeway and say I, I do that, then this talks about what Safeway is allowed to do with that data. So this really is about the sale or transfer from the person you're engaging with. So I just wanna make sure that was clear because I think some of the questions may have confused that issue. But, I appreciate this.

  • Rebecca Bauer-Kahan

    Legislator

    I think this is a moment in history where people are feeling vulnerable, and so much of what is causing some of the the things we look at large I mean, fraud has been a very hot topic in in this building recently. And, honestly, one of the thing the best things we can do to prevent fraud, all of us in this room, is protect our data.

  • Rebecca Bauer-Kahan

    Legislator

    Because fraudsters, the more they know about us, the easier it is for them to prey on us. And so that's a little public service announcement, but also it's true. I mean, this as we look at how do we protect Californians' data is actually central to some of those conversations, and I think that it's really critical that we, we did pass the CCPA.

  • Rebecca Bauer-Kahan

    Legislator

    It's really important, but we need to continue to have conversations around what Californians need and is it up to, the standards of what is needed today.

  • Rebecca Bauer-Kahan

    Legislator

    And as the, Miss Daylami said, you know, a few years ago, we things had changed around abortion rights from the CCPA and this body, and I I don't recall there being much opposition to that, but I, I don't know. Maybe I don't think there was. Do you recall?

  • Ronak Daylami

    Person

    We definitely worked with the

  • Rebecca Bauer-Kahan

    Legislator

    Okay.

  • Rebecca Bauer-Kahan

    Legislator

    Okay. You know, and so I think, you know, it's important to have conversations about where we are today and what protections are necessary. And I appreciate the opposition to have those conversations because I think, you know, the author as are you the Chair of the LGBTQ caucus?.

  • Ronak Daylami

    Person

    The author on that.

  • Chris Ward

    Legislator

    Yes.

  • Rebecca Bauer-Kahan

    Legislator

    The Chair of the LGBTQ plus caucus, you know, is living this firsthand that there are people for whom this kind of privacy is so critical in order to protect them from, being preyed upon. So with that, would would you like to close?

  • Chris Ward

    Legislator

    Thank you, Madam Chair, members. I appreciate the discussion here today. And as the work continues, you know, we'll take continue to take these concerns or these ideas, you know, very sincerely, because I think the one thing that we the line in the sand that we're not wanting to cross, because of this bill is the ability for Californian sensitive aspects of their lives through their data to be widely shared basically beyond their control.

  • Chris Ward

    Legislator

    Nobody wants their daily life life tracked, sold, or exploited, where they're going to work, whether they're visiting a doctor, whether they're accessing care, dropping the kids off of school. Any sensitive information on any of our apps or any things around us is ours to, ours to be able to own.

  • Chris Ward

    Legislator

    And I would, you know, push back. And, again, this is, I think, gonna be, like, you know, a continual important conversation about whether or not this is some binary choice about consumer choice or trying to be able to set the bar for what we're able to do or not do with our own data.

  • Chris Ward

    Legislator

    It can actually be a little bit of both the problem when we're thinking about, you know, not not respecting the second, but really only focusing on consumer choice above all else is that not all consumers actually are fully aware of the choices that they are making. Right? And so that opens up, I think, that backdoor mechanism that we are trying to say, okay.

  • Chris Ward

    Legislator

    Until we can solve that, we've gotta make sure that information, that we should all agree is sensitive and personal is widely protected. AB 1542 really draws that clear line. It puts the safety and privacy of everyday Californians first. And for those reasons, I respectfully ask for your aye vote.

  • Rebecca Bauer-Kahan

    Legislator

    We have a motion. We have a second. Madam secretary, will you call the roll?

  • Committee Secretary

    Person

    Item number 10, AB 9 I'm sorry. Item number nine, AB 1542 by Assembly Member Ward. The motion is do pass to Appropriations. [ROLL CALL]

  • Rebecca Bauer-Kahan

    Legislator

    The bill has five votes.

  • Rebecca Bauer-Kahan

    Legislator

    We'll leave it on call for the absent Members. Thank you, mister Ward. We will move to your next bill, which is number 10, AB 1921. If either of you is testifying, feel free to stay. I don't know.

  • Rebecca Bauer-Kahan

    Legislator

    Okay.

  • Chris Ward

    Legislator

    Okay. Remaining in the hot seat, Madam Chair, for AB 1921, I wanna thank the opportunity to present this bill and for, the committee staff's thoughtful engagement as today. AB 1921, it protects video game users against any premature shutdowns of digital games.

  • Chris Ward

    Legislator

    Video games become one of the largest entertainment markets in the world. Recently, the rising prevalence of live service games requiring online server connections, had raised a concerning issue of consumer protection.

  • Chris Ward

    Legislator

    This bill responds to a public outcry games that were shut down in as little as two weeks after launching. AB 1921 will require that a game operator notify users sixty days before shutting down a game that they purchased with the sales ceasing with ceasing sales dates

  • Chris Ward

    Legislator

    on this on the date that players can no longer make ordinary use of the game.

  • Chris Ward

    Legislator

    Although we, today, I think because of previous legislation that's been enacted into law, which has largely been made around information and disclosure that something is not a sale, but it is a licensure and that is understood, many users are still interpreting

  • Chris Ward

    Legislator

    that information as somehow that they're gonna have a reasonable amount of time if you pay $29.99 or a $100 to be able to enjoy the lifespan of the game only to find, the floor the the rug really ripped out from under them.

  • Chris Ward

    Legislator

    Further, it's gonna require this bill would require that the operator provides a means of accessing a playable version of the game or offer a refund once the services cease.

  • Chris Ward

    Legislator

    As people increasingly consume entertainment via licensed digital goods, further consumer protection and transparency is essential.

  • Chris Ward

    Legislator

    Here's a witness in support. It's Justin Bergman, the Director of Technology Policy for Consumer Reports.

  • Justin Bergman

    Person

    Thank you very much. Thank you, Madam Chair Bauer-Kahan, and members of the committee, for having me back on this bill. Consumer Reports is proud to support AB 1921.

  • Justin Bergman

    Person

    It would require the developers of video games make consumers whole if they pull online support for their games, either by offering an offline version or providing customers with a refund.

  • Justin Bergman

    Person

    Used to be when we bought a video game, we could play it forever as long as the hardware still worked.

  • Justin Bergman

    Person

    Today, more and more of what we buy, not just video games, but also other digital content, even physical devices, appliances, or cars, are tethered by software back to the manufacturer.

  • Justin Bergman

    Person

    Software tether can enable good positive features for consumers like cloud backups, but it can also compromise our ownership rights. If a company can just snap its fingers and then suddenly I don't have access to it anymore or I lose features or I can't use the appliance or

  • Justin Bergman

    Person

    access the content at all. And there's a lot of uncertainty right now under the law about what happens when a company decides to brick content or, or devices. We've seen occasional regulator action on this actually.

  • Justin Bergman

    Person

    When I worked at the Federal Trade Commission, we sent a letter to Nest. They had bricked a smart home hub less than two years after people had bought had paid hundreds of dollars for it.

  • Justin Bergman

    Person

    On digital content, the FTC sent warning letters to Major League Baseball and Microsoft saying that people who had bought, digital content expected it to be able to, operate in perpetuity and that turning off the servers that did digital rights management,

  • Justin Bergman

    Person

    could be a deceptive or unfair practice. But those were just a few informal actions or a little bit a while ago. Company's practices are evolving.

  • Justin Bergman

    Person

    We have heard, some horror stories, and so, some companies are definitely pushing the envelope in terms of what they can get away with. Some games, like, in especially interactive multiplayer games require subscriptions.

  • Justin Bergman

    Person

    They often have higher operational costs. People kinda generally understand this is ongoing transaction that will stop at some point in the future.

  • Justin Bergman

    Person

    For other games, like single player games, people don't expect that one day a company will just, snap their finger and turn off support, for something that should work perfectly well without Internet access.

  • Justin Bergman

    Person

    This bill will just ensure consumers can get what they reasonably expect when they download a game, from a software store. And for that reason, we urge your eye vote on this matter. Thank you.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you so much. Any other witnesses here in support of this bill? Seeing none. We have one opposition witness, but I don't know if if there's a second. Okay.

  • Rebecca Bauer-Kahan

    Legislator

    Then the time is yours.

  • Jennifer Gibbons

    Person

    While well intentioned, we do have serious concerns that the bill creates major legal, technical, and economic challenges for video game developers.

  • Jennifer Gibbons

    Person

    Thank you, Chair and mMembers. Jennifer Gibbons with the Entertainment Software Association. Our members are the leading publishers and developers of video games in The United States. We are here today to oppose AB 1921.

  • Jennifer Gibbons

    Person

    The bill requires that all games would now need to be designed to offer either an offline version, a patch, or provide a full refund no matter how long the consumer had access to the game.

  • Jennifer Gibbons

    Person

    Video games are licensed software, and they're not permanently owned products. They rely on third party technology as well as licensed music and brands and content.

  • Jennifer Gibbons

    Person

    And many of these are time limited agreements, and the bill assumes that permanent access is always possible in video games, and that's not realistic.

  • Jennifer Gibbons

    Person

    Modern games depend on servers, cloud systems, authentication, and anti cheat tools. Some games run core functions on servers and or are entirely multiplayer.

  • Jennifer Gibbons

    Person

    In these cases, creating offline versions is technically impossible. The bill does not account for these limitations. The bill does have a very broad scope. It applies to most modern games, even those with minor online features.

  • Jennifer Gibbons

    Person

    Additionally, requiring the full refunds regardless of a consumer's use, there's no accounting for the value that the consumer may have already received during the time that they had access to the game, and there's no credit for the time that they they played.

  • Jennifer Gibbons

    Person

    A long time player would get the same refund as somebody who had newly purchased the game. These would result in massive financial liability, potentially hundreds of millions of dollars. And, certainly, the cost would be unpredictable and hard to plan for.

  • Jennifer Gibbons

    Person

    We also think that, given that the bill would force developers to create new versions of games, meaning an offline version if they don't already have that, or to remove protections like digital rights management tools.

  • Jennifer Gibbons

    Person

    This would put, the bill, as drafted in conflict with copyright law and with the DMCA. AB 1921 effectively restricts online only games and limits how developers can design modern experiences.

  • Jennifer Gibbons

    Person

    It creates new risks for game design, and that discourages innovation and reduces creative freedom. We do understand that AB 1921 is well intentioned, but it lacks a clear consumer harm and is overly broad and impractical to implement.

  • Jennifer Gibbons

    Person

    It doesn't account for key realities of game development, licensing structures, technical limits, and it would have a significant negative impact on video games.

  • Jennifer Gibbons

    Person

    California did already take steps to ensure that Californians have additional transparency related to their digital goods by passing AB 2426.

  • Jennifer Gibbons

    Person

    And ESA urges the committee to vote no and to take a closer look at how video games are designed and if there are consumer protections which require new legislation. Thank you.

  • Alexandra Macedo

    Legislator

    Sorry. Anybody else in the room in opposition? Seeing none, I will bring it back to the dais. No. We have a motion by Mr. Lowenthal and a second by miss Wicks. Mr. Patterson?

