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Committee HearingAssembly

Assembly Privacy And Consumer Protection Committee

July 1, 2026 · Privacy And Consumer Protection · 58,049 words · 18 speakers · 391 segments

Chair Bauer-Cahanchair

Thank you. Thank you. Thank you Thank you. Thank you. Thank you Thank you. Thank you. Thank you Thank you. Thank you. Thank you Thank you. Thank you. Thank you Thank you. Thank you. Thank you Thank you. Thank you. Thank you Thank you. Thank you. Thank you Good afternoon Welcome to Assembly Privacy and Consumer Protection. We are so popular today, so we're glad you're all here. We will be missing Assemblymember Wicks today, but we welcome Assemblymember Bennett in her place. We have 17 bills on the agenda today. One on the consent calendar, which is a Senator Umberg bill, SB 96. And we will take a motion on that once we have a quorum. Members, feel free to stop by so we can get that quorum going. To effectively manage our time today, we'll be living testimony to two witnesses in support and two in opposition. Two minutes for everybody presenting. it's required that primary witnesses have communicated with the committee staff and submitted to the committee their supporter opposition prior to today's hearing after the support witnesses we will make time for everybody to give us their name organization and position if you do not have time to give us everything you want to say please use our portal online we love to see people's comments and we do read those letters and process those thoughts and that is still available to people even after today's hearing. With that, don't disturb. Be polite. Keep decorum. And we will... We're just going to go for it, Senator Umberg. So we're going to take up SB 574, Mr. Senator Umberg's bill. When you're ready, Senator.

Senator Tom Umbergsenator

Thank you very much. Thank you to the hard work of the committee, particularly Mr. Josh Tosny, for your work on this bill. And you're welcome, too, Mr. Tosny, for the tutelage you received in Senate Judiciary. Senate Bill 574 protects clients receiving legal services by establishing rules for the use of AI by attorneys, judges, and court neutrals. Artificial intelligence, of course, is present in all aspects of our life, including in the law. What this bill does, it just adds transparency to the use of artificial intelligence. Transparency when lawyers submit materials. Transparency when judges use artificial intelligence to arrive at a decision. transparency in terms of arbitration so that there's actually a human who makes all final decisions. Clearly, artificial intelligence has a very useful use in the legal practice, but it cannot supplant human beings and cannot supplant judgment and certainly cannot be such that you can blame artificial intelligence or any model for an ultimate decision or an ultimate submission. if you've suggested amendments I'm sure they were really good and I accept them thank you

Chair Bauer-Cahanchair

do you have a witness?

Senator Tom Umbergsenator

I'm it

Chair Bauer-Cahanchair

you're it we'll take it

Senator Tom Umbergsenator

you never need more

Chair Bauer-Cahanchair

you are enough so with that we will take any other individuals here in support of this bill SB 574 come on up Name organization and position Tracy always here Yeah Good afternoon Chair and members Tracy Rosenberg Oka Privacy in support of the bill Anyone here in opposition to this bill Seeing none, I'll bring it back to the committee member.

Assemblymember Jacqui Irwinassemblymember

I feel like I do have to ask a few questions. You can't get off this.

Senator Tom Umbergsenator

Nope.

Assemblymember Jacqui Irwinassemblymember

Well, I think it is really important to start to put some guidelines around this. It happened, I was talking to a girlfriend of mine who was talking about, she's an attorney, and she was talking about the AI hallucinations and these court cases that were cited that were not actually court cases. So I think that that is, you know, it's really important that we start to deal with that. But then I also ran it by my daughter who said, great idea, except she was wondering where it says attorneys must, from the documents, remove bias or harmful AI-generated content. So how do we define that? It might be a little nebulous.

Senator Tom Umbergsenator

Well, I suppose that's in the eye of the beholder. But if artificial intelligence can generate obvious errors, can generate obvious bias, and so when a lawyer sees that, when a lawyer sees obvious bias, they have to eliminate it. They also have to make sure that they don't submit personal information. So if you're putting somebody's social security number in a complaint, you need to file it under seal. If it's not necessary, you shouldn't be putting it in a complaint, that kind of thing. So an attorney is responsible to make sure that whatever document they submit, because everything, as we know, is subject to being scraped from the web. So you don't want documents, pleadings, et cetera, filed that may be used for nefarious purposes, inappropriate nefarious purposes.

Assemblymember Jacqui Irwinassemblymember

Or you could require that they have enterprise systems, right, where all the data stays in the model and is not.

Senator Tom Umbergsenator

being used to train the model for other people's purposes. You could, but virtually everything that's filed is accessible to the public. It has to be accessible to the public. And so unless you file it under seal, anybody can view it and access it.

Assemblymember Jacqui Irwinassemblymember

All right. Well, I would be happy to move the bill at the appropriate time, and we'll certainly be supporting it. Thank you very much.

Chair Bauer-Cahanchair

Thank you, Salim. May I note that I love that Assemblymember Irwin's daughter is now her lawyer advisor. It's amazing.

So thank you, Senator, for this bill. I think it's incredibly important as a fellow member of the bar. I've gotten the emails from the bar where they're advising us on how to appropriately use generative AI in the practice of law. And I was recently with some of my former colleagues who are still in practice asking them about their use of it. And I think that I was comforted by the conversation because I think lawyers are well-trained to understand our duty and our obligations under our license. And so they are actively using it, but they very much are keeping the human in the loop. So they consider the AI to be draft one, and then it is their obligation to review the draft, to take out anything that has apparent bias, to check any citations, if there are any, or anything of that nature. And I think that it's important that we as attorneys, when we're hired, we're hired because people trust us. And that trust is critically important. And outsourcing it without the kind of oversight that this bill would require would, I think, be a dereliction of duty. And so I think this is a great first step. But I know that the bar will continue to do additional work as well as the bill requires. So I'm happy to support it today. And would you like to close, Senator?

Chair Bauer-Cahanchair

No, I'm pleased that you're both hanging out with

Senator Tom Umbergsenator

very responsible lawyers, but all lawyers are not as responsible as the folks that you interact with. And so this is to, in essence, put them on notice and to the extent the courts need notice as well, that you have to be transparent. In my own practice, I've seen hallucinations. I've seen people who have submitted materials that not long ago I saw a citation to a code section that doesn't exist in California. So it's appropriate that we put this in law.

Chair Bauer-Cahanchair

Yeah. Well, thank you. And the time is right. We'll take a motion. And thank you, Senator, for this and the many years of bills you brought to us. We will miss you.

Senator Tom Umbergsenator

Well, OK. The reports of my demise are a little early.

Chair Bauer-Cahanchair

Not in the assembly. This is the last time you're speaking before me for sure in the assembly.

Senator Tom Umbergsenator

Oh, no. I'm sure we'll cause trouble in August.

Chair Bauer-Cahanchair

OK, fair enough. Then we'll see you then.

Senator Tom Umbergsenator

Thank you very much.

Chair Bauer-Cahanchair

OK, thank you. Okay. Okay. So we're looking for some senators and, frankly, some assembly members here at 444 for the Assembly Privacy Committee. Senator Padilla would be next on our agenda, but if any senators are wanting to get out of here on the earlier side, this is your opportunity. Hop on by. Thank you. Thank you. Thank you Okay, we have an author because Assemblymember Pellerin will be presenting Senator Rubio's bill SB 1276 so we will hear this time. I'm excited.

Assemblymember Jacqui Irwinassemblymember

Yes. So it is my great honor to be here today to present SB 1276, the End Child Exploitation Act on behalf of Senator Rubio. Emerging technologies such as AI and live streaming have enabled a new class of criminals to access and proliferate child sexual abuse content, presenting new and unique challenges for law enforcement who often struggle to keep pace with the new technologies. Existing law criminalizes the creation and distribution of live streams depicting the sexual exploitation of a child. However, there is ambiguity in how those who view the content on live streams are treated under the law. Platforms like Facebook Live, TikTok Live, Discord, and Twitch enable temporary streaming in which the content disappears after the stream ends, leaving little record of the content of the video itself. Child predators can take advantage of this feature by consuming child exploitation content and exiting the stream, leaving no trace of their crime. SB 1276 makes a person guilty of a misdemeanor or felony if the person downloads, streams, or accesses through electronic or digital media depictions of a minor engaged in a sexual act. The bill also adds digital and AI-generated images to the definition of sexual exploitation under the Child Abuse and Neglect Reporting Act, clarifying that it is a crime to watch a live stream and AI-generated content of a sexually exploited child. As technology develops, there should be no loophole available to child sex predators. By removing ambiguity in the law and updating it to include modern technological standards, SB 1276 protects our most innocent, that is, our children. Joining me today to speak in support of 1276 is Laura Adrino, the Director of Crimes Against Children. Thank you.

Laura Drinoother

Good afternoon, everyone. Again, my name is Laura Drino, and I am with the Los Angeles City Attorney's Office and handle everything involving crimes against children. I'm here in strong support of SB 1276. I've been a prosecutor for almost 33 years now, and this bill closes a real gap in the law by harmonizing the law of mandatory reporting under CANRA and Penal Code Section 311.3, Child Sexual Exploitation. As a prosecutor who's tried many of these types of cases over my career, predators do not stop adapting. They use new technology to exploit children. They use new platforms to exploit children. and increasingly technology has changed the way that offenders access and consume this type of material They now access child sexual abuse material through live streams and digital media rather than traditional downloads And we've seen a lot of cases growing in Los Angeles in this area, especially on some of the newer apps like Discord. We've had many cases. Our law must reflect that reality. A child being sexually abused on live stream is no less a victim because the abuse is viewed in real time instead of from some downloaded or saved file. The trauma is the same for that child. The exploitation is the same. And the demand created by every viewer is the same. 1276 makes it very clear that knowingly watching a live stream of a minor engaged in sexual conduct is sexually exploiting that child under penal code section 311.3. Also important is to harmonize 311.3 with the Child Abuse Reporting Act. The definition of sexual exploitation needs to be consistent for prosecutors, for law enforcement, social workers, teachers, and mandated reporters across the state. No offender should escape accountability because technology moved faster than our statutes. The opposition is saying we need to focus our criminal laws on behavior which harms actual victims and not on severe punishments based on whether a person has a deviant sexual interest. This bill is focused on actual victims. Children's photos are being taken off in addressing the AI issue. Children's photos are being taken off public social media sites. Many parents or people are public on Instagram, on Facebook. They post pictures of their family, of their children. Those photos can be taken off of real children and then used to generate AI images and video and live stream of the face of this child engaging in sexual conduct. conduct. There have been cases where there's AI-generated conduct of a young girl orally copulating an adult male. That's a real child. That's that child's face that is now out there for people to view for the rest of their life. So the opposition saying that it doesn't harm a real child, it does. The trauma from that will last for that child's lifetime into adulthood. So let's not excuse this as a sexual deviance. This is child sexual exploitation of a child. California must be clear that child sexual exploitation in any form streamed, digital, AI generated will be reported and prosecuted. And I respectfully ask for your aye vote. Thank you.

Chair Bauer-Cahanchair

Thank you so much for your testimony. Anyone else here in support of this bill? Name, organization, and position, please.

Dawn Kepkeother

Hi there. Dawn Kepke on behalf of the Child Abuse Prevention Center in support.

Chair Bauer-Cahanchair

Thank you.

Olivia Herreraother

Good afternoon. Olivia Herrera, intern at Stone Advocacy, on behalf of the California District Attorneys Association in support.

Chair Bauer-Cahanchair

Thank you. Thank you. Not seeing anyone else here in support. Okay, I don't see any. Is the opposition here?

Carlos Olorzanoother

Actually, I'm in support. I Carlos Olorzano with the Latin American Caribbean Business Chamber of Commerce and the Hispanic Chamber of Commerce of San Francisco Support because we know how it is happening with all the children that come in and cross over here Thank you Thank you so much Is the opposition here I know we have opposition on file

Chair Bauer-Cahanchair

Okay. Well, the opposition didn't show up. So anyone else here want to register their opposition to this measure? Okay. Thank God the answer is no.

Assemblymember Jacqui Irwinassemblymember

So, Senator Irwin. Yes, and thank you very much for working to close this loophole, and I completely disagree with the opposition that there is no harm. So I appreciate you bringing the bill forward for Senator Rubio. I was wondering, I thought that there were technical issues. issues. Obviously, when something is downloaded, it's easy to prove that it's in possession. So are there technical issues with trying to prove that somebody was streaming child pornography or

Laura Drinoother

AI-generated child pornography? Well, it's a different level, but law enforcement is able to enforce that. There's the whole knowing requirement, whether the person knew that they were doing it and that is addressed in subdivision G of 311.3. So it is able to be proved as far as whether somebody's viewing live stream. We've had cases recently on the Discord app where a group of young men in another state and some in California are observing and sexual conduct, have law enforcement able to do search warrants and find out who has been live streaming these children?

Assemblymember Jacqui Irwinassemblymember

Okay. And I also want to say the work you do is so extremely difficult, but it's so incredibly important, the lives that you are basically saving. So thank you for that.

Laura Drinoother

Thank you. I'm very passionate about it. Thank you.

Chair Bauer-Cahanchair

Thank you, Assemblymember Irwin. And I just want to express my gratitude to it must be really hard to do this every day and see these cases. And but we need people to do it. So I really appreciate you taking this on for the people of Los Angeles, but probably to the point of this bill far beyond because a lot of this is happening online.

Assemblymember Jacqui Irwinassemblymember

So I understand and I appreciate the answer. I'm assuming that much of this is, you know, if it's on Discord, you serve a warrant on Discord who was viewing this and they have records. And that's how you're able to prove what was going on. Can I ask, is it criminal behavior for the platforms to be facilitating the more difficult for the platforms? It's more difficult for them to view it in real time, the live streaming to take it down.

Laura Drinoother

But I know that that's something some platforms are, you know, working on. but it is, it's easier for the platforms to see when people are downloading or doing different types of activities than it is the actual live streaming. Um, but you know, that's kind of beyond, beyond my knowledge. Right. No, I was just curious about the criminal behavior. Cause I would think the facilitation of this type of crime should also be a crime if you ask me. Um, and it seems like obviously, you know, would you be able to instantaneously know there would be some delay, but in the age of AI...

Assemblymember Jacqui Irwinassemblymember

We know that devices already have artificial intelligence. I know, I think Amazon provides one that people use to screen images. I don't see why AI couldn't be an answer that would allow us to screen and stop these streams in order to prevent some of the... Yes, again, not instantaneous, but some minimal delay. I just think that that's something that should be incumbent upon the platforms as well so that we're not having this happen. And so it just, it's horrendous. And I just, I was at the UN Internet Technology Conference and had the opportunity to speak with some legislators from the Philippines where a lot of this content is created and a lot of their children are being abused. And it is just, I think we need to do everything we can to partner with people, even across the globe, to ensure that kids are not being harmed in this way. So just curious what else we could do.

Laura Drinoother

Unfortunately, we've had two cases of children right here in Los Angeles that are being sexually exploited, live streamed and told to after sexual conduct to harm themselves, commit suicide, all of those things. So it's really dark.

Assemblymember Jacqui Irwinassemblymember

It is really dark. We need the promises of technology without the perils. And this is really the perils laid bare. So thank you for that.

Chair Bauer-Cahanchair

This is obviously an incredibly important bill that I am eager to support today. Assembly member, do you want to close on behalf of Senator Rubio?

Assemblymember Jacqui Irwinassemblymember

Yes, well, the good news is she reported that the bills received bipartisan support. And on behalf of Senator Rubio, I respectfully ask for your aye vote.

Chair Bauer-Cahanchair

Thank you. When the time is right, we'll take the motion and the vote. We have two senators, I think. I think Senator McNerney is sitting behind you. So, Senator McNerney, you are up first with SB 813. When you are ready, Senator, we are ready for you.

Jerry McNerneyother

Well, thank you, Chair Bauer-Cahan. I'm glad you got the memo on the sports jacket. I'm here today to present SB 813. I want to start by thanking the chair and the committee staff for their amazing work. There's been a lot of back and forth on this, and I think it's pretty close to being what we would find ideal here. I do accept the committee amendments. I want to thank all my colleagues who have taken time to speak with me about this proposal as well. I also want to thank the stakeholders who have engaged in the discussions. SB 18 is a critical step in making AI safe and beneficial. SB 813 would establish a commission to oversee committees that will create safety standards for AI development and use cases. I've worked on standards bodies before, and I know the importance of having a robust process that includes industry, labor, academics, and consumer advocates for creating proactive standards for emerging technologies to prevent harm before it occurs and learning from past harms to design safety into otherwise potentially dangerous technology. The bill embodies the regular standards process as seen in many other national and international standards bodies such as NIST UL or ISO So why do we need standards for AI safety in California It's because California cannot wait for Washington. AI capabilities are advancing faster than traditional regulatory processes. California cannot wait for years for a paralyzed Congress to act. The states, including California, are beginning to establish guardrails for AI, to protect families, to protect workers, to protect the security of our elections, and of course to protect our children. But these standards could unravel if the federal government enacts legislation to prevent all state AI laws, and there's been a motion to do that. SB 813 gives California the opportunity to fight back against federal preemption of state AI laws by establishing a framework that is not a regulation. It's a voluntary process. SB 813 would establish a two-tiered framework for AI safety standards, a minimum compliance standard, and an advanced safety standard. The commission will then convene stakeholders, working groups of standards bodies to solicit input from the development and revision of these standards. It's important to note that SB 813 does not work alone. I have a partner in crime here working with me, sitting in the chair there. SB 813 works together with the chair's own bill, AB 1405. AB 1405 creates a state registry of AI auditors who use these standards that are created by SB 813 when performing third-body assessments to evaluate AI systems or models. This partnership creates a first in the nation, it's scalable AI government framework. And by scalable, I mean that we can scale this to other states, to the nation, and maybe to other countries around the world. It's important that we do something now. The lack of action has created increasing risk and great urgency. We cannot wait for AI to control us. We must remain in control ourselves. Here to testify with me today is Nicole Rocha of Fathom and Jai Jashmana from Transparency AI Coalition AI. Jasmine?

Chair Bauer-Cahanchair

Two minutes each when you're ready.

Nicole Rochaother

Good afternoon, Chair and members. I am Nicole Rocha here on behalf of Fathom, the sponsor of 813. Fathom is an independent, nonpartisan nonprofit whose mission is to find, build, and scale policy and technical innovations in the public interest. Fathom has spent the last two years developing and championing a practical, adaptable framework for AI governance built on a simple and powerful premise. Government sets public interest goals and independent experts verify results. SB 813 creates a two-tiered system by which both goals are accomplished. It establishes the California Artificial Standards and Safety Commission, which in turn designates and oversees a marketplace of auditors and IVOs tasked with evaluating compliance. Under this structure, the commission sets desired public interest outcomes, including product safety, child well-being, and data security, among others, while independent expert-led auditors and IVOs develop the technical criteria to determine whether AI models meet those outcomes and then verify AI systems that voluntarily seek certification against that criteria We have seen in other contexts how voluntary frameworks like the one envisioned by 813 create a race to the top like with environmental standards The success of this framework largely depends on the independence of the professionals conducting the assessments, and 813 demands that auditors and IVOs are free from conflicts of interest. Independent third-party evaluation offers decisive advantages over traditional regulatory models. First, it moves at the speed of innovation. Second, it elevates expertise. And third, it is designed to scale. Just as professional licenses and standards bodies operate across state lines while recognizing each other's credentials, the independent third-party auditors and IVOs can create a de facto national standard in the absence of federal action, ensuring that California will continue leading the nation on technology governance. Thank you for your consideration, and I'm happy to answer any questions.

Chair Bauer-Cahanchair

Yes, we are. I vote. Thank you.

Jay Jesimaother

Honorable Chair and members of the Assembly Privacy Committee, my name is Jay Jesima, and I'm proud to testify today on behalf of the Transparency Coalition in support of SB 813. While industry critics might argue that new compliance tiers will slow down development and stifle California's competitive edge, the reality is exactly the opposite. Innovation requires public trust and market predictability to thrive. SB 813 provides that stable foundation. Furthermore, the bill explicitly prevents regulatory stagnation by utilizing structured working groups. These groups ensure that industry developers sit at the table with academics and civil society to co-create evidence-based standards that evolve at the speed of tech. I've been part of a similar process in the state of Washington with stakeholders from all aspects of society that actually ended up producing much more inclusive and protective policies. We've also heard concerns about this set of standards being state-specific as opposed to relying on international standards. While the NIST-RMF, the risk management framework, has been in place for some time now, all we've seen from industry is a lack of action. Industry continues to express support for existing voluntary commitments, but fail to demonstrate their actual compliance with any transparency. And the only constant is federal inaction. The provisions outlined in this bill and AB 1405 collectively create a best-in-class audit framework that also builds on decades of industry practice in other areas. As someone who has built or complied with audit and certification programs at both startups and large companies like Microsoft, I can state that they are completely feasible. All it needs is a little encouragement from the California State Legislature. By establishing the California Artificial Intelligence Standards and Safety Commission, SBA 13 guarantees our basic consumer, worker, and business protections are met. Thank you so much for giving me the opportunity to testify, and I respectfully ask for your aye vote.

