1 | 1 | | 104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026 SB1732 Introduced 2/5/2025, by Sen. Steve Stadelman SYNOPSIS AS INTRODUCED: New Act Creates the Journalism Preservation Act. Provides that specified online platforms shall track and record, on a monthly basis, the total number of times the online platform's websites link to, display, or present a digital journalism provider's news articles, works of journalism, or other content that are displayed or presented to Illinois residents and remit a journalism usage fee payment to each digital journalism provider who has satisfied specific requirements. Sets forth provisions concerning notice requirements; fee payments; calculation of fees; arbitration; non-retaliation; funding for journalists and support staff; reporting requirements; preservation of rights; and severability. LRB104 09901 SPS 19971 b A BILL FOR 104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026 SB1732 Introduced 2/5/2025, by Sen. Steve Stadelman SYNOPSIS AS INTRODUCED: New Act New Act Creates the Journalism Preservation Act. Provides that specified online platforms shall track and record, on a monthly basis, the total number of times the online platform's websites link to, display, or present a digital journalism provider's news articles, works of journalism, or other content that are displayed or presented to Illinois residents and remit a journalism usage fee payment to each digital journalism provider who has satisfied specific requirements. Sets forth provisions concerning notice requirements; fee payments; calculation of fees; arbitration; non-retaliation; funding for journalists and support staff; reporting requirements; preservation of rights; and severability. LRB104 09901 SPS 19971 b LRB104 09901 SPS 19971 b A BILL FOR |
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2 | 2 | | 104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026 SB1732 Introduced 2/5/2025, by Sen. Steve Stadelman SYNOPSIS AS INTRODUCED: |
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3 | 3 | | New Act New Act |
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4 | 4 | | New Act |
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5 | 5 | | Creates the Journalism Preservation Act. Provides that specified online platforms shall track and record, on a monthly basis, the total number of times the online platform's websites link to, display, or present a digital journalism provider's news articles, works of journalism, or other content that are displayed or presented to Illinois residents and remit a journalism usage fee payment to each digital journalism provider who has satisfied specific requirements. Sets forth provisions concerning notice requirements; fee payments; calculation of fees; arbitration; non-retaliation; funding for journalists and support staff; reporting requirements; preservation of rights; and severability. |
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6 | 6 | | LRB104 09901 SPS 19971 b LRB104 09901 SPS 19971 b |
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7 | 7 | | LRB104 09901 SPS 19971 b |
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8 | 8 | | A BILL FOR |
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9 | 9 | | SB1732LRB104 09901 SPS 19971 b SB1732 LRB104 09901 SPS 19971 b |
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10 | 10 | | SB1732 LRB104 09901 SPS 19971 b |
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11 | 11 | | 1 AN ACT concerning business. |
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12 | 12 | | 2 Be it enacted by the People of the State of Illinois, |
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13 | 13 | | 3 represented in the General Assembly: |
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14 | 14 | | 4 Section 1. Short title. This Act may be cited as the |
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15 | 15 | | 5 Journalism Preservation Act. |
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16 | 16 | | 6 Section 5. Findings. |
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17 | 17 | | 7 (a) A free and diverse fourth estate was critical in the |
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18 | 18 | | 8 founding of our democracy and continues to be the lifeblood |
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19 | 19 | | 9 for a functioning democracy. |
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20 | 20 | | 10 (b) Every day, journalism plays an essential role in |
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21 | 21 | | 11 Illinois and in local communities, and the ability of local |
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22 | 22 | | 12 news organizations to continue to provide the public with |
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23 | 23 | | 13 critical information about their communities and enabling |
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24 | 24 | | 14 publishers to receive fair market value for their content that |
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25 | 25 | | 15 is used by others will preserve and ensure the sustainability |
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26 | 26 | | 16 of local and diverse news outlets. |
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27 | 27 | | 17 (c) Communities without newspapers lose touch with |
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28 | 28 | | 18 government, business, education, and neighbors. They operate |
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29 | 29 | | 19 without journalists working to keep them informed, uncover |
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30 | 30 | | 20 truth, expose corruption, and share common goals and |
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31 | 31 | | 21 experiences. |
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32 | 32 | | 22 (d) Over the past 10 years, newspaper advertising has |
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33 | 33 | | 23 decreased 66%, and newsroom staff has declined 44%. |
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36 | 36 | | |
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37 | 37 | | 104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026 SB1732 Introduced 2/5/2025, by Sen. Steve Stadelman SYNOPSIS AS INTRODUCED: |
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38 | 38 | | New Act New Act |
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39 | 39 | | New Act |
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40 | 40 | | Creates the Journalism Preservation Act. Provides that specified online platforms shall track and record, on a monthly basis, the total number of times the online platform's websites link to, display, or present a digital journalism provider's news articles, works of journalism, or other content that are displayed or presented to Illinois residents and remit a journalism usage fee payment to each digital journalism provider who has satisfied specific requirements. Sets forth provisions concerning notice requirements; fee payments; calculation of fees; arbitration; non-retaliation; funding for journalists and support staff; reporting requirements; preservation of rights; and severability. |
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41 | 41 | | LRB104 09901 SPS 19971 b LRB104 09901 SPS 19971 b |
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42 | 42 | | LRB104 09901 SPS 19971 b |
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43 | 43 | | A BILL FOR |
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48 | 48 | | |
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49 | 49 | | New Act |
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53 | 53 | | LRB104 09901 SPS 19971 b |
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63 | 63 | | SB1732 LRB104 09901 SPS 19971 b |
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66 | 66 | | SB1732- 2 -LRB104 09901 SPS 19971 b SB1732 - 2 - LRB104 09901 SPS 19971 b |
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68 | 68 | | 1 (e) Ethnic media has long been a distinctive genre of |
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69 | 69 | | 2 journalism and communications, informing, engaging, and |
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70 | 70 | | 3 advocating on behalf of communities underserved by both the |
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71 | 71 | | 4 for-profit and not-for-profit general media market. It plays a |
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72 | 72 | | 5 unique role in upholding the fourth estate in our democracy by |
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73 | 73 | | 6 facilitating cross-racial and cross-ethnic communications to |
