California Tenants Can Soon Opt Out of Bulk Billing Plans

Oct. 14, 2025 – California renters will soon be able to opt out of paying for broadband plans arranged through bulk billing deals between ISPs and landlords.

California Gov. Gavin Newsom (D) signed into law Friday Assembly Bill 1414, which requires landlords to allow tenants to opt out of such plans starting Jan. 1, 2026. The law applies to wired, cellular, and satellite broadband service offered to tenants as part of their lease agreement.

Homeowners’ and condo associations aren’t covered by the law. If an apartment building owner still requires tenants to pay, they can deduct the subscription cost from their rent payments. Landlords “shall not retaliate against a tenant for exercising the tenants rights under this section,” the law reads.

The bill was sponsored by Democratic Assemblymember Rhodesia Ransom. 

When the bill cleared the California Legislature last month, she said in a statement that “for too long, renters have been forced into internet deals they never asked for, paying more while being shut out of programs that could actually save them money. AB 1414 fixes that. It gives renters the freedom to choose what works for their family and their budget. Simple as that.” 

The law doesn’t ban the practice of bulk billing arrangements, in which ISPs agree to offer service to all units in a building or homes in an HOA at an agreed upon rate.

CalBroadband, a trade group representing cable ISPs in the state, did not immediately respond to a request for comment. Last month the group’s president, Janus Norman, wrote a paid commentary piece in the Orange County Register opposing the law.

“The crux of the savings realized through bulk billing is the efficient sharing of costs among every unit in a building,” he wrote. “The opt-out undermines the basis of the cost savings and will lead to bulk billing being phased out.”

Has been a hot button issue

The issue was a hot button one at the Federal Communications Commission last year, when former Chairwoman Jessica Rosenworcel circulated a proposal that would have sought comment on banning bulk billing nationally. 

Real estate and broadband industry groups were opposed to the idea, including small ISPs that said the stable revenue from bulk billing deals was critical for their businesses to continue serving low-income areas.

The FCC prohibits deals that explicitly prevent other providers from offering service in a building or HOA. Small ISPs and consumer groups told the agency that bulk billing arrangements could sometimes have the same practical effect by requiring tenants to pay for the bulk billed service.

FCC Chairman Brendan Carr opposed the circulated item as a commissioner and was quick to take it off the table after becoming chairman in January. He said at the time that the proposal “could have raised the price of Internet service for Americans living in apartments by as much as 50 percent,” and that “seniors, students, and low-income individuals would have been hit particularly hard.”