Jarrell Cook

Governor Newsom’s proposed ‘Data Dividend’ could implicate manufacturers

By Jarrell Cook, Policy Director, Government Relations

Capitol Update, Feb. 15, 2019 Share this on FacebookTweet thisEmail this to a friend

In his first State of the State address, Governor Gavin Newsom proposed a ‘data dividend’ drawn from the profits of technology companies to allow Californians to “share in the wealth that is created from their data.”

California manufacturers should monitor the development of this closely to ensure that they do not find themselves required to pay into a fund to mitigate the behavior of other industries. As we have seen in recent legislation, sweeping rules on data management targeting companies like Facebook or Google often have unintended consequences for the manufacturers of sensors, connected devices, and other hardware that makes the services provided by other technology companies possible.

There are few details on the proposal thus far, but Senator Bob Hertzberg (D-Van Nuys), co-author of last year’s California Consumer Privacy Act, has positively described the plan as “the next frontier of the online and privacy conversation."

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