AI, Data Center Bills Head to Governor's Desk at Session Close

Lawmakers closed out the legislative session Monday in yet another marathon vote session.

The end of the legislative session is hardly the last stop in the legislative process, and even bills with sweeping majority support could still die by Gov. Gavin Newsom’s pen.

Here’s what made it through to the governor’s desk:

Artificial intelligence and generative AI were popular topics for lawmakers this session, with several bills aimed at limiting or monitoring the impacts of the technology. Senate Bill 947 and SB 951 both advanced, relating to AI in the workplace. The first limits automated decision-making around disciplining or firing workers, while the second relates to disclosure requirements for mass layoffs caused by AI.

Two other passed bills, Assembly Bill 1709 and SB 1119, focused on harm reduction for minors using social media and AI companions, respectively. The first would set new rules around “addictive” features employed by social media platforms, while the second would establish new safety requirements for any chatbot system that interacts with minors.

Similarly, SB 903 would set new prohibitions for chatbots and AI systems identifying themselves as therapists, as well as other limitations on the technology’s use in the counseling field.

Another priority issue this session was the proliferation of AI’s support structure — the data center.

Water, the lifeblood of these data centers and a constant concern for a drought-vulnerable state, came to the fore in assembly bills 2469 and 2619. The first requires developers to disclose projected water use estimates for new data centers, while the latter relates to ongoing water use reporting at existing facilities.

In a similar vein, SB 887 outlines requirements for data center projects to comply with the California Environmental Quality Act of 1970 (CEQA).

Two other bills focused on another precious resource: ratepayers’ wallets. SB 886 and AB 2383 both focused on energy costs, with the first outlining new “interconnection tariffs” that put grid connection costs on data center operators, while the latter directs the California Public Utilities Commission to establish rules around long-term associated costs and energy consumption by these facilities.