California State Senators Step Up To Protect Consumers From Emerging Technology
What you need to know: California leads the country in technology innovation and, subsequently, in protecting consumers. This year, the California State Senate passed several key bills that create needed guardrails for artificial intelligence, protect ratepayers from costs associated with data centers, and monitor the use of social media for children and teens.
SACRAMENTO – This year, the California State Senate passed a series of policies focused on the growth of the technology industry – including the increased use of artificial intelligence and the development of data centers. The Senate recognizes the importance of protecting innovation while also ensuring that these advancements work for and with California consumers.
Emerging technology has become a key issue, not just for California, but for the nation. I am proud of the Senate for putting in the work to set the standard for what tech safety and consumer protection should look like. We will continue to find guardrails for these tools while encouraging the growth of technology here at home and across the country.
Senate President pro Tempore Monique Limón
California is home to the highest number of AI and tech startups in the country – but with that leadership comes the responsibility of ensuring consumers are protected. SB 886 by Senator Steve Padilla (D- San Diego) protects California ratepayers from the potential increased costs caused by data centers. According to recent polling by the Public Policy Institute of California, 73% of Californians oppose the construction of data centers in their communities in part because of the potential effects it may have on their electricity rates. Thanks to SB 886, the state is moving to protect ratepayers from the transmission costs that supply large data centers.
California has taken bold action this year to stand up to Big Tech oligarchs. This year, it was critical we step in to meet families where they are at - stopping data centers from driving electric bills up, making sure unregulated chatbots aren’t providing therapeutic services, and providing protections for our children against the risks of chatbots.
Senator Steve Padilla
As technology continues to advance, the state must ensure that AI and other technologies do not leave workers behind. Increasingly, AI systems are being used to track worker attendance, work product delivery, and even worker behavior. Without the proper safeguards, this can leave workers vulnerable to discrimination or bias. SB 947 by Senator McNerney (D-Pleasanton) places strict limits on how employers use artificial intelligence and automated systems for major workplace decisions, ensuring that major employment systems remain in the hands of real people. As the state continues to lead the nation in innovation, it is imperative that the workforce feels supported by this technology, not threatened.
Artificial intelligence has the potential to improve our lives, but without effective guardrails, it poses serious risks. Not only does AI threaten to cause widespread job displacement, but we’ve recently learned that the most powerful AI systems pose dangerous threats to humankind. California, as it often does, is stepping up to take the lead, since Washington, D.C., is unable or unwilling to do so. The Legislature and Governor have enacted my SB 813, establishing the nation’s first framework for independent reviews of AI safety risks. And the Legislature has approved my SB 947, groundbreaking legislation that requires human oversight of AI systems in the workplace to prevent abuses. We must ensure that AI is safe and beneficial, and a tool controlled by humans, not the other way around.
Senator Jerry McNerney
Unfortunately, due to the rapid growth of AI, social media, and online streaming services, California consumers, especially our most vulnerable, often fall prey to exploitative technology. Whether it is scammers seeking to steal your paycheck, AI chatbots serving as mental health practitioners, or streamers knowingly exploiting children, California has stepped up with new guardrails to protect you, your family, and your wallet. California has long led the nation in governing new technology, prompting states like New York and Illinois to follow suit. These policies will undoubtedly serve as a model for the nation to follow.
This year we took on some of the toughest tech issues facing our state, from regulating kid companion chatbots, to creating data sharing protections that make it harder for ICE to target our communities. We also expanded existing fraud laws to go after deepfake impersonations and made sure independent experts assess AI risk, not the companies themselves. I’m proud of the progress we made and the meaningful impact these laws will have on the lives of Californians for years to come.
Senator Christopher Cabaldon, Chair of Senate Privacy, Digital Technologies, and Consumer Protection Committee
BILLS PASSED BY THE LEGISLATURE
Sen. McNerney: SB 813 - Establishes a first-in-the-nation framework for independent, third-party assessments of potential safety risks posed by artificial intelligence systems. Signed into law
Sen. McNerney: SB 947 - The No Robo Bosses Act requires human oversight of artificial intelligence systems in the workplace to prevent AI from firing or disciplining workers on its own.
Sen. Padilla: SB 867 - First-in-the-nation legislation that places a 4-year moratorium on the sale and manufacturing of toys with artificial intelligence (AI) chatbot capabilities for children under 16. Signed into law
Sen. Padilla: SB 886 - Protects ratepayers from the added cost of adding more data centers to our energy grid. This bill requires the PUC to establish a new energy rate for data centers, requiring data centers to pay for the extra energy generation and transmission they require. It also ensures that data centers do not become stranded assets on the electric grid, requiring a 10-year agreement making data centers pay for the added costs of the energy they need.
Sen. Padilla: SB 903 - Protects individuals seeking therapy or psychotherapy services by ensuring those services are provided only by qualified, licensed professionals. This bill would prohibit individuals or companies, including those using AI, from offering or advertising therapy or psychotherapy in California if the services are provided by a companion chatbot.
Sen. Reyes: SB 951 – The state's Cal/WARN Act to address technological displacement and AI-driven layoffs.
Sen. Padilla: SB 1119 - Known as “Adams Law,” it establishes the nation's broadest safety guardrails and independent audit requirements for AI companion chatbots used by children. Signed into law
Sen. Stern: SB 1128 - Empowers parents to reclaim control over their children’s digital footprint by ensuring that, starting in the 2027–28 school year, LEAs shall not require K and TK students to take home school-issued electronic devices while providing critical exceptions for pupils with IEPs, States of Emergency, or independent study. Signed into law
Sen. Cabaldon: SB 1159 - Clarifies that California's transparency and governance laws apply to human beings, not to artificial intelligence systems operating autonomously or at scales designed to overwhelm governmental processes, ensuring that AI doesn’t disrupt public participation.
Sen. Grayson: SB 1208 - Targets money laundering and financial scams by establishing a clear legal process for seizing crypto assets from transnational criminal networks and returning stolen funds to scam victims.
Sen. Rubio: SB 1276 - Makes it a crime to knowingly watch a livestream of a minor engaged in sexual conduct, and expands the legal definition of child sexual exploitation to include AI-generated and digitally altered images of kids. Signed into law
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