Chair Bauer-Cahanchair

Thank you. Anybody else here in support of this measure? Seeing no one. Do we have primary opposition on this measure? I know we had registered. Yep. Come on up.

Robert Boykinother

Good afternoon Good afternoon, Chair and members. Robert Boykin with TechNet. Here today to testify in respectful opposition to SB 813. And I'll say my comments today are on to the bill in print, because I know there has been amendments that I agree to, right? So, but let me start where we agree. Standards and independent audit. Okay.

Chair Bauer-Cahanchair

There's already amendments in the analysis, right?

Robert Boykinother

Yeah.

Chair Bauer-Cahanchair

Okay, cool.

Robert Boykinother

Let me start to, we really agree. Standards and independent auditing can play a real role in AI safety. We appreciate the author's continuing engagement and the restructuring in the June 16 amendments, the two-tier framework, and a new stakeholder working group. But as amended, the bill still asks seven members of the state commission to do something that the body simply is in position to do, setting advanced AI safety standards takes deep current expertise to model evaluation, red teaming, and security, the kind that lives at NIST, ISO, and IEEE, bodies with decades of consistence-based experience and thousands and thousands of contributing experts. SB 813's commission would be seven political appointees, none required to have standard-setting experience, asked to evaluate hundreds of existing standards and write new ones. Core terms like heightened care, best practices, substantially exceed minimum compliance. remain undefined with no required public comment, peer review, or consensus approach. A working group is a welcome step, but it's not a rigorous standards process. NIST's AI risk management framework took years of public comment and peer review. This bill requires none of that. The framework is also voluntary and name only. Earlier versions carry the liability shield that gave developers a reason to certify. That's gone. And what remains is the market pressure from insurers, procurement, and plaintiff's attorneys that pushes companies to certify anyway. That's a de facto mandate without the legal certainty of a real incentive would provide. And in fragments, this committee is concurrently negotiating audit and assessment requirements in SB 1119, AB 2023. Standing up a separate two-tier auditing regimen under SB 813 risks two parallel, potentially inconsistent frameworks for the same technology, on top of a growing patchwork in Ohio, Connecticut, and beyond. California has led by aligning with broad, globally recognized standards, not by building siloed ones other jurisdictions won't recognize. Oh, so we'd urge the same approach here. For these reasons, we respectfully oppose 813 and ask for a no vote today.

Chair Bauer-Cahanchair

Thank you. Thank you. Ms. Delaney?

Ronak DeLamyother

Thank you. Ronak DeLamy on behalf of Cal Chamber in an imposed unless amended position. While our letter goes into greater detail, there are a few issues we also want to highlight for today's hearing. Cal Chamber does share the goal of promoting safe and trustworthy AI, but we are concerned that this bill creates a California-specific development and auditing framework at a time when robust national and international standards are already being developed, as mentioned by my colleague. Technical standards should be developed through expert-driven consensus-based processes, not through a structure that risks becoming outdated or inconsistent with broader national and global efforts. We're, of course, reviewing the committee amendments, but on our first three, the amendments failed to address the core concerns, our core concerns, including those around the breadth of the authority and expertise of the commission or the significant resource and capacity constraints involved in reviewing and developing auditing protocols for rapidly evolving technical standards. Realistically, international bodies rely on thousands of experts over multiple years to produce a single standard. So without the proper resources to do this, we're simply going to create an immense regulatory bottleneck and risk rendering state guidelines obsolete before they are even published. We also point out that things such as trying to align and aligning are two different things. again while we share the author's goal of advancing AI safety while preserving innovation and interoperability. We do have significant reservations over this approach at this time. That's not significant amendments are done to address these and other concerns in our letter. We do respectfully ask for a no vote

Chair Bauer-Cahanchair

at this time. Thank you. Thank you. Anybody else here in opposition to this measure? Must be really busy around here. I just love you. Nobody's coming up for anything.

Tracy Rosenbergother

Tracy Rosenberg, with Oakland Privacy, we were in opposition to the previous version of the bill. We have since dropped that opposition, and we think we are likely to move into a position of support, but we have to read all of the amendments. So we're working on it.

Chair Bauer-Cahanchair

Thank you.

Becca Kramerother

Becca Kramer, on behalf of the Electronic Frontier Foundation, we were also previously in opposition, wanted to thank all folks for all the work done on the bill, and we are neutral on the bill as it is in print. Thank you.

Samantha Gordonother

I was like, if they're doing that, I guess we should too. Samantha Gordon with Tech Equity. Thank you to the Senator and to the Chair for all the work on this bill. We've removed opposition and hope to be able to move to support soon. Thank you. Thank you.

Savina Tackarother

Savina Tackar, the consumer attorneys in the same position. Thank you.

Chair Bauer-Cahanchair

Thank you.

John Bennettother

John Bennett with the California Initiative for Technology and Democracy. Same position as them. Ms. Rosenberg started a trend. Great. Seeing no additional opposition or support, we'll bring it back to the dais.

Chair Bauer-Cahanchair

Any questions, concerns, thoughts? Okay. So I had a question.

Assemblymember Jacqui Irwinassemblymember

So in your opposition, you mentioned market pressures being de facto requirements, I think was the language. I don't want to misspeak, but that's what I think I heard, which was an interesting thing to hear from industry because I feel like the focus of the author on allowing sort of rather than requirements, informed market decisions feels like a good free market solution that I would expect industry to appreciate. So that was a piece of opposition that frankly surprised me. So I don't know if you wanted to elaborate on that.

Robert Boykinother

Do you want? We have similar concerns. I'm happy to. So I think while we do appreciate taking a voluntary approach, I think what the concern comes down to is what is voluntary in practice when your competitors start to do these things, it becomes de facto something that you feel you have to also do. So it becomes mandatory in practice. Right. It's that market pressure.

Assemblymember Jacqui Irwinassemblymember

Right. No, I understand. I think that's a good thing. I guess we can disagree about that. I think that's the explanation of what I'm concerned about. No, and I appreciate that. This is a place to disagree politely and that's what's happening here. Um, so I guess I just want to say from my perspective, that feels like a really, um, innovative, innovation friendly way of doing this. So all industry partners could decide it's not possible to live up to a standard and you would have none that would certify. But if you had one that were able to meet the standards under this bill and show that they were a market option that had met a safety standard, yes, would other folks then be motivated to do it in order for the market to choose them as well. Yes, I agree. That would lead to market pressure in a good way because what this is pushing is safety. And so I think what, but if it were impossible, if standards were said that were impossible, you would have nobody that met them, in which case the market would then be flat as well, right? So you would then have competition continue So I think using market pressure which honestly I had one of the largest AI companies come into my office this year that had not been incredibly supportive of my effort to bring auditing to the marketplace tell me that they had now been repeatedly asked for audits as a procurement under procurement So someone was buying their tool and said, well, I want to see that you've audited it for X, Y, and Z by an independent verifier. And so they were doing that because they wanted to win the contract. And in this context, they were saying, we want some standards for auditors because now we're using these auditors with no standards. Um, and so the market is moving, right? I mean, that's not something that happened out of any regulatory requirement. It was merely, uh, and these happen to be municipalities that were putting these procurement standards into place. Um, but markets move and that is a good thing when you're moving towards safety. Um, and I think that government should use its procurement power in that way more often, frankly, I think it is one of the greatest powers we have. Um, but this, I think allows us to do that in a more standardized way and is a really positive thing. Um, the nation, I think is moving to a place where we are across states going to start demanding independent verification of safety of these incredibly powerful tools. And I think the better we are at setting standards so people understand what is being tested for, how it's being tested, that it's independent, and then showing whether companies can meet these standards or not, and that some are and some are not is actually a really positive thing for the safety of AI and the future of the industry. So I think this is an incredible measure. And I don't just say that because we work together on it. But I think it's really important. And I think that taking seriously the safety of AI is something that California needs to do. And I know one of the critiques that I hear and understand is that this is happening across states. That is real. I don't want to diminish that. On the other hand, here in this building, our job is to make sure Californians are protected. And so to say that we aren't going to do that because other states are potentially going to do it feels like not responsible legislating on our part. And so I think it's really important we move forward with this measure. And if you would have me, Senator, I would love to be out as a co-author on the measure. As well as Mr. Lowenthal has asked this morning to be a co-author.

Chair Bauer-Cahanchair

Great. We've got that. Perfect. It's on the record. So if there are no other questions,

Jerry McNerneyother

Would you like to close? Well, I thank you. I thank the committee for hearing this. I thank the opposition for working with us on a lot of the issues. I will point out that the commission is not really going to be creating standards. They're really going to be overseeing the bodies that create standards. There's no way a small commission like that could create standards. It's just the breadth of the issues that we're talking about. So they'll be overseeing and make sure that the standards committees are legitimate, that they're well represented, and that they are free of control by industry. That's their job. And so I think the standards will be created. And the voluntary issue, I think, is an important issue. And I thank the opposition for bringing that up. So basically, if standards are created that provide safety and some providers, some suppliers want to see if their product is a safe product and they go to the standards of the ABOs and get approval and get a certified approval, then that's a good thing for the market. And other companies that want to participate in the market are going to be motivated to do the same thing. So it'll raise the safety level of the product of the AI industry. And I can tell you we need to move on AI We need to get our hands around this I don see anything coming from the federal government in the near term out of my personal experience there Maybe ISO or the others are going to be moving on this but I still haven seen definitive evidence that that happening yet And California is a leader. We've got the real experts here. We've got the experts from the universities. We've got the experts from industry, from the top industry leaders. And they are going to be asked to participate. And not only the top industry, but the little guys, the little guys that have a company with a hundred fewer than 100 people, they're going to have to have their voices, too. So I think this is the way forward. And it'll create a it'll create a standard for the country to say this is what we need to do to protect ourselves from AI. So I hope I made a good case. I asked the committee for an aye vote.

