Monday, September 30, 2024

California wants to lead on AI regulation, just not right now

Inside the Golden State political arena
Sep 30, 2024 View in browser
 
POLITICO California Playbook

By Lara Korte and Dustin Gardiner

California Gov. Gavin Newsom speaks during a news conference.

California Gov. Gavin Newsom speaks during a news conference Thursday, March 21, 2024, in Los Angeles. | Damian Dovarganes/AP

DRIVING THE DAY: Playbook has the exclusive on new polling from USC. The statewide survey gauges voters’ opinions about November ballot measures as well as the races for president, Senate, Los Angeles district attorney and the governor’s office in 2026. Get the scoop below.

THE BUZZ: CONSOLATION PRIZE — Gov. Gavin Newsom’s promise to work on AI guardrails in the future has done little to comfort the backers of what would’ve been nation-leading protections for the rapidly-growing technology.

Newsom on Sunday vetoed state Sen. Scott Wiener’s bill to require safety testing for the largest AI models, an effort to mitigate catastrophes that quickly became a national flashpoint between the tech industry and its skeptics.

While tech tycoons like Marc Andreesen and Garry Tan cheered, Newsom punted the ball down the field — making a light-on-details commitment to develop “workable guardrails” for deploying generative AI, a task force that will be led by academic luminaries like Dr. Fei-Fei Li, a Stanford professor who opposed the bill and is launching an AI startup of her own.  

That hasn’t soothed the sting for those who were hoping California would step up in the absence of action from Washington — including the bill’s author.

“This veto leaves us with the troubling reality that companies aiming to create an extremely powerful technology face no binding restrictions from U.S. policymakers,” Wiener said in a statement, “particularly given Congress’s continuing paralysis around regulating the tech industry in any meaningful way.”

Newsom is attempting to walk a precarious tightrope on AI — balancing California’s status as a global tech incubator with the public’s demand for more accountability and safety measures. Supporters of the bill frequently pointed to internal polling showing Californians’ appetite for AI regulation. A just-released USC poll, obtained exclusively by POLITICO, found that about 57 percent of the state’s likely voters supported Wiener's bill and only about 15 percent opposed it, with the rest undecided.

Lawmakers for months faced pressure to nix the bill from Silicon Valley heavyweights and powerful Democrats like Nancy Pelosi, who warned against stymying California’s burgeoning AI industry and undermining the state’s economic competitiveness. Newsom said in a veto message that the legislation “does not take into account whether an AI system is deployed in high-risk environments, involves critical decision-making or the use of sensitive data.”

“Instead, the bill applies stringent standards to even the most basic functions — so long as a large system deploys it,” Newsom said. “I do not believe this is the best approach to protecting the public from real threats posed by the technology.”

Newsom has often used task forces to soften the blow of his unpopular vetoes, and in a lengthy message on Sunday he vowed to continue working with the legislature on this problem next year.

Wiener, in an interview with Playbook, said Sunday was the first he had heard of the governor’s critiques, and expressed disappointment that the administration didn’t get more involved in bill negotiations.

“It would have been nice to hear all that earlier than in a veto message,” he said. “But with that said, if this [working group] process yields strong, meaningful, AI safety legislation, then I'm all for that and that's all that matters.”

Wiener said he’s not sure how he’ll return to the subject next year.

Even though his big push ended with a veto, he said, the bill opened up a much-needed conversation around AI safety.

“If SB 1047, by failing, ends up spurring a productive conversation and actual, tangible policy that promotes innovation and protects the public, then that’s a win in the long run,” he said.

GOOD MORNING. Happy Monday. 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. This is the last day for the governor to sign or veto the remaining legislation on his desk. More below on the flurry of bill action over the weekend…

THE SCOOP

IMAGE DISTRIBUTED FOR AIDS HEALTHCARE FOUNDATION - Tom Butts, a Los Angeles area renter, speaks in support of Proposition 33, a November ballot initiative that will allow for the expansion of rent control in California, at a press conference before testifying at the Los Angeles County Board of Supervisors meeting on Tuesday,   Sept. 24, 2024, in Los Angeles, California. The Board adopted the motion to support Prop 33 with 3 votes in favor, one 'no' vote and one abstention. (Jenna Schoenefeld/AP Content Services for AIDS Healthcare Foundation)

A Los Angeles-area renter speaks in support of Proposition 33, a November rent control ballot initiative, at a press conference Sept. 24, 2024, in Los Angeles, California. | Jenna Schoenefeld/AP

EXCLUSIVE POLLING: BALLOT PROPS & MORE — California voters strongly favor tougher penalties for drug use and theft. But their feelings are far more mixed on expanding rent control — and there is no clear front-runner in the 2026 race to succeed Newsom, according to a new public poll.

