Thursday, August 8, 2024

Sacramento’s AI fight goes national

Presented by America's Fuel: Inside the Golden State political arena
Aug 08, 2024 View in browser
 
POLITICO California Playbook

By Lara Korte and Dustin Gardiner

Presented by America's Fuel

Rep. Zoe Lofgren, D-Calif., makes a statement at the Capitol in Washington.

Silicon Valley Rep. Zoe Lofgren took the unusual step of sending a letter saying she is “very concerned” about a California bill on AI. | J. Scott Applewhite/AP Photo

‘KILL BILL’ CONTEST ALERT! GUESS WHICH BILLS WON’T SURVIVE, WIN PRIZES — It’s almost that time of year again, when California lawmakers run through hundreds of bills in quick succession and announce which will (and won’t) advance from the Appropriations committees to the floor. Now’s your chance to make predictions and compete against your fellow politicos — and the Playbook authors — to guess which bills won’t survive the dreaded “suspense file.”

Those with the most accurate guesses will receive a shout-out in California Playbook and some extra special swag. Remember to leave your name and email with your prediction so we can contact you if you win.

THE BUZZ: SCOPE OF INTEREST — The fight over a California bill on artificial intelligence is now spilling well outside the bounds of Sacramento — from Washington to even Canada. It highlights the deep divisions over attempts to rein in a potentially transformative technology as well as the outsized role our Golden State plays.

Silicon Valley Rep. Zoe Lofgren, the ranking member on the House Science Committee, took the unusual step of issuing a letter Wednesday voicing how she is “very concerned” about state Sen. Scott Wiener’s bill to require safety assessments for large-scale AI models. Lofgren’s criticism echoes that of VC firms a16z and Y Combinator, which have argued in recent weeks that the bill would undermine AI in its infancy and kneecap what could be a huge boon to the state economy.

"I firmly support AI governance to guard against demonstrable risks to public safety," Lofgren wrote. "Unfortunately, this bill would fall short of these goals — creating unnecessary risks for both the public and California's economy."

Senate Bill 1047 has irritated the tech industry since its inception, but with less than a month left in the legislative session, both opponents and supporters are drawing on big names to sway public opinion in their direction. The bill awaits final approval in the Assembly Appropriations Committee before it can get a vote on the floor and land on Gov. Gavin Newsom’s desk.

Critics appear to fear that Wiener’s bill could set the tone for AI regulations across the country.

Tech players like Marc Andreessen and Garry Tan have kept up a steady drumbeat of criticism on social media, driving opposition among their hundreds of thousands of followers as the bill made its way through the Legislature. Just this week, renowned computer scientist Fei-Fei Li, often dubbed the “godmother of AI,” warned it will have significant unintended consequences.

On the other side of the issue, proponents are relying on public opinion polls and warnings from tech veterans to counter the opponents’ powerful — and very wealthy — messengers. Wiener has publicly gone back and forth with his detractors, at times accusing them of spreading inaccurate and “highly inflammatory distortions” about his bill. (A16z later argued that it was actually Wiener who was making incorrect claims.)

"It's a very 'David and Goliath' battle,” said Teri Olle, director of Economic Security California Action, a bill co-sponsor. “The public is begging policymakers to make decisions and the money interests are trying to maintain the status quo, which is a very unregulated, libertarian sort of status quo."

On Wednesday, a group of renowned professors, including AI “godfathers” Yoshua Bengio and Geoffrey Hinton of Canada, argued on behalf of the bill in TIME Magazine, dismissing concerns about hampering innovation and describing SB 1047 as “the bare minimum for effective regulation of this technology.”

So far, legislators in the Democrat-dominated state Capitol have given broad approval to Wiener’s proposal, passing it out of every committee with wide majorities in support. While it's still awaiting votes in the Assembly, the looming question now is whether the governor will support it.

Newsom — who likes to avoid weighing in on legislation early if he can help it — has walked a fine line on the issue of regulating AI. At times he has voiced support for curbing certain aspects of the technology, including deepfake political videos, while also warning against the perils of over-regulation.  

He could step in to shape the legislation with amendments before it hits his desk, but if that’s the case, he’s running out of time to do so.

GOOD MORNING. Happy Thursday. 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? At the San Diego Zoo for the debut of two giant pandas.

 

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STATE CAPITOL

Kamala Harris and Tim Walz at a campaign rally.

A delegation of state legislators say they’re excited to support their fellow Californian as she makes history. | Jamie Kelter Davis for POLITICO

DELEGATES, ON YOUR MARK — State Sen. Toni Atkins and Assemblymember Cecilia Aguiar-Curry will lead small delegations of California lawmakers to the Democratic National Convention in Chicago later this month, Playbook can report.

The convention, which runs Aug. 19-22, overlaps with what’s likely to be a busy time for the state Legislature as lawmakers hustle to pass bills before the session ends on Aug. 31. Lawmakers will work in Sacramento that week and then will be excused for two days to attend the convention.

“The Vice President is inspiring a ‘Eureka!’ moment for the entire nation," Assembly Speaker Robert Rivas said in a statement. "We’re all proud that a fellow Californian is leading the country forward."