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74 | 74 | | 7 facilitate social integration, promote civic engagement, and |
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75 | 75 | | 8 address inequalities among all of the underserved communities. |
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76 | 76 | | 9 (f) Given the important role of ethnic media, it is |
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77 | 77 | | 10 critical to advance State policy that ensures their publishers |
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78 | 78 | | 11 are justly compensated for the content they create and |
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79 | 79 | | 12 distribute. An example is the historic preamble, "We Wish to |
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80 | 80 | | 13 Plead Our Own Cause," a document penned by the |
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81 | 81 | | 14 African-American journalist and abolitionist Samuel Cornish in |
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82 | 82 | | 15 1827. It marked a significant milestone in the history of the |
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83 | 83 | | 16 Black press as it highlighted the urgent need for African |
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84 | 84 | | 17 Americans to have their own platform to voice their |
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85 | 85 | | 18 grievances, advocate for their rights, and challenge racial |
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86 | 86 | | 19 inequality. This call to action spurred the establishment of |
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87 | 87 | | 20 numerous Black-owned newspapers and publications, solidifying |
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88 | 88 | | 21 the role of the Black press as a powerful tool for empowerment |
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89 | 89 | | 22 and social change, and laid the groundwork in our country for |
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90 | 90 | | 23 other ethnic media to plead their own cause. |
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91 | 91 | | 24 (g) Quality local journalism is key to sustaining civic |
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92 | 92 | | 25 society, strengthening communal ties, and providing |
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93 | 93 | | 26 information at a deeper level that national outlets cannot |
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104 | 104 | | 1 match. |
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105 | 105 | | 2 (h) When surveyed, 73% of adults in the United States say |
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106 | 106 | | 3 they have confidence in their local newspaper. |
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107 | 107 | | 4 Section 10. Definitions. As used in this Act: |
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108 | 108 | | 5 "Access" means to acquire, to crawl, or to index content. |
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109 | 109 | | 6 "Advertising revenue" means revenue generated through the |
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110 | 110 | | 7 sale of digital advertising impressions that are served to |
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111 | 111 | | 8 customers in this State through an online platform, regardless |
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112 | 112 | | 9 of whether those impressions are served on websites or |
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113 | 113 | | 10 accessed through online or mobile applications. |
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114 | 114 | | 11 "Covered platform" means an online platform that, at any |
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115 | 115 | | 12 point during a 12-month period, either: |
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116 | 116 | | 13 (1) has at least 50,000,000 United States-based |
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117 | 117 | | 14 monthly active users or subscribers on the online |
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118 | 118 | | 15 platform; or |
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119 | 119 | | 16 (2) is owned or controlled by a person that either |
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120 | 120 | | 17 has: |
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121 | 121 | | 18 (A) net annual sales in the United States or a |
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122 | 122 | | 19 market capitalization greater than $550,000,000,000, |
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123 | 123 | | 20 adjusted annually for inflation on the basis of the |
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124 | 124 | | 21 Consumer Price Index published by the United States |
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125 | 125 | | 22 Bureau of Labor Statistics; or |
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126 | 126 | | 23 (B) at least 1,000,000,000 worldwide monthly |
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127 | 127 | | 24 active users on the online platform. |
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128 | 128 | | 25 "Covered platform" does not mean an organization exempt |
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139 | 139 | | 1 from federal income taxation under Section 501(c)(3) of the |
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140 | 140 | | 2 Internal Revenue Code of 1986. |
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141 | 141 | | 3 "Eligible broadcaster" means a person that: |
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142 | 142 | | 4 (1) holds or operates under a license issued by the |
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143 | 143 | | 5 Federal Communications Commission under 47 U.S.C. 301 et |
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144 | 144 | | 6 seq.; |
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145 | 145 | | 7 (2) engages professionals to create, edit, produce, |
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146 | 146 | | 8 and distribute original content concerning local, |
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147 | 147 | | 9 regional, national, or international matters of public |
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148 | 148 | | 10 interest through activities, including conducting |
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149 | 149 | | 11 interviews, observing current events, analyzing documents |
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150 | 150 | | 12 and other information, or fact checking through multiple |
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151 | 151 | | 13 firsthand or secondhand news sources; |
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152 | 152 | | 14 (3) updates its content on at least a weekly basis; |
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153 | 153 | | 15 and |
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154 | 154 | | 16 (4) uses an editorial process for error correction and |
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155 | 155 | | 17 clarification, including a transparent process for |
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156 | 156 | | 18 reporting errors or complaints to the station. |
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157 | 157 | | 19 "Eligible digital journalism provider" means an eligible |
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158 | 158 | | 20 publisher or eligible broadcaster that discloses its ownership |
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159 | 159 | | 21 to the public. |
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160 | 160 | | 22 "Eligible publisher" means a person that publishes a |
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161 | 161 | | 23 qualifying publication. |
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162 | 162 | | 24 "News journalist" means a natural person who: |
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163 | 163 | | 25 (1) is employed for an average of at least 30 hours per |
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164 | 164 | | 26 week during a calendar year by an eligible digital |
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170 | 170 | | SB1732 - 4 - LRB104 09901 SPS 19971 b |
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175 | 175 | | 1 journalism provider; and |
