California’s Protectionist Legislation

Opposing the CJPA

I just submitted a letter opposing the so-called California Journalism Preservation Act that is now going through the Senate. Here’s what I said (I’ll skip the opening paragraph with my journalistic bona fides):

Like other well-intentioned media regulation, the CJPA will result in a raft of unintended and damaging consequences. I fear it will support the bottom lines of the rapacious hedge funds and billionaires who are milking California’s once-great newspapers for cash flow without concern for the information needs of California’s communities. I have seen that first-hand, for I was once a member of the digital advisory board for Alden Capital’s Digital First, owner of the Bay Area News Group. For them, any income from any source is fungible and I doubt any money from CJPA will go to actually strengthening journalism.

The best hope for local journalism is not the old newspaper industry and its lobbyists who seek protectionism. It will come instead from startups, some not-for-profit, some tiny, that serve local communities. These are the kinds of journalists we teach in the Entrepreneurial Journalism program I started at my school. These entrepreneurial journalists will not benefit from CJPA and their ventures could be locked out by this nonmarket intervention favoring incumbent competitors. From a policy perspective, I would like to see how California could encourage new competition, not stifle it. I concur with the April letter from LION publishers.