Advocates say it is a modest law setting “clear, predictable, common-sense safety standards” for artificial intelligence. Opponents say it is a dangerous and arrogant step that will “stifle innovation.”
California
California’s governor has the chance to make AI history
In any event, SB 1047 — California state Sen. Scott Wiener’s proposal to regulate advanced AI models offered by companies doing business in the state — has now passed the California State Assembly by a margin of 48 to 16. Back in May, it passed the Senate by 32 to 1. Once the Senate agrees to the assembly’s changes to the bill, which it is expected to do shortly, the measure goes to Gov. Gavin Newsom’s desk.
The bill, which would hold AI companies liable for catastrophic harms their “frontier” models may cause, is backed by a wide array of AI safety groups, as well as luminaries in the field like Geoffrey Hinton, Yoshua Bengio, and Stuart Russell, who have warned of the technology’s potential to pose massive, even existential dangers to humankind. It got a surprise last-minute endorsement from Elon Musk, who among his other ventures runs the AI firm xAI.
Lined up against SB 1047 is nearly all of the tech industry, including OpenAI, Facebook, the powerful investors Y Combinator and Andreessen Horowitz, and some academic researchers who fear it threatens open source AI models. Anthropic, another AI heavyweight, lobbied to water down the bill. After many of its proposed amendments were adopted in August, the company said the bill’s “benefits likely outweigh its costs.”
Despite the industry backlash, the bill seems to be popular with Californians, though all surveys on it have been funded by interested parties. A recent poll by the pro-bill AI Policy Institute found 70 percent of residents in favor, with even higher approval ratings among Californians working in tech. The California Chamber of Commerce commissioned a bill finding a plurality of Californians opposed, but the poll’s wording was slanted, to say the least, describing the bill as requiring developers to “pay tens of millions of dollars in fines if they don’t implement orders from state bureaucrats.” The AI Policy Institute’s poll presented pro and con arguments, but the California Chamber of Commerce only bothered with a “con” argument.
The wide, bipartisan margins by which the bill passed the Assembly and Senate, and the public’s general support (when not asked in a biased way), might suggest that Gov. Newsom is likely to sign. But it’s not so simple. Andreessen Horowitz, the $43 billion venture capital giant, has hired Newsom’s close friend and Democratic operative Jason Kinney to lobby against the bill, and a number of powerful Democrats, including eight members of the US House from California and former Speaker Nancy Pelosi, have urged a veto, echoing talking points from the tech industry.
So there’s a strong chance that Newsom will veto the bill, keeping California — the center of the AI industry — from becoming the first state with robust AI liability rules. At stake is not just AI safety in California, but also in the US and potentially the world.
To have attracted all of this intense lobbying, one might think that SB 1047 is an aggressive, heavy-handed bill — but, especially after several rounds of revisions in the State Assembly, the actual law does fairly little.
It would offer whistleblower protections to tech workers, along with a process for people who have confidential information about risky behavior at an AI lab to take their complaint to the state Attorney General without fear of prosecution. It also requires AI companies that spend more than $100 million to train an AI model to develop safety plans. (The extraordinarily high ceiling for this requirement to kick in is meant to protect California’s startup industry, which objected that the compliance burden would be too high for small companies.)
So what about this bill would possibly prompt months of hysteria, intense lobbying from the California business community, and unprecedented intervention by California’s federal representatives? Part of the answer is that the bill used to be stronger. The initial version of the law set the threshold for compliance at $100 million for the use of a certain amount of computing power, meaning that over time, more companies would have become subject to the law as computers continue to get cheaper. It would also have established a state agency called the “Frontier Models Division” to review safety plans; the industry objected to the perceived power grab.
Another part of the answer is that a lot of people were falsely told the bill does more. One prominent critic inaccurately claimed that AI developers could be guilty of a felony, regardless of whether they were involved in a harmful incident, when the bill only had provisions for criminal liability in the event that the developer knowingly lied under oath. (Those provisions were subsequently removed anyway). Congressional representative Zoe Lofgren of the science, space, and technology committee wrote a letter in opposition falsely claiming that the bill requires adherence to guidance that doesn’t exist yet.
