California Governor Signs 14 AI Laws, Vetoes 3 Others

A couple of weeks ago, I wrote about a slate of AI laws passed by the California legislature. The big question was whether the Governor would sign or veto these bills.  As of this week, the results are in. California officially has fourteen more AI laws on the books. Three others didn’t make the cut. A recent WilmerHale memo provides a comprehensive list of the laws and recommends the following actions for companies subject to the new laws:

“As California’s latest AI and privacy measures begin to take effect next year, entities within the laws’ scope should begin evaluating how these requirements may affect their governance, risk management, transparency, and compliance programs. As with privacy legislation before it, California’s approach may serve as a model, catalyst, and/or benchmark for other states looking to impose more AI regulation and safety guardrails as Washington signals deference to the industry for self-regulation.”

To follow up on my previous blog, here’s a recap of the laws I mentioned, all of which passed.

• SB 947 (Signed) – Bans automated decision-making in certain employment decisions related to disciplinary action and termination.
• SB 867 (Signed) – A new ban on chatbots in children’s toys. This shows California’s willingness to enact laws protecting children from potential AI harms.
• SB 574 (Signed) – A law regulating how the legal profession can use AI and what disclosures lawyers must make. I wrote more extensively about SB 574’s requirements here.

So, what didn’t make the cut? Three bills: one related to the CCPA and the other two others that related to AI in healthcare.

• AB 1542 (Vetoed) – Would have expanded CCPA by prohibiting companies from selling sensitive personal information to third parties.
• AB 2575 (Vetoed) – Would have established protection for healthcare workers who decline to follow AI-generated recommendations.
• SB 903 (Vetoed) – Would have regulated the use of AI in mental health and therapy practices.

Another key point beyond the impacts in California is that these bills send a political message. The Governor signing the majority of these laws shows the rising popularity of AI regulation. This is especially noticeable when examining bills like SB 574. The legislature put forward the core elements of SB 574 last year in SB 7, also known as the “No Robo-Bosses Act”. However, that Bill was vetoed. This year, it was signed into law, despite being substantially similar. As we look to the midterm cycles and beyond, we could see more AI regulation as politicians attempt to establish track records.