The survey, conducted by researchers at the USC, CSU Long Beach and Cal Poly Pomona and exclusively shared with Playbook, reflected a conservative shift in how Californians view criminal justice issues, despite remaining overwhelmingly Democratic.

Nearly 58 percent of the 1,685 likely voters surveyed support Proposition 36, a November ballot measure that would increase penalties for drug crimes and serial theft. The measure is backed by prosecutors and would roll back parts of a landmark 2014 initiative, Proposition 47, that reduced prison sentences.

Only 19 percent of voters said they opposed Prop 36, despite warnings from Newsom and top Democrats in the Legislature that it would return ineffective and overly punitive 1980s-era “war on drugs” policies to California. The apparently strong support for the initiative represents a marked shift from four years ago, when voters overwhelmingly rejected another tough-on-crime ballot measure, Proposition 20.

“It basically shows that we’re not always as liberal of a state as the national perception, certainly not as left-leaning progressive,” said Christian Grose, a political science professor at USC and the lead pollster. “There’s a lot of Democrats in California who have relatively conservative views on crime.”

Other key highlights from the survey:

— The fate of Proposition 33, which would allow cities to enact rent control for newer apartments, could go down to the wire. A slight plurality of voters, 37 percent, support the measure while 33 percent oppose it. Nearly a third of voters are undecided. The initiative would repeal a state law that generally prohibits rent control requirements on units built after early 1995. But opponents, led by an association of landlords and developers, argue the measure is written so broadly it would give cities the power to effectively block construction by making it too expensive for developers to build.

— The crowded 2026 race to succeed Newsom has no clear leader. One potential candidate ahead of the pack, with 14 percent support, is Democratic Rep. Katie Porter, who is leaving office this year after an unsuccessful Senate bid and hasn’t said if she wants to run. The next highest possible contenders are Republicans: state lawmakers Brian Dahle, whom Newsom easily defeated in 2022, at 5 percent, followed by Riverside County Sheriff Chad Bianco at nearly 5 percent and former Fox News host Steve Hilton at 4 percent.

Among Democrats, state Attorney General Rob Bonta is at 4 percent, followed by Xavier Becerra at 3 percent. The five declared Democratic candidates in the race — Lt. Gov. Eleni Kounalakis, former Los Angeles Mayor Antonio Villaraigosa, former state Controller Betty Yee, former state Senate leader Toni Atkins and state schools superintendent Tony Thurmond — are trailing in the low single digits, suggesting their early jump on the race hasn’t built much name ID.

Read here for more findings from the poll, including details about Californians’ views on the presidential and Senate races.

FOR GOOD MEASURE

Matt Mahan talks into a microphone while Gavin Newsom stands behind him.

San Jose Mayor Matt Mahan (right) shown with Gov. Gavin Newsom on March 16, 2023. | Rich Pedroncelli/AP

FIRST IN PLAYBOOK: NEARLY 200 LOCAL POLS FOR PROP 36 — A committee supporting Prop 36 started by San Jose Mayor Matt Mahan, Sacramento County District Attorney Thien Ho and Elk Grove Mayor Bobbie Singh-Allen now has the backing of nearly 200 local elected officials, the committee will announce this morning.

Mahan, Ho and Singh-Allen launched their own Yes on 36 effort last month, hoping to bring more moderate Democrats on board for the tough-on-crime initiative. Of the endorsements they’re announcing today, 90 percent are Democrats or in non-partisan elected roles; many of them had not previously taken a public position on the measure.

Among those who have signed on are 70 mayors, including Compton’s Emma Sharif, Alameda’s Marilyn Ezzy Ashcraft, Merced’s Matthew Serratto and San Bernardino’s Helen Tran.