But the standards do exist (you can read them in full here), and the bill does not require firms to adhere to them. It says only that “a developer shall consider industry best practices and applicable guidance” from the US Artificial Intelligence Safety Institute, National Institute of Standards and Technology, the Government Operations Agency, and other reputable organizations.
A lot of the discussion of SB 1047 unfortunately centered around straightforwardly incorrect claims like these, in many cases propounded by people who should have known better.
SB 1047 is premised on the idea that near-future AI systems might be extraordinarily powerful, that they accordingly might be dangerous, and that some oversight is required. That core proposition is extraordinarily controversial among AI researchers. Nothing exemplifies the split more than the three men frequently called the “godfathers of machine learning,” Turing Award winners Yoshua Bengio, Geoffrey Hinton, and Yann LeCun. Bengio — a Future Perfect 2023 honoree — and Hinton have both in the last few years become convinced that the technology they created may kill us all and argued for regulation and oversight. Hinton stepped down from Google in 2023 to speak openly about his fears.
LeCun, who is chief AI scientist at Meta, has taken the opposite tack, declaring that such worries are nonsensical science fiction and that any regulation would strangle innovation. Where Bengio and Hinton find themselves supporting the bill, LeCun opposes it, especially the idea that AI companies should face liability if AI is used in a mass casualty event.
In this sense, SB 1047 is the center of a symbolic tug-of-war: Does government take AI safety concerns seriously, or not? The actual text of the bill may be limited, but to the extent that it suggests government is listening to the half of experts that think that AI might be extraordinarily dangerous, the implications are big.
It’s that sentiment that has likely driven some of the fiercest lobbying against the bill by venture capitalists Marc Andreessen and Ben Horowitz, whose firm a16z has been working relentlessly to kill the bill, and some of the highly unusual outreach to federal legislators to demand they oppose a state bill. More mundane politics likely plays a role, too: Politico reported that Pelosi opposed the bill because she’s trying to court tech VCs for her daughter, who is likely to run against Scott Wiener for a House of Representatives seat.)
Why SB 1047 is so important
It might seem strange that legislation in just one US state has so many people wringing their hands. But remember: California is not just any state. It’s where several of the world’s leading AI companies are based.
And what happens there is especially important because, at the federal level, lawmakers have been dragging out the process of regulating AI. Between Washington’s hesitation and the looming election, it’s falling to states to pass new laws. The California bill, if Newsom gives it the green light, would be one big piece of that puzzle, setting the direction for the US more broadly.
The rest of the world is watching, too. “Countries around the world are looking at these drafts for ideas that can influence their decisions on AI laws,” Victoria Espinel, the chief executive of the Business Software Alliance, a lobbying group representing major software companies, told the New York Times in June.
Even China — often invoked as the boogeyman in American conversations about AI development (because “we don’t want to lose an arms race with China”) — is showing signs of caring about safety, not just wanting to run ahead. Bills like SB 1047 could telegraph to others that Americans also care about safety.
Frankly, it’s refreshing to see legislators wise up to the tech world’s favorite gambit: claiming that it can regulate itself. That claim may have held sway in the era of social media, but it’s become increasingly untenable. We need to regulate Big Tech. That means not just carrots, but sticks, too.
Newsom has the opportunity to do something historic. And if he doesn’t? Well, he’ll face some sticks of his own. The AI Policy Institute’s poll shows that 60 percent of voters are prepared to blame him for future AI-related incidents if he vetoes SB 1047. In fact, they’d punish him at the ballot box if he runs for higher office: 40 percent of California voters say they would be less likely to vote for Newsom in a future presidential primary election if he vetoes the bill.
California
500-pound bear evicted after living under California home for months
Watch massive bear evicted after from under home
A bear settled in underneath a California home, and BEAR League, a wildlife team, assisted in the animal’s removal.
A 500-plus-pound bear living underneath a residence in Southern California has departed the space it called home for months, according to the nonprofit that helped evict the large mammal.
