As previously noted, Governor Hochul’s Budget did not include any advertising or digital taxes. Nonetheless, there were a number of proposals that were added to the budget process that could have a negative impact on local broadcasters.
Food Product Advertising (S. 213B): This bill was included in the Senate’s budget proposal. It passed the Senate last year and again this year. If enacted, it would create a significant litigation risk for any food product advertising in NY. We successfully removed the proposal from the budget. We will continue to oppose the legislation in the Assembly.
You can see a text of S.213B here.
Child Data Privacy (S.7695): This is a very complex bill that limits the collection of data from minors, i.e., people under 18 years of age. This could impact your online platforms, websites, and social media platforms. At this point, it is out of the budget, but we will have to address this during the regular legislative session, which ends in mid-June.
You can see a text of S.7695A here.
Safe for Kids Act (S.7694): Legislation would regulate “addictive” algorithms for “user-generated” digital and social media platforms (e.g., Facebook, Instagram, TikTok). It would not apply to most station websites, as they are not primarily “user-generated.” However, it could impact some companies. At this point, it is out of the budget process. We will have to address this later in the session.
You can see a text of S.7694 here.
Unfair & Deceptive Acts or Practices: The Governor and Senate proposed legislation (Part JJ of S.8808A) that would expand liability. Today, this is a consumer law that allows cases to be brought by the Attorney General. The legislation changes the law and allows a direct private right of action. Also, it would permit business-to-business lawsuits. Finally, it would add a new component, and permit lawsuits if a business engaged in “abusive” practices. This is a new legal concept as only two states permit such lawsuits. The New York Business Council strongly opposes the bill. We agree. Because of the intense opposition, it has been taken out of the budget. There has been no final decision.
You can see a text of the legislation on page 120 here.
Payroll Tax Credit for Journalists (SB 8309): We have been working to enact a NY payroll credit for journalists. Working with the NY News Publishers Association, legislation was introduced in the Senate and Assembly. The Senate’s leadership changed the bill. It limited the credit to media companies with a maximum of 100 employees. This approach would exclude a number of the larger radio and TV stations in NYC. The Governor’s office wants to exclude companies that are “publicly traded.” This would exclude many radio and TV stations across the state. There is a long way to go on this issue. As we go to press, it is being debated.