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176 | 176 | | 2 (2) is responsible for gathering, developing, |
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177 | 177 | | 3 preparing, directing the recording of, producing, |
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178 | 178 | | 4 collecting, photographing, recording, writing, editing, |
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179 | 179 | | 5 reporting, designing, presenting, distributing, or |
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180 | 180 | | 6 publishing original news or information that concerns |
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181 | 181 | | 7 local, regional, national, or international matters of |
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182 | 182 | | 8 public interest. |
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183 | 183 | | 9 "Notifying eligible digital journalism provider" means an |
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184 | 184 | | 10 entity that has provided notice to a covered platform as |
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185 | 185 | | 11 described in Section 15 that the entity is an eligible digital |
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186 | 186 | | 12 journalism provider. |
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187 | 187 | | 13 "Online platform" means a website, online or mobile |
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188 | 188 | | 14 application, digital assistant, or online service that: |
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189 | 189 | | 15 (1) accesses news articles, works of journalism, or |
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190 | 190 | | 16 other content, or portions thereof, generated, created, |
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191 | 191 | | 17 produced, or owned by an eligible digital journalism |
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192 | 192 | | 18 provider; and |
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193 | 193 | | 19 (2) aggregates, displays, provides, distributes, or |
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194 | 194 | | 20 directs users to content described in paragraph (1) of |
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195 | 195 | | 21 this definition. |
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196 | 196 | | 22 "Qualifying publication" means a website, online or mobile |
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197 | 197 | | 23 application, or other digital service that: |
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198 | 198 | | 24 (1) does not primarily display, provide, distribute, |
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199 | 199 | | 25 or offer content generated, created, produced, or owned by |
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200 | 200 | | 26 an eligible broadcaster; |
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211 | 211 | | 1 (2) provides information to an audience in this State; |
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212 | 212 | | 2 (3) performs a public information function comparable |
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213 | 213 | | 3 to that traditionally served by newspapers and other |
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214 | 214 | | 4 periodical news publications; |
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215 | 215 | | 5 (4) engages professionals to create, edit, produce, |
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216 | 216 | | 6 and distribute original content concerning local, |
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217 | 217 | | 7 regional, national, or international matters of public |
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218 | 218 | | 8 interest through activities, including conducting |
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219 | 219 | | 9 interviews, observing current events, analyzing documents |
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220 | 220 | | 10 and other information, or fact checking through multiple |
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221 | 221 | | 11 firsthand or secondhand news sources; |
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222 | 222 | | 12 (5) updates its content at least 52 weeks in a |
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223 | 223 | | 13 calendar year; |
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224 | 224 | | 14 (6) has an editorial process for error correction and |
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225 | 225 | | 15 clarification, including a transparent process for |
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226 | 226 | | 16 reporting errors or complaints to the publication; and |
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227 | 227 | | 17 (7) meets any of the following criteria: |
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228 | 228 | | 18 (A) generated at least $100,000 in annual revenue |
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229 | 229 | | 19 from its editorial content in the previous calendar |
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230 | 230 | | 20 year; |
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231 | 231 | | 21 (B) had an International Standard Serial Number |
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232 | 232 | | 22 assigned to an affiliated periodical before submitting |
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233 | 233 | | 23 notice to a covered platform under Section 15; or |
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234 | 234 | | 24 (C) is owned or controlled by an organization |
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235 | 235 | | 25 exempt from federal income taxation under Section |
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236 | 236 | | 26 501(c)(3) of the Internal Revenue Code of 1986; |
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247 | 247 | | 1 (8) has at least 25% of its editorial content |
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248 | 248 | | 2 consisting of information about topics of current local, |
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249 | 249 | | 3 regional, national, or international public interest; or |
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250 | 250 | | 4 (9) is not controlled, or wholly or partially owned |
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251 | 251 | | 5 by, an entity that: |
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252 | 252 | | 6 (A) is a foreign power or an agent of a foreign |
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253 | 253 | | 7 power, as those terms are defined in 50 U.S.C. 1801; |
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254 | 254 | | 8 (B) is designated as a foreign terrorist |
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255 | 255 | | 9 organization under 8 U.S.C. 1189; |
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256 | 256 | | 10 (C) is a terrorist organization, as defined in 8 |
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257 | 257 | | 11 U.S.C. 1182; |
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258 | 258 | | 12 (D) is designated as a specially designated global |
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259 | 259 | | 13 terrorist organization under federal Executive Order |
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260 | 260 | | 14 13224; |
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261 | 261 | | 15 (E) is an affiliate of an entity described in |
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262 | 262 | | 16 subparagraph (1), (2), (3), or (4); and |
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263 | 263 | | 17 (F) has been convicted of violating, or attempting |
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264 | 264 | | 18 to violate 18 U.S.C. 2331, 2332b, or 2339A. |
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265 | 265 | | 19 "Representative" means a labor organization designated as |
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266 | 266 | | 20 the exclusive bargaining representative of news journalists or |
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267 | 267 | | 21 support staff for the purposes of collective bargaining in |
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268 | 268 | | 22 accordance with State or federal law. |
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269 | 269 | | 23 "Support staff" means a natural person who performs |
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270 | 270 | | 24 nonexecutive functions, including payroll, human resources, |
