SAN LUIS OBISPO, CALIF. — It’s being heralded by one Golden State-based media broker as “a potentially important new financial opportunity for California’s local broadcasters.” The good news, says Brett Miller of MCH Enterprises? “AB 2222” could be headed to other states.
That’s the Community NEWS Act, which Gov. Gavin Newsom signed into law on September 30. Now, given the results of the midterm elections on the national, state and local level, Miller believes the law deserves the attention of all broadcasters — particularly those who continue to invest in local news and community journalism.
The Community NEWS Act establishes refundable employment tax credits for qualifying local news organizations, including commercially licensed broadcast radio and TV stations.
Under the California law, qualifying organizations can receive:
• $20,000 annually for each of their first five full-time journalists
• $15,000 for each additional full-time journalist
• $7,500 for each qualifying part-time journalist
• An additional $15,000 for each net new full-time journalism position
“Importantly, these are refundable tax credits, not simply deductions against taxable income,” Miller notes. “The program is scheduled to cover the 2027–2031 tax years.”
He further explains that there are eligibility requirements involving the station’s licensure, journalist residency and job responsibilities, ownership disclosure, media liability insurance and editorial accountability policies. “Not every station employee qualifies, and stations will need to examine the statutory requirements carefully, but the bigger story may be what is happening beyond California,” Miller says.
That’s because AB 2222 was sponsored by Rebuild Local News, a national non-profit organization advocating for policies to strengthen community journalism. Its model legislation is already influencing discussions and legislation in other states.
Illinois, New York and New Mexico have enacted employment-credit programs with varying structures. Maine is preparing a similar proposal, and other states are exploring related approaches. This is not necessarily a one-size-fits-all program, and the details will vary by state. But there is a developing recognition that maintaining local news coverage requires more than hoping traditional advertising economics will somehow return.
“The California legislation may be a starting point, not an isolated event,” Miller says.
— With reporting by RBR+TVBR in Oklahoma City
