On the same day as signing a cannabis relief bill that directly benefits a large number of veterans, Gavin Newsom, the Governor of California, caused quite a stir in the technology industry with his veto of a major AI bill.
On Sunday, Sept. 29, the Governor controversially blocked State Senator Scott Wiener’s SB 1047, which aimed to impose strict guardrails on the world’s leading AI and GenAI developers.
Newsom signed a flurry of bills to support the state’s veterans, including improvements for military-connected pupils, refunding improperly paid taxes and expanded tax exemptions for cannabis donations.
The AB 2555 bill directly benefits veterans who rely on donated cannabis for managing serious health conditions, including PTSD or chronic pain, by extending donation tax exemptions to 2030.
Many veterans depend on these donations to access safe, legal cannabis without resorting to an unregulated black market.
“I am proud to sign into law legislation that will honor their service, improve their lives in California, and ensure that their families have what they need to thrive,” Newsom said in a government news release.
The bill, greatly welcomed by the state’s veterans and citizens, comes on a contentious day for the Governor – as he made headlines for the blocking of SB 1047.
The SB 1047 bill would have been one of the most comprehensive AI safety laws in the U.S. if passed. The bill focused on imposing guardrails to hold tech companies accountable for any harm caused by their AI models.
It would have required BigTech companies to implement safety measures, such as a “kill switch” to deactivate rogue AI system and regular third party testing of AI models with over $100 million in development costs.
Despite the bill’s support from AI experts such as Yoshua Bengio , activists, and some industry leaders, it faced significant opposition from tech giants like OpenAI, Google, and Meta.
OpenAI’s Chief Strategy Officer Jason Kwon claimed the bill would threaten “growth, slow the pace of innovation, and lead California’s world-class engineers and entrepreneurs to leave the state in search of greater opportunity elsewhere.”
Governor Newsom vetoed the bill, citing concerns that it placed overly stringent regulations on AI systems, regardless of whether they were deployed in high-risk environments.
Newsom argued that the bill focused too much on large models while ignoring the risks posed by smaller, specialized systems that could be equally dangerous.
“SB 1047 does not take into account whether an Al system is deployed in high-risk environments, involves critical decision-making or the use of sensitive data. Instead, the bill applies stringent standards to even the most basic functions – so long as a large system deploys it,” Newsom wrote in his veto message.
“By focusing only on the most expensive and large-scale models, SB 1047 establishes a regulatory framework that could give the public a false sense of security about controlling this fast-moving technology,” he added.
Despite blocking SB 1047, California has signed 18 new AI regulation laws over the past month – and more are expected.
The bills collectively aim to balance the benefits of AI with protections for privacy, election integrity, individual rights, and transparency.
“We have a responsibility to protect Californians from potentially catastrophic risks of GenAI deployment,” Newsom said in a blog post . “We will thoughtfully — and swiftly — work toward a solution that is adaptable to this fast-moving technology and harnesses its potential to advance the public good.”
Four passed bills, AB 1836, SB 926, SB 981, and AB 2602, aim to combat the damage and proliferation of deepfakes.
Child pornography laws have been expanded to include AI-generated material, deceased individuals are blocked from being used in digital replicas, and AI-generated sexual imagery has been criminalized.
Two passed bills, AB 2876 and SB 1288, focus on increasing AI literacy by introducing AI studies into education. AB 2876 requires the California Instructional Quality Commission to include AI education in school curriculums.
SB 1288 will enact a working group to explore the use of AI in education, ensuring that the technology is effectively and responsibly integrated into educational practices.