  • Joe Patterson

    Legislator

    Alright. I swear I'm not trying to be mean on all your bills today, but I am. I know it's as evidence up here. So, you know, I remember growing up and when I was, you know, I had Nintendo or whatever or Sega or whatever. And the game would start to, like, wear down.

  • Joe Patterson

    Legislator

    You have to pull it out. You have to, like, blow on the chips and then put it back in, hoping to God it would work again. You know? And sometimes that works. Sometimes we just ended up throwing away the games.

  • Joe Patterson

    Legislator

    Right? So, you know, I guess my question around this bill is, do electronic games have an end of life, or are they just expected to, you know, work in perpetuity?

  • Chris Ward

    Legislator

    I. Boy, memories. Right?

  • Joe Patterson

    Legislator

    No. PTSD. More like PTSD.

  • Chris Ward

    Legislator

    So that is something I think that we could certainly can have conversations that there should be a time limit on this kind of opportunities.

  • Chris Ward

    Legislator

    And I think what we're hearing and especially the public outcry that is coming in, I'm reminded, by the way, that video gaming has become one of the largest forms of entertainment activity.

  • Chris Ward

    Legislator

    They're far surpassing even TV and other media in in terms of an economic value. So we have a vested consumer interest out there to make sure that on the shorter end of the time frame that the believed purchase of the right and opportunity to be able to enjoy

  • Chris Ward

    Legislator

    some of these games isn't somehow going to be cut far short of what that those expectations are.

  • Chris Ward

    Legislator

    At least if there's that clock, that 60 day clock to let you know that your licensure is about to come to end and some mechanism to be able to at least be able to retain some of the value of what you had been able what the the monies that you've been able to lay down to

  • Chris Ward

    Legislator

    be able to continue for a reasonable amount of time frame, what that reasonable amount of time frame should be and what form that looks on the back end and everything.

  • Chris Ward

    Legislator

    Happy to work with Opposition. Don't know if my my witness has anything.

  • Unidentified Speaker

    Person

    No. Again, I certainly, I'll be happy to talk about what is reasonable. I do think for a lot of electronic games now, the the default expectation is it it does go for your, the length of the account. So I have Steam games that I have played in the last year.

  • Unidentified Speaker

    Person

    I've played BioShock, which came out in 2007. Right? So that's, like, almost 20 years old that I can reasonably expect to play today? I think that works for for most games, but I think there are some edge cases that we're concerned about that what if you buy a game and

  • Unidentified Speaker

    Person

    suddenly the company decides after a year, you know what? We don't wanna support this anymore. That's the kind of harm that we're trying to get to.

  • Unidentified Speaker

    Person

    We're trying to find what the exact, what level of protection is is a totally appropriate conversation.

  • Rebecca Bauer-Kahan

    Legislator

    And if

  • Chris Ward

    Legislator

    I may, through the chair, maybe going back to the nineteen eighties, when you had that kind of a a a module on the short end of time frames, you went there to Toys R Us and you bought the thing, and you came home, and all of a sudden it doesn't work in, like, two weeks. Right? Defective. Right?

  • Chris Ward

    Legislator

    You wanna go back and you wanna get your refund or you want a replacement or you wanna be able to continue to enjoy that because you laid the money down and you need to get the value out of that.

  • Chris Ward

    Legislator

    So I think there might be that parallel as well too.

  • Joe Patterson

    Legislator

    Yeah. Yeah. I think I really appreciate that. I think I'm gonna lay off today, but I think this is a plane you can land as you continue the conversation because I do you know, the the philosophical view that there's some kind of if you buy a game today or something

  • Joe Patterson

    Legislator

    and, like you said, it doesn't work couple weeks later, I think that is problematic. I mean, as you know, I have four kids and we buy too many games.

  • Joe Patterson

    Legislator

    I just bought one the other day when my son was here, and he has a Nintendo Switch, and I just need to entertain him while he's in my office. If it's broke tomorrow or the next day or something, then I would be disappointed. So I understand what you're getting at.

  • Joe Patterson

    Legislator

    I think it would just come down to the debate on whether this 2007 game or not should continue to work. And people still do have their Nintendos and Ataris and stuff from the eighties actually that still works. So those were quality products, but thank you very much.

  • Rebecca Bauer-Kahan

    Legislator

    I don't know if anybody else Madam Vice Chair, are you good? Okay. Seeing no further debate on the matter, I know that this is a work in progress and appreciate your continued work on this, Mr. Ward, but I know this is also something that the we have actually heard from a

  • Rebecca Bauer-Kahan

    Legislator

    lot of staff in the building who are gamers. They love this, mister Ward. So they are not here to line up, but I know we're hearing that people really appreciate this, this consumer protection you're providing. So with that, would you like to close?

  • Chris Ward

    Legislator

    Yeah. I think, you know, we bring this bill before on on behalf of my other, key key sponsor. And, by the way, this came from a constituent who was livid that a very short lived experience happened for them too. And he said, let's look into this over the fall and and, yet a bill is born.

  • Chris Ward

    Legislator

    And and we do this because, you know, we can't we we're hard pressed to find any other kind of medium where a product can be marketed and sold to a consumer and then just ripped away without notice.

  • Chris Ward

    Legislator

    We believe this bill is a critical step for protecting consumer rights that may actually be able to have a worldwide impact and preserve the cultural legacy of retired video games. With that, I respectfully ask for your aye vote.

  • Buffy Wicks

    Legislator

    Thank you. Do we have a motion?

  • Rebecca Bauer-Kahan

    Legislator

    K. Well, now we do. Moved by miss Aguiar-Curry, seconded by miss Wicks. Madam seconded, will you call the roll?

  • Committee Secretary

    Person

    Yes. Item number 10, AB 1921 by Assemblymember Ward. The motion is due passed to Judith Sherry. [Roll Call] That has five votes.

  • Rebecca Bauer-Kahan

    Legislator

    That has five votes. We'll get open for the absent Members. Thank you, mister Ward. Miss Wicks, would you like to go next? And welcome to Skimini, miss Krell.

  • Rebecca Bauer-Kahan

    Legislator

    Come on up.

  • Buffy Wicks

    Legislator

    And we are gonna do AB 1946 first, if that's okay.

  • Rebecca Bauer-Kahan

    Legislator

    Yes. Sounds great.

  • Buffy Wicks

    Legislator

    Our CSAM bill. I think our witnesses are here. Great. So thank you, madam chair, and thank you to the committee consultants for all your very hard work in this space. CSAM, also known as child sexual abuse material, is pervasive on the Internet, not only on the dark web, but also on many of our social media platforms, websites, and applications.

  • Buffy Wicks

    Legislator

    And to combat this problem, I did a bill in 2023, AB 1394, to establish a statutory framework that requires social media platforms to provide a mechanism for users to report CSAM in which they were depicted. Since this bill passed, it's now been in effect, and we've identified gaps as we do when our bills go out into the wild and become law. And so we need to address those.

  • Buffy Wicks

    Legislator

    It's an important part of the policy work that we do here because it turns out we have not solved the problem. So this bill, AB 1946, aims to address those gaps by making the reporting mechanism workable for users and strengthening specifically the enforcement work, which my joint author here, miss Krell, has been very instrumental in and and helpful in thinking through how we do that so that we know that there's accountability and compliance.

  • Buffy Wicks

    Legislator

    So just very briefly, and then I'm gonna turn over to to miss Krell. AB 1440 sorry, nineteen forty six allows for all users, not just those who are depicted in the CSAM material to report, which was an important element of this so that everyone has the ability to report. It aligns with the Federal Take It Down Act, also important. It requires that reporting mechanism is clear and does not use dark patterns, and it ensures that there's human review and there is no hash match.

  • Buffy Wicks

    Legislator

    And then the and then the last important element requires that the biannual audits be submitted to the attorney general and other public prosecutors if requested.

  • Buffy Wicks

    Legislator

    I think this is just an important bill that we need to law that we need to enhance because we did see the need for that when I did the original bill back in 2023. Worked very closely with Ed Howard and many others who will be here, I think, for technical questions, perhaps, or maybe giving some testimony. And, with that, we're gonna also hear from Nicole who can self identify, but first, miss Krell.

  • Maggy Krell

    Legislator

    Thanks. Thanks so much. Good afternoon. Thank you all for your time today. I think the most important part of this bill is being able to enforce the current law that we have, and that's what this bill does.

  • Maggy Krell

    Legislator

    Not only does it allow anybody who sees a CSAM video to have the opportunity to be able to report it, not just victims who would be put in the position of looking for their own abuse material, but it allows anyone to see something and say something. But it also injects into the bill this framework of a public prosecutor being able to review the audits that, the companies are responsible for complying with.

  • Maggy Krell

    Legislator

    That would give public prosecutors like the attorney general's office an opportunity to look at this and to ensure compliance with the framework that we've so carefully, put together. And I credit Assemblymember Wiggs for her years of work, in this area because we actually have really, really strong laws. These are, you know, I I would call these minor changes, but important changes that would enable us to actually enforce our really strong laws.

  • Maggy Krell

    Legislator

    I also wanna introduce Nicole, who helped me, you know, draft a similar bill to this last year. I wanna thank her for her work in this area and also thank the National Center for Missing and Exploited Children for everything they've done, you know, monitoring laws like this in all states, and they've been a huge help, and guide to us along the way. But without further ado, I'll introduce Nicole.

  • Rebecca Bauer-Kahan

    Legislator

    Whenever you're ready.

  • Nicole W

    Person

    My name is Nicole, and I'm the mother of a child sexual abuse survivor whose abuse was recorded and has been widely distributed on a variety of Internet platforms and social media websites. I am here today in support of AB 1946, a bill that will provide critical updates and strengthen protections 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 wouldn't be able to get away with it. In the time that has passed, I have seen firsthand how the images themselves are abused. And every time the images are distributed, redistributed, and viewed, the child is revictimized.

  • Nicole W

    Person

    The current California law allows only someone depicted in the images to request their removal. The reality is is that many of the children being depicted are below the allowable age for them to be engaging on these platforms in the first place. By allowing anyone to report these images, you're taking the responsibility off children and allowing the grown ups in the room to speak up on their behalf.

  • Nicole W

    Person

    AB 1946 also prevents further revictimization by utilizing the existing hash data mechanism for known CSAM and requiring human review only in cases where the images do not match a hash value for known CSAM 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? This bill does this for CSAM survivors. Survivors need to have all of their remedies under the law available so that they can decide when, where, and how to seek justice against everyone who has been a part of their abuse. AB 1946 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.

  • Nicole W

    Person

    This bill is about the safety of kids, and there's nothing more important than protecting them.

  • Nicole W

    Person

    I know I alone could not have protected my own child. We need help, and we need lots to keep children safe online. I urge the assembly to move forward with '84 1946 to help ensure that every child has the safest childhood that they deserve.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you. Thank you. And thank you for being here and advocating for all children, not just your own. It really does make a difference.

  • Rebecca Bauer-Kahan

    Legislator

    We appreciate your testimony. Any other witnesses here in support of this bill? Come on up. Oh, I thought you're here for questions, mister Howard. Are you gonna provide testimony?