Chair Bauer-Cahanchair

Thank you, Senator. And when the time is right, we will take a motion and a vote. Thank you. I see Senator Padilla. Thank you for your patience. You are up next. And you're presenting four bills. You're going to be here a while. Hi. Should I just camp out next to you? I think you should camp out. Are we going to start with SB 300? I defer to you on which one you want to do first. I'll take them, Madam Chair, if it's okay, I'll take them and file her. Perfect. So SB 300. All right, Madam Chair, thank you. And members, I'm pleased to present SB 300. Last year, the legislature passed SB 243, which was one of the first of its kind, to set safety standards for artificial intelligence chatbots in the nation. It's a vital step, but a first step, towards regulating a technology that has the capacity to cause irreversible harm to users, and particularly children. Since this issue was first brought to the legislature, a growing body of research has examined the prevalence of chatbots exposing minors to sexually explicit content, using this sensitive subject matter to increase engagement. Leaked internal documents, for example, from Meta confirmed recently that their own risk standards say it is permissible for their bots to engage in sensual, inappropriate conversations with minors. Open AI announced the impending rollout of ChatGPT's new erotica feature, and Elon Musk's Grok has created non-consensual sexual deepfakes of users, including minors. As we learn more and more about the possible harms caused by this rapidly evolving technology, it's imperative to continue to build on existing regulations. Under this bill, operators would be required to prevent, affirmatively prevent, a chatbot from exposing a minor user to sexually explicit content of any kind or encouraging or facilitating such exposure. The bill is a result of negotiations and commitments made at the end of last session to update and further strengthen protections passed in SB 243. SB 300, these protections contained are part of a broader conversation that are taking place across state houses and across the country, and I continue to be committed to ensuring that California has the most robust and thorough protections in the country for minors who access companion chatbots. I'm pleased to be joined today by John Bennett, the Executive Director of California Initiative for Technology and Democracy. Thank you. Mr. Bennett, when you're ready. Thank you. Good afternoon, Chair Bauer-Kahanna members. My name is John Bennett and I am the director of CITED, the California Initiative for Technology Democracy, a project of California Common Cause, speaking today in support of SB 300. I'd like to thank Senator Padilla and his staff for their openness to engage in dialogue with us since the end of last session regarding ways to strengthen the provisions of SB 243. With the passage of AB 1043 last year which established age verification requirements it has become clear that the standard for protecting children must be elevated to a knowledge standard Furthermore OpenAI announced last year that it intended to offer erotic content for adults through ChatGPT a plan the company has since paused indefinitely, but which demonstrated that these systems are capable of distinguishing between users seeking sexual material and those who are not. Age verification and content classifications are related but distinct technical challenges. But if these companies could build systems sophisticated enough to identify adult users seeking this content, they can and should build systems that can prevent children from being exposed to it. These concerns have been compounded by revelations about a chatbot integrated into meta social media platforms in which internal documents reported by Reuters showed the company-owned content standards permitted its AI to engage in romantic or sensual role play with minors, and that this was not a technical malfunction but a deliberate policy choice. These chatbots are integrated into platforms reaching hundreds of millions of users, underscoring the need for SB300. We appreciate Senator Padilla's leadership in bringing forward this measure. We believe SB300, like SB243, is an important step in the right direction. And the comprehensive guardrails such as those in SB1119, as well as the chair and an assembly member WIC's AB2023, are essential to fully protecting children from the harms of companion chatbots. We look forward to continuing to work with the Senator and the members of this legislature to develop and support the strongest possible guardrails for this rapidly evolving technology. For these reasons, CITED respectfully urges your aye vote. Thank you. Thank you. Anybody else here in support of this measure? Aim, organization, and position, please. Jay Jessamon from the Transparency Coalition in support. Thank you. Cheryl Westmont with Mothers Against Media Addiction and also for Common Sense Media in support. Thank you. Thank you. Anyone else here in principal opposition to this measure? I'm Jalen Woodard. Oh, sorry, please. Yeah, Mr. Board came away. Go ahead. I'm Jalen Woodard with the Alameda County Office of Education in support. Thank you. Crowded up there. I think I said I should just camp out. Okay. We'll see you in a minute. They should at least give you an aisle seat, Mr. Boykin. See what? They should at least give you an aisle seat back then. All right. Good afternoon, chair members. My name is Robert Boykin with TechNet here today testifying in respectful opposition to SB 300. We worked closely with the author last year on SB 243, a significant bill that created a novel framework governing companion chatbots. Two other measures, AB 2023, passed this committee, and SB 1119, also moving through the legislature, are building upon that work. So we understand the desire to act early on developing issues. But our opposition today is about how and when the law is expanded. SB 243 took effect only earlier this year. There has been no enforcement, no regulatory guidance, and no judicial interpretation. SB 300 will materially revise that framework before anyone else has seen whether SB 243 works as intended. But also, let me be crystal clear about what we are not saying. Our members deploy extensive safeguards to block sexually explicit content from reaching minors. and they are fully committed to doing so. Nothing in our position resists that obligation. The narrow concern I'm laying out today is the liability standard. SB 300 replaces a reasonableness-based standard with an absolute duty to prevent and pairs it with an undefined prohibition on facilitating the exchange of such material. Combined with the private right of action that's already in statute, those changes risk a de facto strict liability regimen, where a single output that slips through a good-faith system is treated the same as an operator who did nothing at all. We do credit one clarification. Limiting the minor obligations to cases of actual knowledge is sensible, and we do not oppose that. Our objection is confined to the PREVENT standard and a facilitated the exchange language. Building on 243 is a laudable goal, and the author and his committee are already pursuing that, but rewriting the underlying standard months after adoption sends a wrong signal and creates an ever-shifting set of obligations. Consistent with our position from last year, TechNet remains committed to working with the author, the stakeholders to protect children, while keeping the law workable, fair, and durable. But for these reasons today, we respectfully urge caution and oppose SB 300 at this time. Thank you. Anybody else here in opposition to this measure? Name, organization, and position? Aidan Downey with the Computer and Communications Industry Association and respectful opposition. Thank you. Thank you. Okay. Okay, perfect. Thank you. We have people out in the hall, so I'm trying to give it a little bit a minute. So no more questions. We'll bring it back to the dais. Ms. Irwin? Yes. So I voted for your bill last year. I voted for all the other chatbot bills. But I do think that the opponents have a reasonable argument. I'm trying to figure out, was there an agreement last year to get your bill through with the reasonableness standard? Or was the agreement that you were going to work to strengthen the bill this year before it was actually fully implemented? Madam Chair, to the Assembly Member, there was not an agreement with respect to the amendments that you see that constitute the bill before you. The circumstances that have changed since then is growing data, as in my testimony, about this particular level of exposure and the particular elevated level of risk here, specifically sexually explicit content by minors, and tightening that up. That was part of our position in prior conversations and continues to be. Okay. Did you? Yeah, I didn't see it as an agreement. I was like, we got to a good place. My position is on changing it from the reasonableness, like they're trying to make sure none of it is seen, to like a strict saying, make sure none of it is seen. And that connected with the liability creates an issue for some of the companies. But would there have been an advantage to see how it was implemented first? Madam Chair. With a lot of the bills that we pass, often we wait to see how it's implemented, how it's regulated, and then look at how we go further. So it just seems like it might be premature, is my – Senator? Madam Chair, and to my esteemed colleague, who I have great respect for, respectfully would just, I think, disagree with the premise. I think here the legislation seeks to strengthen the bill in ways that get to a very discreet and specific but very high-risk set of circumstances. And in my view, it is never too premature to enact the appropriate level of deterrent and legal culpability and standards. Commence for it with the risk and the nature that we're addressing here, both the evidentiary standards and the exposure. I mean, I would argue, you know, even that, you know, many would argue that the product here is already maybe subject to California strict liability statutes. There's some debate around that. I think being very specific about actual knowledge is important, but that is also commensurate with a higher level of accountability legally and otherwise. Thank you, Assemblymember. Seeing no further questions. I just want to say that I think this, I really want to thank you for your work on chatbots. We've obviously worked closely together now for quite some time on this question. And I think what important to note about this update is that we have more information in our hands than we did at the time that we passed our bills The information you cited about OpenAI move towards erotica which as you said they have abandoned, but that was, I think, after market pressures, was announced, I think, 24 hours after my child chatbot bill was vetoed by the governor. Was that timing incidental or intentional. We'll never know. But we didn't know that at the time. So I do think we have more information about the direction that these companies may be going in, the harm they may be causing, and that we need to make sure that we're moving towards a space of safety. And frankly, your bill last year was, and I think you've said this, the floor. And so it's not as if it is incredibly aggressive in these additions, I don't think, make it so. And so with that, I'm happy to support it today, but would you like to close? Again, I'll defer to the chair's comments just now and accept that as my closing comments. I appreciate the collaboration at the right time, Madam Chair and members. I would respectfully ask for an aye vote. Thank you. So when we have a quorum, we will do that. We will move to your second bill, SB 903 on mental health professionals. Thank you. Thank you, Madam Chair and members. I'm pleased to present SB 903. I want to begin by thanking the Chair and the Committee for working collaboratively with our office. We're accepting the amendments. As technological capacity continues to grow and new tools are introduced into the mental health space, We must ensure adequate guardrails are in place to maintain a human-centered approach to keep safety and ethical considerations in the forefront. We have already seen real-world consequences of inadvertently regulated AI and mental health care with chatbots powered by AI algorithms on the market claiming to provide therapy. Websites where these bots are available often use taglines such as 24-7 AI therapy. Therapist is always at your fingertips or AI therapy in your pocket. or even claim to specialize in cognitive behavioral therapy. Many people, including children, have turned to these chatbots for mental health support, and however, research continues to indicate that often these tools do more harm than good. A Stanford University study found that AI therapy chatbots may not only lack effectiveness compared to human therapists, but could also contribute to harmful stigma and dangerous responses. Clinicians across the state have also raised many concerns that chatbot therapists pose data and privacy concerns, have a limited understanding of client backgrounds, can cause client over-reliance on chatbots, give incorrect treatment recommendations or interventions, have an inability to detect subtle communication cues such as tone and eye contact. Although this technology has already begun to be integrated into treatment, a recent survey conducted by the American Psychiatric Association found that 80 percent of their members are very or moderately concerned that mental health professionals don't receive adequate training to incorporate AI into their practice. Last year, I authored SB 579, which would have created a working group to assess the ways in which AI is used in mental health treatment and establish best practices. That bill did not progress, but now we see dangers expanding. The time to act is definitely now. Some examples last year in Illinois the legislature passed the Wellness and Oversight for Psychological Resources Act and states across the nation are moving towards similar bills This bill would build on those efforts to protect individuals seeking therapy and psychotherapy services by ensuring that AI chatbots cannot be advertised as therapy It sets standards for use in therapeutic practice by requiring informed consent disclosure and requiring a human licensed clinician be in the loop. It would also reinforce that the use of AI tech and psychotherapy records must comply with existing confidentiality laws and protect the data privacy of patients. Throughout the legislative session, we've engaged with stakeholders, and I'm committed to continuing this effort to craft the most effective and operational piece of legislation that can set a national standard for the regulation of AI use and mental health treatment. AI has the potential to increase clinical capacity, but only if it is utilized in a way that maintains a human-centered approach and keeps safety and ethical considerations front and center. It draws a very clear line. AI can be a tool in the hands of licensed professionals, but it cannot be the professional itself. With me to testify is Benjamin Eckert, Public Policy Director for the National Union of Healthcare Workers, and Tyler Rinde, Director of GA for the California Psychological Association. Welcome. Thank you. Good afternoon, Madam Chair and Members. I'm Benjamin Eckert, Director of Public Policy for the National Union of Healthcare Workers, which represents nearly 6,000 licensed mental health clinicians at Kaiser, Sutter, Rogers, and more. We're proud co-sponsors of SB903, which will protect both patients and providers from the risks of unregulated AI and psychotherapy. First, it protects patients, the consumers, from the technology itself. Even the most advanced AI models are prone to hallucination, confidently delivering a wrong answer. In psychotherapy, that wrong answer might be a diagnosis or treatment plan. In fact, our members have seen this firsthand in settings where AI is already in use. Also, AI has a well-documented tendency toward bias because it is trained on the data of our own history. When a technology can implement millions of decisions in an instant, we risk cementing into our future unequal and unjust structures from our past. Second, SB 903 protects providers and society at large from worker displacement and gradual dispowerment. In May, Governor Newsom signed an executive order directing the state to prepare for the economic disruption AI will bring to the workforce. Displacement is one risk. Disempowerment is a newer one. Evidence is mounting that when we hand everyday tasks to a machine, our own skills atrophy. In coding, in research, in clinical practice, for a state already facing a mental health crisis, we cannot afford for our clinicians to grow dependent on machines. That is why the requirements in SB 903 matter. They require a licensed professional to review and approve AI output. not to sign off once on a tool and walk away. It's more than a rubber stamp. It asks a clinician to bring their professional judgment to bear. That protects consumers from hallucination and bias, and it keeps a human professional in the loop with their skills sharp. Even so, SB 903 leaves a wide door open to AI that genuinely supports care, the documentation and workflow tools that ease clinician burden and can expand access. The bill simply draws sensible guardrails around the rest. Grateful to the author for leading on this issue. grateful to the committee for the thoughtful analysis and constructive engagement with the author and co-sponsors. And for the benefit of the patients our members serve, I respectfully ask for your aye vote. Thank you. Good afternoon, Chair and members. Tyra Rinde on behalf of the California Psychological Association. We represent over 2,000 licensed psychologists and are proud co-sponsors of SB 903. We're grateful for Senator Padilla's commitment to protecting Californians and appreciate the thoughtful analysis by the committee. SB 903 establishes clear reasonable standards to protect individuals seeking mental health services Increasingly consumers are encountering tools that resemble therapy but lack the training accountability and ethical obligations of licensed professionals Right now, there is an AI chatbot on the website character.ai titled Psychologist with over 210 million interactions as of this morning when I checked that says, hello, I'm a psychologist. What brings you here today? In small font, it says this is an AI chatbot and not a real person. Treat everything it says as fiction, but it is misleading to consumers. This is dangerous, unethical, and there are numerous devastating stories of the harms from chatbots. In contrast, our member psychologists have completed a doctoral degree, complete over 3,000 hours of supervised professional experience, pass the licensing exams, complete a continuing education every two years, and are subject to oversight by the Board of Psychology in order to practice in California. Mental health care involves deep understanding of human thought, emotion, history, social context, culture, and risks. AI, by its design, relies on patterns in data and statistical associations. They cannot reliably identify or respond to crises or subtle cues that experienced clinicians are trained to detect. These limitations pose concern for patient safety when the tools are presented or used in ways that mimic therapeutic relationships. Importantly, the bill does not prohibit the use of AI, but critically ensures that there's a human in the loop overseeing the use of AI in a mental health care. For these reasons, we respectfully ask your aye vote on the bill. Thank you. I mean, these two witnesses were both almost exactly two minutes. I'm incredibly impressed. Anyone else here in support of this bill? Name, organization, and position. Thank you. Sumaya Nahar on behalf of the California Association of Marriage and Family Therapists, one of the proud co-sponsors of the bill. Thank you. Hello. Carly Stelzer with the California Behavioral Health Association, also proud co-sponsors in support. Madam Chair, member Sarah Flox, California Federation of Labor Unions, in strong support. Thank you. Thank you. Samantha Gordon with TechEquity Action in support. Thank you. Hello, Tracy Rosenberg on behalf of Oakland Privacy in support. Good morning, Madam Chair and members. Malik Bynum with the County Behavioral Health Directors Association in support. Thank you. Jay Jessamon with Transparency Coalition in support. Good afternoon, Madam Chair and members. Connor Gustman on behalf of the engineers and scientists of California in proud support. Good afternoon, Chair and members. Karen Stout here on behalf of Power California Action Youth Advocacy and Support. Thank you. Thank you. Anyone here in opposition to this measure? Let's see. Oh, yeah, come on up. Don't delay. Thank you, Chair and members. Ryan Perini on behalf of ATA Action. We're actually opposed unless amended and continue to work with the author around the definition of triage and then the mental health and crisis detection section. Thank you. Thank you. Robert Boykin with TechNet, also opposed unless amended. Thank you. Carolyn V. Hunter on behalf of Teladoc, we support the concept of the bill and align our comments with ATA with respect to those two issues. Thank you. Thank you. Andrew Antwi here today on behalf of the California Medical Association. We also stand opposed unless amended. We have engaged with the author and are working on fine-tuning some suggested amendments. California Hospital Association, also opposed unless amended, but I want to thank the author for the ongoing conversation on working out the last remaining issues. Thank you. Ronak DeLamy on behalf of Cal Chamber, opposed unless amended. Thank you. Thank you. Bringing it back to the dius, Ms. Ortega. Yeah, I want to thank the author for bringing this bill forward. I am a true believer that, you know, as AI rapidly evolves, especially in the health care system, that it should be there to support, not replace. You know, health care workers use a lot more to help diagnose a patient, smell, touch, everything that a human does that a robot just can't do. So I wanted to ask your witness a question around examples of mistakes in the clinical setting that have happened through the use of AI. Thank you for the question. I appreciate that. In one instance, a patient of one of our members was screened by an AI intake tool. They were asked about thoughts of self-harm. They hesitated and then said no. The system logged it as a binary no and moved on. And I know that a human clinician would have heard that hesitation and known to probe further. And another example, a patient was triaged by an AI tool presenting with clear signs of primary substance use disorder. They were booked, though, with a clinician who specializes in treating OCD. The patient relapsed before anyone caught the mistake. Those are just two examples. There are quite a few others, but I would say importantly that both of those examples are part of the triage intake screening function that some of the opposition wants to carve out of the bill. Got it. Thank you. Thank you, Assemblymember Mr. Wynn. Well, since I'm getting other members here pretty soon, I'll stop asking questions to every person. Well, this is your last privacy hearing. We're going to miss you and your many questions. So go for it, Ms. Irwin. We're going to have a special hearing. You'll be back. I think we'll probably have a special hearing, yes. No, I voted for this bill already. I think it is incredibly important. And I know you went through the whole list of reasons that AI should not be used for therapy. But I think the biggest thing that we hear is that it's just the sycophantic nature. It is telling the user exactly what it wants to hear, and that's exactly not what we should expect from a therapist. The one question I have is since we've heard this in BMP, there was opposition that we heard from CMA and the Hospital Association. Have you worked with them since that time on seeing if there's some common ground there? Madam Chair, Assemblymember, absolutely, as was testified to by them, we continue those robust conversations, and I think we are making some progress on trying to get to resolution on some of the drafting concerns. Thank you. Anybody else? I think that the Vice Chair and I have also both voted on this in BNP. Thank you, Senator, for this work. I think this is such important work, And I think the example you gave of the intake tool not catching that pause is actually a really powerful one because I think that when I think about medicine frankly across practices so much of my sister who a doctor always says that it when she puts her hands on the doorknob what the parent says she a pediatrician is what she realizes often the most important And there just these moments that about the human to human interaction that allow the people who care for us in our bodies and our minds to really catch things that otherwise wouldn't be noticed by an artificial intelligence tool. And so, you know, we license these professionals. You mentioned the massive training we expect, the hours of oversight, because we believe this is such a sensitive area of practice. And so to allow an AI to do it in lieu of a person is not something I think California wants to see. But I think this bill is actually, frankly, tries to thread the needle in a really powerful way by ensuring that tools can be used for things that are ministerial in nature and are not the care of patients. And that I think absolutely many of us see tools like that in our own, medical practices every day where the provider is actually able to pay more attention to us because they're not paying attention to note-taking or something else. And that's a real benefit. And so I think this bill takes that approach of really allowing for the benefits of AI while ensuring that the individuals that we license to do this work are staying in control and central to the care of Californians. And so I think it's incredibly goodwill, and I appreciate you working so hard with our committee on the amendments. I know we got a lot of cleanup done here, and I really appreciate that. So I trust and know you will continue to work with the opposition, as you mentioned, to the Assemblymember as well. So with that, would you like to close? Yeah, thank you, Madam Chair. And again, thank you and your staff for working with us. It makes the bill better. Those amendments were very productive and helpful. I appreciate all the great questions and certainly co-sponsors. I think fundamentally this is about consumer protection for people who are at some of the most vulnerable moments in their lives and seeking the kind of intervention and assistance that requires a licensed professional. So it gets to a lot of areas. First and foremost, consumer protection, the integrity of what's being advertised and received by a patient, certainly licensure, scope of practice, all kinds of the integrity that needs to be protected around that. We certainly acknowledge a place for AI in this that can help have patients get more access to care, but the algorithm should not be practicing psychotherapy. And so with that at the right time, certainly ask for an aye vote. Thank you. We're getting closer to a quorum. Are we one away? Two away, if anybody's listening. You want to come help us get those last two. Okay, so one more. We'll grab Mr. Hoover. Okay. You have one more. You have one more SB 1119, Mr. Yeah, when you are ready. Thank you very much, Madam Chair and members. A bill that the chair has never heard of, SB 1119. chatbots such as chat bt claude and gemini become common tools for users to utilize as ai assistants or study aids but a growing number of consumers are utilizing these tools for companionship growing and substantial anecdotal empirical evidence has illustrated the dangerous possibilities of chatbot interactions and how their design can be unsuitable for vulnerable users such as children research shows that children are more likely to view ai chatbots as quasi-human and trust them more than adults. When an interaction between vulnerable persons and children and chatbots goes wrong, they go really, really wrong. An investigation by Common Sense Media and Stanford University's Brainstorm Lab for Mental Health found that the safeguards in place for the chatbots they tested were unable to adequately prevent the tech from encouraging harmful behaviors, providing inappropriate content, and exacerbating mental health conditions in minors. There have been several tragic high cases that have shown us small examples numerically small not incidentally small of how these interactions can turn dangerous and even deadly In one example teenager Adam Rain ended his life after a prolonged interaction with ChatGPT. What started out as a study aid ultimately became Adam's closest companion. When Adam turned suicidal, ChatGPT offered validation and encouraged exploration of his suicidal thoughts. It was ultimately revealed that the chatbot mentioned suicide 1,275 times, six times the amount that Adam mentioned it. Last year, I authored SB243, an important first step in ensuring the safety of users interacting with chatbots, but so much more work remains to be done. This session, I have joined efforts with Assemblymember Wicks and Chair Bauer-Cahan and to introduce SB 1119 and AB 2023 companion bills that mirror one another. These bills seek to establish a comprehensive regulatory framework to address the risk of prolonged interactions with chatbots by children. These bills would require an annual risk assessment, along with the establishment of measures to prevent suicidal ideation, syncopacy, and isolation, including a crisis response protocol, providing added guardrails in the form of default settings for children, parental controls, noticing requirements, and time limits, prohibitions on advertising and selling and sharing the image and children's private information, and ensuring a robust oversight and enforcement framework, including through a public incident reporting mechanism, third-party audits, the development of auditing standards by the Attorney General, and the inclusion of a private right of action. Madam Chair, did you need me to pause? Yes, I have a quorum and I'm worried somebody's going to get up. I get that. I'm happy to suspend. Nobody move. As a member of Bauer-Cahan. Here. Bauer-Cahan here. Macedo. Present. Macedo here. Bennett, Brian, DeMaio, Hoover. Here. Hoover here. Irwin. Here. Irwin here. Lowenthal. Here. Lowenthal here. McKinner. Ortega. Here. Ortega here. Patterson. Pellerin. Petra Norris. Ward. Ward here. Wilson? Here. Wilson here. We have a quorum. Thank you, Madam Chair. Never fail to take note of a chair's body language. We have seen the consequences of inaction towards the dangers posed by social media, and the stakes are too high to not make the same mistakes again. We must now act to ensure the proper guardrails are in place to ensure transparency, safety and accountability to make sure that we protect our children before more harm is done and before it is too late. And obviously today I am joined by Jay Jashima from the Transparency Coalition. Honorable Chair and members of the committee, I'm still Jay Jashima and I'm proud to testify on behalf of the Transparency Coalition. We've been active. We were very honored to work with the senator last year on SB243 and have been active in helping pass chatbot laws or move them forward in 20 states this year. So very, very excited to be here with this bill. The cornerstone of SB1 1119 is its proactive approach to harm reduction. Rather than waiting for tragedy to strike, the bill requires chatbot operators to annually conduct and document comprehensive risk assessments. These assessments mandate that developers must systematically evaluate how their platform design impacts vulnerable children analyzing differential risks across various developmental stages By pairing these assessments with clear public safety policies SB 1119 creates unprecedented transparency This transparency empowers parents to make informed decisions about the AI tools entering their households. We've heard oblique or maybe even direct criticism of the audit and risk assessment requirements of the bill on the grounds that there's a limited pool of auditors or that audits may not be consistent because of the lack of standards. Nothing could be further from the truth. As we heard ourselves, you know, there's marketplace pressure, marketplaces responding, and auditors with experience from multiple domains are stepping up to offer these services. We don't need auditors who are experts in child safety to have a successful program. We just need auditors who are financially independent and willing to document what is found with integrity and clarity. Also, we've been waiting for industry to show and tell how they're keeping the many promises they've made about making chatbots safer and being transparent. I think they're just waiting for some encouragement from you all. To protect industry innovation, the individual audit reports remain strictly confidential. This protects proprietary trade secrets while providing the AG with the high-level anonymized data to track industry-wide safety trends. SB 1119 proves once again that California can foster cutting-edge progress while ensuring that AI systems are safe, transparent, and ethically designed. We respectfully ask for your support. Thank you. Thank you. Anyone else here in support of this measure? Name, organization, and position? Nicole Rocha on behalf of Children Now in support. John Bennett with the California Initiative for Technology and Democracy in support. Thank you. Cheryl Westmont with Mothers Against Media Addiction and also Common Sense Media. Thank you. Thanks for support. Tracy Rosenberg with Oakland Privacy. We are in a support if amended position. We just want to say we don't think online harms turn off at age 16 like a spigot. and we'd like to see chatbot audits make platforms safe for users of all ages. But thank you for the bill. Ooh. It's a new one. Jalen Woodard on behalf of the Alameda County Office of Education in support. Thank you. Anyone else here in support? Seeing none, the opposition, feel free to join us. We have a motion. It's the first of the day. Thank you. the bill's effort to provide safeguards while still preserving access to beneficial tools. Our primary concern is ensuring that the bill establishes clear objective and workable standards that can be consistently applied by developers, auditors, regulators, and the courts. We believe additional refinements are needed to reduce ambiguity, avoid hindsight liability, and ensure that good faith compliance efforts are not undermined by subjective and undefined requirements. We continue to have concerns regarding several key provisions, including the definition of covered harms and specifically what's meant by psychological and emotional harm when the term child spanza. wide range of developmental stages up to the age of 18, as well as the audit and disclosure framework, the treatment of risk assessments as guarantees against future harm, and the bill's punitive liability structure, which allows even minor and technical implementation issues to multiply into significant cumulative liability. Excuse me. It's been a long couple days. I'm going to turn to my colleagues to get more into those issues around liability. And just, and by saying that we look forward to work with the author on these issues and develop a framework that is both protective and workable before the bill reaches the floor. Thank you. Good afternoon, Madam Chair. Chris McKaley here on behalf of the Civil Justice Association of California. I know you, Madam Chair, and your colleague, Ms. Wicks, and of course, the good Senator from San Diego has heard these comments, but a couple of issues. First, on the risk assessment, we think that the language in the bill really amounts to guaranteeing against any potential harm, which we believe is problematic. We're also concerned with several definitions. The child safety risk is a reasonably foreseeable standard, which we find to be, unfortunately, quite ambiguous, and when you add in the PRA, becomes even more problematic. As my colleague mentioned, covered harm is a negligence standard. It utilizes approximately cause language, which also is problematic. Of course, the bill has both public enforcement and private enforcement. Our objection on the PRA is it's also subject to as much as punitive damages as well as attorney's fees and injunctive relief. And so when you combine those ambiguous phrases and terms being used with a PRA, we think that this is fraught for significant litigation. Thank you, Madam Chair. Thank you. Anyone else here in opposition to this bill? Name, position, and organization. Robert Boykin with TechNet, in respect for the opposed to the less amended position. Thank you. Thank you. Aidan Downey with the Computer Communications Industry Association, in opposed to the less amended position. Thank you. Thank you. Molly Corcoran on behalf of the American Innovators Network and opposition. Thank you. Thank you. Okay. Seeing no additional opposition in the room. We'll bring it back to the dais. We have so many people here now. But I shouldn't stop you. It's not a member of one. Anyone? Any questions? Concerns? We got quieter with more people. Fascinating. Okay. Mr. Loneth, all of you? I'll be very brief. I think you know where I land on this. I just want to thank the author on bringing this forward. And so many times we lament about all the challenges that we have. And I want to applaud the author because I think of all of the young people that are going to benefit from legislation like this going forward. And I worry so much about this anxious generation. I worry, you know, when I hear statistics about things that should make us happy, like teen drug and alcohol use down, teen pregnancy down, teen STDs way down. and when in reality that's coming from a lack of socialization. And that it's the Wild West out there right now, and it's so critical that we have legislation like this that's providing proper guardrails, oversight, and transparency. And I couldn't thank you enough. As a dad I couldn thank you enough Thank you so much for this bill Thank you Assemblymember So Senator I just want to thank you for your partnership on this It has been know we are more successful when we work together across houses parties all of the things And so, you know, the partnership that I know—I speak for Assemblymember Wix, who couldn't be here today, and I have had with you and Sherry Cobaldon on this effort—has been really valuable in ensuring that we could move this critically important policy forward. We are trying to do better in the age of AI than we did in the age of social media. And that means really ensuring these are safe by design, which will, I think, hopefully lead to a place where decades from now, we're not talking about a ban as we are with social media because we never could get our arms around keeping kids safe on social media. So we believe, I will speak for myself when I say I see firsthand with my children the benefits of these chatbots. And I've also, as you have, sat with Maria Rain and understand the real risks. And so we have to find a way to give our kids the benefits without the harms. And I believe so deeply that we are smart enough and capable enough, and the people at these companies are smart enough and capable enough that we can do that. And so I think this bill is incredibly important, and I want to thank you for your partnership on it and authoring it. And with that, would you like to close? Thank you very much, Madam Chair, and thank you for your leadership in this space. Thank you for your partnership. It's meant a lot. I think we've made some great strides, and I hope we continue to do so. To your point, we can look back and learn some lessons that there were missed opportunities in our changing world. And I think the onset and deployment of this technology of such a nature and scale, and it's so powerful and so ubiquitous that we have a moral obligation here, frankly, not just a regulatory one and one to legislate around. And we have an obligation, and we can, to your point, get it right. And I I believe in that, and I continue to appreciate working with the opposition, with all the coalition partners, and was certainly respectfully asked for an aye vote. Thank you. We have a motion. Do we have a second? Thank you. Second by Ms. Ortega. Yes, we have you out as a co-author. We got you, Mr. Lombardo. We got you on the record. We will call the roll. For the first time, Jay. Item number four, SB 1119 by Senator Padilla. The motion is due pass to appropriations committee. Barcahan. Aye. Barcahan, aye. Macedo. No. Macedo, no. Bennett. Brian DeMaio. Hoover. Irwin. Lowenthal. Aye. Lowenthal, aye. McKenna. Ortega. Aye. Ortega, aye. Patterson. Pellerin. Petrie-Norse. Ward. Aye. Ward, aye. Wilson. Wilson, aye. That has five. We'll leave it on call for the absent members. Thank you, Senator. And Senator Cabaldon is back. And I realize you were presenting Senator Lamone's bill, which means you should have gone before Senator McNerney. And I didn't put her name with your name. So I apologize for the pro-TEMS bill, I should say. It's a joy to be here in any sequence. Thank you so much. So you'll take up the pro-TEMS bill first. So I'm here first to present SB 354, which is Senator Lamone's bill that makes real the promise of Proposition 24 when the voters enacted the constitutional right to privacy first and then reaffirmed that in Prop 24. Prop 24 specifically said that the CPPA structure would apply to insurance companies unless and until we could figure out something better through CDI and the rest of that framework. This bill makes that real Protecting consumer privacy is obviously incredibly important And in this particular domain of insurance because of the legal mandate to have insurance to drive or the quasi mandate to have insurance to take out a mortgage it is different from just regular consumer marketplace privacy You know, we, the government, have said you must do this. And so you're right, to consent or not consent, to have alternatives or to not buy anything at all is severely compromised. And that is why it is important to modernize the structure for protecting consumer privacy across the insurance industry. Specifically, this bill prohibits the sale of consumer data and gives consumers more agency over the sharing of their personal information. It gives consumers the right to correct inaccurate information. And they're given the right to know what categories of information are being collected about them and with whom it is shared. Finally, consumers will be able to delete, inaccurate, or unnecessary information that insurance companies may hold. The author and the sponsor, the California Department of Insurance, have worked with stakeholders and are continuing to do so to address concerns. But this bill has been changed quite a bit from the Insurance Committee at the request of many members of that committee. Many issues have been tackled. First of all, particularly related to the jurisdiction here, there was opposition from the data broker industry with respect to the provisions of the bill. And this bill now says if you're fully subject to the Delete Act, those provisions will govern and you're not subject to the bill in that respect. And so there are other changes. Well, happy to go over them. I know the witness will as well, specific to the privacy and consumer protection domain. And so I have with me today Josephine Figueroa, the Deputy Commissioner of Policy and Legislation, and Damon Dietrich, the Privacy Officer for the California Department of Insurance, who will be joining for technical questions. And with that, I'd ask for an I vote. Perfect. When you're ready. Yes. Good afternoon, Chair Bauer, Kayhan, and members of the committee. Josephine Figueroa, Deputy Commissioner and Legislative Director for the Department of Insurance under the leadership of Insurance Commissioner Ricardo Lara. On behalf of Commissioner Lada, I want to thank Pro Tem Monique-Limon for authoring this important consumer-focused bill and for her leadership in advancing strong safeguards for Californians. And I also want to thank Senator Cabaldon for being here to present the bill on her behalf. Thank you to the chair and committee staff for their time and efforts working with the author's office and the department on this measure. And we remain committed to continuing those conversations with all stakeholders to ensure a fair, balanced and workable approach that maintains strong consumer protections while addressing operational needs across the insurance sector. SB 354 confronts a simple but unacceptable reality. California's insurance privacy laws are more than 40 years old and no longer adequately protect consumers in a modern data-driven insurance marketplace. Californians are required to purchase many forms of insurance, and insurers collect and hold extensive personal information on nearly every resident in the state, Yet these rules governing how this information is collected, processed and shared and safeguarded have not kept pace with the insurance industry's evolution of technology and innovation use. SB354 responds to this current outdated landscape by establishing a modern sector-specific privacy regulatory framework that creates stronger consumer protections, clear limits with greater transparency than existing insurance privacy law. SBG 54 does this by establishing a categorical ban on the sale of personal information and setting strict boundaries on the use of sensitive personal information. Consumers gain the right to opt out of any processing of sensitive data that is not necessary to complete or maintain an insurance transaction It also does it by strengthening transparency obligation by requiring insurers provide notice that contains substantial detailed information and to deliver those notices periodically throughout the consumer relationship These requirements ensure that consumers receive ongoing meaningful insight into how their personal information is collected, used, and shared. In addition, SB 354 mandates specific disclosures identifying the precise personal information collected and the actual recipients of any disclosure. In closing, California voters have made privacy a constitutional right, and SB 354 gives real effect to that mandate by replacing outdated and insufficient insurance privacy structures with a modern enforceable framework that reflects today's data-driven marketplace. On behalf of Insurance Commissioner Ricardo Lara, I ask for your aye vote. Thank you. And you're just here for questions. Is that right, sir? Yes. Okay, perfect. Okay, we have a motion. Anybody else here in support of this measure? Name, position, and organization. Hello again. Tracy Rosenberg with Oakland Privacy. We are in support. Thank you. Good afternoon, Madam Chair and members. Robert Hurrell with the Consumer Federation of California in slightly reluctant support. Thank you. That's a new one. I've never heard that before. Becca Kramer on behalf of Privacy Rights Clearinghouse in support. Okay. Seeing no additional support, do we have opposition in the room? I thought we'd solved all the problems, but they're sitting down. This is slightly reluctant opposition. Madam Chair, members, this is Madam Chair, members, John Norwood, on behalf of the Independent Insurance Agents and Brokers Association of California, and today also four other associations of independent agents and brokers and wholesalers were opposed to this bill unless it's amended to provide for a small business exemption. By almost any standard, this bill was designed to apply to large insurance companies. It takes two pages of bullet points and 92 pages of a bill to lay out the mandates applied to insurance companies and agents and brokers in this bill. Our problem with the bill is that the entirety of this applies to anybody that's a licensee, and a licensee is defined as an insurance company or an agent or broker, despite the fact that when the agent or broker places the policy on behalf of the consumer with an insurance company, the insurance company has to comply with all this. As a result, this bill essentially applies whatever would be applicable to Zurich International to the two-person office that serves consumers down the street. Now, in real life, the bill practically will not apply to an insurance agent that just represents one insurance company. employee insurance companies are like the auto clubs, online companies like Geico, captive agent companies like State Farm Farmers and Allstate. Don't won't have to worry about this because under the operation of law, when you Talk to those people, you're talking to the company. Independent insurance agencies are different. They run their own businesses. They're often appointed by, you know, three, five, ten insurance companies. Insurance consumers come to them. They opt in to using an independent insurance agent. They voluntarily provide their information to that company for the purpose of finding insurance. They understand the agent is going to apply and use that information to look for coverage for them. And then when the consumer chooses a company, the agent places it with the company that is going, as I said before, is going to comply with this. So there are things in this bill that are way beyond what an insurance agent does. The insurance companies, excuse me, insurance agents don't do adverse underwriting. They don't make declinations. They're not in an economic position to negotiate with third-party service providers. I want to make sure you leave some time for Mr. Hoffman. Sure. Is it two minutes? Am I beyond the two minutes? Yeah. Yeah. Okay. I apologize for that. No worries. But in essence, and I'll just close by saying our members operate brick and mortar businesses in your districts. I don't think it's the intent of this bill to to disadvantage them. But unless you create or the author creates a small business exemption, that's exactly what you're doing. OK, thank you. Thank you. Good afternoon, Madam Chair and members. Dylan Hoffman on behalf of TechNet. We're also respectfully opposed unless amended to SB354. I want to provide some brief comments on behalf of our coalition and member companies from the perspective of non-insurers and vendors who are covered under the bill. But before getting into the issues, I do want to thank the author, the sponsors, and this committee for the most recent amendments to the definitions of third-party service provider and insurance support organization. These changes address our primary concern with the prior version, and though we think the bill could use some additional refinements, these amendments significantly move this bill in the right direction. non-insurers, so thank you for that. First, as outlined in our letter, our coalition has proposed some reasonable changes to align SB 354 and the IIPPA with the CCPA. CCPA is a landmark privacy law, one of the strongest and most comprehensive in the country, and this committee and this legislature has worked hard to ensure consumers are protected in a sector and industry neutral way. And if the goal is to bring the IIPPA up to that level, which we agree with, then SB 354 should align more closely with it rather than creating separate and potentially conflicting standards. And just one example of that, SB 354 significantly departs from the CCPA with its treatment of publicly available information. Publicly available information was specifically excluded from the CPA's definition of personal information and the rights to know, correct, and delete in recognition of constitutional First Amendment protections for this type of information. Its policy choice reflects a balance between privacy and the freedom of information. Consumers can restrict access to information deemed to be personal data, but businesses also have commercial speech protections guaranteed by the Constitution. As drafted, SB 354 and the inclusion of publicly available information would place a significant burden on our members who've spent years and significant amounts of resources designing and building our privacy compliance processes to accurately and effectively distinguish between the two, between publicly available information and PI under CCPA. We believe our proposed amendments are narrowly tailored to preserve the bill's consumer privacy objectives while avoiding conflicting legal obligations and constitutional concerns. For these reasons, I must respectfully oppose SB 354 unless it is amended but look forward to resolving our issues Thank you Thank you And you took less than two minutes So look what a dream team Um with that any additional opposition in the room name position organization. Good afternoon. Sherry McHugh representing the National Association of Insurance and Financial Advisors. I echo the comments of my colleague, John Norwood. Uh, we are opposed unless amended and also the Pacific Association of Domestic Insurance Companies opposed unless amended. And we continue to work with the author, um, and the Department of insurance and hope we can get there. Thank you. Thank you. Good afternoon, Allison Adie on behalf of the Personal Insurance Federation of California. We are in an opposed unless amended position while we continue to work on technical and conformity amendments with the author and the department. Very pleased to see the progress since the last committee. Thank you. Thank you. Good afternoon, Chair and members. Laura Curtis on behalf of the American Property Casualty Insurance Association. Also pleased to see the movement of the bill so far, but still in an opposed unless amended position. Thank you. Nobody's removing that. Madam Chair and members, Cliff Costa on behalf of Copart, who is a third-party service provider for insurance companies. We very much appreciate the work of the committee as well as the Department of Insurance and the Pro Tem for working with us. We are almost there to remove our opposition. We look forward to continuing working with the department and stakeholders during the summer. Thank you. Good afternoon, Chair and members. Naomi Pajoran on behalf of California's credit unions, We have an opposed and less amended position. Thank you. Dennis Sloper on behalf of the American Council of Life Insurers, opposed and less amended. Good afternoon. Matt Powers with the Association of California Life and Health Insurance Companies, echoing the concerns of my colleagues from the other insurance carrier trades. Thank you very much. Good afternoon. I'm Tom Quirk, representing the Independent Insurance Agents, also representing Garland, Sturgis, and Quirk, my firm that employs seven people. and we are opposed to SB 354. Thank you. Annalee Augustine with the Civil Justice Association of California, also respectfully opposed unless amended, but really appreciate recent amendments. Thank you. Larissa Mercado on behalf of Averis, and subsidiary of the Insurance Services Office with an opposed unless amended position. Thank you. Good afternoon. My name is Elizabeth Hernandez, and on behalf of the independent insurance agents, and I oppose SB 354. Thank you. Good afternoon. I'm Haley Andrews with Gaines Insurance Agency and Independent Agency in El Dorado Hills. And on behalf of independent agents, I oppose SB 354. Hi, Todd Stanley. on behalf of Independent Insurance Agency. I oppose SB354. Thank you. John Bradford with McGee and Thielen Insurance Agency, a 106-year agency in Sacramento, and we stand opposed to this. Also representing Pacific Interstate Insurance Brokers, representing 260 independent agents across the state. Also stand in opposition. Ronok DeLamy on behalf of Cal Chamber, opposed unless amended. Thank you. Okay. Seeing no additional opposition in the room, bring it back to the dais. Madam Vice Chair. Thank you, Madam Chair. So I talked with some of my colleagues in the insurance committee about this because it sounds like there has been movement on this, which sounds like the opposition is grateful for. But they said that there was an agreement that they would go to industry to really get their input on this measure And it sounds like some of that was taken and I want to ask opposition this but I going to start with the senator Has input been taken by industry? Because it seems pretty evident by the opposition coalition there's still a ways to go on this bill. Yes, there's been a lot of input taken on the bill, both in the hearings and in other discussions and negotiations about the bill. And it has come a long way. And the amendments that have been taken since the Insurance Committee, as I say, most of them were because of points of emphasis that came in the committee from points in the opposition. And they are we only covered today a few of the ones that deal with specifically in the privacy domain. But the bill has been substantially rewritten in response to that. We know that there's more to do and even some of the issues that have been raised today around exactly what is the space with respect to independent agents. Independent agents do have responsibilities for privacy under state and federal law already. And so they can't be completely exempted. And yet also the concerns have been raised about what's the right scope and scale and intensity. That work is continuing as an example. So, yes, those discussions have been happening and they will continue to be. And I think as several of the witnesses indicated, the length to which the bill has moved so far is a solid sign of good faith that there's more room to work. But there is a commitment to continue that conversation. Beautiful. My next— And if I just—if you might mind, am I sure? Because we were—the bill, for those that don't know, the bill was in the Assembly last year. This is a two-year bill. It was paused in Assembly Insurance where it was heard, I think, a week ago. And then it came to this committee. and our committee and the insurance committee have been in these conversations with industry and other supporters and opponents. And I will say, just to ensure that people understand, the bill has moved to the senator's point incredibly far. And my understanding is that the opposition, frankly, I thought they were going to pull off of opposition today. It didn't seem to happen, but the changes are so significant that that was my understanding of what the pro tem had done in her work on this bill. And so I know she's committed to getting it right, but I will say she has taken a lot of their feedback. Beautiful. And I do want to give you a chance. What would get

