California wants child influencers to get their fair cut

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Jan 26, 2024 View in browser   By Lara Korte and Dustin Gardiner Presented by State Sen. Steve Padilla, D-San Diego, listens during the opening session of the California Senate in Sacramento, Calif., on Jan. 4, 2023. | José Luis Villegas/AP THE BUZZ — Children play a major part in the $21 billion-a-year global influencer economy. One California lawmaker wants to make sure they get their fair cut. State Sen. Steve Padilla, a San Diego Democrat, is championing a bill that would require vloggers who feature minors in 30 percent or more of their content to put aside a proportionate amount of gross revenue in a trust for the child — only to be accessed when they come of age. A similar law recently went into effect in Illinois, but California, home to some of the largest social media companies, 40 million people and a sprawling entertainment industry, could help set a new national standard for the treatment of children on the internet. California has given such protections to child actors for nearly 80 years, but Padilla’s bill aims to address a modern industry that is still widely unregulated. "This is an area where we need to catch up, and provide some sort of protection here against exploitation,” Padilla said. The boom of social media over the last two decades has produced a slew of family content creators, with parents sharing intimate details about their daily lives on platforms like Instagram, Youtube and TikTok and using their children to secure lucrative endorsement deals. In some cases the kids themselves are the main revenue drivers — like Ryan Kaji, a Texas boy who at the age of 9 became YouTube’s highest-paid creator for his videos reviewing toys. Padilla says he’s trying to shield kids from monetary exploitation, and by extension, emotional and psychological harms. The hope, he said, is that restrictions on child-generated revenue might make parents think twice about oversharing their kids, and avoid harrowing scenarios like the one recently seen in Utah, where “mommy vlogger” Ruby Franke was arrested for child abuse. The new legislation builds off the 1939 Coogan Act, named for one of Hollywood’s first child stars, Jackie Coogan — who made millions during the silent film era, only to discover in adulthood that his parents had squandered his earnings. In addition to rules about schooling, work hours and time off, the Coogan Act requires a child’s employer to put aside 15 percent of their earnings in a trust. Padilla’s Senate Bill 764 would similarly require vloggers to divert a portion of earnings on a video or picture featuring a child to a protected trust for the minor’s benefit. The new proposal, which currently has no formal opposition, is speeding through the Legislature, with a Senate floor vote expected early next week. "We're setting a standard that says, 'If you're featuring your children's lives from the time they take their first steps until they're about to go to college, and it's 60 percent of your content and you're monetizing it, then that should be the level at which, some provision is made for their financial future,’” Padilla said. GOOD MORNING. Happy Friday. Thanks for waking up with Playbook. Now you can text us at ‪916-562-0685‬‪ — save it as “CA Playbook” in your contacts now. Or drop us a line at lkorte@politico.com and dgardiner@politico.com, or on X — @DustinGardiner and @Lara_Korte WHERE’S GAVIN? Out of state to stump for President Joe Biden. He’s appearing on MSNBC again tonight before returning home to California. CONTEST ALERT: SENATE GUESSING GAME — A major power shift is underway in the California Senate as longtime President Pro Tem Toni Atkins prepares to pass the gavel. Her replacement, incoming Pro Tem Mike McGuire, will be sworn in on Feb. 5. The question on everyone’s mind: Who will McGuire name to key Senate leadership positions? Make your predictions and compete against your fellow politicos (and the Playbook authors). Think of it as a far less sinister Game of Thrones or fantasy football for politics nerds. We noticed some of you are really going for the win by filling out our bonus question with your full roster of predictions for Senate committee leaders. Those with the most accurate guesses will receive a shout-out in California Playbook and an extra special swag bag, so be sure to leave your name and email with your prediction. Happy guessing! A message from Chime: Tired of overdraft fees? Learn how Chime is different. Chime is expanding banking with no overdraft fees to everyday people. Cost is a barrier to many, which is why Chime never charges overdraft or monthly fees — and there are no minimum balance requirements for our checking and savings accounts. We reach customers traditional banks don't, can't or won't and are helping everyone unlock financial progress. Learn more.   THIS JUST IN California Gov. Gavin Newsom speaks during a Clean California event in San Francisco, on Nov. 9, 2023. | Jeff Chiu/AP NORCAL GUY IN THE SOUTH — Newsom spent this week in South Carolina, extolling President Joe Biden and making the case for his reelection. But under all the handshaking and politicking is a question at the center of Newsom’s political future — will his California brand play in other parts of the country? Don’t miss Christopher Cadelago’s latest dispatch from the campaign trail.'   CALIFORNIA CLIMATE: Climate change isn’t just about the weather. It's also about how we do business and create new policies, especially in California. So, we have something cool for you: our California Climate newsletter. It's not just climate or science chat, it's your daily cheat sheet to understanding how the legislative landscape around climate change is shaking up industries across the Golden State. Cut through the jargon and get the latest developments in California as lawmakers and industry leaders adapt to the changing climate. Subscribe now.     THE SCOOP FIRST IN PLAYBOOK: PENDULUM SWING — Yet another prominent Democratic lawmaker is pushing to roll back a key provision of Proposition 47, a 2014 ballot measure that reduced certain drug and property crimes to misdemeanors. State Sen. Bob Archuleta will unveil a bill today that would beef up penalties for “serial thieves” by making shoplifting a felony offense if the person has two or more prior theft convictions. The bill would leave in place Prop 47’s threshold of $950 for shoplifting to be considered a felony, but only on the first and second offenses. Someone convicted on a third offense could face between six months and three years in prison. The bill is likely to face opposition from justice reform advocates who fiercely oppose “three strikes” laws, but Archuleta said businesses in his San Gabriel Valley district east of Los Angeles have been ravaged by repeat theft. “We realized the pendulum went too far,” Archuleta said during an interview in his district. “This sends a message that we’re not going to stand for it anymore.”   