  • Edward Howard

    Person

    Three quick points and a thank you, if I may, madam chair. So Ed Howard, senior counsel at the University of San Diego School of Law. Amplifying a quick point you had just heard, ninety three percent of the children depicted in CSAM are between the ages of three and 13 years old.

  • Edward Howard

    Person

    The second point is among the the troubling things that came out in discovery in the Northern District's multi district litigation is the former head of Instagram safety and well-being testifying, quote, that they made it intentionally complicated for reports to be looked at and that, in fact, only one percent of people who began the reporting process actually successfully submitted a report.

  • Edward Howard

    Person

    Third, very quickly, we did, after acceding to the industry's request in 1394 to give industry a full year to comply, we did create this study, which is available online, where we looked at the compliance records of all of the major platforms and it just hadn't changed their practices even after the bill had become effective, even after a year.

  • Edward Howard

    Person

    And then the thank you is that aligning our now three separate reporting requirement laws, AB 1394, SB 1504, and the bill referenced in your analysis at the end, and the Federal Take It Down Act. It's a challenging thing to draft. I thank your committee staff and I thank the authors very, very much for

  • Rebecca Bauer-Kahan

    Legislator

    Thank you so much. On this. Thank you, mister Howard.

  • Edward Howard

    Person

    I forgot.

  • Rebecca Bauer-Kahan

    Legislator

    Anybody else here in support of this bill? Seeing none, any opposition to this bill? Gwen, you ready, mister Hoffman?

  • Buffy Wicks

    Legislator

    Oh, Mike.

  • Dylan Hoffman

    Person

    Thank you, madam chair and members. Dylan Hoffman on behalf of TechNet. Very clearly, we are not in opposition on on this bill, but do you wanna express some concerns that we outlined in our our letter, and wanted to more thoroughly, explain our posture, on this bill. So first, our our coalition and our member companies, strongly support the author's efforts to eradicate CSAM, NCII, and online sex trafficking from the Internet.

  • Dylan Hoffman

    Person

    And our commitment and our members' company's commitment, to fighting back against sexual predators is and has been crystal clear.

  • Dylan Hoffman

    Person

    The Internet, any platforms on it should not be a safe haven for these activities, and criminals should be prosecuted to the fullest extent of the law. And our industry has been at the forefront of this fight for decades. And as, you know, an example, our industry helps develop the hash matching technology. We donated it to NGOs. We helped design various software and API to help facilitate the work of victim advocates, in trying to remove more of this content online.

  • Dylan Hoffman

    Person

    We have active partnerships with, victim advocates groups, as well as law enforcement to try to fully prosecute offenders to the fullest extent of the law. We are also active participants in conversations with the author in 2023 regarding the first iteration of this bill. We provided numerous, versions of suggested amendments and approached each conversation with the goal of helping to ensure that we had a strong bill that removed as much CCM from the Internet as possible.

  • Dylan Hoffman

    Person

    We also had very productive conversations last year with Assemblymember Krell's staff, on AB 1137 as well. We have and we've already had several conversations with the author's office and plan to be just as engaged as we were in 2023, working towards a common goal to addressing existing gaps in current law.

  • Dylan Hoffman

    Person

    And we recognize that legislating and policy making in this area is is very difficult and requires a careful balancing, not only between technical feasibility and practical considerations, but also constitutional ones and wanna highlight a a quick one that I think is really important that we called out in our letter. First, AB 1394 struck a very careful but tenuous balance when it comes to the Fourth Amendment and its protections against warrantless searches.

  • Dylan Hoffman

    Person

    The Fourth Amendment generally prevents the government from requiring private actors to conduct searches that, it could not conduct itself. And to that end, we wanna carefully consider how changes to, that require hash matching, human review, and changes to the enforcement of this bill might affect that balance, as it relates to both the private search doctrine as well as state actor analysis under the Fourth Amendment.

  • Dylan Hoffman

    Person

    And the last thing, certainly, anyone here, anyone at TechNet, our member companies want is for a criminal defendant to be able to suppress evidence collected under this bill or to be able to overturn a conviction.

  • Dylan Hoffman

    Person

    So we wanna make sure that we're thinking through all of those those possibilities and we're not upending that that area of case law. We also wanna have more conversations about the expansion of the definitions of CSAM. I think, generally, most of our platforms do allow all users to report. We wanna think through some of the the potential unintended consequences for other sections of the bill.

  • Dylan Hoffman

    Person

    But, again, wanna close just by expressing my appreciation for the assembly member, her staff, and assembly member, Krell's staff and team, for being willing to have these conversations with us and look forward to continuing those conversations and hope to be able to provide, any necessary suggested amendments, down the line.

  • Dylan Hoffman

    Person

    So thank you.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you. Anybody else here in opposition? Go ahead.

  • Ronak Daylami

    Person

    Not opposition, but, Ronak Daylami with Cal Chamber will simply echo the concerns of our colleagues at TechNet and look forward to working with authors. Thank you.

  • Payton Downey

    Person

    Payton Downey with the Computer and Communications Industry Association. Same idea. I wanna echo our our comments at TechNet. Look forward to working with the author's office. Thank you.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you. Seeing no additional concern in the room, I will bring it back to the dais. We'll start with miss Petrie Norris.

  • Cottie Petrie-Norris

    Legislator

    Thank you, madam chair. I wanna I want to start by thanking Nicole. Thank you for being here and sharing your story and for the work that you are doing to protect California kids. I wanna thank both of the authors, for your work on this. This topic is unimaginably horrific, and so I just really, really appreciate the leadership and, would be honored to be added as a co author.

  • Rebecca Bauer-Kahan

    Legislator

    Miss Aguiar Curry?

  • Cecilia Aguiar-Curry

    Legislator

    Thank you very much for bringing this forward. As we know, we do really good bills, and every now and then there's some that we miss. So I appreciate you guys taking the time coming back to make sure it was implementable. And I too would like to be added as a co author.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you. Yeah. I'm the vice chair.

  • Cecilia Aguiar-Curry

    Legislator

    Thank you so much for sharing your story today, and your strength is incredible truly. So thank you for being here. And to both of the assembly members, I would be honored if you would add my name as a co author as well. Thank you for your hard work.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you. Seeing no further comments, I just wanna really thank you for this. I had the privilege of supporting the first bill that miss Wicks did, and I'm honored to support this today and, would also like to be added if you'll have me as a co author, because I think this is exactly the work we should be doing. The law is only as good as its implementation, and I think the focus here on implementation is really, really critical, and I appreciate that.

  • Rebecca Bauer-Kahan

    Legislator

    I'll note that the opposition says that this type of policy requires careful balancing.

  • Rebecca Bauer-Kahan

    Legislator

    Frankly, I disagree. I actually don't think it requires careful balancing. To me, this is one of those where the scales tilt entirely to California's children and that they should be first and foremost our priority. Child sexual abuse material is some of the most horrific Horrific. Horrific things that can happen to children, and it should be us taking every step in our power to eliminate it from the Internet.

  • Rebecca Bauer-Kahan

    Legislator

    And I couldn't agree more with you, Nicole. Every time it is shared, someone is revictimized, and it is just and the Internet allows for that proliferation to just be so quick and furious, and it is will not change until these platforms are held accountable. And so I just really appreciate this advocacy. I also note that the Fourth Amendment only protects someone to the extent that there is a reasonable expectation of privacy, which I'm sure I'm saying exactly what miss Krell was about to say.

  • Rebecca Bauer-Kahan

    Legislator

    And there is no need for reasonable expectation of privacy on these platforms, so I urge you to put in your terms and service that one does not have a reasonable expectation of privacy such that you can do the work the assembly members are asking for here.

  • Rebecca Bauer-Kahan

    Legislator

    With that, would you like to close?

  • Buffy Wicks

    Legislator

    Well, I was gonna hand it over to miss Krell to make that exact point, but you just did it for me, madam chair, so thank you. I also wanna just thank Nicole, for being here and speaking speaking on behalf of so many families who've had this experience. So thank you for that. And there's a lot of strength in your words and that your story and your experience, as horrific it is, will shape policy and keep other children safe. So thank you for that.

  • Buffy Wicks

    Legislator

    And I think this to me represents, like, the lowest bar possible of what our tech company should be doing. I mean, you have to do this part right. There's all these bills we do, but this is, like, the most basic thing ever of expectation of what we have from our companies. So please walk through the front door and do this with us because I know from a values perspective, I I've heard the tech companies loud and clear.

  • Buffy Wicks

    Legislator

    They say they care about this, and I believe that.

  • Buffy Wicks

    Legislator

    But I and also what I need them to do now is put the the time, energy, and capacity into prioritizing this at the level that it needs to be so that it actually gets done. And I'm happy to always talk and work with the non opposition opposition around any of the concerns that were raised always because we wanna build that actually can be implemented. And I know that there's a lot of technical aspects of that. But, again, we're smart people.

  • Buffy Wicks

    Legislator

    We can figure it out, and let's get CSM off our platforms and respectfully ask for an aye vote.

  • Rebecca Bauer-Kahan

    Legislator

    Miss Carrell, anything you'd like to add? Okay. We have a motion and a second, I believe. So madam secretary, will you call the roll?

  • Committee Secretary

    Person

    It's item number 14, AB 1946 by assembly members Wicks and Krell. Motion is do passed to judiciary. Aye. Aye. Aye. Macedo? Aye. Macedo, Aye. Magsito, Aye. Agari Curry? Agarac Curry, Aye. Brian DeMaio, Hoover, Erwin, Lowenthal, Mckinner, Ortega, Patterson. Patterson, Aye. Petri Norris. Petri Norris, Aye. Ward, Wicks Wicks, Aye, Wilson. Aye.

  • Rebecca Bauer-Kahan

    Legislator

    That has seven, so we'll leave it open for absent members. Thank you, Members. We will now, I think, move to AB 2246.

  • Buffy Wicks

    Legislator

    Yeah. Let's do Oh, okay. Let's do 2713. Okay. We'll do '27. Is that okay?

  • Rebecca Bauer-Kahan

    Legislator

    Yeah. No problem. Okay. That one's late. There we go. Okay.

  • Buffy Wicks

    Legislator

    Well, thank you, Madam Chair, again, and Members. And I wanna thank the committee staff for all of their hard work as per usual, and I accept the committee amendments.

  • Buffy Wicks

    Legislator

    As Gen AI tools have made it easier to create and manipulate images, videos, and audio, I authored A bill, last session, AB 853, to require that large on online platforms provide information on on whether something may or may not be AI.

  • Buffy Wicks

    Legislator

    Since that has been signed into law, there have been some concerns raised recently by copyright holders regarding potentially illegal downloading around the provisions that provide options for users to inspect content data.

  • Buffy Wicks

    Legislator

    To clarify that this provision is not intending to circumvent laws regarding copyright, AB 17 sorry, 2713 adds that any download of system providence information is subject to applicable copyright law.

  • Buffy Wicks

    Legislator

    This, again, is another cleanup implementation bill as we are want to do here in the legislature to make sure that our intended laws are working as we, see fit. With me here to testify is Ken Wang representing Cited, and he's available really to answer any technical questions.

