Big Tech and the little guy

Presented by Californians for Energy Independence: Inside the Golden State political arena

Jun 26, 2024 View in browser   By Lara Korte and Dustin Gardiner Presented by Californians for Energy Independence State Sen. Scott Wiener. | Eric Risberg/AP THE BUZZ: HEAVYWEIGHTS — After spending much of the legislative session maneuvering in the background, some of Silicon Valley’s biggest players are speaking up about AI. Meta on Tuesday picked apart the Legislature's marquee effort to regulate the technology, telling Gov. Gavin Newsom's staff and key lawmakers in a letter that the proposal "fundamentally misunderstands" artificial intelligence — marking the first time the company has spoken out about AI regulation on the state level. Senate Bill 1047 from Scott Wiener, which requires large AI models to undergo safety tests, would effectively make developers liable for scenarios they aren’t equipped to prevent, wrote Rob Sherman, Meta vice president and deputy chief privacy officer for policy. That risk, he argued, would discourage companies from keeping their technology open-sourced and could narrow the market to a handful of models — effectively keeping out the little guys, a similar argument to the one made by Y Combinator. “Startups and small businesses are critical to the California economy, and SB 1047 would undermine their ability to compete and succeed in the AI marketplace,” the letter said. Companies like Meta and Google for months have kept close tabs on the guardrails proposed by Wiener and others, but until recently they’ve mostly allowed trade groups like TechNet and the Chamber of Progress to do the talking. That’s changed in recent weeks as Wiener’s bill continues to roll through the Legislature with little resistance. The coalition against it, meanwhile, has grown increasingly concerned about its impact on a lucrative sector of the tech industry. Efforts to stir up fears around the existential risk to tech don’t seem to be resonating with legislators, but they could land differently with Newsom. The governor has long touted California’s leadership in regulating social media and holding tech companies accountable — like the landmark Consumer Privacy Act and Age-Appropriate Design Code — but has seemed hesitant to wrap red tape around artificial intelligence. “If we over-regulate, if we overindulge, if we chase the shiny object, we could put ourselves in a perilous position,” he said at a San Francisco summit last month. He hit the same tone in his State of the State address on Tuesday, where he touted California as the home to what may be the most fertile startup ecosystem “in economic history” and compared the advent of artificial intelligence to the Fourth Industrial Revolution. Wiener, a San Francisco Democrat, has repeatedly insisted he doesn’t want to hamper innovation. He has characterized the bill — which aims to prevent frightening scenarios like nuclear or biological weapons attacks — as creating reasonable protections for the public good. In a statement Tuesday, he emphasized that the bill doesn’t cover startups and that the state attorney general would enforce the law in limited and extreme circumstances. Wiener added that while he’s grateful for feedback from many sectors of the tech industry, some of the proposal’s critics are opposed to any form of AI regulation. “While I respect that perspective,” he said, “... I do take issue with the significant misinformation being spread about the bill, including the false and absurd claim that model developers will go to prison for releasing a model that causes harm.” (That claim was made by Y Combinator critics). The tech industry, meanwhile, is applying increasing pressure on Sacramento to pump the brakes. Google’s head of AI and emerging tech policy, Alice Friend, also sent a letter this month to assemblymembers and the Newsom administration, saying Wiener’s bill would inadvertently undercut innovation without substantially addressing known risks and harms. SB 1047 is set to be heard next week in the Assembly Judiciary Committee, which is led by Ash Kalra, one of the Legislature’s most progressive members. It then heads to the Appropriations Committee, chaired by Assemblymember Buffy Wicks — a longtime Wiener ally. GOOD MORNING. Happy Wednesday. Thanks for waking up with Playbook. You can text us at ‪916-562-0685‬‪ — save it as “CA Playbook” in your contacts. Or drop us a line at lkorte@politico.com and dgardiner@politico.com, or on X — @DustinGardiner and @Lara_Korte. WHERE’S GAVIN? Nothing official announced. A message from Californians for Energy Independence: As California transitions to a lower carbon energy economy, we should continue