this bill to where you could remove opposition? What, because it sounds like there's optimism here. So let's work together and everybody leaves happy for summer vacation. Please. We had a conversation Monday night that I think was the first time we've made any progress at all on kind of on agent issues. I mean, this bill's 18 months into the process. We've had three meetings. Monday night, I think, is the one that we've made progress on. That being said, I understand that, you know, the department had to deal with insurance companies. They're primarily dealt with on this. We have a commitment with them to continue to work, but we just have to narrow the scope of this. We don't need a complete exemption from the bill. I think that's a thing that everybody understands in terms of small business, but we have to narrow the scope, and that's what we're working on. Thank you.

Assemblymember Jacqui Irwinassemblymember

So you talked about the independent businesses, and that's really kind of my concern. my mom and I were a mother-daughter duo, and I have companies in my district, our husband and wife, father, son, that we want to make sure they can continue operating. So what are you doing that even if we can't completely exempt them, what can we do to closer protect them? And I'm going to ask the Senator first and then I have you respond Sure Under current law there are a number of sections of the law that allow for what they call substitute performance So rather than the agent doing it basically if you a licensee and you deal with inflation insurance with another licensee that will comply with the law you don have to

So it's called substitute performance. I think the consumer-facing parts of this bill can be dealt with with substitute performance. And then there are other provisions of the bill like adverse underwriting decisions and declarations and I think private cause of action that agents shouldn't even be in because we don't do those. There are other sections of this bill with regard to the ability to negotiate with third-party service providers and the storage, maintenance, security, et cetera, of data that I think agents have to comply with. But when the regulator looks at the compliance of the agent, they have to look at the size, complexity, resources, ability of the agent, and the scope and nature of their practice. And we need those kinds of modifications to the bill.

Chair Bauer-Cahanchair

Okay. Senator, do you want to respond?

Assemblymember Jacqui Irwinassemblymember

I mean, that's my main plea in this is that we're sparing the small businesses in all of it.

Chair Bauer-Cahanchair

And I know you care about small business as well, but you're welcome to respond to what he just said.

Yeah, I hear you, and I know Senator Lamone agrees. That's why this is a continuing area of focus. I do want to know, the expanded private right of action is out of the bill as a result of the last round of amendments, that specifically. But maybe I could turn it to the Deputy Commissioner.

Laura Drinoother

Yeah, hi, Damon Dietrich. I'm the Privacy Officer for the department. I'm the subject matter of the department on these issues. You know, one of the issues that we're dealing with is these rights of access correction deletion have applied to both insurance companies and independent or captive agents for 40 years now. That's been the law in California for four decades, longer than I've been alive almost. Same time, federal Graham Leach-Bliley treats agents as financial institutions who are subject to the requirements of the Graham Leach-Bliley Act. they're required to give notices, they're required to give the opportunity to opt out. These are not, you know, duties that we can just write out in state law because the feds require it. So, you know, we've adopted amendments in this bill to allow for substitute performance and to, you know, ease the pathways for independent agents to have third parties, you know, undertake these obligations on their behalf. But at the same time, you know, we're dealing with statutes that are both old and in some cases, federal statutes that we can't do away with as a matter of state law. But you are hearing, I think if I may, what you're hearing is many of the same paths, not a complete exemption. Can we keep drilling down on substitute performance? So the attention is absolutely, and I think the author's commitment is there to make sure that we are minimizing the impact on small business while also assuring that consumers have the protections that they need and also that the agents are fulfilling their existing state and federal regulatory requirements, but yes, there's absolutely a commitment to get there, and it's not that wide apart. We're at least talking in the same book with the same language about how to solve this. My final question is that it's been mentioned that this wants to come

Assemblymember Jacqui Irwinassemblymember

as close as possible to the California Consumer Privacy Act. So can you speak briefly, because I'm sure other people want to talk about this, if the bill is currently a close reflection of that?

Laura Drinoother

So the goal here is to make real the commitment of Prop 24 was that the insurance, privacy rules for insurance would be stronger than CCPA. And so that's, So we're not the intent here is not to get the IAPPA just to match up with CPPA exactly, but to recognize that unlike most of the other commercial products and services that are covered by CCPA, many of the insurance products, not all, but many of them are effectively required by law. And therefore, we're telling citizens, you must you must purchase this from someone. And so those those protections have to be clear. So it even with all the amendments that have made, It's still stronger than CPPA when it comes to the industry, but it's in the same pocket. I mean, it's not radical new concepts. It's simply taking some of the core ideas of CPPA around data minimization, customer control of their data, the ability to delete and approvition against sale, and making sure that those are universal in this sector where they are not quite universal under CPPA. Okay. Thank you.

Chair Bauer-Cahanchair

I turned my mic off. Thank you. Any other questions? I will just note, because I know some very insurance focused questions were asked and answered, which is 100% okay. Just reminding us that our jurisdiction here today is the privacy of the law. With that, we have no further questions. I want to thank the pro tem and I know the privacy chair and an insurance chair in the Senate, I think is also involved in this effort. It is a multi-member effort in the Senate for their hard work on this and for the many changes that even though we removed the opposition, I did hear from the opposition that it did move them. It did move in the right direction. So I will take note of that and put that on the record further. And I think it's really important that We make this workable. We support our small businesses. And we also respect the privacy of Californians, as is their desire, as noted by what has been on the ballot. With that, would you like to close?

Simply ask for an aye vote.

Senator Tom Umbergsenator

Thank you, Madam Chair.

Chair Bauer-Cahanchair

Thank you. And we had a motion. Do we have a second?

Dawn Kepkeother

I want to second it.

Chair Bauer-Cahanchair

Mr. Ward seconds. Let's call the roll. You're okay. Item number five, SB 354 by Senator Lamone. The motion is due pass to Appropriations Committee. Barcahan. Aye. Barcahan, aye. Macedo?

Olivia Herreraother

No.

Chair Bauer-Cahanchair

Macedo, no. Bennett, Brian, DeMaio, Hoover, Irwin, Lowenthal, McKinner, Ortega, Patterson, Pellerin? Aye. Pellerin, aye. Petrie-Norris, Ward. Aye. Ward, aye. Wilson? Aye. Wilson, aye. Thank you. I know. I couldn't even figure out who was asking for, I should have guessed who was asking for academic literature to be passed out. There's only one person in the room who could have done that. It was Chair Cabaldon. Okay. Senator, when you're ready.

Carlos Olorzanoother

Thanks. That was just a refresher. I'm sure everyone's already read this article. All right.

Chair Bauer-Cahanchair

Thank you for the turn.