  • Buffy Wicks

    Legislator

    I don't know if you wanna add anything else.

  • Ken Wong

    Person

    No.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you. Anybody else here in support of this bill? Thank you for being so patient. It's been a long afternoon.

  • Margaret Gladstein

    Person

    Margaret Gladstein, here on behalf of Universal Music Group, we appreciate the author making this amendment to the law that she carried last year and and really appreciate the committee's work on this. Also here representing universal mute I'm sorry.

  • Margaret Gladstein

    Person

    The Recording Industry Association today in support.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you.

  • Unidentified Speaker

    Person

    Good afternoon, Madam Chair and assembly Member Wicks and Members committee. We thank you so much for the amendments. We thank you for your willingness to make this a fix for us. We're in strong support.

  • Rebecca Bauer-Kahan

    Legislator

    Who are you?

  • Unidentified Speaker

    Person

    Sorry. Oh, thank you. Directors Guild of America. Okay.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you.

  • Steve Cruz

    Person

    Good afternoon, Madam Chair, Members. Steve Cruz on behalf of the Motion Picture Association. And likewise, I wanna thank the author and the committee for the amendments, around the downloading provisions and concerns that we had initially with 853

  • Steve Cruz

    Person

    around unauthorized use and piracy. And I think the amendments go a long way to addressing those concerns. So again, thank you for the time. And we'll we are neutral on the bill and so wanna make sure and convey that to the committee. And, thank you again.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you.

  • Shane Gusman

    Person

    Madam Chair, Members of the committee, Shane Gusman on behalf of SAG-AFTRA and Teamsters California. Also wanna thank the author and her staff and your staff and the committee for working with us, and we support the bill. Thank you.

  • Rebecca Bauer-Kahan

    Legislator

    Awesome. Thank you. Anyone here in opposition to the bill? I don't believe so, but giving you a moment. Okay. Bring it back to the dais. Questions, concerns? Miss Aguiar-Curry.

  • Cecilia Aguiar-Curry

    Legislator

    Again once again, I love when we do cleanup when we have a really good bill, and this is great. So congratulations, and please add me as well.

  • Rebecca Bauer-Kahan

    Legislator

    Anybody else? Seeing no further comments. Thank you, miss Wicks. You have really led in the data provenance space. That is not a new thing for you.

  • Rebecca Bauer-Kahan

    Legislator

    It has been really since this question arose, I think, in society, frankly, and it becomes more and more important as we deal with some of the misinformation, especially as it relates to protecting our democracy and our elections. So thank you for your continued leadership. Would you like to close?

  • Buffy Wicks

    Legislator

    With that respectfull7y ask for an Aye vote and I appreciate miss Aguiar-Curry joining on.

  • Rebecca Bauer-Kahan

    Legislator

    Awesome. Do we have a motion and a second? Miss Aguiar-Curry, would you like to move? K. We have a second. Call the roll.

  • Committee Secretary

    Person

    Item number 16, AB 2713 by assembly member Wicks. The motion is due pass as amended. [Roll Call]

  • Rebecca Bauer-Kahan

    Legislator

    That has six votes. We will leave it on call for absent members. Last but not least for miss Wicks, we have AB 2246.

  • Buffy Wicks

    Legislator

    Thank you, Madam Chair and Members. And I wanna thank the committee staff, as well, of course, and I accept the committee amendments. And we're talking about another bill I did four years ago, age appropriate design code in 2022. This was our.

  • Rebecca Bauer-Kahan

    Legislator

    If I could interrupt you for one second to clarify. Thank you for accepting the amendments for those on the dais. They'll be crossed in Judiciary, so they're not going into Britain here.

  • Buffy Wicks

    Legislator

    Yes. So I've got a motion. Okay. Great. I'll talk fast.

  • Buffy Wicks

    Legislator

    I know we wanna get out of here. We did age appropriate design code in 2022. It got tied up in the courts. It was bipartisan first in the nation. Four years later, it's still tied up in the courts.

  • Buffy Wicks

    Legislator

    But last month, the ninth circuit court ruled that several provisions of the original ADC were constitutional. This decision immediately created a pathway for this bill to next several of the provisions, again, that were constitutional.

  • Buffy Wicks

    Legislator

    So what the bill does essentially, we're offering privacy and safety protections by default unless there is reasonable certainty that the consumer is an adult. We also now have our age signal law going into effect, so that will help that.

  • Buffy Wicks

    Legislator

    We have disabled disabling profiling, prohibiting the collection or retention of any child's personal information that is not necessary to provide the service requested, prohibiting the collection of any precise geolocation information by default,

  • Buffy Wicks

    Legislator

    and prohibiting the use of dark patterns amongst other things.

  • Buffy Wicks

    Legislator

    So this, again, is just a continuation of the long journey that the age appropriate design code has taken us on with the goal, again, of protecting our kids online. With me here to testify in support is from Nicole Rocha from Children Now.

  • Nicole Rocha

    Person

    Nicole Rocha from Children Now. Children Now takes a whole child approach to improving the lives of California kids and works across health, education, early childhood, and foster care to ensure that all kids have the supports that they need to thrive.

  • Nicole Rocha

    Person

    My testimony was very similar to yours about what has been happening in the ninth circuit. So I will just point out that children now is incredibly supportive of the age appropriate design code and what I will start calling two point o. It's this one.

  • Nicole Rocha

    Person

    Because it is the most, tech neutral and comprehensive protection that we have for kids because it goes across social media, gaming, any sort of place where children are online, they can be protected there.

  • Nicole Rocha

    Person

    And so with that, I will make myself available for questions and, ask for your aye vote.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you. Anyone else here in support of this bill? Anyone here in opposition to this bill? Yep. Okay. Ms. McKinnor wants to see you did. That was your outside voice, Ms. McKinnor. But she said, oh, good. She was happy you were coming at Mr. Hoffman.

  • Dylan Hoffman

    Person

    I know. I appreciate that. Thank you, Madam Chair, for the indulgence. Again, Dylan Hoffman on behalf of Technet, also not opposed, but with a a letter of concerns and mostly wanted to start off. And I know we're trying to get out of here,

  • Dylan Hoffman

    Person

    but by by saying we are also very heavily involved in the age appropriate design, conversation actually with all parties at at this table, though in slightly different roles.

  • Dylan Hoffman

    Person

    We, again, provided very, detailed suggested amendments, had really, thoughtful and and sometimes difficult conversations about the provisions. REACH compromised in several key areas, although, unfortunately, we're not able to remove our opposition to that bill.

  • Dylan Hoffman

    Person

    And very clearly, TechNet was not a a party to the litigation on this, that we have been following it very closely. And so plan again to be very active partners in this conversation. And so we just wanna call out a couple things very quickly and move on.

  • Dylan Hoffman

    Person

    But I wanna make sure that there's consideration for how now the AADC, two point o will interact with the numerous laws that have been passed since 2022. Since that time, we've enacted 23 laws on this topic.

  • Dylan Hoffman

    Person

    That's not to mention, the many proposals that are before the legislature this year. And so making sure that there's alignment, and they all talk to each other, I think is really important.

  • Dylan Hoffman

    Person

    Furthermore, AB 2246 currently is in a new section of law, and if the, the lower court upholds parts of the AADC, there could be, similar but maybe not identical, sections of law, sort of existing out there.

  • Dylan Hoffman

    Person

    And so we wanna understand if there's a plan to to maybe align those those two sections. So with with that in mind, it may be best to to wait until we have full clarity from the courts as to which sections, will be upheld, and which won't.

  • Dylan Hoffman

    Person

    But, look forward again, to conversations with the author and, again, really appreciate, her tireless work on this this subject. Thank you.

  • Rebecca Bauer-Kahan

    Legislator

    Yeah. Come on up. You guys should just sit on that side of the room.

  • Ronak Daylami

    Person

    We really should have planned it better. Ronak Daylami on behalf of Cal Chamber will just echo the comments of our colleagues at TECNA and thank the author and look forward to working with her. Thank you.

  • Payton Downey

    Person

    Payton Downey with the Computer and Communications Industry Association. Wanna echo the same thing. Thank you.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you. Seeing no additional opposition or concern in the room, bring you back to the dias. Miss Petrie-Norris?

  • Cottie Petrie-Norris

    Legislator

    I was proud to coauthor the original measure. Would love to be added as a coauthor again. Thank you.

  • Rebecca Bauer-Kahan

    Legislator

    Miss Aguiar-Curry would like to be added as a coauthor as well. Anything else? Well, I just wanna thank you. I have many times from this dais said how much I love the age appropriate design code and how sad I was that it got held up in the courts.

  • Rebecca Bauer-Kahan

    Legislator

    And so I think your continued effort on this is critical, although I'll say what I've said before, which is every one of these companies could do this without the law and frankly should do this without the law.

  • Rebecca Bauer-Kahan

    Legislator

    Should do this without the law. That isn't where we are. And so, hopefully, we can continue to move this forward, and I would, join my colleagues in asking Diana as a coauthor if you'll have me. And with that, would you like to close?

  • Buffy Wicks

    Legislator

    Great. Appreciate the additional co authorship here, and we are gonna keep this going until our kids are safe. So here we go again.

  • Buffy Wicks

    Legislator

    And, of course, we'll always work with the opposition, non opposition on this because I think there's some valid concerns that were raised, and we'll figure it out. So with that respect, please ask for an Aye vote.

  • Rebecca Bauer-Kahan

    Legislator

    And I'll just add some of the concerns we're waiting on the court, so I'm sure it will get addressed as the legislature sees what happens. So thank you for that. And with that, let's call the roll.

  • Buffy Wicks

    Legislator

    Yeah.

  • Buffy Wicks

    Legislator

    Item number 15, AB 2246 by Assemblymember Wicks. The motion is due passed to Judiciary committee. [Roll Call]

  • Rebecca Bauer-Kahan

    Legislator

    Alot of W's in this committee. Did we get to Wilson? Yeah. Okay. Yeah. Okay. Yeah. Okay. Yeah. She said Aye.

  • Rebecca Bauer-Kahan

    Legislator

    It has seven votes. We'll leave it on call for absent Members. Miss Petrie-Norris will be up with 2656. Your witness has been waiting so patiently. I have seen him.

  • Cottie Petrie-Norris

    Legislator

    Thank you, Madam Chair. Pleased to join you this evening to present AB 2656. This measure will ensure that public employee organizations receive advanced notice of the proposed use of generative AI so that they are afforded a meaningful opportunity to provide

  • Cottie Petrie-Norris

    Legislator

    input on the development, introduction, and use of Gen I in the workplace. As, we have talked a lot about in this committee over the last couple of years, artificial intelligence is increasingly being used in workplaces, often without advanced notice to the employees most

  • Cottie Petrie-Norris

    Legislator

    directly affected. These tools significantly impact job duties, performance evaluations, and overall working conditions. Without transparency, employees may be subject to decisions made by systems they don't understand, presenting the risk of bias, errors, or

  • Cottie Petrie-Norris

    Legislator

    lack of human oversight. While existing law requires notice over changes to working conditions in in the public sectors, it does not explicitly address the growing use of AI. This is a clear gap as this technology rapidly expands across government operations.