“You're seeing a growing network of local elected officials who confront these issues, whose constituents confront these issues, every single day,” Mahan, who has focused his message on how Prop 36 will allow cities to better combat drug addiction and homelessness, told Playbook ahead of the announcement. “We've just had more and more elected officials saying, ‘Sign me up, we need this.’”

The new endorsements are further proof of the statewide vs. local divide that’s emerged among Democrats on Prop 36 — and come as polls show the measure getting strong support from among the electorate. — Emily Schultheis

CAMPAIGN YEAR

Michelle Steel a press conference in Huntington Beach, Calif.

GOP Rep. Michelle Steel shown in 2021. | Patrick T. Fallon/AFP via Getty Images

SPOTTED: MONEY MOVES — A massive crypto-backed political action committee appears to be changing up its strategy in supporting California’s vulnerable House Republicans.

Fairshake PAC recently shifted more than $1 million in advertising spending from CA-27, the Northern Los Angeles County district where GOP Rep. Mike Garcia is fending off Democrat George Whitesides, to the contest in CA-45, the Orange County fight between GOP Rep. Michelle Steel and Derek Tran. 

A representative for Fairshake didn’t comment on the reallocation.

Steel’s race has grown increasingly competitive as we approach the election. A nonpartisan poll released last week found her lagging slightly behind her Democratic challenger.

BILL-O-RAMA

In a last-minute sprint, Newsom over the weekend signed and vetoed hundreds of bills, slapping down several high-priority proposals for labor. Here are the toplines:

HIT THE BRAKES — The governor vetoed SB 961 by state Sen. Scott Wiener that would’ve required new cars sold in California to come equipped with warning systems that alert people driving 10 mph over the speed limit — legislation that became fodder for conservative news outlets. 

FLAMIN’ (NOT) CHEETOS — California is now the first state in the nation to prevent public schools from serving food dyes that color Froot Loops, Flamin’ Hot Cheetos and other processed snacks. The blue, green, yellow and red additives banned by AB 2316 have been linked to hyperactivity and other behavioral issues. Stores will still be able to sell foods with the additives, but author Jesse Gabriel said he hopes the change will incentivize more companies to change their recipes.

SNUFFED OUT — Newsom vetoed a bill that would have made California the first state in the country to mandate labels on gas stoves warning of health risks. AB 2513 from Assemblymember Gail Pellerin would have required warning labels on natural gas stoves sold to Californians.

BIG PHARMA — Despite near-unanimous legislative support, Newsom struck down SB 966 by Wiener, which aimed to bring down health care costs by regulating the intermediaries known as pharmacy benefit managers, bucking a national push. 

ROBO TRUCKS — Newsom knocked down two labor-backed bills that would have created new regulations for autonomous cars and heavy-duty trucks. Newsom rejected AB 2286 and AB 3061, legislation from Assemblymembers Cecilia Aguiar-Curry and Matt Haney that would have required human safety operators in autonomous big rigs and mandated AV companies like Waymo to report data on collisions and traffic violations to the Department of Motor Vehicles. Newsom last year blocked a similar proposal from Aguiar-Curry for autonomous big rigs.

SOLITARY CONFINEMENT — California will limit solitary confinement for pregnant prisoners and require the Department of Corrections and Rehabilitation to provide them with free bottled water and high-calorie nutritional meals after Newsom signed AB 2527 from Assemblymember Rebecca Bauer-Kahan. For advocates, Newsom’s approval of Bauer-Kahan’s bill represents limited action on the issue. The governor has been reluctant to make substantial changes to the practice despite calling for other prison reforms.

CASINOS HEAD TO COURT — California’s tribal-run casinos will have a chance to take card rooms to court after Newsom signed state Sen. Josh Newman’s SB 549, advancing a years-old dispute over gambling rights. 

COOLING ON HEAT PROTECTION — The governor vetoed SB 1299 by state Sen. Dave Cortese that would have made it easier for farmworkers to claim workers' compensation for heat illness. The bill was backed by the United Farm Workers, who had hoped to help farmworkers who don't speak English or live in fear of reprisal over an undocumented status.

