Bill to Allow Earnings by Youth Online Content Creators Passed By Senate

A bill to ensure that online content creators under the age of 18 would earn fair financial benefits from the use of their image was passed by the Senate on Monday in a 34-0 vote, with 6 GOP Senators abstaining.

Senate Bill 764, authored by Senator Steve Padilla (D-San Diego), would require online content creators, or vloggers, who are under the age of 18 to be compensated if they are in 30% or more of their content. The bill would require the vlogger to set aside gross earnings on the content in a trust account to be preserved for the benefit of the minor. SB 764 would also require the vlogger to prepare a written statement, under penalty of perjury, that includes specified information relating to the trust account. By expanding the scope of the crime of perjury, the bill would impose a state-mandated local program.

In addition, SB 764 would require the vlogger to maintain records, including, among others, the number of vlogs that generated compensation and the amount deposited into the trust account, and to provide them to the minor once per month. The bill would also act as a quasi-extension to the 1939 Coogan Act, with SB 764 covering under 18 content creators who are not under contract, as opposed to the Coogan Act which covers only contracted under 18 performers.

Senator Padilla heavily amended SB 764 earlier this year, switching the bill from one that would target social media pages showing unsafe content to minors to its current version. Withe the previous version being too broad and Padilla still wanting to extend minor protections online, he focused specifically on protecting minors who are monetized online.

“Protecting children from all forms of exploitation and abuse is one of our highest callings in government,” said Senator Padilla in a statement on Monday. “The financial exploitation of children must be identified and eliminated within the influencer industry and economy as they continue to grow. These performers are entitled to fair compensation from the money their content brings in.”

Supporters have also come forward. “I’m thrilled the California legislature has taken up this issue with expediency and diligence,” said Dr. Jessica Maddox, a professor of digital media at the University of Alabama. “Under Senator Padilla’s leadership, California is poised to make meaningful protections for the children of influencers, creators, and family vloggers. Hopefully, the Assembly continues work on this important matter and is willing to implement it into law.”

While Republicans and a few Democrats have raised concerns about the bill, especially over the specifics of how the trusts would work, no lawmakers have formally come out in opposition to the bill. During the several committee votes this month, Senators avoided voting against the bill, instead abstaining from voting. This trend continued on Monday with 6 GOP Senators abstaining from the full Senate vote.

“This is new ground for many, and everyone wants to make sure it is done right,” lawyer Paige Lee, who specializes in entertainment law told the Globe. “Regardless of politics, no one wants to see anyone screwed out of fair compensation. Child actors have learned that the hard way, even after the Coogan Act. Now we have kids online making videos that are being monetized. It makes sense for fair compensation there, especially if they get a college fund out of it.”

SB 764 is to be heard next in the Assembly.