  • Cottie Petrie-Norris

    Legislator

    AB 2656 establishes a clear common sense requirement.

  • Cottie Petrie-Norris

    Legislator

    Public employers must provide at least forty five days written notice to recognize employee organizations before developing, purchasing, implementing, or utilizing generative AI to perform work within represented job classifications.

  • Cottie Petrie-Norris

    Legislator

    This ensures employees have a meaningful opportunity to understand how these tools will be used and raise any concerns before implementation. AB 2656 promotes a more transparent and thoughtful approach to AI across government.

  • Cottie Petrie-Norris

    Legislator

    We believe this is a balanced approach that promotes innovation while ensuring accountability and workforce stability. Pleased to be joined today by Randy Perry on behalf of PORAC.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you, Mr. Perry. Time is yours. Turn your mic on, please.

  • Randy Perry

    Person

    Madam Chair members, Randy Perry on behalf of PORAC sponsors of the bill. I will be as short as the bill itself. It simply requires a 45 day notice. No bargaining. Nothing else that's included.

  • Randy Perry

    Person

    It's a written notice. It can be an email to the union leadership. And we also limited the bill to you see the term within the scope of the work of the job.

  • Randy Perry

    Person

    So it's not AI to run the department. None of that. This is simply something that would affect their working conditions. Thank you.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you, Mr. Perry. Anyone else here in support of this bill? Seeing none. Anyone here in opposition to this bill?

  • Donna Matthews

    Person

    Sorry. I didn't get up until I was in the report.

  • Rebecca Bauer-Kahan

    Legislator

    I'm trying to move quickly right now. So.

  • Donna Matthews

    Person

    Totally get it to me one time. Donna Matthews on behalf of the California Community College Independence Union in very strong support. Thank you.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you. When you're ready. Your mic's not on.

  • Eric Lawyer

    Person

    Thank you. Good afternoon, Chair and Members. I'm Eric Lohrey here today on behalf of the California State Association of Counties with an opposed position on AB 2656.

  • Eric Lawyer

    Person

    We have raised general concerns about the scope of the bill and the practical impact of implementation of local agencies. However, we do appreciate that the bill recognizes that public agencies are different in terms of their implementation of any technology, including AI from

  • Eric Lawyer

    Person

    the private sector. We have had helpful discussions with the author's office and believe there is an opportunity to work collaboratively on language that meets her goals and isn't overly burdensome or costly to public agencies.

  • Eric Lawyer

    Person

    We look forward to additional conversations with the author and sponsors as the bill moves forward. Thank you.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you. Appreciate that. Anyone else here in opposition to this bill? Let me guess the cities.

  • Aaron Avery

    Person

    Special districts.

  • Rebecca Bauer-Kahan

    Legislator

    Special districts.

  • Aaron Avery

    Person

    Aaron Avery, California Special District Association respectfully oppose to align my comments with those of my colleague from CSAC. Thank you.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you. Seeing no further opposition to the bill, bring you back up to the dais. Hey, Mr. Bryan.

  • Isaac Bryan

    Legislator

    I'd like to make a motion and to the author and the witnesses, I would be supportive if you went further, Mr. Perry. So give my support today.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you. Anybody else? Seeing none, do we have a second on the bill? Perfect. Miss Petrie-Norris, would you like to close?

  • Cottie Petrie-Norris

    Legislator

    Thank you, Madam Chair. Respectfully ask for your Aye vote.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you. And I should have said before I let you close, I think, to the point my colleague made, this is the least we can do for our law enforcement officers, so I think it's a great bill. Let's call the roll.

  • Committee Secretary

    Person

    Item number 19, AB 2656 by Assembly member Petrie-Norris. Motion is due passed to public employment and retirement committee. [Roll Call]

  • Rebecca Bauer-Kahan

    Legislator

    That bill has 11 notes it's out, but we will leave it on call for absent members. Mr. Bryan, AB 1883. And for members watching at home, we are on our last two bills.

  • Isaac Bryan

    Legislator

    Thank you, Madam Chair and colleagues. I'm proud to be back with AB 1883, a bill we heard last year in its more ambitious form and moved out of this committee. It will prohibit the use of invasive and potentially discriminatory surveillance systems in the workplace. Employer surveillance takes many forms. Call centers, for example, may be required to use tools that employ emotional recognition and generative AI to analyze interactions.

  • Isaac Bryan

    Legislator

    These systems send constant nudges to alter worker behavior and provide data to supervisors for corrective measures. Workers face risk of bias, discrimination, and frequent errors, usually without knowing how algorithms assess their tone, their accent, their word choice. In addition to emotional recognition, gait recognition and other biometric AI tools are being used in the workplace in a way that we know can lead to discriminatory actions. This bill prohibits the use of the most unreliable and the potentially discriminatory types of surveillance like emotional gait and neurorecognition.

  • Isaac Bryan

    Legislator

    It also sets guardrails for the use of facial tech, facial recognition technology, only allowing its use to open, locked, or secure areas or devices.

  • Isaac Bryan

    Legislator

    It's a priority of the Labor Federation. And joining me today to test testifiy Ivan Fernandez with the California Labor Federation and Shane Guzman representing the California Teamsters.

  • Ivan Fernandez

    Person

    Alright. Thank you, Madam Chair and members of the committee. Ivan Fernandez with the California Federation of Labor Unions, a proud cosponsor of AB 1883. This bill is a part of a package of bills that the Labor Federation is sponsoring to update labor standards for the twenty-first century. The technology that exists in today's workplace is clearly more powerful than ever before, but the principles guiding the creation and the need for worker-centered guardrails remain consistent.

  • Ivan Fernandez

    Person

    Labor has been at the forefront of making workplaces safer and more humane for decades, and today is no different. This committee, as the assembly member, mentioned, has seen previous iterations of workplace AI bills, and we brought them back because we are at a junction point where we can act to protect workers from invasive and discriminatory surveillance practices. The assembly member just note just noted how emotional recognition methods are conducted on call center workers at MetLife, at Humana, and even at Kaiser.

  • Ivan Fernandez

    Person

    Developers like Verint and NICE offer surveillance services capable of real-time sentiment and soft skill analysis to monitor and, in a sense, automate worker emotions and behaviors. And not only are these practices invasive, but they are likely to discriminate against workers who fail to meet arbitrary and potentially biased communication standards.

  • Ivan Fernandez

    Person

    In addition to monitoring worker emotions, employers have an access to tools purportedly capable of analyzing neural data to to determine whether a worker is tired, whether they're concentrating, or if they're stressed. Developers like e Motive sell hardware to allow employers to understand a worker's true mental state for all for the purposes of improving ROI. These surveillance methods rely on questionably, on questionable technology to make bold claims of a person's mental state.

  • Ivan Fernandez

    Person

    The likelihood of inaccurate readings is very high, but despite this, workers are still susceptible to these technologies. Developers are creating Bossware for purposes beyond neural and emotional recognition.

  • Ivan Fernandez

    Person

    Asami noted, how gate recognition and its impact on workers and, of course, facial recognition continues to be deployed in worksites across the state. And so while workers fight every day to make ends meet, they're also subjected to extreme surveillance practices. AB 1883 sets common sense guardrails on the use of these technologies and prevents employers from making inferences on a worker's emotional and I respectfully your aye vote at the appropriate time. Thank you.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you.

  • Shane Gusman

    Person

    Madam Chair, members of the committee, Shane Gusman, on behalf of Teamsters California, cosponsor of the bill along with a few other unions, Amalgamated Transit Union, The Machinists, Unite Here, the Utility Workers Union of America, and the Engineers and Scientists of California, all in strong support of this bill. The reason our union supports the bill is the the growth in use of AI tools, management tools, and surveillance in the workplace is really exponential.

  • Shane Gusman

    Person

    It's growing about as fast as the these tools are growing in terms of speed. And despite the promises of all the good things these are gonna bring to workers and to their employers, there are some significant negative impacts that we're seeing very early on. Worker safety has been impacted both physically and mentally.

  • Shane Gusman

    Person

    Privacy and autonomy in the workplace is, being eliminated. And the technology, while accepted as perfect, as my colleague was saying, or promoted as perfect, has has error rates. And maybe, you know, 90% gets you an A- in school. But when you're talking about disciplining a worker, it needs to be better than that. And so I I we do need guardrails.

  • Shane Gusman

    Person

    We we believe this bill sets appropriate guardrails to mitigate some of these issues, and we urge your aye vote.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you. We have a motion, and we have a second. Thank you. Everyone else here in support of the bill, name, organization, and position, please.

  • Bryant Miramontes

    Person

    Good afternoon, chair committee members. Bryant Mermontes with the California Teachers Association in support.

  • Mariko Yoshihara

    Person

    Mariko Yoshihara on behalf of Tech Equity Action in support.

  • Unidentified Speaker

    Person

    Edgar with SEIU California in support.

  • Becca Kramer

    Person

    Becca Kramer with Kaiser Advocacy on behalf of privacy rights clearinghouse in support.

  • Leah Griffin

    Person

    Leah Griffin with the American Federation of State County Municipal Employees in support.

  • Tracy Rosenberg

    Person

    Tracy Rosenberg with Oakland Privacy in support.

  • Jp Hanna

    Person

    JP Hanna with the California Nurses Association in support.

  • Navnit Puryear

    Person

    Navnit Puryear, on behalf of the California School Employees Association, in support.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you all. Anyone here in opposition to this bill? Come on up. When you're ready, and don't forget your mics.

  • Jake Parker

    Person

    Here we go. Hi, Madam Chair, members. I'm Jake Parker with the Security Industry Association. SIA members include more than 200 companies based in California that provide safety and security products. SIA appreciates the intent of the recent amendments to the bill, which seek to allow workplace technology to continue to be used for safety purposes.

  • Jake Parker

    Person

    And we understand we understand concerns about the potential for misuse of some technologies. However, the bill simply bans technologies versus addresses specific use cases that are problematic and fails to take into account the potential benefits of the technologies. The bill is broad enough that in our main concern, is broad enough it would ban common and beneficial features of modern security systems used to help keep workers, students, and the public safe.

  • Jake Parker

    Person

    For example, prohibiting facial recognition technology involves, involving worker data, is unrealistic where it's used in systems that protect both workers and others that are in the same areas. The exception for access to locked areas is not enough and fails to account for other basic security functions, such as allowing rapid analysis of security video and emergencies, emergency situations, and to conduct post event security investigations, which necessarily involves analysis of all images.

  • Jake Parker

    Person

    It can also be used to flag potential matches with dangerous persons known to the operators, someone, such as someone with a restraining order against them, and that is important when it comes to preventing workplace violence, which we'll hear about in a minute, or someone who's through, made active threats of violence against the school, an employer, or an individual employee. It's also become essential to industries like gaming, as well as sports entertainment venues.

  • Jake Parker

    Person

    Security systems with features banned by AB 1883 are used by most major sports venues, including those hosting the 2028 Olympic Games in LA. SIA believes there would be a direct negative impact to security at the games as a result. Modern security systems can also provide other types of real time alerting and data analysis capabilities for security staff.

