Bill > AB796

This bill establishes a new tax on social media platform providers and creates a Social Media Safety Trust Fund to address concerns about the negative impacts of social media on youth. For taxable years between 2026 and 2031, the bill would impose a tax on social media platforms based on their annual gross receipts from advertising, with specific exemptions for nonprofit organizations and smaller advertisers. The collected funds would be deposited into a newly created trust fund, which would be divided into four separate accounts: an Education Account to support social media safety curriculum, a Mental Health Care Account to provide mental health services, a Research and Development Account to study social media impacts and develop protective technologies, and a Social Services Account to support children harmed by social media use. The bill's legislative findings emphasize the state's authority to tax platforms that contribute to social and economic burdens, and highlight the significant harm caused by social media to young people, including issues like cyberbullying, mental health challenges, and potential exposure to dangerous content. The legislation is designed to be temporary, with provisions set to expire on January 1, 2031, and includes a specific clause ensuring that the bill does not infringe on First Amendment free speech protections. The ultimate goal is to create a comprehensive approach to mitigating the negative effects of social media on California's youth through education, research, healthcare, and social services.

Budget and Finance, Business and Industry

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