Technology (Artificial Intelligence)

Existing unfair competition laws make various unfair competition practices unlawful, including any unlawful, unfair, or fraudulent business act or practice and unfair, deceptive, untrue, or misleading advertising. Existing law makes it unlawful for any person doing business in California and advertising to consumers in California to make any false or misleading advertising claim. Existing law makes a person who violates specified false advertising provisions liable for a civil penalty, as specified, and provides that a person who violates those false advertising provisions is guilty of a misdemeanor. Existing law makes it unlawful for healing arts licensees, as specified, to disseminate or cause to be disseminated any form of public communication containing a false, fraudulent, misleading, or deceptive statement, claim, or image in order to induce the provision of services or products in connection with their licensed professional practice or business. Existing law makes a violation of these provisions punishable as a misdemeanor and, in the case of a licensed person, provides that a violation constitutes unprofessional conduct and grounds for suspension or revocation of a license by the relevant board. This bill would require a person who creates or causes to be created an advertisement that includes a digital replica or synthetic performer depicted as a health care provider to promote the sale of a health-related consumer product or service to include a clear and conspicuous disclosure that the health care provider depicted in the advertisement was generated or substantially altered by artificial intelligence or that no human health care provider is depicted. The bill would also define terms for its purposes. This bill would provide that a violation of its provisions constitutes a violation of specified unfair competition and false advertising laws. By expanding the scope of a crime, this bill would impose a state-mandated local program. The bill would also authorize a natural person whose digital replica is used in an advertisement to bring a civil action to enforce these provisions. The bill would specify that a violation of the bill does not constitute a misdemeanor under provisions regulating healing arts licensees. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.

Existing law establishes the Division of Labor Standards Enforcement within the Department of Industrial Relations to administer and enforce various laws relating to employment and working conditions. This bill would require an employer to provide a written notice to a worker that a workplace AI tool, as defined, was used to assist the employer in making employment-related decisions or to surveil workers in the workplace. The bill would require the notice to be given to a worker within a specified time and would require the notice to contain specified information, including the specific employment-related decisions likely to be affected by the use of the workplace AI tool. The bill would require an employer to maintain an updated list of all workplace AI tools currently in use and their impact on jobs, as specified, and to provide the list to workers annually. The bill would provide for enforcement by the Labor Commissioner or a public prosecutor, and alternatively would authorize any worker who has suffered damages, or their exclusive representative, to file a civil action for damages caused by the adverse action. The bill would establish remedies and penalties for violations, including a penalty of up to $500 for each violation. The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.

Existing law requires the Department of Technology to conduct, in coordination with other interagency bodies as it deems appropriate, a comprehensive inventory of all high-risk automated decision systems (ADS) that have been proposed for use, development, or procurement by, or are being used, developed, or procured by, any state agency. Existing law establishes the Labor and Workforce Development Agency, which is composed of various departments responsible for protecting and promoting the rights and interests of workers in California, including the Division of Labor Standards Enforcement, led by the Labor Commissioner, within the Department of Industrial Relations. This bill, beginning on July 1, 2027, would prohibit an employer, as defined, from using an ADS to perform certain functions and would limit the purposes for and way in which an ADS may be used. The bill would, when an employer primarily uses an ADS to make a disciplinary or termination decision, authorize an employee to request, and require an employer to provide, a description of the employee's own data primarily used by an ADS to make a disciplinary or termination decision, as specified. The bill would require an employer that primarily relied upon an ADS to make a disciplinary or termination decision to provide the affected employee with a written postuse notice, as specified. This bill would prohibit an employer from discharging, threatening to discharge, demoting, suspending, or in any manner discriminating or retaliating against any employee for taking certain actions asserting their rights under the bill. The bill would authorize the Labor Commissioner to enforce the bill's provisions and also authorize a public prosecutor to bring a civil enforcement action, as specified. The bill would set forth specified types of relief that a plaintiff may seek and specified penalties that an employer that violates these provisions is subject to, including a $500 civil penalty per violation. This bill would also provide that an employer who complies with the requirements related to notice in this bill is not required to comply with any substantially similar provisions under any other state law, except as specified. The bill would not apply to parties covered by a valid collective bargaining agreement if the agreement contains specified information, including an explicit waiver of the bill's provisions. The bill would provide that it does not prohibit the use of an automated decision system relating to the development of aircraft for use in the national airspace or the development of products or services for national security, military, space, or defense purposes, if the use of an automated decision system is reasonably necessary to comply with the federal statute, the federal regulation, or the binding federal contract, as specified. The bill would include a statement that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities. This bill would declare that its provisions are severable.