  • Jake Parker

    Person

    This is why we have additional concerns that AB 1883's ban on technologies that make inferences and predictions, might encompass other AI driven workplace safety technologies. Today's systems are also are often equipped audio and video capabilities to detect the occurrence of physical violence, distressed calls for help, and other anomalies indicating a response from security personnel is needed.

  • Rebecca Bauer-Kahan

    Legislator

    You wouldn't mind wrapping up so she has some time.

  • Jake Parker

    Person

    I stated earlier, we recognize and appreciate the recent amendments, but, unfortunately, the way they're constructed would actually negate those exemptions. And I'll turn it over. Right?

  • Andrea Lynch

    Person

    Good afternoon. I'm Andrea Lynch on behalf of the California Chamber of Commerce in opposition to AB 1883. Before I joined the chamber, I was an employment defense attorney, and before that, spent over a decade working in HR. I sat across the table from employees going through the reasonable accommodation process, sometimes nervous or in tears. I have personally procured Dragon, an accessibility software that uses AI to capture a worker's voice intonation or audio and convert and convert that speech to text.

  • Andrea Lynch

    Person

    I have watched employees install it and seen their entire relationship with their job transform. This is just one accessibility tool that helps employees thrive. There are other tools that use facial recognition to assist workers in their jobs. I share this because I want this committee to understand. The chamber's opposition to this bill is not abstract.

  • Andrea Lynch

    Person

    It is grounded in what actually happens in California workplaces. There are over 1,000,000 working age Californians with a disability. For many of them, AI assisted tools are not a convenience. They are the difference between employment and unemployment. AB 1883's prohibition on tools that assist workers sweeps in Dragon and similar assistive software.

  • Andrea Lynch

    Person

    Under this bill, the accommodation an employer is legally required to provide under the ADA and FEHA could simultaneously trigger a penalty. This is a direct irreconcilable conflict within California law and would fall hardest on the workers least able to absorb it. The conflicts do not stop there. SB 553 requires virtually every California employer to implement a workplace violence prevention plan with one nonnegotiable requirement.

  • Andrea Lynch

    Person

    Employers must have effective real time means to alert employees to the presence, location, and nature of a threat, not eventually, but in the moment.

  • Andrea Lynch

    Person

    To meet this standard, many employers have invested in AI enhanced security systems, systems that detect anomalous behavior, track unauthorized individuals, and push real time alerts to employees. Under AB 1883, an employer is penalized for using the very tools SB 553 requires them to have. AB 1883 puts employers in an impossible legal position and leaves workers less safe and less accommodated in the process. Thank you.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you. Anyone else here in opposition to this bill? Name, position, organization.

  • Esau Flores

    Person

    Esau Flores with the California Restaurant Association, in opposition.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you.

  • Johnnie Pina

    Person

    Good afternoon. Johnie Pina with the League of California Cities, in respectful opposition. Thank you.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you.

  • Sarah Bridges

    Person

    Good afternoon. Sarah Bridges, on behalf of the California Manufacturers and Technology Association in opposition.

  • Annalee Akin

    Person

    Good afternoon, Annalee Augustine with the Civil Justice Association of California. Respectfully opposed. I've also been asked to convey opposition from Western Growers. Thank you.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you.

  • Taylor Criddle

    Person

    Taylor Criddle with the Electronic Security Association, in opposition.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you.

  • Aaron Avery

    Person

    Good afternoon. Aaron Avery, California Special Districts Association, respectfully opposed. Also, on behalf of my colleagues at the Rural County representatives of California and the Association of California School Administrators. Thank you.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you.

  • Brad Barrow

    Person

    Good afternoon. Brad Barrow with the National Electrical Contractors Association, United Contractors, the Western Line Constructors, and the California Legislative Conference of Plumbing, Heating, and Piping Industry in opposition.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you.

  • Robert Boykin

    Person

    Good afternoon, Chair and members. Robert Boykin with TechNet, in opposition.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you.

  • Dylan Hoffman

    Person

    Good afternoon, Chair and members. Dylan Hoffman on behalf of PRISM, the California Moving and Storage Association, and the Counties of Kern and Fresno. Thanks.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you.

  • Eric Lawyer

    Person

    Good afternoon, Chair and members. Eric Lawyer, on behalf of the California State Association of Counties and Urban Counties of California, in respectful opposition. Thank you.

  • Naomi Padron

    Person

    Thank you. Good afternoon, Chair and members. Naomi Padron on behalf of California's Credit Unions and also on behalf of the Self Storage Association. Respectfully opposed.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you.

  • Margaret Gladstein

    Person

    Margaret Gladstein here on behalf of the California Hospital Association, respectfully opposed.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you.

  • Ryan Allain

    Person

    Ryan Allain, on behalf of the California Retailers Association, in opposition. Thank you.

  • Danielle Parsons

    Person

    Danielle Parsons, with the California Assisted Living Association, in opposition. Thank you.

  • Nick Chappie

    Person

    Good afternoon. Nick Chappie with the California Trucking Association. We are 'tweener'. Wanna thank the author and the sponsors for the ongoing discussions to address our concerns. Thank you.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you. I think we have one more.

  • Ignacio Hernandez

    Person

    Not a tweener, I was just late.

  • Rebecca Bauer-Kahan

    Legislator

    I I guessed.

  • Ignacio Hernandez

    Person

    Ignacio Hernandez, on behalf of the Communication Workers of America at District 9, in support.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you. I actually am gonna start with my own question because we worked hard on these amendments, and I know they're not perfect, but I wanna start with that because so we an an amendment was taken here today. Let me check the amendments. Yes.

  • Rebecca Bauer-Kahan

    Legislator

    And we got, we were trying to get at the safety problem, and so I just wanted to hone in on that real quick before I turn to other members because I think that was one of the main, the security piece, was the main piece of opposition, although I understand the chamber had more than that, but let's just start here.

  • Rebecca Bauer-Kahan

    Legislator

    So an amendment was added that said that nothing in this bill can should prohibit an employer from using these workplace surveillance tools to ensure safety provided that the tool does not incorporate AI that makes inferences or predictions about a worker's emotional state, gait, protected status, a protect activity or to collect neural data. So I guess that would, to me and again, this is really a question.

  • Rebecca Bauer-Kahan

    Legislator

    To me, that would allow for all of the security things that I've heard you talk about because I don't think anything you're saying, like, one of you, oh god t's been a long day. I apologize.

  • Rebecca Bauer-Kahan

    Legislator

    One of you talked about the Olympics. I don't remember which of you, but okay. And nothing in this would say you couldn't use a security software that would identify an individual. Right? It says you can't infer emotional state, Etcetera, Etcetera, Etcetera.

  • Rebecca Bauer-Kahan

    Legislator

    So I guess I'm a little bit confused why this doesn't address what it is you said. Yeah. No. It's a question.

  • Jake Parker

    Person

    Yeah, ma'am. Yes. Thanks, thanks, Madam Chair. So part of the issue is that the these terms are not diff, are not really precisely defined, or they're defined pretty broadly, the ones that are defined. So when it says that this exemption for safety uses doesn't include AI making inferences, predictions based on facial data.

  • Jake Parker

    Person

    It's that is what facial recognition is, basically, making a prediction that there's a match between two facial images.

  • Jake Parker

    Person

    So, that that is, I believe that negates this when it comes to that particular technology. And, likewise, with inferences

  • Rebecca Bauer-Kahan

    Legislator

    Where it says facial. Okay. That wasn't even in the analysis. Okay.

  • Rebecca Bauer-Kahan

    Legislator

    No, you're okay. Got it. So it's the facial piece for you that's that you were referring to. I really am trying to understand because I thought we got at this.

  • Jake Parker

    Person

    There's also if I could add, there's there's also the issue of what does inferences of of emotion emotional data actually mean. So our our concern is, would it encompass things like, distress? Would it encompass things like, one one common feature, which is really useful in security systems, is in detecting when people are fighting and there is physical violence. There's obviously emotion involved in that. A lot of that involves audio and analytics.

  • Jake Parker

    Person

    And so it's not clear to us that that's not covered by that term.

  • Rebecca Bauer-Kahan

    Legislator

    Okay. So a little bit more definition around inference would be helpful is what I'm hearing. K. I'm not trying to misstate. I really am digging in here.

  • Rebecca Bauer-Kahan

    Legislator

    Okay. And do you wanna add to that?

  • Andrea Lynch

    Person

    Yeah. Sorry. I'll add to that.

  • Isaac Bryan

    Legislator

    I'd love to.

  • Rebecca Bauer-Kahan

    Legislator

    Oh, sorry. I just was I felt like they ignored our amendments. I wanted them to address it. Do, would you like to go

  • Isaac Bryan

    Legislator

    I I just wanna say that I did not ignore your amendments, and I thought they were thoughtful and well-crafted. We also took amendments to make sure that none of these technologies were prevented from being used on the public, which I think I have some degree of issues with, but only to protect employees, which I think gets to the broader questions about the Olympics, which I think is absolutely bizarre, as the member here who represents the city of Los Angeles. But nonetheless, I'll pass it back.

  • Rebecca Bauer-Kahan

    Legislator

    Yea.

  • Rebecca Bauer-Kahan

    Legislator

    No. And thank you for taking that amendment. This admendment is important to me as the author.

  • Rebecca Bauer-Kahan

    Legislator

    I'm sure we'd be happy to note. Yeah.

  • Isaac Bryan

    Legislator

    Yeah.

  • Andrea Lynch

    Person

    May I respond? I think the, provided the tool does not incorporate artificial intelligence that makes inferences. And I I don't know if Jake can expand upon this, but I'm assuming a lot of these tools do use artificial intelligence to some extent, with these security system softwares.

  • Rebecca Bauer-Kahan

    Legislator

    Oh, no. I'm assuming we're talking about artificial like, okay. I will say that, I was talking to my staff about, I think you frankly have a point about pure facial recognition software, and so I think we can talk to them about that.

  • Rebecca Bauer-Kahan

    Legislator

    And I see the sponsor nodding because they knew what my concern was here, and it was really, and what I heard from them in our negotiations on this was, they didn't want it to be inferring the emotional state, the things this bill is really trying to get at. And so I think that we can have a conversation around the things that you said, and I love good definitions.

  • Rebecca Bauer-Kahan

    Legislator

    So if you want a definition, I'm here for it all day every day. So, but I think I'm not by any means, do we think this meant you could use AI for anything. So, yes, I think we're talking about AI.

  • Andrea Lynch

    Person

    Got it. Thank you. I think, I think too, going back to that point, there is a provision too that says, facial recognition piece can only strictly be used for, like, locking or unlocking or secure places. And the examples that I provided for, like, reasonable accommodation purposes, there are softwares that employees utilize, particularly employees with disability where it requires like, if they have a physical disability like cerebral palsy, they can't use physically use a mouse because they're wheelchair bound.

  • Isaac Bryan

    Legislator

    Madam Chair?

  • Rebecca Bauer-Kahan

    Legislator

    No, can we let her finish.