to produce the oil and gas we still need in-state, where it meets world-class environmental standards and our communities can benefit from the revenues. But instead, California energy policies are shutting down in-state oil production faster than we can build adequate replacement energy - increasing our dependence on more costly imported oil. Get the facts on California energy policies   FOR GOOD MEASURE The Alliance for Safer Use of Psychedelics, an advocacy group, is exploring a 2026 ballot measure to go around the Legislature. | Peter Dejong/AP TRIPPING OUT — Advocates for therapeutic magic mushrooms are giving up on the California Legislature after a fourth failed effort to advance their legislation. The Alliance for Safer Use of Psychedelics, an advocacy group, said it will now go around lawmakers and explore asking voters to support an initiative for the 2026 ballot. Details of the proposal haven’t been released, so it’s unclear how broadly the initiative would legalize psychedelics. Their announcement came after state Sens. Josh Becker, a Democrat, and Brian Jones, a Republican, shelved their bill that narrowly focused on offering treatment for veterans and first responders in a few counties. “We don’t have much recourse but to pursue a state ballot measure,” said Jesse Gould, an Army veteran and founder of Heroic Hearts Project, which helps veterans access the treatment. “We will not be deterred in our fight to get access to emerging therapies for people who desperately need it.” Becker pulled the legislation moments before it was set to be heard in the Assembly Health Committee. Proponents of the bill said Chair Mia Bonta had opposed it and raised concerns about the speed of the pilot program’s rollout in San Diego, San Francisco and Santa Cruz counties. Bonta’s office didn’t immediately respond to a request for comment. Becker, in a statement to Playbook, said he will continue pushing to legalize therapeutic psychedelics for veterans and first responders facing work-related traumas. “More than 17 veterans die by suicide every day,” Becker said. Becker and Jones’ bill was dramatically scaled back from previous iterations, and the lawmakers said they had hoped the pilot program would yield data about the effectiveness of using hallucinogenic mushrooms to treat PTSD and other mental illnesses. Numerous attempts to qualify a psychedelics initiative for the ballot in California have fizzled due to a lack of political organization and funding. The Alliance for Safer Use of Psychedelics, which includes veterans and law-enforcement groups, could likely mount a more serious campaign.   Understand 2024’s big impacts with Pro’s extensive Campaign Races Dashboard, exclusive insights, and key coverage of federal- and state-level debates. Focus on policy. Learn more.     CAMPAIGN YEAR Assemblymember Pilar Schiavo. | AP GETTING PERSONAL — Being accused of siding with pedophiles would rankle most people, but for Assemblymember Pilar Schiavo, the claim hit especially close to home. Schiavo was sexually abused by a neighbor as a child and testified against him in court, the northern Los Angeles County Democrat wrote in a local op-ed this week. Firebrand GOP Assemblymember Bill Essayli made the radioactive charge against Schiavo last month after she (and dozens of other legislators) did not vote to advance his bill to remove sanctuary state protections for convicted child sex abusers who are in the country illegally. The bill had not been heard through the standard committee process when Essayli tried to bring it up for a floor vote. Schiavo penned an op-ed calling Essayli’s maneuvers “political theater gotcha tactics.” Essayli aimed his ire at Schiavo — who happens to be a top legislative target for the GOP — and was booted from the Judiciary Committee for his social media post calling her a “pedophile protector.” But the accusation was soon echoed by her opponent, Patrick Lee Gipson, as well as other local Republicans. “I don’t imagine this is going away,” Schiavo told Playbook on why she felt the need to respond with her personal story. “I'm not going to allow them to use this as a political tactic when I am the opposite of what they're saying.” Essayli appears unswayed by her story, writing on X that she “hid like a coward behind ‘procedure.’” While that earned a salty rebuke from Labor Fed leader Lorena Gonzalez, the post — like Essayli’s previous missives at Schiavo — has taken off among conservative posters. In a statement, Essayli said Schiavo was in “damage control,” adding, “Bad policy makes for bad politics and her voters will have the ultimate ability to hold her accountable.” Schiavo said her office got threatening calls after