Existing law establishes the Division of Labor Standards Enforcement within the Department of Industrial Relations. Existing law authorizes the division, which is headed by the Labor Commissioner, to enforce the Labor Code and all labor laws of the state, the enforcement of which is not specifically vested in any other officer, board, or commission. This bill would, with certain exceptions, prohibit an employer from using a workplace surveillance tool that uses artificial intelligence to, among other things, collect neural data or recognize an individual's emotional state. The bill would define an employer to include a governmental entity, including, among other entities, charter cities and the University of California. This bill would authorize the Labor Commissioner or a public prosecutor to enforce the bill's provisions. The bill would subject an employer who violates the bill's provisions to a civil penalty of up to $500 for each violation. The bill would define various terms for purposes of its provisions. This bill would exempt from its provisions an employer's use of a workplace surveillance tool in specified operations where the use of a workplace surveillance tool is reasonable necessary to comply with a federal statute, federal regulation, or binding federal contract relating to the development of aircraft for use in the national airspace or the development of products or services for national security, military, space, or defense purposes. The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.

Existing law establishes the Office of Small Business Advocate within the Governor's Office of Business and Economic Development and prescribes the duties and functions of the Small Business Advocate. Existing law requires the advocate to, among other duties, serve as the principal advocate in the state on behalf of small businesses and to represent the views and interests of small businesses before other state agencies policies and activities of which may affect small businesses. This bill would enact the AI for Main Street Act, which would require the Small Business Advocate to provide assistance to small businesses in evaluating artificial intelligence concerning operations, including by providing information, guidance, and training, developing training materials, and conducting outreach, as specified.

Existing law establishes the California Community Colleges, under the administration of the Board of Governors of the California Community Colleges, the California State University, under the administration of the Trustees of the California State University, and the University of California, under the administration of the Regents of the University of California as the 3 segments of public postsecondary education in the state. This bill would require the office of the Chancellor of the California Community Colleges and the California State University, and would request the University of California, to (1) as specified, jointly convene and participate in an intersegmental working group to develop and present recommendations for generative artificial intelligence (GenAI) system procurement standards and training, which the bill would require to be submitted on or before January 1, 2028, (2) provide the training to students, faculty, or staff, as applicable, (3) review the training developed by the working group at least once per academic year, update the training as necessary, and maintain records of completed trainings for each student, faculty member, and staff member who receives a training, as provided, and (4) within 60 days following the execution of a systemwide contract for a GenAI system and until procurement standards are adopted, submit a written report to the Legislature and certain legislative policy committees with a description of, among other things, the process used in evaluating and selecting the GenAI system, as provided.

Existing law vests the Public Utilities Commission with regulatory jurisdiction over public utilities, including electrical corporations and gas corporations, while local publicly owned electric utilities are under the direction of their governing boards. Existing law requires every public utility to furnish and maintain adequate, efficient, just, and reasonable service, instrumentalities, equipment, and facilities, as are necessary to promote the safety, health, comfort, and convenience of its customers, its employees, and the public. This bill would require the commission, on or before January 1, 2028, to adopt standards for an electrical or gas corporation's use of artificial intelligence models, as provided. The bill would require the commission to direct an electrical or gas corporation to file a plan that demonstrates the corporation's compliance with those standards. The bill would authorize the commission to prohibit an electrical or gas corporation's use of an artificial intelligence model if the commission finds that deployment of the artificial intelligence model would negatively impact the provision of safe, affordable, and reliable electrical or gas service. The bill would require each community choice aggregator and local publicly owned electric utility to adopt a policy regarding its use of an artificial intelligence model that is consistent with the standards. Under existing law, a violation of an order, decision, rule, direction, demand, or requirement of the commission is a crime. Because a violation of a commission action implementing those requirements would be a crime, this bill would impose a state-mandated local program. Additionally, by imposing new duties on local publicly owned electric utilities, the bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for specified reasons.

(1) The Confidentiality of Medical Information Act (CMIA) prohibits a provider of health care, a health care service plan, a contractor, or a corporation and its subsidiaries and affiliates from intentionally sharing, selling, using for marketing, or otherwise using any medical information, as defined, for any purpose not necessary to provide health care services to a patient, except as provided. Existing law makes a violation of these provisions that results in economic loss or personal injury punishable as a misdemeanor. Existing law deems a business that offers a mental health digital service or reproductive or sexual health digital service to a consumer for the purpose of allowing the individual to manage the individual's information, or for the diagnosis, treatment, or management of a medical condition of the individual, to be a provider of health care subject to the requirements of the CMIA. The bill would additionally deem a business that offers a health care chatbot, as defined, to a consumer for the above-described purposes to be a provider of health care subject to the requirements of the CMIA. Because the bill would expand the scope of a crime, it would impose a state-mandated local program. (2) Existing law requires a health facility, clinic, physician's office, or office of a group practice that uses generative artificial intelligence to generate written or verbal patient communications pertaining to patient clinical information, as defined, to ensure that those communications include both a disclaimer that indicates to the patient that a communication was generated by generative artificial intelligence, as specified, and clear instructions describing how a patient may contact a human health care provider, employee, or other appropriate person, except as specified. This bill would require a health facility, clinic, physician's office, or office of a group practice to take reasonable steps to ensure that a licensed health care professional, acting within their scope of practice, retains the ability to exercise independent professional judgment in their care of a patient whenever that care is informed by the output of a clinical decision support system, as defined. The bill would prohibit a health facility, clinic, physician's office, or office of a group practice from using or deploying a tool, system, or device that includes artificial intelligence to independently perform any clinical function that is required by law to be performed by a person with a professional license. The bill would make a violation of these provisions by a physician subject to the jurisdiction of the Medical Board of California or the Osteopathic Medical Board of California. The bill would also authorize the appropriate professional licensing board to pursue an injunction or restraining order to enforce these provisions to the extent that a violation constitutes the practice of a health care profession without a license. The bill would specify that these provisions do not apply to the use of automated decision systems for documentation and communication that does not involve the application of professional judgment, including automated messages to inform patients of updates to their health records. (3) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.