BEAR League announced in a Facebook post on Jan. 8 that it helped remove the bear from Kenneth Johnson’s home after he reached out to the nonprofit. Johnson previously told the Los Angeles Times and KTLA that he found signs of something living under his home as early as April 2025, but he didn’t know what it was for sure until November, when a security camera caught the bear sneaking into a crawl space.
At an estimated weight of 500-plus pounds, the bear “barely fit into the crawlspace and caused extensive damage to the home’s heating ducts,” according to BEAR League. Concerned over a possibly damaged gas line, Johnson shut off his gas service just before Christmas, the nonprofit said.
BEAR League said it stepped in to evict the bear after earlier removal attempts by state wildlife officials were unsuccessful. Two first responders with the nonprofit traveled to Johnson’s home, where one of them crawled beneath the residence — “fully aware the bear was still there” — to get behind the animal and “encourage him to exit through the crawlspace opening,” according to Lake Tahoe-based the nonprofit.
The nonprofit also said it loaned Johnson electric unwelcome mats, which shock bears when they step on them, to give him time to make repairs and secure the crawlspace to prevent future visits.
“If you live in bear country, securing your crawlspace is essential. This time of year, BEAR League evicts multiple bears from under homes every day,” BEAR League said.
Kenneth Johnson creates GoFundMe to help with repairs
At the bottom of BEAR League’s social media post, the nonprofit linked to Johnson’s GoFundMe page, which he created to help cover repair costs.
According to Johnson’s fundraiser page, the 500-plus-pound bear dwelled underneath his home in Altadena for over a month, causing “tens of thousands of dollars in damage.”
“I’m in a situation I never imagined,” Johnson wrote on the fundraising page.
Johnson further explained his current employment situation, saying that right after surviving the Eaton fire in early January 2025, he lost his job, and shortly after that, the “bear began tearing into the structure of (his) home.”
“I have video footage of it twisting gas pipes, which created an extremely dangerous situation and forced me to shut off my utilities just to stay safe,” he continued.
The funds would also go toward making Johnson’s home “safe and livable again,” which includes paying for professional traps. As of Jan. 10, the GoFundMe has raised over $8,000; however, its goal is $13,000.
Jonathan Limehouse covers breaking and trending news for USA TODAY. Reach him at JLimehouse@gannett.com.
California
Gavin Newsom proposes $350B California budget — kicks the can on debt
California Gov. Gavin Newsom unveiled a record-high $350 billion state budget Friday that makes “historic” investments in areas like education — but kicks the can on paying down federal debt, foisting costs onto struggling employers.
Newsom’s budget incorporates a $43 billion windfall tied to the stock market that he touted in his State of the State speech Thursday, bringing his office’s estimated deficit down to $3 billion — the state’s fourth deficit in a row. The budget plows billions into maintaining education, health care, and other programs but ignores a $20 billion federal loan for Covid unemployment payments — a situation one legislator called “alarming.”
Ignoring the loan means small businesses are on the hook for the state’s debt, said state Sen. Roger Niello of Fair Oaks.
“We already have the highest unemployment in the nation and we’re putting this additional burden on our employers. It makes absolutely no sense,” Niello said.
The budget includes $662.2 million in mandatory interest payments, but there is no money going towards the principal.
Since July, the total balance has ballooned to $21.3 billion, and private employers in California pick up the tab under federal rules. Employers pay an $42 extra per employee this year and growing, per KCRA
Every state expect California has paid off the Covid-era loans.
“That is an alarming thing because [Newsom is] basically saying that businesses and employment are not a priority to him and that’s troubling,” Niello added.
At 5.5%, California’s unemployment rate was the highest in the country as of November.
Newsom’s $350 billion budget proposal is about $30 billion higher than this year’s budget, thanks largely to federal healthcare cuts that forced costs onto the state and mandatory set-asides in areas like education.