Essayli’s accusation. “It's really important for the Republican Party to realize that they are creating a monster,” she said. “When people are stoked by such kind of hate and misinformation, it can turn into really scary situations.” — Melanie Mason   A message from Californians for Energy Independence:   Republican Steve Garvey traveled to Israel this week. | Steve Garvey for US Senate campaign. WHERE’S STEVE? — In his latest attempt to drum up attention for a long-shot Senate bid, Republican Steve Garvey traveled to Israel this week to visit the sites of the Oct. 7 attacks and and reiterate his support for the Jewish people. On Tuesday he visited the Gaza border and Nova Music Festival site. “Where others won’t go, my campaign will,” he said in a statement. ON THE AGENDA FLOOR SESH — The Assembly and Senate will convene at 5 p.m. and 6 p.m. respectively to approve budget bills. CLIMATE AND ENERGY TURNING UP THE HEAT — Property insurers have long resented consumer advocacy group Consumer Watchdog's campaigning against their rate increases. Now, frustrated by a spiraling wildfire insurance crisis, they’re challenging the firebrand group's ability to participate at the Department of Insurance. Read more about how this might impact the debate in yesterday’s California Climate. TOP TALKERS — Gavin Newsom’s State of the State address suggests he’s mentally checking himself out of California and into the White House, columnist Emily Hoeven writes. (San Francisco Chronicle) — Oakland Mayor Sheng Thao is in crisis as first her lawyer, then a top aide jump ship following last week’s FBI raid of her home and a fiery news conference on Monday. (Los Angeles Times) AROUND THE STATE — San Francisco’s office vacancies are still growing, but at a slower pace. (San Francisco Chronicle) — Parlier city councilmembers are skipping meetings as part of an ongoing fight over the city attorney’s performance. (GV Wire) — A Shasta County judge dismissed a lawsuit alleging election misconduct in the county’s March 5 primary, citing a “profound” lack of evidence. (Shasta Scout) — compiled by Tyler Katzenberger A message from Californians for Energy Independence: California faces growing inflation, a rising cost of living, and has some of the highest gas prices in the country. Now, California energy policies could make matters worse. That’s because California is shutting down in-state oil and gas production before we have adequate replacement energy. That forces our state to spend $25 billion a year importing more costly oil to meet our needs - sending billions that could be supporting California’s economy out of state instead. These energy policies threaten California’s access to reliable energy, while increasing our gas prices. As California transitions to a lower carbon energy economy, we should continue to produce the oil and gas we still need in-state, where it meets world-class environmental standards and our communities can benefit from the revenues - rather than increase our dependence on more costly imported oil. Get the facts on California energy policies   PLAYBOOKERS PEOPLE MOVES — Diana Marin is joining JPMorgan as a VP and public affairs comms manager on their corporate responsibility team. She previously was deputy comms director for Sen. Alex Padilla (D-Calif.).  BIRTHDAYS — Robert Gonzalez of Teamsters Local 1932 … David Bocarsly of the Jewish Public Affairs Committee of California … CALIFORNIA POLICY IS ALWAYS CHANGING: Know your next move. From Sacramento to Silicon Valley, POLITICO California Pro provides policy professionals with the in-depth reporting and tools they need to get ahead of policy trends and political developments shaping the Golden State. To learn more about the exclusive insight and analysis this subscriber-only service offers, click here. Want to make an impact? POLITICO California has a variety of solutions available for partners looking to reach and activate the most influential people in the Golden State. Have a petition you want signed? A cause you’re promoting? Seeking to increase brand awareness amongst this key audience? Share your message with our influential readers to foster engagement and drive action. Contact Rebecca Haase to find out how: rhaase@politico.com.   Follow us on Twitter Dustin Gardiner @dustingardiner Lara Korte @lara_korte   Subscribe to the POLITICO Playbook family Playbook  |  Playbook PM  |  California Playbook  |  Florida Playbook  |  Illinois Playbook  |  Massachusetts Playbook  |  New Jersey Playbook  |  New York Playbook  |  Ottawa Playbook  |  Brussels Playbook  |  London Playbook View all our political and policy newsletters Follow us

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