Existing law establishes the Division of Labor Standards Enforcement within the Department of Industrial Relations. Existing law authorizes the division, which is headed by the Labor Commissioner, to enforce the Labor Code and all labor laws of the state, the enforcement of which is not specifically vested in any other officer, board, or commission. This bill would prohibit an employer from using a worker's personal information, as defined, to train an artificial intelligence system to replicate, automate, or replace a worker's job, and would prohibit an employer from selling, disclosing, or otherwise providing access to a worker's personal information to a third party for the purpose of training an artificial intelligence system to replicate, automate, or replace a worker's job. The bill would prohibit a vendor providing services to an employer under a contract from providing access to the personal information of an employer's worker to a third party or using the personal information of an employer's worker to train artificial intelligence, as specified. The bill would require a contract between an employer and vendor to include a requirement that the vendor implement and maintain reasonable security procedures to protect the worker's personal information from, among other things, unauthorized or illegal access. The bill would define terms for these provisions, including "employer" and "personal information." The bill would require the Labor Commissioner and authorize a public prosecutor to enforce these provisions. The bill would authorize a worker, or their exclusive representative, who suffered a violation of these provisions to bring a civil action for damages, injunctive relief, punitive damages, and attorney's fees and costs. The bill would establish a statutory penalty for a violation of these provisions of up to $500 for each violation. The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.

Existing law, the State Bar Act, provides for the licensure and regulation of attorneys by the State Bar of California, a public corporation. The act requires an attorney to strictly maintain client confidences and to preserve client secrets at their own peril. This bill would prohibit an attorney from delegating the practice of law to generative artificial intelligence. The bill would require an attorney who uses generative artificial intelligence to assist in the practice of law to, among other things, not enter confidential, personal identifying, and other nonpublic information into a generative artificial intelligence system, as specified. The bill would also require an attorney to take reasonable steps to verify the accuracy of generative artificial intelligence outputs and to correct any erroneous or hallucinated output in any material used by the attorney. Existing law requires every pleading, petition, written notice of motion, or other similar paper to be signed by the attorney of record, or if a party is unrepresented, by the party, thereby certifying to the best of the person's knowledge, information, and belief that it is not being presented primarily for an improper purpose and that the claims, defenses, and legal and factual contentions are warranted, as specified. This bill would prohibit a brief, pleading, motion, or any other paper filed in any court from containing any citations that an attorney responsible for submitting the pleading has not personally verified, including any citation provided by generative artificial intelligence. Existing law, the California Arbitration Act, provides a statutory framework for the enforcement of contractual arbitration under California law. The act establishes that a written agreement to submit a present or future controversy to arbitration is valid, enforceable, and irrevocable, except as specified. The act defines a neutral arbitrator as one who is selected jointly by the parties or by the parties' arbitrators, or is appointed by the court if the parties or their arbitrators cannot jointly select an arbitrator. The act requires a person selected to serve as a neutral arbitrator to disclose all matters that could cause a person aware of the facts to reasonably entertain a doubt as to the proposed neutral arbitrator's impartiality. This bill would prohibit an arbitrator from delegating any part of their decisionmaking process to any generative artificial intelligence tool, and would prohibit an arbitrator from relying on information generated by generative artificial intelligence outside the record without making appropriate disclosures to the parties beforehand, as specified. The California Constitution establishes the Judicial Council, and requires the Judicial Council to adopt rules for court administration, practice, and procedure, and to undertake certain responsibilities with regard to court facilities. This bill would require the Judicial Council to publicly revisit a specified standard of judicial administration to incorporate any necessary changes reflecting the further development of generative artificial intelligence. Existing law requires the State Bar to create a program to certify alternative resolution firms, providers, or practitioners. Existing law requires the program to include procedures to verify, among other things, that a firm, provider, or practitioner has procedures in place for persons to make complaints regarding the failure of an arbitrator or mediator of the firm, provider, or practitioner to comply with ethical standards, as applicable, and procedures to remedy failures of arbitrators or mediators to comply with those standards. This bill would instead require the State Bar to adopt procedures for the State Bar or a professional organization to receive, investigate, and resolve any complaints that a certified firm, provider, or practitioner failed to comply with the applicable ethical standards of conduct, as specified. The bill would require complaint proceedings to occur in private and be confidential. After a decision on a complaint, the bill would authorize the State Bar to publicly disclose information or records concerning complaint proceedings that do not reveal confidential or privileged communications. The bill would exempt information, records, or communications provided under these provisions from disclosure under the Public Records Act. Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest. This bill would make legislative findings to that effect.