Former Gov. Gray Davis appointed Hastings to the board in 1999, the same year his University Avenue-based online DVD-rental service launched. He was reaffirmed by Gov. Arnold Schwarzenegger early last year, but an affirmation hearing was delayed until Jan. 12.

Only two of the six Senate Rules Committee members voted in favor of Hastings. Three votes are required to forward an appointment to the full state Senate. A two-thirds vote of the Senate would be needed for final approval.

The entrepreneur's appointment apparently stalled because of testimony from lobbyists upset with Hastings' prior work on the board. Several years ago, Hastings backed a policy that required bilingual schools to instruct in English for half of every school day in order to qualify for additional federal funding. Though voters passed a law in 2003 overturning the policy, lobby groups and the Latino Caucus wanted Hastings off of the board for his work. Democratic Sen. Martha Escutia led opposition to his reappointment.

Jack O'Connell, state schools superintendent, said he was extremely disappointed in the committee's vote.

"Reed Hastings is a champion for public education," he said. "Reed [is] purely motivated by giving back to the community and his altruistic values. I know he's going to remain active."

O'Connell said Hastings' dedication was clearly demonstrated during his tenure on the board. He worked on an initiative that made it easier for school construction bonds to pass, championed public charter schools, and founded the educational lobby group EdVoice. O'Connell said Hastings also donated funding to purchase school books for Oakland schools.

Hastings could not be reached after the hearing.

Schwarzenegger's press secretary Margita Thompson released a statement decrying the rules committee vote.

"It is always unfortunate when political litmus tests are put before what is in the best interest of our children," the statement said. "What signal do you send to parents and children when a qualified and well-respected community leader like Reed Hastings is sacrificed to advocates of a narrowly focused agenda?"

According to several news reports of the hearing, Democratic Senate President Pro Tem Don Perata—the committee's chairman—remarked that he regretted not voting for Hastings. He reportedly implied that he did not wish to oppose other members of his party.

Press officers for Perata said he would not comment on the hearing.

Sens. Roy Ashburn and Jim Battin, the committee's two lone Republicans, voted in favor of Hastings. Sen. Gilbert Cedillo voted against Hastings and Sen. Debra Bowen abstained.

O'Connell, a former state assemblyman from 1982 to 1984 and state senator for 18 years after that, said the bilingual issue should not have even been a consideration in the vote. He said it should not be difficult for legislators to resist political pressure.

"It wasn't for me for 20 years," he said. "Every decision I make is what's in the best interest of the students."