SACRAMENTO — Gov. Gavin Newsom on Monday signed a bill that would create new transparency measures for major artificial intelligence companies, including public disclosure of security protocols and reports of critical security incidents.
Sen. Scott Wiener (D-San Francisco) said Senate Bill 53 would create “common sense guardrails” to ensure disruptive innovations don't sacrifice security and transparency amid the rapid growth of artificial intelligence technology. Newsom said the bill strikes the right balance of working with artificial intelligence companies without being “bowed by industry.”
“California has proven that we can set rules to protect our communities while ensuring that the growing artificial intelligence industry continues to thrive,” Newsom said in a statement.
The bill was introduced this year after Newsom last year vetoed a broader bill also sponsored by Wiener. This bill, SB 1047, was supported by Elon Musk and prominent artificial intelligence researchers, but was opposed by Meta and OpenAI.
In his lengthy veto message last year, Newsom called SB 1047 “well-intentioned” but said it was “not the best approach to protecting the public from the real threats posed by technology.” In opposition to the measure, Newsom announced last year that his administration would convene a task force of leaders and artificial intelligence experts to develop stronger protections, which formed the basis of SB 53.
The new law will require companies to disclose their safety protocols and risk assessments. It requires critical incidents, such as cyberattacks or unsafe behavior of autonomous artificial intelligence systems, to be reported to the state Office of Emergency Management.
In 2027, Cal OES will begin publishing annual reports that anonymize and aggregate the critical safety incidents it receives. SB 53 also strengthens whistleblower protections for employees who report wrongdoing.
California's attorney general will be able to impose civil penalties of up to $1 million against companies that violate the new law.
“With a technology as disruptive as artificial intelligence, we have a responsibility to support these innovations while establishing reasonable controls to understand and mitigate risks,” Wiener said in a statement.
The bill was opposed by the California Chamber of Commerce and the Chamber of Progress, a technology industry association.
“This exhaustive approach forces developers to devote significant time and resources to preparing for hypothetical risks rather than addressing real, demonstrable harm,” the Progress Chamber wrote.