Carlos Olorzanoother

I'm here to present SB1106, which seeks to create the foundational framework for future legislation with respect to autonomous agentic AI. AI, this is a completely different flavor of artificial intelligence than we have been legislating about mostly and that we've been regulating in California. This isn't about chatbots. It's not about AI that asks you what you want it to do. You tell it and it does it. Autonomous agentic AI is a widespread phenomenon already. This is not an emerging technology If you ever heard of or used things like OpenClaw and VideoClaw there many many instances of agentic autonomous AI but it characterized by several technical features that are important to its definition and the reason why the bill is here is in order to set the table for for all of us to be pursuing legislative efforts next year because this is a global existential crisis with respect to the impact of this form of AI on human society human civilization and humans over overall so the key features that the definition focuses on are number one, that it is autonomous in its execution of tasks and that those tasks are decomposed from objectives that a human being may give. So an example, the light versions of some of these tools are you might ask it to manage your calendar and to make Wednesday less busy than Tuesday. So your objective is less busy, but then in an autonomous agent by itself or in conjunction with a swarm of other autonomous agents may then act to actually in the world cancel appointments, set up new appointments, do other things on your Wednesday without you approving the specific tasks underlying it. This is an essential part of autonomous agentic AI is that it has the ability to take actions in the external world, not just in conversation with you through chatting and outside of your own computer environment outside of the shell or the root of your of your own of your own computer your own network environment you know and this is a common feature of how people actually use open claw and other autonomous agents and so these are some of the key features the definition seeks to capture those this is for the purpose not of creating an all-purpose definition that could be used for everything. This is very much like what I think we will be doing over the next couple of years. In the same way that we distinguish ADUs from SB 79 housing projects from other forms of housing, we don't simply refer to it all as housing. We come up with precise definitions that have limits that help us and boundaries and constraints that allow us to know what's covered and what isn't. This is an attempt to try to create that floor, that framework upon which others, all of us, can be legislating into the future in order to accomplish that. There will be, as individual pieces of legislation come up, we will either need to modify the base definition or supplement it or exempt from it, as we do with virtually every other one. And so I want to thank the—we are accepting the committee amendments, and I want to thank the chair for her partnership and her grace in trying to help us to move forward on this area of the law. This is—it is an issue of privacy. It is an issue of consumer protection, but it is much, much more the extent to which autonomous agents and swarms and webs of agents that are working without direct human direction with respect to tasks and can take actions in the real world. It is a substantial threat. Also some opportunities, but also will challenge many of what we think, much of how we think about liability, crime, surveillance, and many, many other issues. It's so important that we set the foundation. And then if this bill passes, I hope that many of you will join me next year in tackling what is one of the most existential threats to human society and civilization, and California has always stepped to lead the way. With that, I would urge an aye vote.

Chair Bauer-Cahanchair

Thank you, Senator. Anyone here in support of this measure? Seeing none. Anyone here in opposition to this measure? Seeing none. Bring it back to the dais. Yeah, Ms. Wilson, and then we'll go to Mr. Ward.

Jerry McNerneyother

Thank you Senator for seeking to set us up for the new legislative session I just wanted to ask a couple of clarifying questions So the need to define it now versus defining it when you actually have legislation

Carlos Olorzanoother

why is that? Yeah, thank you. Thank you for the question. And it is because the domains in which these systems present opportunities, but often threats, are so diverse that I think the challenge is that the first bill that comes out, if it deals with autonomous AI agents with their potential threats to cybersecurity, for example, that we will frame a definition that's purpose-built for that, and while we also need to be dealing with many, many, many other domains at once. And so the idea here is that we have a core definition that can then be built upon in specific sectoral threats on commercialization on privacy on sexual explicit material the things that we've normally dealt with but also in many many other domains as they as they arise without having to construct either parallel definitions that are in conflict or definitions that are so broad that we can't act with the level of boldness that we're going to need to because it incorporates too much into a broad definition and seeking trying seeking to cover all of agentic I this is only autonomous agentic I and so that having the definition in place will give us the framework to make sure that our legislation is consistent, but also that we're covering the field while simultaneously not covering so much field that we are reluctant to act with the precision and the boldness that we're going to need.

Jerry McNerneyother

I have another question, but your comments reminded me of when the definition that we're using is the one in the committee committed. What are we voting on today?

Carlos Olorzanoother

There's some confusion about, you know, let me.

Jerry McNerneyother

Yeah.

Carlos Olorzanoother

Yeah. Page eight, comment four. Yeah. So the page eight, comment four, and then below it is the actual, in the language, and that is what you're accepting those amends? Yes. Okay, great.

Jerry McNerneyother

And then the other one was the inclusion. So I looked at that definition and noted that it is a part of generative AI, correct?

Carlos Olorzanoother

It can be. So the Venn diagram between agentic and generative is pretty tight, but it's not 100%. Okay, because that was why the separate call out to include it in Civil Code Section 33110,

Jerry McNerneyother

because it talks about Gen I system, but you call it out as a distinct and separate versus it being included, and I would assume it's falling under the umbrella. So I was trying to figure out that the point of the question was to figure out why have it separated out in that particular code section, because that's part of your bill as well, not just.

Carlos Olorzanoother

Yeah.

Jerry McNerneyother

Not just defining it, but also saying it should be included in there. And I didn't look at it as distinct and separate. I looked at Gen AI as the umbrella.

Carlos Olorzanoother

But it sounds like you're saying that a Gen AI is outside of Gen AI? As of today, the vast majority of a Gen AI is going to be Gen AI. But they are not definitionally the same thing. and so Gen AI is not the umbrella for it you saying it exists somewhere else they have some similarities it actually you can use Gen AI for a Genic AI Right now it entirely contained in that umbrella But you can see a future. But the concepts are not necessarily linked.

Chair Bauer-Cahanchair

Okay. Thank you. Thank you. Mr. Ward?

Dawn Kepkeother

Thank you. I don't disagree, I think, with the premise, your observation of the next steps that we want to get ahead and think about how to be able to define this and really set that stage and hopefully doing it right. I think it would set the stage well for a national discussion, which would, you know, is coming as well, state by state. And so to, to be clear. And so you are taking the definition that is in the amendments, which aligns with our committee's work on trying to be able to define agentic. Is that correct?

Carlos Olorzanoother

That's not. So he is taking the amendments in the analysis, which were through discussions with the privacy chair. but I'm not sure what you mean by the work of this committee. It is the senators.

Chair Bauer-Cahanchair

On behalf of the privacy chair.

Dawn Kepkeother

Oh, yes, yes, yes, yes, thank you. They were collaborative, I would say. Yes, there we go.

Carlos Olorzanoother

Meanwhile, leading up to this, you certainly had your own research,

Dawn Kepkeother

your own thought into this. Can you talk to us a little bit about any tech advocacy or privacy safety organizations that you were in consult with? Because this, of course, came through a gut and amend. This is the first hearing that we've had around this issue right now, and getting the definition well with that consult would be important to me. So what's transpired over the last month to sort of get all of those minds together as well to make sure that we're getting this right?

Carlos Olorzanoother

Yeah, so thank you for the question. And so this definition comes from both a comprehensive review of the legal and technical literature on agentic AI itself, what other jurisdictions have been contemplating, and both the technical and statutory constructs that are needed to do them, as opposed to being a stakeholder-based definition. So it is intended to be a definition. And this gets very much to the point I was making earlier that it's not trying to cover, like, here is the full scope of what things could be. And we've done that in a lot of our definitions where we've said things like various levels of autonomy and other things that are appropriate, the higher level definitions, just like the definition of housing, like very generally, will be general in itself. but how do we then get down to increasing how fine-grained our taxonomy of these different categories are so that we can align our legislative and regulatory approaches to them.

Dawn Kepkeother

Absolutely right.

Carlos Olorzanoother

Mike, the committee in the Senate was created February 1st after the deadline for introduction of bills, so I understand the timing issue. But when we began the year, the intention was to have a full-scope agentic AI bill. Right. But realize that given how far we're along, the better to set the table for that to occur in the normal process with all the consultation and the stakeholder groups and everyone engaged for the actual policies. But we needed to have the foundation by which we could all do some work next year. But also, I would just push back and respectfully, you know, several Senate bills on privacy and digital technologies have been introduced, did go through a process. I know you've taken on a lot to be able to guide this in a way and help form that committee over in the Senate. and get things underway. So my point being, and maybe also I'll re-underscore my question, we don't have anybody here today really helping us to validate, I think, the definitions that are being proposed here. And so if this is going to foundational to what we want to be able to do on the subject going forward and what other states might be modeling off after I don't want to do corrective language on the fundamental definition that has a risk to it in the meantime. And I guess I recognize there's no opposition here today, but there's just no support that we're receiving for this either. And so can you maybe restate sort of what consult has gone into this to help to make sure, to help give us, to help validate it and assure us that we're getting this right?

Dawn Kepkeother

Have there been other tech advocacy or privacy groups that have been working with you on this or no?

Carlos Olorzanoother

No, there have not.

Dawn Kepkeother

Okay. Okay.

Carlos Olorzanoother

I see this as a fundamental role of both committees to create the scaffolding for this work to occur on the policy, which will then, as we start to build policies, we will have to make changes to this definition and many, many others. But we need to start somewhere with a core foundation that we can begin from. Okay. I'm going to listen to other committee member comments as well, too, and preserve my thoughts.

Dawn Kepkeother

Thank you.

Chair Bauer-Cahanchair

Yes, only ever wasn't. Is your mic on?

Nicole Rochaother

Who is centered for AI and digital policy that's noted in the analysis? Just in follow up to his question of interaction or someone speaking to this bill.

Carlos Olorzanoother

They're just people who weighed in, but not here. Okay.

Nicole Rochaother

Okay.

Chair Bauer-Cahanchair

Okay.

Carlos Olorzanoother

May I, Madam Chair, just?

Chair Bauer-Cahanchair

Yes, please.

Carlos Olorzanoother

Yeah, so they have a supportive amended position, and they have some changes to the definition that they would like to see absolutely open to concern. You just said I had no engagement with anyone as I've been working on this, and then I see engagement. And so I just want to clarify, you were saying you did not engage them in any way through their support or opposition? No, they've simply sent a letter in, I think, saying that they support the concept, but they have some change. Okay, but you haven't talked to them about it. Okay, thank you. I'm happy to do so.

Chair Bauer-Cahanchair

Ms. Pellerin.

Jay Jesimaother

Thank you. Thank you so much, Madam Chair. So, I mean, I strongly believe that definitions are one of the most important parts of law. Definitions provide the foundation that regulations are built upon. And I'm concerned about this definition that's here before us today as detailed in the committee analysis. that appears to not have been subject to sufficient public review. Indeed, you know, I only saw this definition, I think, on Monday evening. And although it was before my time in this committee when we did define artificial intelligence in code, it was a bicameral effort led by our chair and Senator Umberg, and even that process began with an informational hearing. And the bill 28, AB 2885 also went through the full legislative process in order to incorporate the stakeholder feedback. And it was important to get that definition right because California was the first state to define AI in statute. And other jurisdictions look to us as a lead in that. So I'm interested in the process you used to come up with these words. I mean, I'm even looking through your agents of chaos here. And on page five it looks like it not defined by these experts So can you give me a little bit more on on did you consult with experts You know who wrote the definition Yes We so we wrote the experts

Carlos Olorzanoother

We consulted the literature and a couple of the authors from the, that have tried to cover this topic.

Jay Jesimaother

So who exactly wrote the definition?

Carlos Olorzanoother

We did. We as in you and your consultants on, on privacy and Senate.

Jay Jesimaother

Uh, we, well, I did? Is that? I'm just, I'm trying to understand who wrote it. Yeah, I mean, I think we're privileged now, but yes. Okay, okay. So you came up with these words. I mean, because, I mean, I don't even know what shell access is, or I'm just, it's not a real clear definition for me to fully understand what this is. So I'm just curious whether you consulted with any experts or exactly what process you went through to arrive at this definition.

Carlos Olorzanoother

Sounds like you did research and then came up with it. And consulted with some of the leading experts in the agendic field, some of whom were cited in the literature that you have in front of you.

Jay Jesimaother

So I do feel concerned a lot about getting this definition right. And and because this was just amended on Monday, just a few days ago, and we're, of course, at the last day to hear these. Is it what's the urgency to do this like right now?

Carlos Olorzanoother

Just clarity. There are amendments in this, but the agent.

Jay Jesimaother

Wasn't amended on Monday. That was in print. When did that go in print?

Carlos Olorzanoother

The agent that was before June, June 11th.

Jay Jesimaother

OK, I'm sorry. I just read it on Monday. My bad. My bad. Okay. So the urgency is because?

Carlos Olorzanoother

That humanity faces an existential crisis from the swarms of autonomous agents, and they will not wait until next year for us to begin our work to set up, not even the guardrails, just the fundamental approach that we're going to take as a state in order to deal with what is one of the most compelling problems of our time.

Jay Jesimaother

Okay, so I guess I still remain concerned about the definition. It has no registered support from stakeholders. And the only official feedback we've received is that the Center for AI and Digital Policy would like to see a different definition or an amended definition. and I'm not sure the general public and courts are going to be easily able to understand this. And just for the heck of it, can you define for me what shell access is?

Carlos Olorzanoother

Sure. Okay. So shell access is essentially the top-level control of your – just to put it in our –

Jay Jesimaother

And am I the only one that doesn't understand what that is?

Carlos Olorzanoother

No.

Jay Jesimaother

Everybody else?

Carlos Olorzanoother

Okay. Okay. I know. No, but it's also not some novel term that is – So in the technology space, shell or sometimes root access are essentially the fundamental level of control in your computer, for example. And so when an AI agent has control at the root or shell level, it can make changes and avoid permissions that you might otherwise, or notifications you may otherwise have set up on your system in order to execute actions in the real world without your, knowledge or consent.

Jay Jesimaother

Do you think the definition should be something that the general public and courts would be able to understand better Well I think I mean a court considering this would look at it in the same way that they look at very detailed building code rules that are highly technical or insurance rates or the difference between an associate degree and an associate degree for transfer

Carlos Olorzanoother

I mean, these are not generally understood definitions, but they are an important taxonomic distinctions between different classes of, in this space, technological control that is really critical to determine whether or not an agent has the ability to execute tasks without your approval, but in the real world.

Jay Jesimaother

I understand the need. I'm just not sold on the definition. So thank you.

Chair Bauer-Cahanchair

Are you complete, Ms. Pellerin? Yes. Okay. Mr. Patterson.

Robert Boykinother

Well, hello and good afternoon. Thank you. Wasn't another one. Long week. I thought this bill was going to be much more simple. I came here totally prepared to support this bill, but now I'm kind of concerned myself. You know, I did, people will probably get tired of me saying this at some point, but, you know, I did legislation that I thought was kind of groundbreaking and earth shattering around peptides and it didn't get past home plate. So we didn't have a lot of conversation, but I thought that was because, frankly, a lot of people don't understand what they are and what they do, you know, and there's a lot of talk around them. Um, and, you know, in some ways I don't think that's like, uh, you know, like we shouldn't get, not do good policy because like, I don't understand the issue. I'm not really that I'm kind of average intelligence, you know? Um, so when I look at this bill, I think, well, on one hand we shouldn't, you know, kill it because we don't understand it. You know, I vote on things a lot of times in this committee, but, you know, uh, Let me give you another example. No, seriously. You guys, when we voted on Senator Weiner's bill on AI, that is such a nuanced, very complicated bill that if anybody can illustrate exactly the definitions that are in there, and if you knew that before you walked into this committee, I'd be very surprised. You know, and so you have to spend a lot of time. So that's kind of the concern I think people are having with this bill is. There with that bill, they spent a lot of time talking with us about exactly what the components of those, all of that was. And I don't think there's a really great understanding of what this is. and there's not a lot of uh i've never seen a bill like this where there's not a lot of like supporters or opponents and on such a big issue you know so i think people are i'm just kind of like perplexed where where i'm almost like gosh i don't know i don't know if we're really should move this forward right now i sort of understand the grave threat situation but that's about as far as i get in my understanding of what this is i do know shell access is by the way um but that my level of understanding of this stops right there so i don't know feel free to respond to that i'm totally like up in the air on where i'm gonna go on this bill honestly i because i i am afraid to push something through that that maybe isn doesn have the benefit of a two process of or one process of really diving into the details that we see on a lot of these really complicated bills And maybe it not complicated to you, which is, I'm guessing is the case. It is a little bit more complicated for me. So anyways, feel free to respond to that. I'd love to hear your response. But I think I basically said the same thing everybody else said, just rephrased in Joe Patterson's voice.

Carlos Olorzanoother

Well, thank you for the question. Actually, I mean, the most technical thing in this is the network and shell access. So if you've got that down already, you're in good shape. It's also like not the, it's not the critical part of the definition. The critical part is, you know, as the committee has revised it, is it is the first definition. and none of which are technical terms, at least not today. And so it is an AI system that can pursue abstract goals that you set for it. And it can do that then by breaking it into tasks. So you set the goal, but it can break it into tasks or delegate them to other agents elsewhere. It can change what it does based on what the feedback that it gets in the world. You know, the price of something on Amazon goes up or downward, so it can adjust based on things in the world. And then it can act in the world, whether executing code or your accessing account that requires authentication. That just means it has, if you're a consumer, it has your Netflix password and your Amazon password. And so it can do things in the real world. But there's really nothing in that definition that requires any technical background at all. It's simply, that's the key the key difference here is unlike sitting and typing at chat GPT which cannot do cannot take actions in the real world unless you have unfortunately given it network and shell access but it cannot take action in the world it's just responding to you it can produce a document or whatever but it