  • Rebecca Bauer-Kahan

    Legislator

    I don't wish for anyone to be interrupted, but please.

  • Isaac Bryan

    Legislator

    Sure.

  • Andrea Lynch

    Person

    Yes. They would use software, like a smile mouse software, that's through the reasonable accommodation process to actually use their face to rotate the mouse on their computer screen. So there's other uses of facial recognition. And in that software, AI is embedded to be able to detect the employee's, motion.

  • Rebecca Bauer-Kahan

    Legislator

    Okay. Yeah.

  • Isaac Bryan

    Legislator

    Yeah. As chair of the disability caucus and the older brother of the little brother who has cerebral palsy, I'm pleased to know that the Chamber of Commerce is leading the fight for disability rights and ADA compliance. This also doesn't ban text to speech, which is something that was mentioned in her earlier comments. It has no bearing on that at all. We would never do anything that negatively impacts the disability community.

  • Isaac Bryan

    Legislator

    Although, I I don't trust the sincerity of the opposition as an advocate for the disability community, but we are happy to continue conversations with disability rights organizations and allies, many of whom are already in support of this bill.

  • Rebecca Bauer-Kahan

    Legislator

    I appreciate that, Mr. Bryan. And I'll say, you know, I mean, especially this being the house of origin for this bill, nothing is ever perfect. And I think it's pretty clear what your intent is here, and it's why I wanted to dive into that security question, because I think we wrote that amendment. And again, it's new, so I wanna give grace that it's probably not in your letters, etcetera, because that was an amendment taken in this committee.

  • Rebecca Bauer-Kahan

    Legislator

    You know, to really get at a lot of what it was you said, I think safety and security is a priority for many people on this committee, and so we you know, the author did take that amendment to address what many of us were concerned about.

  • Rebecca Bauer-Kahan

    Legislator

    And so, you know, does it need more refinement? Fine. We're not perfect. We admit that here at the privacy committee. But I think, you know, we were trying to allow for much of the security circumstances we're talking about and if clarification is needed for ADA compliance, I know the author would absolutely, be happy to ensure that disabled Californians have full access to accommodations as he said.

  • Rebecca Bauer-Kahan

    Legislator

    So thank you. I just wanted to dig into that because I thought there was gonna be a lot of security questions, and we did actually have an amendment exactly on that. Miss Petrie-Norris.

  • Cottie Petrie-Norris

    Legislator

    I don't wanna be redundant with the the Chair's comments, but if I understand the concerns that have been raised by opposition, they're twofold. Number one, ensuring that technologies can still be deployed to accommodate individuals with disabilities. Number two, that technologies can still be deployed to provide security and safety for both employees as well as customers. I mean, I I think I know the answer to this, but my understanding from the author is that that is certainly not the intent of this bill.

  • Cottie Petrie-Norris

    Legislator

    And I'll let you answer, but are are you committed to ensuring that you can land this bill while ensuring that we can provide appropriate accommodations for individuals with disabilities as well as ensuring we can deploy best in class security tools in the workplace.

  • Isaac Bryan

    Legislator

    Absolutely. We will continue conversations, and make sure we are not negatively impacting Californians with disabilities, stopping the Los Angeles Olympics or any of the other fears that I just learned about listening to the opposition.

  • Cottie Petrie-Norris

    Legislator

    Thank you. Happy to support the bill today. Thank you.

  • Lori Wilson

    Legislator

    Thank you, Madam Chair. Excuse me. Thank you to the author for this, and I've seen the iterations of this bill and you fine-tuning it, and I appreciate that. And the only thing that I had concerns with reading it and appreciated, definitely appreciated the amendment from the chair, is the continuing work of the facial recognition speech, the opportunity to go see where we're creating digital environments of rural spaces, which includes people, in a workplace.

  • Lori Wilson

    Legislator

    And there's lots of benefits to that, not just on the inherent safety security, but just in general for workplace efficiency without damaging the worker.

  • Lori Wilson

    Legislator

    And I think the lane that I understood you were going in is that these tools are not used to infer in any way a negative impact on the worker. So it's not, you didn't smile enough based on our software, and so now you're gonna be fired or have a write-up that could in any way endanger your job or anything to that nature.

  • Lori Wilson

    Legislator

    And so I think as long as you're continuing down that lane of making sure that there's not a negative impact to the worker, but at the same time, giving, our our businesses the tools and resources without doing, I think, there was the anecdotal strip search bill and, that this was essentially that. I think you can you can balance that line. And I've seen you refine this bill over time to be able to do that, so I trust you in that process.

  • Lori Wilson

    Legislator

    But I think there is something to be said about the facial recognition software in a closed environment because we've talked about what happens when you put it out in the wild and you just are taking DMV databases and all that other stuff. And we're talking about a closed environment within a workplace and so I I ask that you continue to refine that. Thank you.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you, Ms. Wilson. Do you wanna go, you or, Madam Vice Chair is gonna defer to Mr. Demaio first.

  • Carl DeMaio

    Legislator

    Thank you. In the 1800s, a group of workers in England rebelled against technology. They destroyed machines, and they rightfully are derided by history as Luddites. This is the modern example of Luddites, and it's going to impact our economy. In California, we will be less prosperous, less competitive because we continue to go after any innovation and undermine the competitiveness of our businesses, and that's why these businesses are leaving our state.

  • Carl DeMaio

    Legislator

    They will create jobs in other states that don't restrict them. We won't be competitive with businesses operating in other states that have access to modern technologies. We have an unemployment rate now that's 25% higher than the national average. Those are real jobs that have been destroyed here in California because of bad policies from this building in particular. And we have special interest groups that come here, labor.

  • Carl DeMaio

    Legislator

    They're the modern day Luddites. And and they've they've they've backed a whole raft of bad bills, not just on technology, but on litigation, on regulation that have increased the cost to taxpayers, that have increased our cost of living, and they don't care as long as they get what they want. That's what I see, and this is exactly what we see here today. And it's time that we stand up to these special interests and say, "No. This is not good policy. It it will hurt our job, base. "

  • Carl DeMaio

    Legislator

    And and frankly, it will actually hurt our quality of life. We've talked about some of the security concerns. But I could see a day when technology, I think this is already happening, AI monitoring technology is used in an operating room to make sure there's no medical errors or used to evaluate, you know, treatment of people on hospice. The quality of medical care could be aided by technology.

  • Carl DeMaio

    Legislator

    This bill could eliminate a lot of those tools. Or how about monitoring child safety, daycare providers in our classroom. I could go on and on with what technology is going to allow us to do to ensure consumer protection, public health, quality of life. So this is not just a bad thing for employees. In fact, a lot of employees will say, I like being able to do my job better with technology.

  • Carl DeMaio

    Legislator

    There's a group of people who sit there and say, you know what? Employees don't wanna do their best job, and we're here to protect those that don't wanna do their best job. That's in essence the unspoken piece of this discussion today. And I think you you have a very low opinion of the members of your union if that's truly your your your motivation here. I don't know, but I would suspect there's a pretty good chance that people could conclude that.

  • Carl DeMaio

    Legislator

    This is a bad bill, and you know in your heart of hearts this is a bad bill. So I urge my colleagues, if you can't vote against it, lay off. Let's let it die here today, and and perhaps perhaps we can, raise awareness, as to the impacts, to jobs if it does get out of the committee today.

  • Rebecca Bauer-Kahan

    Legislator

    Mr. Bryan, would you like to respond?

  • Isaac Bryan

    Legislator

    I'll save it for my close.

  • Rebecca Bauer-Kahan

    Legislator

    Okay.

  • Rebecca Bauer-Kahan

    Legislator

    I mean, I actually do wanna give the support a moment. If you'd like to.

  • Isaac Bryan

    Legislator

    I'm happy I'm happy to respond, Madam Chair. I heard my colleague say earlier that he represents the libertarian wing of the Republican Party. I don't know what that means anymore when you're caping for big surveillance. And then you're talking about child safety laws, which come from the labor movement. I also noticed that you kept using the word employee instead of worker because you prefer your workers unorganized.

  • Isaac Bryan

    Legislator

    Unions are not special interests. And if they are, they're interests that are fighting for everyday working Californians who are trying to make it in this state who deserve to have their places of work respect them as human beings and not track them using artificial intelligence algorithms using their gait and emotional recognition to make firing decisions or disciplinary decisions not rooted in actual human behavior or their capacity to contribute to the corporations that are exploiting them. I think our colleague is being...I'll stop there.

  • Isaac Bryan

    Legislator

    But is that a sufficient response, Madam Xhair?

  • Rebecca Bauer-Kahan

    Legislator

    Well, I just will add, I mean, having served in this body for seven years and seen the work of California's organized labor movement, many of whom were here today. There's no question in my mind that they hold their workers in the highest regard and that they have so much respect for the work that they do every single day that keeps California running. I know I do, and I know you do as well.

  • Rebecca Bauer-Kahan

    Legislator

    And so I just wanted to say that because our workers deserve that respect, and thank you for giving it to them. And I will say in my heart of hearts, I know this is a good bill. And, honestly, it is to the point of my previous colleagues who spoke, narrower than your past versions and really gets, as Ms. Wilson said, a really narrow focus on technology that is, I don't know if there's a better word than 'creepy', but, there probably is.

  • Rebecca Bauer-Kahan

    Legislator

    It's a long day, and I think, you know, if this is not outlining the type of technology tools that my colleague spoke about. It really is, focused on the tools that are watching every move and trying to decide things that, frankly, the technology is not prepared to determine at this point in time. Madam Vice Chair, is that yeah. Yeah.

  • Rebecca Bauer-Kahan

    Legislator

    Do you want, Miss Ortega, did you wanna go next? Yes. Okay. Miss Ortega.

  • Liz Ortega

    Legislator

    I wanna thank my colleague for bringing this bill forward. Not only is it is it a good bill, it's a great bill. In the 1800s, we weren't surveilled 24/7. Computers, badges weren't tracking my every single move or workers' every single move. They didn't know when my menstrual cycle was happening.

  • Liz Ortega

    Legislator

    They didn't know how much I was sweating. They didn't know how many how long I took to go from one door to the other. That is not a right that every employer should have. When I decide to go to work for someone or when workers talk to me, they don't give up their privacy to go work for them. They have a right to privacy and that's what this bill is about.

  • Liz Ortega

    Legislator

    Thank you for bringing it forward.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you, Ms. Ortega. Well, now, Mr. Patterson wants to jump in front of you, Miss Vice Chair.

  • Joe Patterson

    Legislator

    Yes. Well, I wanna make sure all the smart comments are left, you know, like, if I go first and then the smart comments will come later, you know. You know, if my concerns are similar to last year where where I do believe in, but I don't think we should really be surveilled, you know. I mean, kind of as a fundamental view.

  • Joe Patterson

    Legislator

    In fact, I have you know, I have legislation where there was, you know, the Super Bowl commercial about the cameras that, like, automatically reported and all this stuff and shared information, and I have legislation to ban that.

  • Joe Patterson

    Legislator

    You know? I just think that's crazy out in public and all that kind of stuff. But, or at least require opt-in. Sorry. But but, you know, the one thing is I think that I'm still concerned the bill's a little too broad in terms of what kind of technologies can and can't be used.