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271 | 271 | | 25 fundraising and grant support, advertising and sales, |
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272 | 272 | | 26 community events and partnerships, technical support, |
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283 | 283 | | 1 sanitation, and security. |
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284 | 284 | | 2 Section 15. Notice requirements for journalism usage fee |
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285 | 285 | | 3 payments. |
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286 | 286 | | 4 (a) On or before January 1, 2025, all eligible digital |
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287 | 287 | | 5 journalism providers that want to receive journalism usage fee |
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288 | 288 | | 6 payments under this Act shall submit notice to a covered |
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289 | 289 | | 7 platform as described in subsection (b). All eligible digital |
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290 | 290 | | 8 journalism providers that submit the notice shall receive |
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291 | 291 | | 9 journalism usage fee payments from covered platforms as |
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292 | 292 | | 10 described in Section 20 beginning no later than 30 days after |
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293 | 293 | | 11 the end of the arbitration process described in Section 25. |
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294 | 294 | | 12 Digital journalism providers may provide notice to a covered |
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295 | 295 | | 13 platform as described in subsection (b) after the initial |
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296 | 296 | | 14 arbitration has concluded; however, notice received from an |
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297 | 297 | | 15 eligible digital journalism provider after January 1, 2025, |
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298 | 298 | | 16 shall not prompt any adjustment to the percentage of |
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299 | 299 | | 17 advertising revenue that has previously been determined under |
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300 | 300 | | 18 the most recent arbitration proceeding conducted as described |
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301 | 301 | | 19 in Section 25. |
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302 | 302 | | 20 (b) The notice described in subsection (a) shall: |
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303 | 303 | | 21 (1) identifies the eligible digital journalism |
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304 | 304 | | 22 provider and the authorized representative of the eligible |
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305 | 305 | | 23 digital journalism provider; |
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306 | 306 | | 24 (2) certifies, not under penalty of perjury, that the |
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307 | 307 | | 25 eligible digital journalism provider reasonably believes |
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318 | 318 | | 1 that it is either an eligible broadcaster or an eligible |
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319 | 319 | | 2 publisher; and |
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320 | 320 | | 3 (3) identifies the root uniform resource locators for |
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321 | 321 | | 4 the websites associated with the eligible digital |
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322 | 322 | | 5 journalism provider's digital content. |
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323 | 323 | | 6 (c) No later than 30 days after submitting a notice |
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324 | 324 | | 7 described in subsection (b), the eligible digital journalism |
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325 | 325 | | 8 provider shall distribute a copy of the notice to the news |
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326 | 326 | | 9 journalists and support staff that it employs and their |
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327 | 327 | | 10 representatives, if any, and publish a copy of the notice |
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328 | 328 | | 11 online in a text-searchable format. |
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329 | 329 | | 12 (d) No later than 30 days after the deadline described in |
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330 | 330 | | 13 subsection (a), or after receiving a notice as described in |
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331 | 331 | | 14 subsection (a), the covered platform shall send a reply notice |
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332 | 332 | | 15 to the authorized representative identified in subsection (b) |
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333 | 333 | | 16 to acknowledge the receipt of the notice. |
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334 | 334 | | 17 (e) A covered platform that receives as described in |
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335 | 335 | | 18 paragraph (b) may, within 30 days after receiving the notice, |
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336 | 336 | | 19 challenge: |
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337 | 337 | | 20 (1) the sufficiency of the notice; and |
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338 | 338 | | 21 (2) the noticing party's qualification as an eligible |
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339 | 339 | | 22 digital journalism provider. |
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340 | 340 | | 23 Section 20. Compensation methods. A covered platform |
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341 | 341 | | 24 shall: |
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342 | 342 | | 25 (1) annually compensate digital journalism providers |
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343 | 343 | | |
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353 | 353 | | 1 for accessing the websites of the digital journalism |
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354 | 354 | | 2 providers, with the compensation annually adjusted for |
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355 | 355 | | 3 increases in the Consumer Price Index for All Urban |
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356 | 356 | | 4 Consumers for all items published by the United States |
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357 | 357 | | 5 Department of Labor and annually distributed to the |
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358 | 358 | | 6 digital journalism providers as follows: |
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359 | 359 | | 7 (A) no less than 1% of this amount shall be paid to |
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360 | 360 | | 8 digital journalism providers that would receive less |
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361 | 361 | | 9 than $25,000 under paragraph (B), to be distributed |
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362 | 362 | | 10 annually on a pro rate basis among those digital |
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363 | 363 | | 11 journalism providers, in addition to the amount those |
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364 | 364 | | 12 digital journalism providers would receive under to |
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365 | 365 | | 13 paragraph (B); and |
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366 | 366 | | 14 (B) proportionally by the number of news |
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367 | 367 | | 15 journalists and, subject to Section 35, freelancers, |
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368 | 368 | | 16 who, in the previous calendar year, were employed by |
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369 | 369 | | 17 each qualifying publication for the purpose of |
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370 | 370 | | 18 producing content in Illinois that was accessed by a |
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371 | 371 | | 19 platform; or |
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372 | 372 | | 20 (2) participate in a final arbitration process as |