At a budget briefing Friday, Newsom’s finance director Joe Stephenshaw highlighted record spending on education— amounting to a record $27,418 per K-12 student, $5.3 billion for the University of California system, $15.4 billion to community colleges, and $1 billion to needy schools — along with $500 million towards local homelessness prevention, $195 million in new public safety spending, $3 billion for the state’s rainy day fund and $4 billion for school reserve funds.
The budget includes some cuts to climate-related spending and housing and homelessness, per Calmatters. And it does not include any direct funding for Prop. 36, the anti-crime measure supported by nearly 70% of voters in 2024 — a move Republicans blasted.
But even with Newsom’s unexpected windfall, analysts expect deficits to grow to as high as $35 billion in the coming years as expenditures outpace even optimistic revenue projections.
Newsom and the state Legislative Analyst create separate budget projections, and the governor’s has historically been far rosier on the revenue side. The legislative analyst projected a $18 billion deficit in the coming fiscal year, while the governor calculated $3 billion.
Under Newsom, the state’s general fund spending has increased by 77% partly owing to new programs spun up when the state was flush with cash, according to Republican legislators.
Newsom’s $350 billion budget — the last before he leaves office next year — does little to confront ballooning expenses, dumping the problem on the future governor and Legislature, according to Senate Minority Leader Brian Jones.
“This is more of the same from a lame-duck governor content on leaving the rest of us to pick up the financial pieces when he leaves office,” Jones said in a statement.
Democrats in the legislature were more measured in their responses.
“During these times of uncertainty, we must craft a responsible budget that prioritizes the safety and fiscal stability of California families,” said State Senate Leader Monique Limón in a statement.
Newsom and legislators will refine the budget in the coming months towards a final proposal in May.
One major unknown is how California will handle a loss of about $1.4 billion in funding due toTrump administration changes to low-income health care and food programs.
Last year, Newsom was force to scale back a controversial plan to provide Medicaid coverage for illegal immigrants after costs spiked, forcing California was forced to borrow $3.4 billion, Politico reported.
Newsom’s budget didn’t fully explain what would happen to immigrant health care under federal cuts, and Stephenshaw struggled to answer detailed questions from reporters — saying Newsom’s office was still awaiting guidance from the feds.
“As we work through the May revision, this is something we’ll be well aware of and we’ll make those decision at that time,” he said.
California
How Trump’s tariffs ricochet through a Southern California business park
VALENCIA, California, Jan 9 (Reuters) – America’s trade wars forced Robert Luna to hike prices on the rustic wooden Mexican furniture he sells from a crowded warehouse here, while down the street, Eddie Cole scrambled to design new products to make up for lost sales on his Chinese-made motorcycle accessories.
Farther down the block, Luis Ruiz curbed plans to add two imported molding machines to his small plastics factory.
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“I voted for him,” said Ruiz, CEO of Valencia Plastics, referring to President Donald Trump. “But I didn’t vote for this.”
All three businesses are nestled in the epitome of a globalized American economy: A lushly landscaped California business park called Rye Canyon. Tariffs are a hot topic here – but experiences vary as much as the businesses that fill the 3.1 million square feet of offices, warehouses, and factories.
Tenants include a company that provides specially equipped cars to film crews for movies and commercials, a dance school, and a company that sells Chinese-made LED lights. There’s even a Walmart Supercenter. Some have lost business while others have flourished under the tariff regime.
Rye Canyon is roughly an hour-and-a-half drive from the sprawling Ports of Los Angeles and Long Beach. And until now, it was a prime locale for globally connected businesses like these. But these days, sitting on the frontlines of global trade is precarious.
The average effective tariff rate on imports to the U.S. now stands at almost 17%–up from 2.5% before Trump took office and the highest level since 1935. Few countries have been spared from the onslaught, such as Cuba, but mainly because existing barriers make meaningful trade with them unlikely.
White House spokesman Kush Desai said President Trump was leveling the playing field for large and small businesses by addressing unfair trading practices through tariffs and reducing cumbersome regulations.