Chair Bauer-Cahanchair

cannot on its own without you knowing order the order of a life on on Amazon it can't it you know it cannot take other actions they can't sign up for for something on a website. It can't do things by itself. So it has to have external power and it has to have the ability to take an abstract objective that you've given it and then come up with its actual tasks that it doesn't ask you about. That's the fundamental definition here, is that it's autonomous, but it's autonomous at the task level, doing what it hopes will advance your objective, but you are not approving the individual tasks that it's going to undertake for you in the real world. And so the objective of your bill is to have the Department of Technology assess the state's use of this technology, correct? It's twofold. Number one is exactly that. And the governor's recent announcement is a reminder that we have to keep evolving. So we have an existing framework for automated decision systems. But the governor's announcement with respect to the partnership with Anthropic may raise other issues with respect to this technology, which may or may not be ADS. Those two can be related, but usually not. And then the second objective is to start laying the foundation for us to be able to have a coherent policy response to the many, many, many, many dimensions of challenges, threats, and opportunities that this technology poses. Do you give any authority to the Department of Technology to somehow regulate? It's assessing it, but is there like a follow-up in these amendments? No. No? No, there's not. All right. Well, with that, I'm going to support this. I'm seriously surprised that I, you know, that there just isn't a, I thought that line was for your bill. I was like, this is, what's this guy presenting over here? You know, but, but I appreciate you taking the time to answer my questions. Thank you, Senator. I'll support this today. Thank you. Okay. I think, oh, Wiss Wilson's taking a third stab at it. I just so appreciate the chair for letting me talk. And so I'll be supporting the bill today. But I want to make one thing that I'm noting. I was going back and forth and making sure I understood what the Center for AI did and hearing the comments from assembly member, my colleagues on the dais, both from San Diego and Central Coast. is I think part of the hesitation is what was noted about the collaborative nature. If this is the foundation for future bills, it being collaborative between the two houses, being collaborative in a way of engaging the committee's members and making sure everybody understands and agrees and everybody gets to weigh in so we know this is the threshold. So I think because it is at the end of the session and it's coming in, And I think that's kind of what I'm hearing and also what I'm feeling as I'm digging deeper into it. And noting that it sounds like your reason for doing that is the existential threat of AI. And we've seen an egenic AI, generative AI, all the AIs as they impact human society. I mean, we've had all kind of warnings from the Five Eyes and, you know, all of that stuff. And so I get it. And so we'll be supporting. But I think definitely as you set up this new, I had the opportunity to do groundbreaking work in terms of just setting up a new committee that's distinct and separate from judiciary over in the Senate. I think it's a good thing and would love to see, you know, some more collaboration on it. And with that, I'll make the motion. Thank you. So we have a motion by Ms. Wilson. A second by Ms. McKinner. Um, so, um, I, uh, I appreciate what's been said here today. And I think that it really, um, sort of comes out of the work that we've done in the past on definitions. And I understand that as was mentioned when we did the definition of AI, it started with, um, an informational hearing, Senator Umberg and I worked together. We, there was a lot of process. Um, this didn't have as much process. That's just a fact, but, um, you know, I appreciate what the Senator is trying to do here, I think nothing in law is stuck and set in cement. That is just a fact of our process. And so, you know, if for some reason this were not to be the right definition, then there's no question that we couldn't amend it in the future. So I just want to make sure that's clear. And I think that the other thing I heard today, which I, you know, I invite the chair to consider as well is maybe we need to have an informational hearing on agentic AI that is joint across the houses to start to dive into that as the work you mentioned in your opening. This bill will move out of this committee hopefully today. But as we start to have more conversation about agentic AI, given the nature of the conversation, perhaps that's something we should do and really allow people to come in and help educate us on agentic AI. And again, I think that we feel comfortable the definition that's here today, which is why with the amendments that have been taken, we feel comfortable with it But again nothing is ever set forever And with technology I can promise this definition will change over time even if today it is a good one So with that would you like to close I would Thank you Thank you so much And thanks to the committee for the rich discussion and for opening the door to some serious policy work in this space. And I truly welcome the opportunity for our two committees to dive deep here, because there's so much for us to learn and then to do. when Agents of Chaos, the article came out. It was like one of the most it's already one of the most cited articles in this field, the one that we handed out from researchers all over the country. I shot it over to a few other senators and including the president. She said, oh, good. Go solve that. That's why that's why we created this new committee. Go fix that. You know, as though it were, you know, school district liability or something. And and I took that seriously and I've spent months and months and months trying to figure out what what is that? framework and consulting with a lot and lots of folks in groups and nonprofits and others, like, what should we do here? And we're not close enough to be able to come up to have that coherent response. And that was the feedback from everybody. Like, we're under the right problem, but we don't have any of the feedstock yet to really solve it. And so I hope that this bill starts that, but that just has to be beginning. So all of the conversation here about what it takes to make real policy going forward in terms of its consultation, its breadth, its informational hearings, all of it, 100% committed to, would be very excited to do that with you, Madam Chair. This is just the beginning start of that effort, and I would ask for an aye vote. Thank you. We have a motion and a second, so I'll call the roll. Item number 15, SB1106 by Senator Kowalden. The motion is do pass as amended to the Appropriations Committee. Barra Kahan. Aye. Barra Kahan, aye. Macedo. Aye. Macedo, aye. Bennett. Brian. Aye. Brian, aye. DeMaio. Hoover. Irwin. Lowenthal. McKinner. Aye. McKinner, aye. Ortega. Patterson. Aye. Patterson, aye. Pellerin. Not voting. Pellerin, not voting. Petrie Norris. Ward. Ward, not voting. Wilson. Aye. Wilson, aye. That bill has six. We'll leave it open for House members. Thank you, Senator. Thank you very much. I believe next on our agenda is Mr. Aragina. I'm going to hand the gavel over. Move the bill. We've got a motion by Mr. Bryan. Already off to a great start, Senator. However, you are ready. Well, thank you very much, Madam Chair and members. It's my pleasure to present SB 479, which is sponsored by the City of Berkeley, which I was proud to serve as the mayor of for eight years. It's good to see my fellow City of Berkeley leaders here. I just want to begin by thanking the committee staff and the chair for working with my office and the opposition, Oakland Privacy. I am accepting the committee amendments that outline additional privacy protections for unhoused individuals and ensure that proper coordination between cities and counties occurs for these homeless multidisciplinary response teams. This bill is simple. It will allow three cities in California that are designated as local health jurisdictions, cities of Berkeley, Pasadena, and Long Beach to implement homeless response multidisciplinary teams to share specified information between those teams to better coordinate the delivery of housing and services supports for people experiencing homelessness. This builds on law that was passed by the legislature in 2020 to give counties the ability to form these multidisciplinary response teams At the end of the day it really about making sure that we can improve the delivery of services and connect people who are unhoused in our communities in California to the housing the supportive services that they need to end homelessness. This is a district bill, but a bill I hope we can build on in the future. And I want to thank the committee for making sure that we have strong privacy protections around the confidentiality of the information that's being shared between these teams, and to making sure that we protect the privacy rights of those clients as we're implementing this service model. So with that, with me to testify is Scott Gilman, the Director of the Department of Housing, Health, and Community Services for the City of Berkeley, and PwDU, Neighborhood Services Manager for the City of Berkeley. Thank you, gentlemen. You should have two minutes. Thank you. Hello. My name is Scott Gilman. I'm the director of housing and community services for the city of Berkeley. I oversee our multidisciplinary teams specializing in mental health, housing, and service teams that go out to encampments to help residents there get enrolled into services, care, and most importantly, get them into housing. However, current state law prevents those teams from being truly effective. As Senator Araguin said, current state law allows county multidisciplinary teams to share information between one another about residents in encampments. City teams are not permitted to do the same under current state law. In Berkeley, multi-service teams have tried to coordinate care, but given the existing legal limitations, they are too often hamstrung from sharing information that would benefit homeless people. In some cases, city staff have gone to encampments to offer service to individuals currently under care of our mental health team, but lacking shared information, these city staff providers have been confronted by hostile individuals that are untrained to deal with or whom they could have made better care choices only if they had the information to share with their colleagues that they're currently constrained from doing. Housing teams unarmed with this information that the mental health teams have, have placed individuals into housing only to have that person decompensate after being placed into that housing because unknown to them, unknown to the housing team, that person needed a greater level of care or there were other triggers in the environment that the mental health team knew this person would not be successful, yet they were unable to share that information. Current law puts people living outside and caregivers in danger and is a disservice to the people struggling through homelessness. Senate Bill 479 is a simple bill that closes this loophole in the law, and it will allow the City of Berkeley for the first time to provide full wraparound services to our residents. I urge you to vote yes on this bill. Thank you. Thank you. Thank you, committee members. My name is Peter Radu, and in my role for the City of Berkeley, I oversee homeless policy and encampment management. The city of Berkeley has the second highest homeless population of any city in Alameda County, behind only Oakland. One of the most challenging features of our unsheltered population is how disproportionately disabled and vulnerable it is relative to the unsheltered population of the rest of Alameda County. In Berkeley, 93% of people on the street self-report a mental health disability, compared to 35% countywide. Similarly, 79% self-report a substance use disorder compared to only 29% countywide. This is the exact population that would benefit the most from the type of need-to-know data and information sharing across service providers that for the first time SB 479 would allow for cities like Berkeley Excuse me In fact it has been my and my team experience that our failure to allow for this type of critical coordination at the city level is one of the main reasons that some of our most vulnerable residents remain on the streets. Put differently, everyone has an oar, but no one can be sure if we're rowing the boat in the same direction. This bill can fix that. Increasingly across our state, cities are the level of government where real action to address unsheltered, seriously mentally ill homelessness is happening. Cities like Berkeley have repeatedly proven that when we are given the appropriate tools from the state, we can and we do measurably reduce encampment homelessness and unsheltered homelessness. Since 2022, the city of Berkeley has reduced unsheltered homelessness by more than 40%. Imagine how much farther we could go with the kind of no-cost, common-sense reform that is proposed in this simple bill. Along with my director and the senator, I respectfully urge your yes vote and thank you for the opportunity. Thank you very much. Is there anybody else in the room in support? Name, affiliation, and position, please. Chair, members, we're in on behalf of the AIDS Healthcare Foundation in very strong support of this bill. Thank you. Thank you. Good afternoon, Kiara Ross on behalf of the City of Pasadena in support. Thank you. Thank you. Now in opposition. Not opposition. Good afternoon, Tracy Rosenberg with Oakland Privacy. We just want to say that we appreciate the amendments and the work from the committee and the author, and we will be dropping our opposition going forward. We love to hear that. Very exciting. Seeing any bringing you back to the dais any of my colleagues While seeing then I want to commend you for addressing this issue I think this is a streamline that's really going to address the issue. I've been to Berkeley I think it's a beautiful city and so to bring that back and provide resources for those most in need Thank you for the work you guys do as well with that sender reject close specifically. That's your iPhone Fantastic. We have a motion by mr. Bryan a second by miss McKenna. Adam secretary. Please call the roll Item number six, SB 479 by Senator Araguin. The motion is do pass as amended to Appropriations Committee. Barra Cahan. Macedo. Aye. Macedo, aye. Bennett. Bryan. Gamayo. Hoover. Irwin. Lowenthal. McKinner. Aye. McKinner, aye. Ortega. Patterson. Aye. Patterson, aye. Pellerin. Aye. Pellerin, aye. Petrie-Norris. Ward. Aye. Ward, aye. Wilson. Aye. Wilson, aye. You have six votes, but we'll keep that open for absent members. Thank you, Senator. And one of my favorite Central Valley senators, come on down, Ms. Caballero. A bit of a traffic jam. Come on down. Thank you for joining us, Senator, whenever you are ready. Thank you very much, Madam Vice Chair. So happy to see you. Thank you for the opportunity to present SB 690, a bill that will protect California businesses from a new wave of abusive lawsuits. I want to begin by thanking the chair, and I'm sure she'll be back before we get finished, But her and her committee staff worked really, really hard with my office to find a solicitor. to the vexations, vexatious litigation that has taken place in our state and that has cost millions of dollars to California businesses. I recognize that this bill looks different from the bill that we originally introduced and that there are still issues that are left unresolved with these amendments. However, the bill does address one portion of the current litigation that most parties agree is the egregious and egregious and abusive. The reason I introduced this legislation was to help as many non-profits, health care facilities, businesses, candidates, government entities as possible, all while ensuring consumer protection remains intact. I believe the amendments we're taking today accomplishes just that. Websites are one of the most common tools used for those who want to communicate with the public. Whether you're a food bank, a plumber, a school district, a hospital, or even a candidate running for office, a website is necessary to connect with the world. For most of us, we use websites that come from templates that use the same basic website functionality as every other website. These websites and default technologies are designed to allow consumers the ability to scroll easily and to click through the site to find the information that they're looking for. The pen register provision of CIPA is now being used to threaten nuisance litigation and damages that can exceed over $5,000 per site visit simply for the act of having a functioning website. So every time anybody gets on your website, that can be considered a violation and subject to a $5,000 penalty. Over the last few years, a handful of trial attorneys have sent thousands of demand letters and filed lawsuits asserting that businesses, nonprofits, and public agencies are criminally invading the privacy of Californians by using these basic website tools. These lawsuits have been brought by the same four law firms using repeat plaintiffs. While there are multiple legal theories and claims that are alleged by these lawsuits and demand letters, one of the most outrageous arguments is that the website's collection of an IP address somehow violates Section 638.51 of the California Invasion of Privacy Act, or CIPA. This provision is known as the pen register trap and trace section and was enacted in 1967, way before the Internet was even a twinkle in anybody's eye. It prohibited a person from installing a device on landline telephones that recorded incoming and outgoing phone call numbers. And while the specific statute was updated in 2015, this provision was never intended to be used to go after businesses that use basic analytics on their websites by claiming these features illegally recorded incoming IP addresses. Since I first introduced this bill early in 2025, the number of lawsuits filed has skyrocketed from 600 to nearly 4,000. And this is for law firms that have filed this number of lawsuits. Every entity with a website in California is a potential target. Food banks, community hospitals, school districts, small businesses, and even you and the legislature are all potential targets These lawsuits do not provide greater privacy protection for consumers They provide easy payout for inscrupulous trial attorneys SB 690 is now very simple. It stops the abusive litigation from occurring. And so the bill's been stripped out in new language. It stops the abusive litigation from occurring under Section 638.51 by replacing the existing private right of action with the Attorney General Enforcement and applies a two-year retroactivity to all pending claims. With me to testify in support of the bill are Usama Khaf, partner and co-chair of the Privacy, Cyber, and AI Practice at Fisher Phillips, and Jeff Glasser, General Counsel of the LA Times. Thank you, gentlemen. You each have two minutes. Hi, I'm Jeff Glasser. I'm general counsel at LA Times, and I'm government affairs chair for California News Publishers Association and a member of the Legal Affairs Committee of the News Media Alliance, which is the National Press Association. I applaud the committee for taking up this measure, SB 690, that would begin to address the shakedown lawsuits filed by a handful of plaintiffs firms against thousands of California businesses. Los Angeles Times is one of the first to face class action lawsuit claims that serving targeted ads to readers without opt-in consent violated a criminal statute governing law enforcement activity that was originally enacted in 1967. L.A. Times faced billions of dollars in potential liability because plaintiff's theory was L.A. Times owed $5,000 statutory damages each time a third-party ad tech tool on latimes.com collected one of the almost million or so IP addresses that visit latimes.com in a year. And this was for the purpose of doing targeted advertising. So we had to spend large sums of money fighting and eventually settling this putative class action lawsuit, even though we thought we had done what the California legislature wanted us to do. Following the California Consumer Privacy Act, CCPA, which was enacted by the legislature in 2018, we provided notice of collection of personal information and the ability for readers of LATimes.com to opt out of sharing personal information to do targeted advertising. The named plaintiff in our case easily could have opted out using the tools on LATimes.com as the legislature directed with the CCPA procedure. Instead, she filed the lawsuit claiming we had to provide opt-in consent, forcing a financially struggling news publisher into costly litigation in a multimillion-dollar settlement. We are hardly alone. Last year at this time, when my colleague testified on this bill, some 1,500 Penn Register trap-and-trace lawsuits had been filed against businesses. In just the past year, that number has more than doubled. SB 690 would bring much needed relief by closing the loophole for these shakedown lawsuits while preserving the overall intent of the statute. By having the Attorney General enforce the pen register provision of SIPA, the bill stops a common and growing exploitation of the statute by civil plaintiffs' attorneys without weakening Californians' privacy protections. Could you do a good wrap-up, please? Thanks. That's it. Okay, thank you. All right. You have two minutes as well. Dear members, my name is Usama Koff. I'm the co-chair of the privacy practice group at Fisher Phillips, where I focus on privacy compliance and litigation. Applying CIPA to ordinary website technology does not really protect consumers Instead it has become a shakedown of over 50 that the actual number the estimated number website operators including small businesses nonprofits and public agencies. My firm has handled about 250 of these CIPA matters involving businesses that actually complied with the CCPA that Jeff Glasser just mentioned. And yet they were sued under CIPA for using ordinary website cookies, including analytics, including cybersecurity tools as well. Over 3,800 lawsuits have been filed, and for every lawsuit, there are an estimated 10 to 15 private demand letters or arbitration claims. That's how we get to the 50,000 number. Not a single lawsuit involved the sharing of immigration data. It's very important to remember. With typical settlements of $15,000 to $25,000, more than half a billion dollars has been siphoned from businesses, nonprofits, and public agencies to a handful of law firms. These cases are brought by repeat plaintiffs targeting the websites of small businesses, schools, manufacturers, B2B companies that they had no legitimate reason to access. No one suffers actual harm. No one suffers actual harm. The only alleged injury is a technical violation with penalties stacked at 5,000 per cookie per session. Some have turned being a plaintiff into a full-time job, into a business. One serial plaintiff in particular spent seven years in federal prison for an extortion-related felony before sending what appears to be tens of thousands of AI-generated demand letters. My firm alone has 83 matters with him. Most are under Section 631, the wiretapping section, not the pen register section. He demands $15,000, never negotiates, and businesses settle because it costs far more to fight. SB 690 would stop this abuse while preserving California's strong privacy protections, including for sensitive medical and immigration data. I respectfully urge you to pass SB 690 and to address the abuse of Section 631, the wiretapping provision that's driving most of this litigation. Thank you very much. Is there other members in the audience in support? Name, affiliation, and position, please. Thank you, Madam Chair and members. Annalie Augustine with the Civil Justice Association of California in support. Thank you. I am Carlos Solorzano, CEO of the Hispanic Chamber of Commerce of San Francisco, the CEO for the Latin American and Caribbean Business Chamber. I'm also a founder of the Solano County Hispanic Chamber of Commerce, the Black Chamber of Commerce in Solano, and the Filipino-American Chamber. We represent 900 members, at least plus over 5,000 businesses in the Bay Area. We are suffering for this. We urge you to please support and pass 690 and also my Assemblywoman, Lori Wilson. Thank you. Thank you very much. We have lots of me too, so please just name affiliation and position. Robert Boykin with TechNet in support. Thank you. Thank you. Laura Curtis with the American Property Casualty Insurance Association in support. Thank you. Thank you very much. Amelia Zamani with the California Travel Association in support. Thank you. Sarah Boot with the Alliance for Legal Fairness in strong support. Thank you. Thank you. Good afternoon. Larissa Cespedes on behalf of the California New Car Dealers Association in support. Thank you. Thank you. Laura Bennett on behalf of California Chamber of Commerce in support. Thank you. Tim Lynch on behalf of the News Media Alliance and the California Self Storage Association in support. Thank you. Naomi Padron on behalf of Cal Broadband in support. Thank you. My name is Joe Salerno. I'm Executive Director of a nonprofit in Alameda County, and I strongly support SB 690. Thank you Robert Appalaca with United Latinos Action and the 200 for homeownership in support of 690 Thank you Robert Appalbaca with United Latinos Action and the 200 for Home Ownership in support of 690 Thank you Kerry Cooper representing the Union of American Physicians, UAPD, in support. Thank you. Ryan Elaine on behalf of the California Retailers Association in support. Thank you. Thank you. Anna Buck on behalf of the California Association of Realtors in support. Thank you. Nicole McDougall at Axiom Advisors on behalf of Zeta Global and LiveRamp. We are in support, but understand that there are serious amendments that are still needed in order to help everyday businesses. Thank you. Thank you. Tim Taylor with the National Federation of Independent Business in support. Thank you. Thank you. Robert Moncalof from Eureka Policy Center. We support. Thank you. Jorge Lopez, Executive Director of Bay Area Hispano Institute for Advancement, in support. Thank you. Terry Smith, on behalf of Community Housing Opportunities Corporation, in support. Thank you. Juan Pulido, on behalf of Sterling Asset Management Company, in support. Thank you. Olivia Herrera, Internet Stone Advocacy, on behalf of Elevate and the California Solar and Storage Association, in support. Thank you. Thank you very much. Edwin Lombard with ELM Strategies, representing Greater Los Angeles African American Chamber, the Black Business Association, and California Black Health Network, in support. Thank you. Alejandra Taylor with the California Business Roundtable, in support. Thank you. Belinda Gutierrez, owner of Elk Grove Plumbing, currently being sued for $20,000, 100% in support. Thank you. Thank you very much. Good afternoon. Erin Norwood on behalf of the Independent Insurance Agents and Brokers of California in support. Thank you. Thank you. Hi, my name is Tammy Yoder, and I am from Folsom Lake Heating and Air here in Granite Bay, and I am very much in support. Thank you. Hello, Audra Hartman on behalf of the California Hotel and Lodging Association in support. Thank you. Moira Top on behalf of Biocom in support. Thank you. I'm Jill Fertel from Cipriani and Werner. I represent many small businesses and nonprofits who are being impacted by the statute, and I'm here in support. Thank you. My name is Tasia Kiefer on behalf of the L.A. County Business Federation. We advocate on behalf of 420,000 employers and 5 million employees, and we are very much in support of this bill. Thank you. Jackie, I'm here at the California Fuels Convenience Alliance and DirecTV in support. Thank you. My name is Pam Ellingson. I'm here on behalf of Coalition Insurance Company. We are a cyber insurance carrier for small businesses. I am in support of SB 690. Thank you. Chitana Lofgren with Element Electric in Dixon, California, and we are actively being sued by Mao Law, and we are strongly in support of this bill. Thank you. Good afternoon, chair and committee. My name is Diana Ordaz-Charrington. I am here representing Alpha Prime Health Insurance Solutions, and we strongly support SB 690. Thank you. Thank you. Good afternoon. My name is Angelique Mahan with Amy and Associates. I'm a small business owner in San Francisco, California, and I'm here in support of SB 690. Thank you. Thank you. I'm Chad Mamone, small business owner in Alameda County, and I strongly support 690. Thank you. Do you want to talk into this? Hi, I'm Rebecca Stacks, and I'm here to say, I'm not sure what I'm going to say. Are you in support? Yes. Thank you very much. And what do I have to say? That's all. Thank you very much for being here. I appreciate it. Thank you. Thank you. Okay. With St. Francis Manor. Thank you very much. We're very protective of each other. Yes, as you should be. Hi, my name is Deborah Cagle. I live in Sacramento County, St. Matthew Manor also, and I'm strongly in support of SB 690. Thank you very much. Hello, I'm Tom Martinez, Sacramento County, and I support SB 690. Thank you. Thank you. My name is Maria Smith, and I live in St. Francis Manor, and I support SV690. Thank you very much. Thank you. Ben Eby, on behalf of the California League of Food Producers, in strong support. Thank you. I'm Amy Ashley, small business owner for Amy's Roofing and Solar, and I'm in support. Thank you very much. Good afternoon. Roberta Arnold with the California Multicultural Business Alliance. Strongly in support. Thank you. Austin Hayworth on behalf of Internet Works and our 30-plus member companies, some of whom have been really targeted by this, in strong support. Thank you. Alicia Priego on behalf of the Chamber of Progress and also Bay Area Council in support. Thank you. Thank you. Andrew Isiano, Latino Times Newspaper, in support. Thank you. Thank you. Dr. Takoye Porter, National Action Network, Sacramento, in strong support. Thank you. Good afternoon. Ahmad Holmes, President and CEO of the California African-American Chamber, in support. Thank you. Good afternoon. Alina Kumanish, representing 40 small business owners and personally a subject of litigation through the shakedown. I would like to ask for your support on SB 690. Thank you very much. Tim Martinez with Community Resource Project and the Stanislaus Latino Chamber of Commerce in support. Thank you. Hoyas Santiago on behalf of the California Hispanic Chambers of Commerce in support. Thank you. Ray from Sacramento, California in support. Thank you. My name is Ruth Cornell. I live in Sacramento County at 25th and Jay Street, and I strongly support SB 690. Thank you so much. Hi I Sonia Perez and I in support of 690 Thank you Thank you Marlon Lauer with the California Restaurant Association on behalf of Neighborhood Restaurants. Thank you. Thank you. In support. Leslie Lewis, Director of Social Services for St. Francis Manor, and I'm in strong support of 690. Thank you. Cheryl Brownlee, business owner, CB Communications. support SB 690. Thank you. Cynthia Price, Sacramento County, strong support of the bill. Thank you. Thank you. Yes, my name is Billy Hughes. Thank you. And yes, I'm for 690 thank you SB 690 thank you yes my name is a country yes on SB 690 thank you very much hi I'm Yolanda Moore and I'm also in support of this bill thank Thank you so much. Thank you. Anna Latig, I'm supportive of SB 690. Thank you. Thank you. Taylor Truffaut, representing the California Grocers in support. Thank you. Senator Caballero, you brought quite a few friends. Now, any witnesses in opposition can join us up at the desk. Thank you very much, Ms. Swartz. You can begin whenever you're ready. Good afternoon, Madam Chair, members of the committee. My name is Adola Suerta. I'm president of the Adola Suerta Foundation for grassroots community organizing. And I respectfully urge you to vote no on SB 690. Okay. For all the past decades, many have fought to protect working people, immigrants, women, and communities that have too often been exploited by those with power. Today, that fight includes our privacy. Privacy is not a luxury. It's a human right, and it's a civil right. We already know what happens when powerful companies collect our most personal information without meaningful accountability. Google has repeatedly been accused of collecting location data even after users believed that they had tuned it off or are browsing in an incognito mode. The flow of fertility app promised women that their reproductive health information would remain private. But instead, they shared intimate data with Mada for advertising. In this authoritarian world, this world that we're living in right now, where ring cameras are constantly recording smart speakers are constantly listening these are not hypothetical concerns Our most intimate details are ripe for abuse because companies put profits ahead of people privacy 690 would make it easier for this abuse to happen. It creates a broad exemption that weakens one of California's strongest privacy protections by allowing surveillance whenever a company claims a, quote, commercial business purpose, end quote. As many organizations have warned, that could and will open the door to companies collecting and sharing our searches, our locations, conversations, and other deeply personal information without meaningful accountability. And we have to ask ourselves, who bears the greatest risk? The vulnerable people in our community. It's the immigrant family afraid that location data could be used against them. It's the woman seeking reproductive health information. It's the young person searching for LGBTQ resources. It's the worker organizing for better conditions. These are the people that many of us have spent our life standing beside, and they deserve stronger protections, not weaker ones. I do want to thank the author and the stakeholders for the work that they have done to try to narrow this bill. We appreciate the progress that has been made through the amendments, but we still are deeply concerned about the effort to restore the retroactivity provision. Californians should not lose legal protections for conduct that has already occurred, and companies should not receive a retroactive pass for violating people's privacy. California has always led the nation in protecting civil rights and privacy. I urge you that we have a responsibility to continue that tradition. Stand with California families with vulnerable communities with the fundamental principle that privacy belongs to people, not corporations. So I respectfully ask for a no vote. And I believe that the issues that have been brought up here, I guess they need to be addressed, but not by giving up our privacy. Maybe other provisions like with the American Disabilities Act, something that could happen to solve the problem. Thank you very much. Giving up our privacy is not the solution. I actually gave you four and a half minutes, so I'll give you about a minute to speak. Thank you. I will go quickly. I just want to echo Ms. Huertas. Thank you to the Senator and to the Chair for all of their work. My name is Samantha Gordon. I'm here on behalf of TechEquity. We're still reviewing the existing pending cases under CIPA to make sure through that retroactivity that there are no meritorious cases that would be impacted. And our coalition generally has concerns with retroactivity. But I just want to lift up that as originally written, as was stated by Ms. Huerta, the original state of SP690 would have let any company at any time open your microphone and record your private conversation, as long as it believed that conversation might serve a commercial business purpose. And we heard I going to skip past some of this to recognize time but we heard the proponents and the author talk about how 690 is about protecting small business And that something that we really share in common and want to see happen And with the committed amends, we believe the bill is written now actually does that. And if the small business protections are the concern, we would expect the tech industry and large companies to stop pushing for the broader changes that they originally sought in SB 690. Since those changes are no longer needed. We do hope as we are reviewing amendments that these changes will allow us to remove opposition as the bill moves forward. Thank you. Thank you. Anybody else in the audience in opposition? Name, affiliation, and position only, please. Good afternoon, Madam Vice Chair and members. Robert Harrell. I'm the Executive Director of the Consumer Federation of California. I'd just like to thank the committee and the author and others for the work in narrowing the bill. We, too, are deeply concerned about the retroactivity provisions and are looking at potential cases that could be impacted, which would be far beyond the intent, I think, of that provision. Thank you. Thank you. Sabina Tacko with the Consumer Attorneys of California. We had an opposed and less amended position to support the author's intent of stopping the abusive practices and are reviewing our position. Thank you. Tracy Rosenberg with Oakland Privacy. We will basically align our comments with the speaker from Tech Equity. Thank you. Thank you. Good afternoon. Danny Kandel-Kaiser here on behalf of the California Low Income Consumer Coalition and National Consumer Law Center. Align our position with Tech Equity as well. Thank you. Becca Kramer on behalf of Privacy Rights Clearinghouse, the Electronic Frontier Foundation, and Consumer Reports. We very much appreciate the work that has been done. We are reviewing the amendments to see how it changes our position. I've also been asked by survivors and allies and ASUC Sexual Violence Commission at Berkeley to express their opposition. Thank you. Good afternoon, Chair and members. Connor Gussman on behalf of Teamsters California. Just want to start by thanking the author and the committee staff as well as the chair for working really hard on this. We align our comments with TechEquity and look forward to reevaluating our position once the bill, sorry, the amendments are in print. Thank you. Madam Chair and members, Sarah Flox, California Federation of Labor Unions. We're also aligned with Tech Equity and appreciate the very hard work of the committee and the author and are reviewing the amendments. Thank you. Thank you. John Bennett with the California Initiative for Technology and Democracy. I'd just like to align our comments with Tech Equity. Thank you. Thank you. Good afternoon, Chair and members. Beth Monowski, the SCO of California. Again, I want to align my comments to Tech Equity as others are this afternoon. Again, thank you for all of your extensive work, and we'll be reviewing the amendments. Thank you. Thank you, Mitch Steiger with CFT, a union of educators and classified professionals. Also align our comments with tech equity. Thank you. Thank you. Monica Madrid, Coalition for Human Rights Chair Luh, also align with tech equity. Look forward to looking at the amendment and engaging with the author's office in case we do take an opposed position. Thank you. Thank you. Good afternoon, Chair and members. My name is Symphony Barbie on behalf of the ACLU CalAction in respect for opposition. Also aligning our comments with tech equity. Thank you. Thank you. Good afternoon. I'm Don Marty with Aludo LLC, a California small business. I was in opposition to the original SB 690 from last year, but I'm reviewing the amendments and look forward to providing further info. Thank you. Thank you. Okay, I am sure. Yeah. Oh my goodness. Okay, Mr. Ward. I know you caught my attention first, so go ahead. Thank you, Madam Chair. I want to thank the author for a long period work on this, taking that time and doing the right work to try to make sure that you're kind of threading these issues, because I do believe that they are issues that you simultaneously care very strongly about as well. You know, recognizing and agreeing with the foundation of what you're trying to do is that we know from our own information that there's this proliferation, exponential proliferation of these abusive lawsuits, and that they deserve response because there's a lot of suffering out there, and it's just, it's not fair, right? And And so I think that you are going in that direction to be able to try to tackle that. And, of course, we're always trying to update a lot of outdated codes as well in this new age of digital technology. But we've got to thread in, of course, like, you know, the protections that we also so rightfully don't want to give up as well for any unintended consequences that might be out there. So I'm significantly encouraged by the work that was done leading up to this committee as well through the amendments that you are negotiating to be able to try to make sure that we're not going to undercut many privacy issues and everything. And it sounds there that, like, you know, just careful study and taking July and the recess that we have is to, like, sort of think through that that would, in fact, be the case. That, you know, any issues of meritorious cases that are out there from the perspective of, well, cases that you're trying to do that really had no merit to begin with, that those are ones that would be captured by this bill. while those that have other underlying concerns that are out there right now may still have some other avenue for the ability to tackle. And I see the end in sight, and I know you're going to be able to hit that nail on the head. And it sounds like there's a lot of really great support from opposition as well to continue to work with you on that. The two questions I wanted to raise that I kind of brought to my attention while reviewing this as well is, Have you thought about utilizing what is known, I guess, as a savings clause that our Judiciary Committee sometimes would be able to use that would be able to sort of thread in sort of a pretty, pretty standard language to make sure that the effect of this bill would not be, notwithstanding any other area of law, would not undercut other areas of law that should still be on the table for concerns? Is that a concept you're familiar with? So it is, and we can look into that. We made this a two-year bill so we could work through some of the issues. And so anything that would make it clear. See, part of what we were trying to do initially is to say CIPA doesn't apply. It should be in the CCPA. And that's what caused conflict because then we were eliminating the opportunity for valid cases to be processed. But the courts very clearly said this is poorly written in terms of the CIPA. It needs some detail. And so we were trying to keep that in mind as well. And so your point is well taken. We can take that language back and take a look at it and see how it applies, because there are different rules in CIPA than from CCPA, and we don't want to create more confusion. A hundred percent in everything, but I think as you're studying everything and everything just to make sure that all sort of, like, you know, the elements that could be nuggets of solutions, you know, are kind of in consideration. And the other issue is the retroactivity piece as well, too. And I can kind of talk myself with ways on that because, you know, again, we already have the evidence today, retroactively, that we are seeing this exponential rise of non cases as well And so you would want that to be a part of that solution because we know those judgments and those or those resolutions are going to be happening now imminently. And there's a lot on the table right now that you're trying to solve for and you're trying to be able to relieve. And as we're thinking, though, about that, that redrectivity, I think to the opposition's point as well, making sure that those that have meritorious issues on other areas of law, you know, are somehow not swept up with that too and everything, I think is an area of focus that you'll be working on over the summer. So I want to commend you on a tough issue, but one that's righteous that we're, I think, on the cusp of solving thanks to your leadership. And I'll be happy to be able to support you going forward today. Great. Thank you so much. Appreciate it. Thank you, Mr. Ward. Ms. Irwin, I'm back. I snuck in. You snuck back. I finished my other committee meeting and just in time. Well, it seems like, you know, we've been hearing about this for the last couple of years, the incredible number of abuse cases. And we had a lot of small business owners come in or people that represented them. So I appreciate all the hard work that you have done on this. In some ways, it sounds like the opposition, it seems like everybody's sort of at a comfortable spot because the opposition was saying that they needed to look at the amendments. But so in the analysis, it says the pen register statute has become the poster child for abusive lawsuits. But what we were talking about before was the wiretapping portion. So I don't know if if maybe the opposition or maybe you could talk about what, you know, what are the abuses we saw with that portion or why was that portion removed and why removing that portion seemed to get the opposition. closer in alignment with what you're trying to do? Well, I think we were trying to reach a fair resolution. And while I would have preferred to have two of the three identified because they're the ones that have the highest number, in reality, it's the pen register that has the most. Actually, let me turn it over to my expert here because we've had these discussions about out of the three sections, what's the section that's creating the most litigation? And so. Sure. So about two-thirds of the lawsuits currently involve a claim under the pen register statute. However, that doesn't mean that's the only claim in the case. A lot of the cases that allege a pen register claim also allege a wiretapping claim under 631. So if the pen register claim goes away because of SB 690, if it passes, it doesn't mean those cases go away. It doesn't mean that parties don't have recourse if they've truly been wrong. But as far as to answer your question about what kind of abuse is happening, the best example right now with 631 is the serial litigant that I alluded to in my remarks. a person who has actually been convicted of a federal crime, served time, and has in the last two months sent what we estimate to be tens of thousands of these letters. Most of his letters up until two months ago and his demands have been under 631, most of them. And so I'm talking thousands of letters and hundreds of claims that have been filed and many businesses that have had to settle with him. And he just wants $15,000. And in fact, he asserts that claim under 631. And he alleges that usually he going after things like Google Analytics and other types of very common technology In fact I can tell you that every single member of this committee your websites have Google Analytics, almost every single one of you, and in a way that could make you a target. The two speakers from the opposition, both of their websites are targets. They are your next target. Both of them have the same exact technology. I just went on one of their websites today and my data was shared with Facebook. I know that. I tested it. I looked at it myself. And that's as simple as that. And so I fear like there's some two shifts passing in the night where there's this fear about, you know, Big Brother watching and Big Tech taking your data when every – this is common technology that's, you know, and so many different websites, including, you know, many of the opposition parties' websites. So that's where the abuse comes from is this kind of litigant and others like him that are taking advantage of so many businesses and just filing these gotcha claims. Trying to just claim that there's liability and then stacking penalties. $5,000 for every user, for every visit, for every cookie. And now they want a significant amount of money. So many businesses are forced to fold. I would just say to your question, Assemblymember, a part of the reason that it changed our view on this scene, these amendments, is because the original language within SB 690 would have allowed for all three pieces of CIPA, including wiretapping, pen registers, and tap and trace, to be legal if the company could say that there was a commercial business purpose. And so we are very supportive of figuring out amendments that would protect small businesses and making sure that there aren't, you know, thousands of demand letters going out for simple infractions or analytics that many of us don't control on our websites. But we are worried that, you know, if you talk, we, I think all of you know, we poll Californians. We regularly test on these questions. And I think if you explain to an everyday Californian that your phone could be opened at any time and they could listen to your conversation without your consent, and they could justify that by saying it has a commercial business purpose, people would be appalled by that, right, that that would be fully legal. And so we think there are different ways to get at this issue than that broad of an exemption to Californians foundational rights under CIPA. And we would also contest that CIPA's this got brought up in the analysis. The senator mentioned this, that there was confusion between CIPA and CCPA. CIPA is what information can you take about people and how? And CCPA is once they have that information, what are your rights over it? And so if people are being surveilled without their notice and without any awareness, how would they know to opt out of that surveillance for wiretapping in particular? So that was a big change we thought was taking out that commercial business purpose exemption we thought was a pretty wide range of an exemption. And I also just want to say, Melissa Gardner is here. Let me just say that that's the old language. Yes. Sorry. Yes. I heard their concerns when I presented the bill and they raised the concerns. And in our work, we decided that that was the wrong place to go. Trying to determine what is a commercial purpose is just way too broad. And it becomes difficult. As we look at our websites, our websites are not necessarily for commercial purposes unless it's a campaign. And then it definitely is a commercial purpose But for the most part it to impart information And so we got rid of that And that was at the request of the committee made it a lot simpler to then narrow the bill down Thank you. Thank you. Assemblymember, I was told everybody over here, did you want to say something? I'm okay. Okay. My question. Somebody's already asked. Okay, great. Assemblymember Ortega. Thank you. I want to thank the author for her work on this bill. I do also want to recognize the Honorable Dolores Huerta for being here and reminding us that although we are, you know, we're living in a world where technology has moved so fast, we're still grappling with the same issues that we were back in the days when we're fighting for justice and civil rights. and we're doing that exactly the same thing here today in privacy. We're just doing it using different tools in different forms. So I really appreciate the fact that you recognize the concerns. You know, when Dolores Huerta comes to my office and asks for a no vote, I have to really stop and think and really think about, whoa, what are we doing? And really dive into the concerns that were raised. But I do appreciate that you've taken all of those into consideration. You've worked very hard with the committee. You've addressed, I think, most of them. So now I just have a question, and I think as someone who made a award alluded to this earlier, which is the retroactive provision. So if you can talk to me a little bit more about why the reasoning behind the retroactiveness And if you're willing to continue to work on this bill so that I, you know, I'm prepared to support it today, but I also cautious about moving forward if it gets to the floor. Understood. And I thank you for that question, because I generally do not like supporting bills that have retroactivity. I think it's important to tell the public here going forward. Here are the rules. The reason for this is when I first filed the bill, this is a two-year bill. There were somewhere near 60 cases that we knew about. And now there are close to 4,000. And this bill has been in print. So it's been clear that the legislature has been working on trying to limit the opportunity to sue under this construct. And so it's rush to get. And those are of the lawsuits that we know. What we have heard anecdotally is that there are thousands of businesses and nonprofits that are paying off the letters. The demand letters are coming in and they're paying off just to get rid of the cases. And I had the opportunity to talk to a number of small businesses. And they're they're really small businesses, small restaurant that started up a firefighter that started selling eggs because he bought some chickens to raise them for his family and then had too many and started selling them. and it was all online business. So he had a website and he was saying, you know, I've got this small sale of eggs and I can't afford to pay thousands of dollars as a penalty for using a website. So that's the reason for the retroactivity is that there are all these letters out there and there are all this thread of litigation. We want to end it. And so I'm going to be Working on it. We're not done. I think there's, you know, I want to continue talking to the opposition as well as to the supporters to figure out if we if we're just focused on the pen register, are we going to get enough of the litigation stopped or are there other things we may have to do for the other ones? I don't have an idea. I'm going with the with the chair and I have agreed to. But and whatever comes up, we'll have we'll continue working on it together. I make that commitment. Thank you. And I'll just note one of the things that made this very difficult. And the senator can tell you, I don't know how many different drafts we went back and forth on before we landed here. is that each of the sections, so the Penn Registrar, the Trapper, the T-Rocating, has different expectation of privacy, consent. And so they're each different. And so anything you tried to do across them was actually incredibly difficult just from a legal perspective. And the one that we're dealing with here, not only is two thirds of the case, so obviously that's an incredibly important piece of what we're tackling today, but also had the lowest bar, has the lowest bar in the law. You need no expectation of privacy, nothing. And so these letters, it's just strict liability and they're just churning these lawsuits. And so it is slightly different than the other two, which I think is important to note and is what made, I think, landing here where we landed. The other thing that I think we talked about in many of those conversations was sort of retroactivity makes sense because then I think the LA Times is sort of the best example of this. Nobody wants the LA Times who is clearly not intending to surveil or harm the people that you, Ms. Huerta, are here to represent to be harmed in the way they were by district liability law. And so we went with a much narrower solution, knowing that that gave us more latitude to do retroactivity. I think the broader the bill got, the more uncomfortable many of us were with retroactivity. And so I will note that as a piece of the retroactivity conversation that occurred. And I'll just say in all of that, I wanted everyone to know what we went through to get to where we are. And I want to thank the senator. She has been an amazing partner in this collaboration and was very thoughtful about crafting a solution today that I think, as you see, doesn't make everybody happy, but makes everyone, I think, a little happier.