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373 | 373 | | 21 described in Section 25 and fully pay the arbitration |
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374 | 374 | | 22 award, if any, within 30 days after the award. |
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375 | 375 | | 23 Section 23. Distributions. |
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376 | 376 | | 24 (a) A covered platform shall make distributions as |
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377 | 377 | | 25 described in Section 20 either by: |
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378 | 378 | | |
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379 | 379 | | |
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380 | 380 | | |
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381 | 381 | | |
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382 | 382 | | |
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383 | 383 | | SB1732 - 10 - LRB104 09901 SPS 19971 b |
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384 | 384 | | |
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385 | 385 | | |
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386 | 386 | | SB1732- 11 -LRB104 09901 SPS 19971 b SB1732 - 11 - LRB104 09901 SPS 19971 b |
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387 | 387 | | SB1732 - 11 - LRB104 09901 SPS 19971 b |
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388 | 388 | | 1 (1) selecting an approved claims administrator. In |
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389 | 389 | | 2 selecting an approved claims administrator the covered |
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390 | 390 | | 3 platform shall ensure that the approved claims |
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391 | 391 | | 4 administrator is well-qualified to perform the |
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392 | 392 | | 5 distribution and has administered multiple settlements in |
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393 | 393 | | 6 the State of Illinois that comply with complex civil |
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394 | 394 | | 7 litigation class action settlement guidelines in at least |
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395 | 395 | | 8 2 State or federal courts in Illinois. The costs of |
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396 | 396 | | 9 selecting an approved claims administrator to administer |
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397 | 397 | | 10 the distributions shall be in addition to the amount |
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398 | 398 | | 11 established in Section 20. |
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399 | 399 | | 12 (2) distributing payments to digital journalism |
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400 | 400 | | 13 providers itself, the costs of which shall be in addition |
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401 | 401 | | 14 to the amount specified in Section 20. |
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402 | 402 | | 15 (b) A final arbitration award under Section 25 to a |
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403 | 403 | | 16 jointly participating group of digital journalism providers |
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404 | 404 | | 17 shall be distributed proportionally by the number of news |
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405 | 405 | | 18 journalists and, subject to Section 35, freelancers, who, in |
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406 | 406 | | 19 the previous calendar year, were employed by each qualifying |
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407 | 407 | | 20 publication for the purpose of producing content in Illinois |
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408 | 408 | | 21 that was accessed by a covered platform. |
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409 | 409 | | 22 Section 25. Arbitration. |
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410 | 410 | | 23 (a) The percentage of the covered platform's advertising |
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411 | 411 | | 24 revenue remitted to notifying eligible digital journalism |
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412 | 412 | | 25 providers shall be determined as described in this Section. |
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413 | 413 | | |
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414 | 414 | | |
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415 | 415 | | |
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416 | 416 | | |
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417 | 417 | | |
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418 | 418 | | SB1732 - 11 - LRB104 09901 SPS 19971 b |
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419 | 419 | | |
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420 | 420 | | |
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421 | 421 | | SB1732- 12 -LRB104 09901 SPS 19971 b SB1732 - 12 - LRB104 09901 SPS 19971 b |
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422 | 422 | | SB1732 - 12 - LRB104 09901 SPS 19971 b |
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423 | 423 | | 1 Eligible digital journalism providers shall jointly |
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424 | 424 | | 2 participate in the final-offer arbitration process described |
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425 | 425 | | 3 in this Section with each covered platform to determine a |
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426 | 426 | | 4 single percentage of advertising revenue from which the |
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427 | 427 | | 5 distributions described in Section 23 will be allotted. |
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428 | 428 | | 6 (b) Within 10 days after the receipt of the reply notice |
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429 | 429 | | 7 required by subsection (d) of Section 15, an eligible digital |
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430 | 430 | | 8 journalism provider may initiate, under Rule R-4 of the |
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431 | 431 | | 9 American Arbitration Association's Commercial Arbitration |
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432 | 432 | | 10 Rules and Mediation Procedures, a final-offer arbitration |
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433 | 433 | | 11 against the covered platform for an arbitration panel to |
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434 | 434 | | 12 determine the percentage of the covered platform's advertising |
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435 | 435 | | 13 revenue remitted to the notifying eligible digital journalism |
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436 | 436 | | 14 providers. |
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437 | 437 | | 15 (c) The arbitration procedure authorized by this |
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438 | 438 | | 16 subsection shall commence 10 days after the receipt of the |
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439 | 439 | | 17 reply notice described in subsection (d) of Section 15. |
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440 | 440 | | 18 (d) The arbitration procedure authorized by this |
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441 | 441 | | 19 subsection shall be decided by a panel of 3 arbitrators under |
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442 | 442 | | 20 the American Arbitration Association's Commercial Arbitration |
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443 | 443 | | 21 Rules and Mediation Procedures and the American Arbitration |
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444 | 444 | | 22 Association-International Centre for Dispute Resolution Final |
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445 | 445 | | 23 Offer Arbitration Supplementary Rules, except to the extent |
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446 | 446 | | 24 they conflict with this Section. |
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447 | 447 | | 25 (e) The covered platform and the eligible digital |
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448 | 448 | | 26 journalism providers shall each pay one-half of the cost of |
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449 | 449 | | |
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450 | 450 | | |
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451 | 451 | | |
