California Senate advances AI regulation bills despite federal pushback

Yahoo

2 days ago

SAN DIEGO (FOX 5/KUSI) — Two California bills aimed at tightening regulation of artificial intelligence cleared a major hurdle this week, passing the state Senate amid growing tension between state and federal lawmakers over how — and who — should govern the fast-evolving technology.
The bills, both authored by Sen. Steve Padilla (D-San Diego), take direct aim at the mental health risks of AI tools and the lack of transparency in automated decision-making systems. But they may soon run up against a proposed federal moratorium that would block states from enacting AI regulations for the next decade, as reported by the Associated Press.
First, there's SB 243. It targets the growing use of AI chatbots marketed as companions for mental health support and emotional wellbeing. The bill would ban the use of addictive engagement tactics and require developers to notify users regularly that the chatbot is not human.
'Tech companies are creating these AI products in a regulatory vacuum,' Padilla stated on the issue. 'But, they have proven they cannot be trusted to minimize the risks they pose to the public on their own. The stakes are too high to allow vulnerable users to continue to access this technology without proper guardrails in place to ensure transparency, safety, and accountability.'
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Meanwhile, SB 420 takes a broader approach, seeking to establish a comprehensive regulatory framework around AI use in both public and private decision-making systems. The legislation would mandate that individuals be informed when AI tools are used to make decisions about them, explain how the systems function, and provide a process for human appeal in some cases. It also calls for impact assessments to measure potential data misuse or algorithmic bias.
The two bills now move to the State Assembly and, if approved, could be on Governor Gavin Newsom's desk later this year.
The legislative momentum in Sacramento stands in sharp contrast to efforts in Washington, D.C., where a House Republican-backed reconciliation bill would impose a 10-year freeze on state or local AI regulations. Critics argue the federal proposal could stall crucial oversight during a pivotal time for AI development.
Padilla has strongly opposed the federal moratorium, stating, 'California has a proud heritage as a home for technological vision while enforcing ethical, safe standards in concert with those values, not in opposition. However, federal mismanagement has left the public vulnerable to the dangers AI poses. California must step in to provide guiderails that create common sense consumer protections while still fostering innovation.'
The state's push for AI accountability comes on the heels of a March report from a working group appointed by Gov. Newsom, offering policy guidance on responsible AI governance.
This week, 260 lawmakers from all 50 states — Democrats and Republicans alike — signed a joint letter to Congress urging them to reject the proposed moratorium, highlighting a growing bipartisan consensus around the need for state-level action.
As AI tools become more integrated into daily life, California appears determined to lead the charge — even if it means challenging federal authority.
The Associated Press contributed to this report.
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