In addition to Atkins, Sens. Nancy Skinner, Lola Smallwood-Cuevas, Steven Bradford, Josh Becker, Aisha Wahab and Caroline Menjivar will travel to Chicago. In the Assembly, Aguiar-Curry will travel with members Rebecca Bauer-Kahan, Mia Bonta, Sabrina Cervantes, Mike Fong, Chris Holden, Jacqui Irwin, Evan Low, Luz Rivas, Tina McKinnor, Cottie Petrie-Norris, Akilah Weber, Buffy Wicks and Lori Wilson.

Senate President pro Tem Mike McGuire in a statement expressed excitement to see Harris become the first woman of color to be named the Democratic nominee.

“This momentous event is a historic opportunity that is good for California, good for our nation, and good for all those who support equality, freedom, and Democracy,” he said.

FIRST IN PLAYBOOK: COST OF CLICKS — Tech industry group Chamber of Progress today published a new analysis criticizing a bill by Assemblymember Buffy Wicks that would require online platforms to help subsidize California news coverage.

Assembly Bill 886 would make online giants pay news outlets for profiting off their stories. Some platforms, like Meta, have already vowed to block news stories in California if the bill passes. Canada passed similar legislation in 2022 that resulted in Meta removing all its news content within the country. 

The Chamber of Progress, whose members include Meta, used the fallout from the Canadian law to estimate the potential traffic losses to news outlets if the Facebook parent company removes news content for all Californians. It estimated that 107 California newspapers would lose 4.5 million visits annually if Meta removed the links.

As we mentioned earlier this week, Wicks is still in the midst of negotiations with tech giants on the final details of her bill. As it’s currently written, the bill leaves room for tech giants to negotiate the amount of money they’d be required to pay annually into a fund supporting California’s journalism industry.

 

During unprecedented times, POLITICO Pro Analysis gives you the insights you need to focus your policy strategy. Live briefings, policy trackers, and and people intelligence secures your seat at the table. Learn more.

 
 
ON THE AGENDA

FLOOR SESH — The Assembly and the Senate will both convene at 9 a.m., where lawmakers are expected to take up a package of retail theft bills.

CALIFORNIA PANDA DAY — Newsom is in San Diego today to herald the arrival of Chinese pandas Yun Chuan and Xin Bao and celebrate the grand opening of Panda Ridge.

 

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CLIMATE AND ENERGY

A TALE OF TWO GRIDS — California passed its first heat wave test with flying colors and says it’s ready for more. Texas is reflecting on hurricane power outages. Read more in last night’s California Climate.

Top Talkers

KUEHL CASE DROPPED — State prosecutors agreed Wednesday to drop a controversial corruption case against former LA County Supervisor Sheila Kuehl, citing “lack of evidence of wrongdoing,” the Los Angeles Times reports. The decision in the politically charged case comes two years after sheriff’s deputies operating under then-LA County Sheriff Alex Villanueva wielded guns and battering rams during an early morning raid on Kuehl’s home.

FRIENDS IN RICH PLACES — Harris’ newly-minted running mate Tim Walz already knows some of California’s wealthiest political donors, thanks in part to Newsom. The Sacramento Bee reports Walz and Newsom became acquainted through their work with the Democratic Governors’ Association, and Walz made fundraising swings through the Golden State in 2022 and 2023. Some notable previous Walz donors include Fiji Water owner Lynda Resnick and The Onion owner Jeffrey Lawson.

FISH OUT YOUR MASK — Health officials in Contra Costa County are recommending people use face masks in crowded indoor settings as California continues to battle a summer wave of Covid infections driven by the emergent FLiRT variant, the San Francisco Chronicle reports.

 

SUBSCRIBE TO GLOBAL PLAYBOOK: Don’t miss out on POLITICO’s Global Playbook, our newsletter taking you inside pivotal discussions at the most influential gatherings in the world. Suzanne Lynch delivers the world's elite and influential moments directly to you. Stay in the global loop. SUBSCRIBE NOW.

 
 
AROUND THE STATE

Therapy dogs are helping first responders fighting the Park Fire relieve stress. (Courthouse News)

— Voters in Clovis, a suburb of Fresno, will decide in November whether to increase the city’s sales tax by 1 percent to remedy funding shortfalls for public safety and city services. (Fresno Bee)

— California Highway Patrol officers clearing a Oakland homeless encampment Wednesday arrested a homeless advocate who chained herself to a fence in protest of their sweep. (East Bay Times)

— compiled by Tyler Katzenberger

 

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PLAYBOOKERS

PEOPLE MOVES — Emmy-nominated CNN producer Faith Holland is joining Rise Strategy Group’s Los Angeles office as an account director.

Kristen Caloca has launched KMC Social Impact Strategies, a strategic advisory firm focused on the Inland Empire. She was previously vice president at the nonprofit Cause Communications and senior vice president at Mercury Public Affairs in California.

— HealthNet’s Martha Santana-Chin has been appointed chair of the United Way of Greater Los Angeles’ Board of Directors. She is the first Latina to serve in this role.

WANT A SHOUT-OUT FEATURED? — Send us a birthday, career move or another special occasion to include in POLITICO’s California Playbook. You can now submit a shout-out using this Google form.

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.

 

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Lara Korte @lara_korte

 

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