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452 | 452 | | |
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453 | 453 | | |
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454 | 454 | | SB1732 - 12 - LRB104 09901 SPS 19971 b |
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455 | 455 | | |
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456 | 456 | | |
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457 | 457 | | SB1732- 13 -LRB104 09901 SPS 19971 b SB1732 - 13 - LRB104 09901 SPS 19971 b |
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458 | 458 | | SB1732 - 13 - LRB104 09901 SPS 19971 b |
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459 | 459 | | 1 administering the arbitration proceeding, including arbitrator |
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460 | 460 | | 2 compensation, expenses, and administrative fees. |
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461 | 461 | | 3 (f) The arbitrators shall be appointed in accordance with |
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462 | 462 | | 4 the American Arbitration Association's Commercial Arbitration |
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463 | 463 | | 5 Rules and Mediation Procedures. |
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464 | 464 | | 6 (g) During a final-offer arbitration proceeding under this |
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465 | 465 | | 7 Section, all of the following shall apply: |
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466 | 466 | | 8 (1) Eligible digital journalism providers and the |
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467 | 467 | | 9 covered platform may demand the production of documents |
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468 | 468 | | 10 and information that are non-privileged, reasonably |
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469 | 469 | | 11 necessary, and reasonably accessible without undue |
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470 | 470 | | 12 expense. Documents and information shall be exchanged no |
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471 | 471 | | 13 later than 30 days after the date the demand is filed. |
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472 | 472 | | 14 (2) Rules regarding the admissibility of evidence |
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473 | 473 | | 15 under the American Arbitration Association's Commercial |
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474 | 474 | | 16 Arbitration Rules and Mediation Procedures shall apply. |
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475 | 475 | | 17 (3) Eligible digital journalism providers and the |
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476 | 476 | | 18 covered platform shall each submit a final-offer proposal |
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477 | 477 | | 19 for the remuneration that the eligible digital journalism |
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478 | 478 | | 20 providers should receive from the covered platform for |
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479 | 479 | | 21 access to the content of the eligible digital journalism |
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480 | 480 | | 22 providers during the period under arbitration based on the |
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481 | 481 | | 23 value that access provides to the platform. The |
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482 | 482 | | 24 final-offer proposals shall include backup materials |
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483 | 483 | | 25 sufficient to permit the other party to replicate the |
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484 | 484 | | 26 proffered valuation. |
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485 | 485 | | |
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486 | 486 | | |
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487 | 487 | | |
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488 | 488 | | |
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489 | 489 | | |
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490 | 490 | | SB1732 - 13 - LRB104 09901 SPS 19971 b |
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491 | 491 | | |
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492 | 492 | | |
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493 | 493 | | SB1732- 14 -LRB104 09901 SPS 19971 b SB1732 - 14 - LRB104 09901 SPS 19971 b |
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494 | 494 | | SB1732 - 14 - LRB104 09901 SPS 19971 b |
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495 | 495 | | 1 (4) A final-offer proposal under this Section shall |
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496 | 496 | | 2 not address whether or how the covered platform or any |
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497 | 497 | | 3 eligible digital journalism provider displays, ranks, |
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498 | 498 | | 4 distributes, suppresses, promotes, throttles, labels, |
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499 | 499 | | 5 filters, or curates the content of the eligible digital |
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500 | 500 | | 6 journalism providers or any other person. |
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501 | 501 | | 7 (h) No later than 60 days after the date proceedings begin |
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502 | 502 | | 8 as described in subsection (c), the arbitration panel shall |
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503 | 503 | | 9 determine the percentage of the covered platform's advertising |
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504 | 504 | | 10 revenue remitted to notifying eligible digital journalism |
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505 | 505 | | 11 providers from a final offer from one of the parties without |
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506 | 506 | | 12 modification. |
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507 | 507 | | 13 (1) In making a determination, the arbitration panel |
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508 | 508 | | 14 shall: |
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509 | 509 | | 15 (A) refrain from considering any value conferred |
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510 | 510 | | 16 upon any eligible digital journalism provider by the |
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511 | 511 | | 17 covered platform for distributing or aggregating its |
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512 | 512 | | 18 content as an offset to the value created by that |
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513 | 513 | | 19 eligible digital journalism provider, unless the |
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514 | 514 | | 20 covered platform does not automatically access and |
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515 | 515 | | 21 extract information from an eligible digital |
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516 | 516 | | 22 journalism provider's website; |
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517 | 517 | | 23 (B) consider past incremental revenue |
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518 | 518 | | 24 contributions as a guide to the future incremental |
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519 | 519 | | 25 revenue contribution by any eligible digital |
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520 | 520 | | 26 journalism provider; |
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521 | 521 | | |
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522 | 522 | | |
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523 | 523 | | |
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524 | 524 | | |
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525 | 525 | | |
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526 | 526 | | SB1732 - 14 - LRB104 09901 SPS 19971 b |
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527 | 527 | | |
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528 | 528 | | |
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529 | 529 | | SB1732- 15 -LRB104 09901 SPS 19971 b SB1732 - 15 - LRB104 09901 SPS 19971 b |
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530 | 530 | | SB1732 - 15 - LRB104 09901 SPS 19971 b |
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531 | 531 | | 1 (C) consider the pricing, terms, and conditions of |
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532 | 532 | | 2 any available, comparable commercial agreements |
