On September 29, California Governor Gavin Newsom (D) vetoed the Safe & Secure Innovation for Frontier AI Models Act (SB 1047), putting an end, for now, to a months-long effort to establish public safety standards for developers of large AI systems.  SB 1047’s sweeping AI safety and security regime, which included annual third-party safety audits, shutdown capabilities, detailed safety and security protocols, and incident reporting requirements, would likely have established a de facto national safety standard for large AI models if enacted.  The veto followed rare public calls from Members of California’s congressional delegation—including Speaker Emerita Nancy Pelosi (D-CA) and Representatives Ro Khanna (D-CA), Anna Eschoo (D-CA), Zoe Lofgren (D-CA), and Jay Obernolte (R-CA)—for the governor to reject the bill.

In his veto message, Governor Newsom noted that “[AI] safety protocols must be adopted” with “[p]roactive guardrails” and “severe consequences for bad actors,” but he criticized SB 1047 for regulating based on the “cost and number of computations needed to develop an AI model.” SB 1047 would have defined “covered models” as AI models trained using more than 1026 FLOPS of computational power valued at more than $100 million.  In relying on cost and computing thresholds rather than “the system’s actual risks,” Newsom argued that SB 1047 “applies stringent standards to even the most basic functions–so long as a large system deploys it.”  Newsom added that SB 1047 could “give the public a false sense of security about controlling this fast-moving technology” while “[s]maller, specialized models” could be “equally or even more dangerous than the models targeted by SB 1047.” 

The veto follows Newsom’s prior statement, on September 17, expressing concerns with the “outsized impact that [SB 1047] could have,” including “the chilling effect, particularly in the open source community” and potential effects on the competitiveness of California’s AI industry.

Echoing the risk-based approaches taken by Colorado’s SB 205—the landmark AI anti-discrimination law passed in May—and California’s AB 2930, a similar automated decision-making bill that failed to pass the state Senate in August, Newsom called for new legislation that would “take into account whether an AI system is deployed in high-risk environments, involves critical decision-making or the use of sensitive data.”

In contrast with Colorado Gov. Jared Polis’s call for a unified federal approach to AI regulation, however, Newsom noted that a “California-only approach” to regulating AI “may well be warranted . . . especially absent federal action by Congress.”  Newsom also pointed to the numerous AI bills “regulating specific, known risks” he signed into law, including laws regulating or prohibiting digital replicas, election deepfakes, and AI-generated CSAM (AB 1831).

While the legislature can override the governor’s veto by a two-thirds vote, it has not taken that step since 1979.  Instead, we expect the legislature to revisit AI safety legislation next year.

*                      *                      *

Follow our Global Policy WatchInside Global Tech, and Inside Privacy blogs for ongoing updates on key AI and other technology legislative and regulatory developments.

Matthew Shapanka

Matthew Shapanka draws on more than 15 years of experience – including on Capitol Hill, at Covington, and in state government – to advise and counsel clients across a range of industries on significant legislative, regulatory, and enforcement matters. He develops and executes…

Matthew Shapanka draws on more than 15 years of experience – including on Capitol Hill, at Covington, and in state government – to advise and counsel clients across a range of industries on significant legislative, regulatory, and enforcement matters. He develops and executes complex, multifaceted public policy initiatives for clients seeking actions by Congress, state legislatures, and federal and state government agencies, many with significant legal and political opportunities and risks.

Matt rejoined Covington after serving as Chief Counsel for the U.S. Senate Committee on Rules and Administration, where he advised Chairwoman Amy Klobuchar (D-MN) on all legal, policy, and oversight matters within the Committee’s jurisdiction, including federal election law and campaign finance, and oversight of the Federal Election Commission, legislative branch agencies, security and maintenance of the U.S. Capitol Complex, and Senate rules and regulations.

Most significantly, Matt led the Rules Committee staff work on the Electoral Count Reform and Presidential Transition Improvement Act – landmark bipartisan legislation to update the antiquated process of certifying and counting electoral votes in presidential elections that President Biden signed into law in 2022.

As Chief Counsel, Matt was a lead attorney on the joint bipartisan investigation (with the Homeland Security and Governmental Affairs Committee) into the security planning and response to the January 6, 2021 attack on the Capitol. In that role, he oversaw the collection review of documents, led interviews and depositions of key government officials, advised the Chairwoman and Committee members on two high-profile joint hearings, and drafted substantial portions of the Committees’ staff report on the attack. He also led oversight of the Capitol Police, Architect of the Capitol, Senate Sergeant at Arms, and executive branch agencies involved in implementing the Committees’ recommendations, including additional legislation and hearings.

Both in Congress and at the firm, Matt has prepared many corporate and nonprofit executives, academics, government officials, and presidential nominees for testimony at legislative, oversight, or nomination hearings before congressional committees, as well as witnesses appearing at congressional depositions and transcribed interviews. He is also an experienced legislative drafter who has composed dozens of bills introduced in Congress and state legislatures, including several that have been enacted into law across multiple policy areas.

In addition to his policy work, Matt advises and represents clients on the full range of political law compliance and enforcement matters involving federal election, campaign finance, lobbying, and government ethics laws, the Securities and Exchange Commission’s “Pay-to-Play” rule, as well as the election and political laws of states and municipalities across the country.

Before law school, Matt worked as a research analyst in the Massachusetts Recovery & Reinvestment Office, where he worked on all aspects of state-level policy, communications, and compliance for federal stimulus funding awarded to Massachusetts under the American Recovery & Reinvestment Act of 2009. He has also worked for federal, state, and local political candidates in Massachusetts and New Hampshire.

August Gweon

August Gweon counsels national and multinational companies on data privacy, cybersecurity, antitrust, and technology policy issues, including issues related to artificial intelligence and other emerging technologies. August leverages his experiences in AI and technology policy to help clients understand complex technology developments, risks…

August Gweon counsels national and multinational companies on data privacy, cybersecurity, antitrust, and technology policy issues, including issues related to artificial intelligence and other emerging technologies. August leverages his experiences in AI and technology policy to help clients understand complex technology developments, risks, and policy trends.

August regularly provides advice to clients for complying with federal, state, and global privacy and competition frameworks and AI regulations. He also assists clients in investigating compliance issues, preparing for federal and state privacy regulations like the California Privacy Rights Act, responding to government inquiries and investigations, and engaging in public policy discussions and rulemaking processes.