Newsom Poised to Sign Online Censorship Bill With Penalties Up To $1 Million

California lawmakers have quietly passed one of the most far-reaching online censorship bills in the nation, empowering the state to levy fines of up to $1 million on social media platforms whose algorithms “amplify” what Sacramento deems to be hateful content.

The legislation, Senate Bill 771 — formally titled Personal Rights Liability, Social Media Platforms — cleared the state Assembly on September 10 and won final Senate approval on September 16. It now heads to Governor Gavin Newsom’s desk for his signature.

The measure authorizes civil penalties of up to $500,000 for “reckless” violations and up to $1 million for “intentional, knowing, or willful” violations if a platform’s algorithms are found to have boosted content considered hateful. The text highlights speech directed at “historically marginalized groups,” but offers little clarity on who defines hate or how such judgments would be enforced.

“Censorship Disguised as Civil Rights”

State Senator Henry Stern, a Democrat and the bill’s sponsor, claimed the measure closes a loophole in current law by targeting the automated systems that drive engagement online. Advocates insist that algorithmic amplification contributes to harassment, disinformation, and even violence.

Opponents, however, say SB 771 is a dangerous expansion of government power. The Computer & Communications Industry Association (CCIA), which represents major tech companies, testified in June that the bill would encourage platforms to over-censor, silencing lawful speech in the process.

Civil rights groups are also raising alarms. The American-Arab Anti-Discrimination Committee (ADC) condemned the legislation on August 21, warning it represents “censorship disguised as civil rights.”

Constitutional Concerns Loom

Legal scholars and industry leaders caution that the measure likely conflicts with federal law, particularly Section 230 of the Communications Decency Act, which shields platforms from liability for user-generated content. Free speech advocates compare the bill to European “hate speech” regimes, which have led to sweeping restrictions and fines overseas.

“The government imposing penalties for algorithmic amplification of speech is a direct threat to the First Amendment,” one constitutional attorney told lawmakers.

Analysts note that because SB 771 applies to any platform with users in California, the law could effectively pressure companies like Meta, X (formerly Twitter), and TikTok to alter their algorithms nationwide in order to comply.

Political Timing Raises Eyebrows

The bill advanced largely outside national scrutiny, as headlines during that week focused on the assassination of conservative activist Charlie Kirk at a Utah university. On September 10, while the Assembly pushed SB 771 through, the public’s attention was elsewhere. By the time the Senate concurred on September 16, the news cycle remained dominated by fallout from Kirk’s murder.

Governor Newsom has not indicated whether he will sign or veto the measure. His administration has a record of supporting aggressive tech regulation, from privacy mandates to so-called “child safety” laws. A decision is expected in the coming weeks.

If enacted, SB 771 would represent one of the boldest state-level attempts to police speech online — setting the stage for costly legal battles and raising profound questions about free expression in America.