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533 | 533 | | 3 between parties granting access to digital content, |
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534 | 534 | | 4 including pricing, terms, and conditions relating to |
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535 | 535 | | 5 price, duration, territory, and the value of data |
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536 | 536 | | 6 generated directly or indirectly by the content |
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537 | 537 | | 7 accounting for any material disparities in negotiating |
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538 | 538 | | 8 power between the parties to those commercial |
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539 | 539 | | 9 agreements; |
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540 | 540 | | 10 (D) if submitted with a final-offer proposal, |
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541 | 541 | | 11 consider the eligible digital journalism provider's |
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542 | 542 | | 12 previous compliance with Section 40, if applicable; |
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543 | 543 | | 13 and |
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544 | 544 | | 14 (E) issue a standard binding arbitration award of |
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545 | 545 | | 15 the percentage of the covered platform's advertising |
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546 | 546 | | 16 revenue remitted to notifying eligible digital |
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547 | 547 | | 17 journalism providers. |
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548 | 548 | | 18 (2) Any party to the arbitration proceeding may elect |
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549 | 549 | | 19 to appeal the decision of the arbitration panel as |
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550 | 550 | | 20 described in subsection (j) on the grounds of a procedural |
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551 | 551 | | 21 irregularity. |
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552 | 552 | | 22 (i) If the covered platform and any eligible digital |
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553 | 553 | | 23 journalism providers have given notice under Section 15 reach |
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554 | 554 | | 24 a settlement in lieu of arbitration, the settlement shall not |
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555 | 555 | | 25 waive the eligible digital journalism provider's obligations |
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556 | 556 | | 26 as described in Section 40 and shall not settle for an amount |
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557 | 557 | | |
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558 | 558 | | |
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559 | 559 | | |
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560 | 560 | | |
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561 | 561 | | |
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562 | 562 | | SB1732 - 15 - LRB104 09901 SPS 19971 b |
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563 | 563 | | |
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564 | 564 | | |
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565 | 565 | | SB1732- 16 -LRB104 09901 SPS 19971 b SB1732 - 16 - LRB104 09901 SPS 19971 b |
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566 | 566 | | SB1732 - 16 - LRB104 09901 SPS 19971 b |
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567 | 567 | | 1 other than the final-offer proposals submitted by the parties |
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568 | 568 | | 2 as described in paragraph (3) of subsection (g). |
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569 | 569 | | 3 (j) No fewer than 24 months after the end of an arbitration |
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570 | 570 | | 4 proceeding, any party to the proceeding may elect to restart |
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571 | 571 | | 5 the arbitration process. |
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572 | 572 | | 6 Section 30. Non-retaliation. |
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573 | 573 | | 7 (a) A covered platform shall not retaliate against an |
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574 | 574 | | 8 eligible digital journalism provider for asserting its rights |
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575 | 575 | | 9 under this Act by refusing to index content or changing the |
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576 | 576 | | 10 ranking, identification, modification, branding, or placement |
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577 | 577 | | 11 of the content of the eligible digital journalism provider on |
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578 | 578 | | 12 the covered platform. |
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579 | 579 | | 13 (b) An eligible digital journalism provider that is |
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580 | 580 | | 14 retaliated against may bring a civil action against the |
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581 | 581 | | 15 covered platform. |
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582 | 582 | | 16 (c) This Section does not prohibit a covered platform |
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583 | 583 | | 17 from, and does not impose liability on a covered platform for, |
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584 | 584 | | 18 enforcing its terms of service against an eligible journalism |
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585 | 585 | | 19 provider. |
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586 | 586 | | 20 Section 35. Funding for journalists and support staff. |
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587 | 587 | | 21 (a) An eligible digital journalism provider shall spend at |
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588 | 588 | | 22 least 70% of funds received under this Act on news journalists |
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589 | 589 | | 23 and support staff employed by the eligible digital journalism |
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590 | 590 | | 24 provider, except that an eligible digital journalism provider |
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591 | 591 | | |
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592 | 592 | | |
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593 | 593 | | |
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594 | 594 | | |
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595 | 595 | | |
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596 | 596 | | SB1732 - 16 - LRB104 09901 SPS 19971 b |
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597 | 597 | | |
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598 | 598 | | |
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599 | 599 | | SB1732- 17 -LRB104 09901 SPS 19971 b SB1732 - 17 - LRB104 09901 SPS 19971 b |
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600 | 600 | | SB1732 - 17 - LRB104 09901 SPS 19971 b |
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601 | 601 | | 1 with 5 or fewer employees shall spend at least 50% of funds |
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602 | 602 | | 2 received under this Act on news journalists and support staff |
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603 | 603 | | 3 employed by the eligible digital journalism provider. |
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604 | 604 | | 4 (b) No later than 30 days after the end of an arbitration |
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605 | 605 | | 5 proceeding described in Section 25 or upon reaching a |
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606 | 606 | | 6 settlement in lieu of an arbitration proceeding, the eligible |
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607 | 607 | | 7 digital journalism provider shall provide notification in |
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608 | 608 | | 8 writing of its plan to comply with subsection (a) to the news |
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609 | 609 | | 9 journalists and support staff employed by the eligible digital |
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610 | 610 | | 10 journalism provider and any representatives of those news |