So sometimes that means you got it right.

Chair Bauer-Cahanchair

Senator Brian.

Brianother

Thank you. Similar to my colleague from the East Bay, when Dolores Huerta has a problem with something, I genuinely have a problem with something. It's kind of one of the grounding rules that keeps me sane up here. Assembly member, I would say the same thing, too. Broke out in a cold sweat. I felt that watching his testimony. I think that speaks to how complicated this issue is and what's at stake with our privacy more broadly in the world that we're living in right now. A question about the retroactivity. Just hearing your response to the assembly member from the East Bay, that suggests to me that the retroactivity goes back to as long as the bill has been in print. Pretty much. And not beyond that? Yes, pretty much. It's two years, so a year longer. I think you've made a lot of progress. I was prepared to not support this bill today, pending those amendment conversations and working with the chair and continuing to make those strides. I also know this is your last year in the legislature and all the years we have worked together going back to when I first stole your car my first year. Maybe you need to explain that because it just doesn sound good It a great story for a different day She listens to Motown music by the way It's fantastic. And I have good snacks in my car. And she's got great snacks in the driver's door. I have never seen you not continue to work a bill with opposition and to try to get it to a landing spot. And so I'm happy to vote for it today, but would love to see some work on the recess and through appropriations before it gets to the assembly floor to make sure that it's a good idea. It's fully cooked. I think the opposition, the good news for you is the opposition is all on the same page. Same concerns, same suggestions of a way to go and a recognition that there is a problem, which I think is not always what you get when you have this kind of a fundamental disagreement. And so I'm willing to give you support today to have you see this all the way through. But I think the concerns that were raised by Ms. Huerta and the many folks that were here, I would love to see those addressed before we see it on the floor. Sounds good. Thank you.

Chair Bauer-Cahanchair

Thank you, Mr. Ryan. Ms. McKenner.

Laura Drinoother

Yes, I'd like to thank the author as well. This is a very difficult topic and good to see you, Madam Queen. And thank you for gracing us today. I'm really concerned with the frivolous lawsuits. It's not just this. It's not just business. It's also what's happening with our agencies, our counties and our cities. And so I'm just wondering why we haven't looked at, I know instead of tailoring our privacy rights, why we didn't look at trying to address the lawsuits, the people that are bringing the lawsuits.