  • Joe Patterson

    Legislator

    I am aware of various surveillance that I I do have questions about on whether it's necessary, you know, people bring their trucks home more or less because they're kinda required to, you know, based on the jobs or just, you know, using phones, and they they're bringing in their phones home with them, and when does that access or tracking stop. There's all sorts of things like that. And so I do have concerns with that, generally.

  • Joe Patterson

    Legislator

    I'm just I still am a little concerned that the the bill is too broad, but I'm I'm not gonna vote against it today because I do share a general concern about surveillance of any type, including on the job. So, but always enjoy the discussions, the the colorful ones, and I'm really glad to have this discussion with Mr. Demaio over here because it just makes the discussion so much more exciting, to have the debate and listen to your response.

  • Joe Patterson

    Legislator

    And, and I'd like to see you guys duke it out a little longer, to be honest with you. I wish he could respond to what you said, so.

  • Joe Patterson

    Legislator

    Oh, he said he'll do another round, so I'm sure the Chair will welcome that.

  • Rebecca Bauer-Kahan

    Legislator

    Mister Patterson, I'm going to cut you off before

  • Joe Patterson

    Legislator

    I was going to anyways. So thank you very much.

  • Rebecca Bauer-Kahan

    Legislator

    Madam Vice Vhair.

  • Alexandra Macedo

    Legislator

    Thank you, Madam Chair. So if I'm reading between the lines here, your goal is to make sure that this technology is not used for disciplinary actions. Yes? No? Maybe?

  • Isaac Bryan

    Legislator

    Disciplinary actions or other inference about employer behavior, uh, employee behavior beyond what they're contributing to the workplace.

  • Alexandra Macedo

    Legislator

    So I I appreciate that you've made this more narrow. I do think there's a way to word this that to make it even more narrow, that we're not using this in an abusive way, and tha,t but it still is a useful tool. And I'll, where I'm going with this is I've watched this with active school shooter software that's being developed, that this is used on school campuses in active shooter situations, and the use of AI is very helpful.

  • Alexandra Macedo

    Legislator

    Even in stadiums, I think there's ways to do it that I know this this is about the worker. I can appreciate that.

  • Isaac Bryan

    Legislator

    I was gonna say because we took amendments to ensure that these technologies can still be used without restrictions on the general public. So unless the school shooter is a teacher, which I think we have a whole other problem.

  • Alexandra Macedo

    Legislator

    Well, even in general, I just want to make sure that I I see where your heart is with this, and I can appreciate that. I think there's a way to make it more narrow, personally. And I I I'm actually wanting to ask opposition. If they narrow this even more to make sure that this is not being abused, is there a lane there that you can see that you could work with the author on this?

  • Andrea Lynch

    Person

    I think we're always amenable to working with the author to make sure that, we are addressing all all possible scenarios and situations. As I brought up in my testimony, I I think, as as written, it's it's broad and and and it's not taking into consideration some of the beneficial uses of AI. And I think there's further discussion for that, and we're definitely open to that.

  • Alexandra Macedo

    Legislator

    Okay. Well, I would ask because I I see where your heart is with this, and I think there's a lane. I really do. But I think right now, there's too many ways that this can be used that actually could put some of these workers in danger, and I just don't wanna see that happen. So I won't be able to support it today, but look forward to all your hard work on this issue.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you. Seeing and hearing no further debate on this one, thank you, Mr. Bryan, for your work on this. I know that we worked hard on the security language. We may not have gotten it a 100% right. That's the legislative process.

  • Rebecca Bauer-Kahan

    Legislator

    But I know, to your point to Ms. Petrie-Norris, we can get that right to allow for what you're really trying to get at here, which is something that came up in our surveillance hearing. We had a worker that came and talked about this type of software and how it was used on them to surveil their every move and determine how they were feeling and whether they were nervous or tired or all those things.

  • Rebecca Bauer-Kahan

    Legislator

    And that really that is what you're trying to get at, and I, very much support that. So I know there's probably more work to be done, as there is in any bill. But with that, would you like to close?

  • Isaac Bryan

    Legislator

    Absolutely. I think there's a lot less work to be done than there was last year. We've done a tremendous amount of work, to bring folks to the table, to have the right kind of conversations, to make sure everybody feels included. I've gotta say I'm a little bit surprised that my colleagues across the aisle have become the party of big surveillance or at least only big surveillance when it's in the tools of private corporations suppressing workers.

  • Isaac Bryan

    Legislator

    I imagine if it was the government surveilling, maybe we would all agree.

  • Isaac Bryan

    Legislator

    I would like to see us be more thoughtful, in the rise of these new technologies to make sure that we are still making sure that our laws, our places of business, our state is working for the people of California and not just making way, for the latest types of technologies to both surveil them and control them without thinking about them.

  • Isaac Bryan

    Legislator

    And this bill is one of many that tries to center the people back in the workplace and back in our decision making, and I respectfully ask for your aye vote.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you. We have a motion and a second. Let's call the roll.

  • Committee Secretary

    Person

    Item number 13, AB 1883 by Assemblymember Bryan. The motion is Do pass to appropriations. Bauer-Kahan.

  • Rebecca Bauer-Kahan

    Legislator

    Aye

  • Committee Secretary

    Person

    . Bauer Kehan, aye. Macedo?

  • Alexandra Macedo

    Legislator

    No.

  • Committee Secretary

    Person

    Macedo, no. Agar Curry? Agar Curry, aye. Bryan?

  • Isaac Bryan

    Legislator

    Aye.

  • Committee Secretary

    Person

    Brian, Aye. Demaio?

  • Carl DeMaio

    Legislator

    No

  • Committee Secretary

    Person

    Demaio no. Hoover?

  • Committee Secretary

    Person

    Hoocer Not voting. Irwin?

  • Jacqui Irwin

    Legislator

    Aye.

  • Committee Secretary

    Person

    Irwin Aye. Lowenthal? Lowenthal, Aye. McKinner. Ortega. Okay.

  • Committee Secretary

    Person

    Ortega, Aye. Patterson? Patterson not voting. Petrie-Norris. Petri Norris, Aye.

  • Committee Secretary

    Person

    Ward. Ward, Aye. Wicks. Wicks Aye, Wilson. Wilson, Aye.

  • Rebecca Bauer-Kahan

    Legislator

    That bill has 10 votes, so it is out, but we'll hope leave it open for absent members. Passing it over to my Vice Chair.

  • Unidentified Speaker

    Person

    We have a motion and a second. Take that for what you will, madam chair.

  • Rebecca Bauer-Kahan

    Legislator

    My witnesses are experts, so they will handle that as they as you intend them to. Hi. I'm proud to present AB 2448. I'm a joint author, so I'm presenting this with on behalf on Assembly Member Berman.

  • Rebecca Bauer-Kahan

    Legislator

    It is a, follow-up to a bill I did a couple years ago focused on privacy of abortion records.

  • Rebecca Bauer-Kahan

    Legislator

    This is an important update, and I respectfully ask your Aye vote. With me today is Angela Pontes with Planned Parenthood Affiliates of California and Tiffany Brokaw with the attorney general's office.

  • Angela Pontes

    Person

    Thank you, members. Angela Pontes on behalf of Planned Parenthood Affiliates of California representing the seven Planned Parenthood Affiliates across the state. We are a proud cosponsor of this bill.

  • Angela Pontes

    Person

    As explained in 2023, Assemblymember Bower Cahan authored AB 352 following the Dobbs decision to protect sensitive health information like abortion.

  • Angela Pontes

    Person

    A B 2448 follows up on this law by simply clarifying that the electronic health records vendors must not only develop the technology, but also enable the capabilities needed for providers to protect their patients' data.

  • Angela Pontes

    Person

    This is increasingly important as the state implements the data exchange framework, which requires providers to, including Planned Parenthood, to participate in the sharing of health records.

  • Angela Pontes

    Person

    We ask for your Aye vote.

  • Alexandra Macedo

    Legislator

    You should be an auctioneer. You have two minutes.

  • Tiffany Brokaw

    Person

    Thank you. Good afternoon. Tiffany Brokaw here on behalf of Attorney General Rob Bonta, and he would like to thank Assemblymember Bauer-Kahan and Assemblymember Berman for authoring this piece of legislation.

  • Tiffany Brokaw

    Person

    AB 2448 would ensure that health care providers have the technological capabilities to segregate and protect reproductive health care information across the country, increasing restrictions on reproductive health care have been accompanied by heightened

  • Tiffany Brokaw

    Person

    concerns on the potential misuse of this kind of information. While existing law requires certain entities to maintain safeguards, there is a gap there that these type of of entity should actually enable these safeguards.

  • Tiffany Brokaw

    Person

    A B 2448 effectuates that next step, and it builds on California's ongoing commitment to be a safe haven for reproductive health care for those who seek and administer it. And for these reasons, we respectfully ask for an aye vote.

  • Alexandra Macedo

    Legislator

    Appreciate your conciseness. Anybody else in the room in support? Name, affiliation, and position.

  • Becca Kramer

    Person

    I'm Becca Kramer with Kaiser Advocacy on behalf of the Electronic Frontier Foundation and strong support. Thank you.

  • Rebecca Bauer-Kahan

    Legislator

    Thank you.

  • Keshav Kumar

    Person

    Keshav Kumar with Lighthouse Public Affairs on behalf of Reproductive Freedom for All and also giving support from EQCA. Strong support.

  • Alexandra Macedo

    Legislator

    Thank you very much. Do we have anybody in the room in opposition? Thank goodness. Bringing back to the dias? Anybody?

  • Rebecca Bauer-Kahan

    Legislator

    No. I'd like to be a co author.

  • Rebecca Bauer-Kahan

    Legislator

    Yes. Well, we'd love to have you.

  • Alexandra Macedo

    Legislator

    Anybody else?

  • Alexandra Macedo

    Legislator

    Alright. Madam secretary, call the roll. We do have a oh, Would you like to close?

  • Rebecca Bauer-Kahan

    Legislator

    Respect. I ask for your Aye vote.

  • Alexandra Macedo

    Legislator

    Yes. We had a motion, a second by miss Petrie-Norris, and a second by miss Wicks. Thank you.

  • Rebecca Bauer-Kahan

    Legislator

    I shouldn't Chair from here. Sorry.

  • Alexandra Macedo

    Legislator

    You're doing a great job.

  • Committee Secretary

    Person

    Please call the roll. Item number six, AB 2448 by Assembly Members Bauer-Kahan and Berman. Motion is due passed to appropriations. [Roll Call]

  • Rebecca Bauer-Kahan

    Legislator

    Okay. That bill has how'd you say? 10? 10 votes.

  • Rebecca Bauer-Kahan

    Legislator

    It is out, but we'll leave it open for the absent members. Thank you, everybody, for your patience. That was it. That was our last bill, but we'll do add ons, obviously. We will start with the consent calendar when

  • Committee Secretary

    Person

    [Roll Call]

  • Rebecca Bauer-Kahan

    Legislator

    That bill is out fourteen one. Thank you. This hearing is adjourned.

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