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611 | 611 | | 11 journalists or support staff. |
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612 | 612 | | 12 (c) The eligible digital journalism provider's plan to |
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613 | 613 | | 13 comply with subsection (a) shall include a good faith estimate |
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614 | 614 | | 14 of the number of news journalists and support staff, if any, |
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615 | 615 | | 15 expected to be hired, details regarding proposed compensation |
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616 | 616 | | 16 adjustments, if any, and a disclosure if either hiring or |
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617 | 617 | | 17 compensation adjustments are not expected. |
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618 | 618 | | 18 Section 40. Reporting requirements. |
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619 | 619 | | 19 (a) No later than one year after the end of an arbitration |
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620 | 620 | | 20 proceeding described in Section 25 or reaching a settlement in |
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621 | 621 | | 21 lieu of an arbitration proceeding, and each year thereafter, |
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622 | 622 | | 22 the eligible digital journalism provider shall compile a |
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623 | 623 | | 23 report that includes: |
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624 | 624 | | 24 (1) an attestation as to whether the eligible digital |
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625 | 625 | | 25 journalism provider has complied with subsection (a) of |
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626 | 626 | | |
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627 | 627 | | |
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628 | 628 | | |
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629 | 629 | | |
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630 | 630 | | |
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631 | 631 | | SB1732 - 17 - LRB104 09901 SPS 19971 b |
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632 | 632 | | |
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633 | 633 | | |
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634 | 634 | | SB1732- 18 -LRB104 09901 SPS 19971 b SB1732 - 18 - LRB104 09901 SPS 19971 b |
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635 | 635 | | SB1732 - 18 - LRB104 09901 SPS 19971 b |
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636 | 636 | | 1 Section 35; |
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637 | 637 | | 2 (2) the text of the digital journalism provider's plan |
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638 | 638 | | 3 to comply with subsection (a) of Section 35; |
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639 | 639 | | 4 (3) the total number of journalism usage fees received |
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640 | 640 | | 5 from covered platforms; |
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641 | 641 | | 6 (4) the name of each covered platform paying the |
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642 | 642 | | 7 eligible digital journalism provider a journalism usage |
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643 | 643 | | 8 fee and a description of how the eligible digital |
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644 | 644 | | 9 journalism provider spent the journalism usage fee |
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645 | 645 | | 10 payment, including any amount of journalism usage fees |
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646 | 646 | | 11 remaining unspent; and |
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647 | 647 | | 12 (5) the total number of news journalists and support |
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648 | 648 | | 13 staff employed by the eligible digital journalism |
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649 | 649 | | 14 provider, including the number of news journalists and |
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650 | 650 | | 15 support staff hired or terminated during the previous |
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651 | 651 | | 16 year. |
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652 | 652 | | 17 (b) No later than one year after the end of an arbitration |
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653 | 653 | | 18 proceeding described in Section 25 or reaching a settlement in |
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654 | 654 | | 19 lieu of an arbitration proceeding, and each year thereafter, |
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655 | 655 | | 20 the eligible digital journalism provider shall publish a copy |
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656 | 656 | | 21 of the report described in subsection (a) online in a |
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657 | 657 | | 22 text-searchable format and provide a copy to the news |
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658 | 658 | | 23 journalists and support staff employed by the eligible digital |
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659 | 659 | | 24 journalism provider, any representatives of those news |
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660 | 660 | | 25 journalists or support staff, and the covered platforms paying |
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661 | 661 | | 26 journalism usage fees to the eligible digital journalism |
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662 | 662 | | |
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663 | 663 | | |
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664 | 664 | | |
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665 | 665 | | |
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666 | 666 | | |
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667 | 667 | | SB1732 - 18 - LRB104 09901 SPS 19971 b |
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668 | 668 | | |
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669 | 669 | | |
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670 | 670 | | SB1732- 19 -LRB104 09901 SPS 19971 b SB1732 - 19 - LRB104 09901 SPS 19971 b |
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671 | 671 | | SB1732 - 19 - LRB104 09901 SPS 19971 b |
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672 | 672 | | 1 provider. |
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673 | 673 | | 2 Section 45. Preservation of rights. |
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674 | 674 | | 3 (a) Nothing in this Act shall be construed as amending or |
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675 | 675 | | 4 repealing the ability of an eligible digital journalism |
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676 | 676 | | 5 provider or a covered platform to seek a preliminary or |
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677 | 677 | | 6 permanent injunction or any other existing remedy at law or |
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678 | 678 | | 7 equity. |
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679 | 679 | | 8 (b) This Act does not modify, impair, expand, or in any way |
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680 | 680 | | 9 alter rights pertaining to the federal Lanham Act (15 U.S.C. |
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681 | 681 | | 10 1051 et seq). |
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682 | 682 | | 11 (c) This Act does not abridge or impair rights otherwise |
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683 | 683 | | 12 reserved by news journalists, support staff, or their |
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684 | 684 | | 13 representatives according to applicable law or existing |
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685 | 685 | | 14 collective bargaining agreements. |
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686 | 686 | | |
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687 | 687 | | |
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688 | 688 | | |
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689 | 689 | | |
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690 | 690 | | |
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691 | 691 | | SB1732 - 19 - LRB104 09901 SPS 19971 b |
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