ON CAMPUS — In response to pro-Palestinian demonstrations that erupted across the state last spring, Newsom signed legislation that will require public universities in California to update their codes of conduct and train students on how to protest with civility. Universities will also have to add mandatory anti-discrimination training for students under the laws.

STATE CAPITOL

GET WELL SOON — Assemblymember Rick Chavez Zbur, a high-ranking Democrat, told Playbook that he has recently been diagnosed with prostate cancer and plans to undergo treatment after the election.

Chavez Zbur said he’s expected to make a full recovery. He said he’s sharing his diagnosis to explain to constituents and fellow lawmakers why he will be less responsive for several weeks during his recovery — “but more importantly because I believe that it is critical to raise public awareness about prostate cancer and the importance of early detection.”

Survival rates for prostate cancer are extremely high if it’s detected early through annual physical screenings. About one in eight men will be diagnosed with prostate cancer in their lifetimes, according to the CDC, and the vast majority survive.

Chavez Zbur, chair of the Assembly Democratic Caucus, said he plans to spend October supporting his Assembly colleagues on the campaign trail and working on legislation related to the special session on gas prices.

CLIMATE AND ENERGY

SLIPPERY SESSION — It’s shaping up to be a big year in Sacramento on fossil fuels. But on other climate-related actions, not so much. Read our round up of what's happened so far as Newsom enters the home stretch for signing bills in last night's California Climate.

Top Talkers

PIVOT — House Republicans are taking a new approach on abortion: Talk about it. About a dozen GOP candidates in competitive House races, particularly in blue-leaning districts, have already aired broadcast TV ads this fall outlining their position on abortion, according to data from AdImpact, a firm that tracks advertising, with that number likely to grow as the election nears. In 2022, only three such Republicans aired similar ads. (POLITICO)

DISBANDED — San Francisco’s homeless camp sweeps have cleared over 1,200 tents, but residents may have just found more discreet places to stay. Police have made 218 arrests since crackdowns began in early August, according to the mayor’s office, though about 80 percent have been for illegal lodgings, for which individuals are cited and released at the scene. (KQED)

TRUMP AFTER TECH — Former President Donald Trump threatened to prosecute Google for showing “bad stories” about him. (New York Times)

AROUND THE STATE

— In a purple Central Valley district, Republican Rep. John Duarte is fighting to defend a seat he won by 564 votes. (Los Angeles Times)

— Insurance provider American National Property and Casualty Company is dropping all of its flood policies as it pulls back from the state. (San Francisco Chronicle)

— Video game company Activision Blizzard will lay off hundreds of workers in Irvine and Santa Monica starting next month. (Los Angeles Times)

— Dungeness crab, banana slug, black abalone: Meet California's new state symbols. (San Francisco Chronicle)

PLAYBOOKERS

PUT A RING ON IT — Daniel Washington, district director for state Sen. Angelique Ashby, got engaged to Demsina Babazadeh, a Ph.D. Candidate at UC Davis. Daniel proposed to Demsina at the Royal Palace in Madrid, Spain last week. The senator tweeted a pic of the lovebirds.

PEOPLE MOVES — Antonio Isais has been promoted to be Northern California deputy regional director of external affairs for Gov. Newsom. He most recently was Northern California regional coordinator for external affairs.

BIRTHDAYS — Assemblymember Tina McKinnor Michelle Sherwood-Baker, comms director for Ashby …Nate Tibbits of Qualcomm … POLITICO’s Josh SiscoHunt Allcott

BELATED B-DAY WISHES — (was Sunday) Cassandra Pye of Lucas Public Affairs (favorite cocktail: very dry gin martini) … Alex Stack, deputy comms director for the governor … Apple News’ Marissa Martinez Poppy MacDonald … Leon Biederman ... Aron Chilewich ... Clara Mamet

(was Saturday): Democratic House candidate Will RollinsDebbie Look of the Assembly Education Committee.. Del Quentin Wilber Calley Means … Sir Jeremy Isaacs ... Warren Lieberfarb … William Thompson …

(was Friday): Juleanna Glover … POLITICO’s Steven Overly Carl Woog Saraid L. Donnelly Moore… Sleater-Kinney’s Carrie Brownstein

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.

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