‘WE HAD TO GET CREATIVE’ TO OFFSET TRUMP’S TARIFFS
Rye Canyon’s tenants may receive some clarity soon. The U.S. Supreme Court could rule as early as Friday on the constitutionality of President Trump’s emergency tariffs. The U.S. has so far taken in nearly $150 billion under the International Emergency Economic Powers Act. If struck down, the administration may be forced to refund all or part of that to importers.
For some, the impact of tariffs was painful – but mercifully short. Harlan Kirschner, who imports about 30% of the beauty products he distributes to salons and retailers from an office here, said prices spiked during the first months of the Trump administration’s push to levy the taxes.
“It’s now baked into the cake,” he said. “The price increases went through when the tariffs were being done.” No one talks about those price increases any more, he said.
For Ruiz, the plastics manufacturer, the impact of tariffs is more drawn out. Valencia makes large-mouth containers for protein powders sold at health food stores across the U.S. and Canada. Before Trump’s trade war, Ruiz planned to add two machines costing over half a million dollars to allow him to churn out more containers and new sizes.
But the machines are made in China and tariffs suddenly made them unaffordable. He’s spent the last few months negotiating with the Chinese machine maker—settling on a plan that offsets the added tariff cost by substituting smaller machines and a discount based on his willingness to let the Chinese producer use his factory as an occasional showcase for their products.
“We had to get creative,” he said. “We can’t wait for (Trump) to leave. I’m not going to let the guy decide how we’re going to grow.”
‘I’M MAD AT HIM NOW’
To be sure, there are winners in these trade battles. Ruiz’s former next-door neighbor, Greg Waugh, said tariffs are helping his small padlock factory. He was already planning to move before the trade war erupted, as Rye Canyon wanted his space for the expansion of another larger tenant, a backlot repair shop for Universal Studios. But he’s now glad he moved into a much larger space about two miles away outside the park, because as his competitors announced price increases on imported locks, he’s started getting more inquiries from U.S. buyers looking to buy domestic.
“I think tariffs give us a cushion we need to finally grow and compete,” said Waugh, president and CEO of Pacific Lock.
For Cole, a former pro motorcycle racer turned entrepreneur, there have only been downsides to the new taxes.
He started his motorcycle accessories company in his garage in 1976 and built a factory in the area in the early 1980s. He later sold that business and – as many industries shifted to cheaper production from Asia – reestablished himself later as an importer of motorcycle gear with Chinese business partners, with an office and warehouse in Rye Canyon.
“Ninety-five percent of our products come from China,” he said. Cole estimates he’s paid “hundreds of thousands” in tariffs so far. He declined to disclose his sales.
Cole said he voted for Trump three times in a row, “but I’m mad at him now.”
Cole even wrote to the White House, asking for more consideration of how tariffs disrupt small businesses. He included a photo of a motorcycle stand the company had made for Eric Trump’s family, which has an interest in motorcycles.
“I said, ‘Look Donald, I’m sure there’s a lot of reasons you think tariffs are good for America,” but as a small business owner he doesn’t have the ability to suddenly shift production around the world to contain costs like big corporations. He’s created new products, such as branded tents, to make up for some of the business he’s lost in his traditional lines as prices spiked.
He pulls out his phone to show the response he got back from the White House, via email. “It’s a form letter,” he said, noting that it talks about how the taxes make sense.
Meanwhile, Robert Luna isn’t waiting to see if tariffs will go away or be refunded. His company, DeMejico, started by his Mexican immigrant parents, makes traditional-style furniture including hefty dining tables that sell for up to $8,000. He’s paying 25% tariffs on wooden furniture and 50% on steel accents like hinges, made in his own plant in Mexico. He’s raised prices on some items by 20%.
Fearing further price hikes from tariffs and other rising costs will continue to curb demand, he’s working with a Vietnamese producer on a new line of inexpensive furniture he can sell under a different brand name. Vietnam has tariffs, he said, but also a much lower cost base.
“My thing is mere survival,” he said, “that’s the goal.”
Reporting by Timothy Aeppel; additional reporting by David Lawder
Editing by Anna Driver and Dan Burns
Our Standards: The Thomson Reuters Trust Principles.
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