A message from Chime:   CAMPAIGN YEAR Rep. Michelle Steel attends a press conference in Huntington Beach, Calif., on Oct. 4, 2021. | Patrick T. Fallon/AFP via Getty Images DOUBLE UP — ASPIRE PAC, the campaign arm of the House Asian American and Pacific Islander caucus, is wading into the competitive race to oust GOP Rep. Michelle Steel — for a second time. The group endorsed Derek Tran, a Democratic attorney and relative latecomer to the CA-45 race, on Friday, five months after backing another Democrat, Kim Nguyen-Peñaloza, in the same race. The district, home to Orange County’s Little Saigon, will be one of the fiercest staging grounds for the battle to win over Asian American voters. The dual endorsement effectively neutralizes the benefit that Nguyen-Peñaloza had in garnering the group’s early support in the race. Democrats in D.C. have been underwhelmed by her fundraising prowess (she raised roughly $200,000 in nine months and had just $50,000 on hand at the end of September). Tran, by contrast, raised more than $500,000 in three months after entering the race in October and ended January with more than $360,000 in the bank.  — Melanie Mason TAKING A SHOT AT CEQA — Conservative pundit Steve Hilton this week officially launched his ballot initiative campaign aimed at easing the state’s housing crisis, hoping to do away with time-consuming environmental impact lawsuits and cap government fees related to construction. Hilton, once an adviser to former UK prime minister David Cameron, is transitioning from his longtime role as a FOX News agitator. Last year he launched a think tank called Golden Together with former Republican candidate for state controller Lanhee Chen to focus on California policy issues. His ballot measure, the California Homeownership Affordability Act, would prohibit private parties from suing to stop construction based on alleged non-compliance with the California Environmental Quality Act — a 1970s-era law that has long been criticized for dragging down the pace of California’s new housing supply. The measure needs to gather about 550,000 signatures by April to qualify for the November ballot. The effort is sponsored by Hilton’s think tank, which is donating $50,000 in-kind, but has not yet reported any other significant funding sources.   EXCITING EVENT OPPORTUNITY: The USC Dornsife Center for the Political Future, in collaboration with POLITICO and Unite America, hosts the Warschaw Conference on Practical Politics on January 30, 2024 at USC. Top experts from politics, government, media and academia will explore the upcoming election season as part of the following conversations: PRIMARY COLORS: Iowa, New Hampshire, South Carolina and Beyond, NOVEMBER SHOWDOWN: Battle for the Presidency, TRUTH DECAY: Misinformation and Disinformation in Elections, RANKING REFORMS: The Cure for the Ills of Democracy Is More Democracy. Register to attend in person or virtually.     Top Talkers — The tech lobby, GOP lawmakers and conservative activists are trying to kneecap President Joe Biden’ s executive order on artificial intelligence just days before its first major deadlines hit. (POLITICO) — Steve Garvey actually won Monday’s Senate debate, George Skelton argues, because his three Democratic rivals ganged up on him, and “hardly anything unites a Republican candidate and the party faithful more than Democrats attacking that candidate.” (Los Angeles Times) — Boeing’s troubled 737 MAX 9 could start flying again as soon as Friday — but some in Congress are questioning whether the planes are ready to take to the skies. (POLITICO) — The proliferation of contraband cellphones in the California prison system has changed the dynamics of drug dealing on the street. (The Los Angeles Times) A message from Chime: Chime is expanding banking with no overdraft fees to everyday people. Cost is a barrier to many, which is why Chime never charges overdraft or monthly fees — and there are no minimum balance requirements for our checking and savings accounts. We reach customers traditional banks don't, can't or won't and are helping everyone unlock financial progress. Learn more.   PLAYBOOKERS TRANSITIONS — Jose Carbonell is the new vice president of marketing and communications at RepresentUs. He previously held leadership roles at the National Audubon Society, UNICEF, Nickelodeon, and Stamford Health. — The Los Angeles Times has named editorial page editor Terry Tang as the interim executive editor following some of the most tumultuous few weeks in the paper’s history. — Californians Emily Desai, Nitzan Pelman, Keely Cat-Wells, Stephanie Chao, Catherine Hampel, Keith Hensley, Philip June, Kai Kung, Nanxi Liu and Lauren Macmadu have been named as part of the new class of Presidential Leadership Scholars. BIRTHDAYS — Former House Speaker Kevin McCarthy … HHS Secretary Xavier Becerra … Sarah Pompei … Chenyu Zheng … Morgan Pearlman … Eric Nelson CALIFORNIA POLICY IS ALWAYS CHANGING: Know your next move. From Sacramento to Silicon Valley, POLITICO California Pro provides policy professionals with the in-depth reporting and tools they need to get ahead of policy trends and political developments shaping the Golden State. To learn more about the exclusive insight and analysis this subscriber-only service offers, click here. Want to make an impact? POLITICO California has a variety of solutions available for partners looking to reach and activate the most influential people in the Golden State. Have a petition you want signed? A cause you’re promoting? Seeking to increase brand awareness amongst this key audience? Share your message with our influential readers to foster engagement and drive action. Contact Jesse Shapiro to find out how: jshapiro@politico.com.   Follow us on Twitter Dustin Gardiner @dustingardiner Lara Korte @lara_korte POLITICO California @politicoca   Subscribe to the POLITICO Playbook family Playbook  |  Playbook PM  |  California Playbook  |  Florida Playbook  |  Illinois Playbook  |  Massachusetts Playbook  |  New Jersey Playbook  |  New York Playbook  |  Ottawa Playbook  |  Brussels Playbook  |  London Playbook View all our political and policy newsletters Follow us

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