Brianother

Yeah, well, in different contexts, we have rules against fixatious litigants. But you have to be careful because everybody has – as long as you can state a cause of action, you don't want the government coming in and saying you can't do this because we think you're just vexatious or you're misusing your power. The way that the courts deal with attorneys bringing lawsuits that or or defendants both is to determine whether there's really a cause of action and then to consequence the attorney if they if they find out it's fixatious. You can lose your license. Some people probably need to lose it faster. But but that's yet as Assemblymember Ryan said, that's a topic for another day. The bottom line is that in the context of disability, the disability access cases, we did set up a framework where you couldn't do more than a certain number of cases because then you got to be declared a vexatious litigant. Because then you're going around and trying to find somebody to sue and that's willing to be a plaintiff. And that's not right. But, I mean, your point is really well taken. We could do something similar in this kind of instance, but instead what we've focused on is it's the AG that will do the litigation. The AG is in a really good position to be able to look at these real serious cases where the privacy of individuals has been violated. And then you do class actions and the money goes to the person that's been injured or the person who's had their privacy stolen. And so that's how we dealt with the vixatious litigation in this case.

Laura Drinoother

Thank you Thank you And I going to lay off the bill today but I will consider it on the floor if it makes it to the floor once I see the amendments and really look at the amendments too Thank you Thank you

Chair Bauer-Cahanchair

Madam Vice Chair. Thank you, Madam Chair. And I just want to say thank you. I've watched your career for many years now and you take really big bites out of big problems and you take them head on. And I watch you work artfully with both sides and really have always had an open door and you've represented the Central Valley so wonderfully. So thank you for your many years of service.

Dawn Kepkeother

I would love to be added as a co-author to this. And to Ms. McKenna, I would love to work with you on something like that. I can't tell you how many times I go to events in the Central Valley and small business owners come to me talking about five, 10, 15, $20,000 lawsuits for this particular issue and saying, I'll have to close my doors. I won't be able to make my payroll. I'll have to lay people off. And so this is truly very needed. And I think we need to continue this conversation even further. And so I'm looking forward to doing that. And to Ms. Huerta, one thing that I have watched with Ms. Cabrera, all of those groups that you were considering that this could affect, she has been a champion for. So I have all the faith in the world that she's going to get this right to make sure that none of those communities are impacted by this bill. And at the time appropriate, I would love to move the bill.

Chair Bauer-Cahanchair

I think that we're complete. Well, thank you, Senator. As I said, I've watched how hard you worked in this over two years. And I want to commend you. This was heard in Assembly Public Safety a year ago. You heard the opposition. The Dolores Huerta Foundation showed up at that time, I believe, to express concerns. And so you took the year. You paused and you figured it out. And I think to the point of our colleague from Los Angeles, the retroactivity in some ways acknowledges that and says, you know, we didn't do this in a rushed way, so we would get it right. But those people for whom lawsuits have been filed in the interim deserve relief as well. And so I think that's really important. And I appreciate the comments. I appreciate your response to the vexations litigation question, because access to justice, you have to balance the two. And access to justice is so important and it's so hard. And, you know, when I was in law practice many moons ago, I remember my clients getting some of these letters and, you know, my clients had, you know, counsel. So it was a different, I was a defense lawyer. It was a different situation, but you see how these demand letters, even if they're not meritorious in any way, shape or form, which in the wiretap case, it would be harder for it to be meritorious. It does have a higher standard. You know, you have to weigh the cost of an attorney and just settling it. And so we see people settle, which is not right. Cause that isn't justice. That is just, you know, the economics of the decision. And so we have to get to a place where communities are protected. And thank you, I want to reiterate the comments of my colleagues, Ms. Huerta, for you being here and speaking up for communities that at this moment in history need it more than any other time in my lifetime. And your voice and the power of your history, I think, brings home the importance of the work this committee does to protect their privacy, because their privacy is sometimes all they have to keep them safe. And so I want to thank you for that. And we try very hard to do that work every day. We may not always get it right, but we hope we are making you proud in that work. And so that is the work we have before us. I think that's why the narrowing, especially with the retroactivity, was so critical to me as chair and to many of the people at this table. But I do think we are taking a two-thirds chunk out of this problem, and that's not small. So we'll take it. And one of the first questions I asked when we started working on this was, can we get some data? And that was what you actually, the supporter, sent me was. And so I think that we landed in a place that will make a significant difference but it is incumbent upon this body to continue to watch what is happening and ensure that these statutes are used for the purposes intended that they are not being abused and that that really critical But at the same time I personally think it important that Californians have tools to protect their privacy, and this is amongst them. So I appreciate that we have kept some protections for Californians across the statute. And even in this piece that we're amending with the government's ability to enforce on this, which I think is an important piece of it. So with that, would you like to close?

Brianother

Well, thank you very much to the committee, to all the committee members for a really robust conversation. I know many of you know my history. I was inspired by the very movement that Ms. Huerta comes from. And so for me, she's been a real light in an area that needs light. And I wouldn't want to do anything that's going to hurt any of the issues that have been raised. It's one of the reasons that we work so hard to narrow the bill and to spend two years getting good information. So with all of that, I respectfully ask for your aye vote today. Thank you.

Chair Bauer-Cahanchair

And before we have a motion, do we have a second?

Olivia Herreraother

Second.

Chair Bauer-Cahanchair

And a second. I also just want to thank staff. I swear that our staff was dreaming about this at night, both yours and mine. I did thank the staff, too. Okay, well, I have to say it, too, because they were—I would get texts where I was like, was this—were you thinking about this all night? So they worked really hard to land this as well, so I want to thank them. Let's call the roll. Item number eight, SB 690 by Senator Caballero. The motion is due pass, as amended to Appropriations Committee. Lara Cahan.

Olivia Herreraother

Aye.

Chair Bauer-Cahanchair

Lara Cahan, aye. Macedo.

Olivia Herreraother

Aye.

Chair Bauer-Cahanchair

Macedo, aye. Bennett.

Olivia Herreraother

Bryan. Aye.

Chair Bauer-Cahanchair

Bryan, aye. DeMaio. Hoover.

Olivia Herreraother

Aye.

Chair Bauer-Cahanchair

Hoover, aye. Irwin?

Olivia Herreraother

Aye.

Chair Bauer-Cahanchair

Irwin, aye. Lowenthal?

Olivia Herreraother

Aye.

Chair Bauer-Cahanchair

Lowenthal, aye. McKinner?

Olivia Herreraother

Not voting.

Chair Bauer-Cahanchair

McKinner, not voting. Ortega?

Olivia Herreraother

Aye.

Chair Bauer-Cahanchair

Ortega, aye. Patterson?

Olivia Herreraother

Aye.

Chair Bauer-Cahanchair

Patterson, aye. Pellerin?

Olivia Herreraother

Aye.

Chair Bauer-Cahanchair

Pellerin, aye. Petra Norris?

Olivia Herreraother

Ward? Wilson? Aye.

Chair Bauer-Cahanchair

Wilson, aye. That bill has 10 votes. It is out, but we will leave it open for absent members. Thank you very much.

Senator Tom Umbergsenator

Thank you, Senator.

Chair Bauer-Cahanchair

I don't see any senators back there. Do I? Okay, yeah, yeah, of course. Of course. I know we've got to start with consent. It's been that kind of day. Thank you. motions as well. We'll call the roll on consent. Consent calendar by R. K. Han. Aye. M. C. Do. Bennett. Brian. Aye. Brian. Aye. Jemayo. Hoover. Aye. Hoover. Aye. Irwin. Consent. Okay. Irwin. Aye. Go back to M. C. Do. Aye. M. C. Do. Aye. Lowenthal. Aye.

Olivia Herreraother

Aye.

Chair Bauer-Cahanchair

Lowenthal, aye. Consent.

Olivia Herreraother

McKinner.

Chair Bauer-Cahanchair

Aye. McKinner, aye.

Olivia Herreraother

Ortega.

Chair Bauer-Cahanchair

Aye. Ortega, aye.

Olivia Herreraother

Patterson.

Chair Bauer-Cahanchair

Aye. Patterson, aye.

Olivia Herreraother

Pellerin.

Chair Bauer-Cahanchair

Aye. Pellerin, aye.

Olivia Herreraother

Petrie Norris. Ward. Wilson.

Chair Bauer-Cahanchair

Wilson, aye. Consent has 11. It is out, but we will leave the roll open for absent members. We do. Oh, yeah. Did we get Pellerin on consent? Oh, oh, so we've only done consent. But since we have a Senate author, if you guys don't mind, we'll let her present and then we'll do more add ons. Senator Gonzalez.

Carlos Olorzanoother

And go USA.

Chair Bauer-Cahanchair

Is that USA? I was yesterday. I'm a little a day behind. Oh, is that Mexico? OK. But Team USA, too. I know. Am I starting off OK? All right. Good afternoon.

Carlos Olorzanoother

Madam Chair and members, I'd like to first begin thanking the committee to work through this bill with the amendments, and I'm here to present SB 1279. It authorizes Long Beach to place speed safety cameras, too, along PCH. PCH makes up about 1% of Long Beach's arterial roadways. It accounts for 20% of its crash fatalities, and tragically, it's taken an average of eight lives every year for the past five years, and specifically Long Beach's privacy protocols in this pilot program, which was established a few years ago under then-Assembly Member Friedman as the Chair of Transportation, include only activating cameras while a vehicle is detected speeding, deleting any images of non-violating vehicles within five business days, and ensuring information obtained from a speeding violation, including the vehicle's speed and license plate number, goes to Long Beach's Public Works Department and not shared with law enforcement. So testifying today, I do have Amy Brown somewhere in the building who is coming back. She's coming up the elevator now, so maybe she can close.

Chair Bauer-Cahanchair

Okay, great. We'll do me tos, and then we'll give her her time when she gets here. If anybody is here in support, we have a motion and a second. Do we have any opposition on this bill? I don't believe so. Okay. Well, Ms. Brown better be running. We have a motion, a second, and a third. I think she's fine. I know. Okay. Well, we're going to, Miss Brown can answer questions if anybody has any.

Jerry McNerneyother

We'll bring it back.

Chair Bauer-Cahanchair

Oh, there she is. Miss Brown, you have a motion, a second, and a third.

Jerry McNerneyother

Oh, really?

Chair Bauer-Cahanchair

Yes. So, perfect. Bring it back. She's a well-trained guest. We'll bring it back to the dais. Any questions, concerns?

Assemblymember Jacqui Irwinassemblymember

Oh, Ms. Erwin. Yeah, I'm going to be voting for the bill, but this is great that you are putting these speed cameras on PCH because we did it last year for Malibu, and they are very, very happy.

Carlos Olorzanoother

Yes, and I'm so proud. The residents, yeah.

Chair Bauer-Cahanchair

Thank you.

Jerry McNerneyother

I was so prepared for questions.

Chair Bauer-Cahanchair

You may get questions, Ms. Brown. Oh, never mind.

Nicole Rochaother

Mr. Lowenthal has just asked to speak.

Chair Bauer-Cahanchair

Mr. Lowenthal, do you have a question for Ms. Brown?

Nicole Rochaother

I just want to compliment the senator. So we share this area of Long Beach together and is such a critical issue for our constituents. And they're so happy that you've taken leadership in this role. So I just want to commend you and thank you for bringing this bill forward. I'll be supporting it.

Chair Bauer-Cahanchair

today Thank you Mr Lowenthal Seeing no further discussion I want to thank you for taking the privacy amends It is fun to chair this committee over time and have technology advance in a way that can continue to protect people's privacy. So this bill will be the first camera bill where we actually are requiring them to blur people's faces. That technology was not available until recently. And so we get to continue to upgrade privacy protections as technology advances. And so I want to thank the senator for that amendment and continuing to protect people's privacy. With that, would you like to close?

Carlos Olorzanoother

We asked for an aye vote.

Chair Bauer-Cahanchair

I had to give her a vote. We have a motion in a second. We'll call the roll. Item number 17, SB 1279 by Senator Gonzalez. The motion is due pass to the Appropriations Committee. Bauer-Cahan.

Olivia Herreraother

Aye.

Chair Bauer-Cahanchair

Bauer-Cahan, aye. Macedo.

Olivia Herreraother

No.

Chair Bauer-Cahanchair

Macedo, no. Bennett.

Olivia Herreraother

Bryan. Aye.

Chair Bauer-Cahanchair

Bryan, aye. DeMaio.

Olivia Herreraother

Hoover.

Chair Bauer-Cahanchair

Hoover, aye. Irwin.

Olivia Herreraother

Aye.

Chair Bauer-Cahanchair

Irwin, aye. Lowenthal.

Olivia Herreraother

Aye.

Chair Bauer-Cahanchair

Guento, aye. McKinner.

Olivia Herreraother

Aye.

Chair Bauer-Cahanchair

McKinner, aye. Ortega.

Olivia Herreraother

Aye.

Chair Bauer-Cahanchair

Ortega, aye. Patterson.

Olivia Herreraother

Aye.

Chair Bauer-Cahanchair

Patterson, aye. Pellerin.

Olivia Herreraother

Aye.

Chair Bauer-Cahanchair

Pellerin, aye. Petrie Norris.

Olivia Herreraother

Ward. Wilson.

Chair Bauer-Cahanchair

That bill has nine votes. It is out, but we'll leave it open for absent members. We're going to actually do add-ons, if you don't mind, Senator, because we have a member who needs to leave. So we're going to do some add-ons so he can add on before he has to depart. Okay, so we're going down everything? Yeah, we'll do everything. Okay, so we did consent. Then we have him. We need motions on item two. We need a motion on item two, SB 300 Padilla. We have a motion and a second. Let's call the roll. Item number two, SB 300 by Senator Padilla. Do pass to Appropriations Committee.

Olivia Herreraother

Barakahan.

Chair Bauer-Cahanchair

Aye.

Olivia Herreraother

Barakahan, aye.

Chair Bauer-Cahanchair

Macedo.

Olivia Herreraother

Macedo, not voting.

Chair Bauer-Cahanchair

Bennett.

Olivia Herreraother

Brian. Aye.

Chair Bauer-Cahanchair

Brian, aye. DeMaio.

Olivia Herreraother

Hoover. Aye.

Chair Bauer-Cahanchair

Hoover, aye. Irwin? Irwin, not voting. Lowenthal? Aye. Lowenthal, aye. McKinner? Ortega? Patterson? Aye. Patterson, aye. Pellerin? Aye. Pellerin, aye. Petrie-Norris? Ward? Wilson? That bill has six. We'll leave it open for absent members. Moving to item number three, SB 903. We need a motion. Motion and a second. SB 903 by Senator Padilla do pass as amended to appropriations.

Olivia Herreraother

Bauer-Cahan.

Chair Bauer-Cahanchair

Aye.

Olivia Herreraother

Bauer-Cahan, aye.

Chair Bauer-Cahanchair

Macedo.

Olivia Herreraother

Aye.

Chair Bauer-Cahanchair

Macedo, aye.

Olivia Herreraother

Bennett.

Chair Bauer-Cahanchair

Bryan.

Olivia Herreraother

Aye.

Chair Bauer-Cahanchair

Bryan, aye.

Olivia Herreraother

DeMaio.

Chair Bauer-Cahanchair

Hoover.

Olivia Herreraother

Aye.

Chair Bauer-Cahanchair

Hoover, aye.

Olivia Herreraother

Irwin.

Chair Bauer-Cahanchair

Aye.

Olivia Herreraother

Irwin, aye.

Chair Bauer-Cahanchair

Lowenthal.

Olivia Herreraother

Aye.

Chair Bauer-Cahanchair

Lowenthal, aye.

Olivia Herreraother

McKinner. Ortega. Patterson.

Chair Bauer-Cahanchair

Aye.

Olivia Herreraother

Patterson, aye.

Chair Bauer-Cahanchair

Pellerin.

Olivia Herreraother

Aye.

Chair Bauer-Cahanchair

Pellerin, aye.

Olivia Herreraother

Petrie-Norris. Ward. Wilson.

Chair Bauer-Cahanchair

That bill has eight votes. It's out, but we'll leave it open for absent members. Item number four, SB 1119 by Senator Padilla. We have five votes.

Olivia Herreraother

Bennett. Brian.

Chair Bauer-Cahanchair

Aye.

Olivia Herreraother

Brian, aye.

Chair Bauer-Cahanchair

DeMaio.

Olivia Herreraother

Hoover.

Chair Bauer-Cahanchair

Not voting.

Olivia Herreraother

Hoover, not voting.

Chair Bauer-Cahanchair

Irwin.

Olivia Herreraother

Aye.

Chair Bauer-Cahanchair

Irwin, aye.

Olivia Herreraother

McKinner. Patterson.

Chair Bauer-Cahanchair

Aye.

Olivia Herreraother

Patterson, aye.

Chair Bauer-Cahanchair

Pellerin.

Olivia Herreraother

Aye.

Chair Bauer-Cahanchair

Pellerin, aye.

Olivia Herreraother

Petrie Norris.

Chair Bauer-Cahanchair

That bill has nine votes. It is out, but we'll leave it open for absent members. Item number five, SB 354 by Senator Limon. We have four votes. Bennett. Brian. Aye. Brian, aye. DeMaio. Hoover. No. Hoover, no. Irwin. Aye. Irwin, aye. Lowenthal. Aye. Lowenthal, aye. McKinner. Ortega. Patterson. No. Patterson, no. Petrie Norris. That bill has seven votes We leave it open for absent members Item number six SB 479 by Senator Argin We have six votes Bennett? I didn't vote on that one. You need to call me first. Oh, sorry. I'm sorry. Bauer-Cahan.

Olivia Herreraother

Aye.

Chair Bauer-Cahanchair

Bauer-Cahan, aye. Bennett? Brian? Aye. Brian, aye. DeMaio? Hoover? Aye. Hoover, aye. Irwin? Aye. Irwin, aye. Lowenthal? Aye. Lowenthal, aye. Ortega. You can just finish. Item number six. SB 476. She already voted. Ortega, Petrie-Norris. I think it's 11. That bill has 11 votes. It's out. We'll leave it open for absent members. We're getting there, Senator. Thank you for your patience. Can I put it? Oh, yeah, please. Please, please, please. Yeah. Yeah. Item number seven. We do need one more. Okay, we need a motion on file item 7, SB 574. We have a motion in a second. Item number 7, SB 574 by Senator Umberg. The motion is do pass as amended. Bauer-Cahan. Aye. Bauer-Cahan, aye. Macedo. Aye. Macedo and co-author. Bennett. Bryan. Aye. Bryan, aye. DeMaio. Hoover. Aye. Hoover, aye. Irwin. Irwin, aye. Lowenthal. Aye. Lowenthal, aye. McKinner. Ortega, Patterson? Aye. Patterson, aye. Pellerin? Aye. Pellerin, aye. Petrie Norris? Ward? Wilson? Aye. That bill has eight. It's output. We'll leave it open for absent members. Okay, we need a motion on number nine, SB 813. Motion. Do we have a second? Mr. Bryan seconds. SB 813 by Senator McNerney. The motion is due pass as amended to Appropriations Committee. Bauer-Cahan. Aye. Bauer-Cahan, aye. Macedo? No. Macedo, no. Bennett. Brian? No. Brian? Aye. Brian, aye. DeMaio. Hoover? Not voting. Hoover, not voting. Irwin? Aye. Irwin, aye. Lowenthal? Aye. Lowenthal, aye. McKinner? Yes. Ortega? Patterson? Not voting. Patterson, not voting. Pellerin? Aye. Pellerin, aye. Petrie Norris? Ward? Wilson? That bill has six votes. We'll leave it open for absent members. So we will do add-ons for file item 16, SV1276. We need a motion. This is the crime, sexual exploitation of a child. I think, yeah, I was going to say, I think you can. Item number 16. Wait, we only have a motion. We need a second. Thank you. Item number 16, SB 1276 by Senator Rubio. The motion is due passed to Appropriations Committee. Laura Cahan. Aye. Laura Cahan, aye. Macedo. Aye. Macedo, aye. Bennett. Bryan. Aye. Bryan, aye. DeMaio. Hoover. Aye. Hoover, aye. Irwin. Aye. Irwin, aye. Lowenthal. Aye. Lowenthal, aye. McKinner. Ortega. Patterson. Aye. Patterson, aye. Pellerin. No. Is that okay? Rubio Pellerin I yeah it's fine okay that bill has eight votes it's out but we'll leave it open for absent members we were just trying to make sure all the bills that Mr. Brian had voted on got voted on so we got him on everything now so perfect so we can move on But yes Ms Irwin we go back to 15 later if you don mind And then I would like to be a co on Ms Rubio bill too if you don mind And now, Ms. Reyes, you have three bills. I do. Which one? Do you starting, I assume, with SB 951? Perfect. Well, thank you, Madam Chair and committee members, for the opportunity to present SB 951. I would like to begin by accepting the committee amendments and expressing my gratitude to the chair and to the committee and to the staff for their work on this bill. The question is no longer whether AI will impact workers. The question is how California will respond. SB 951 is that response. It builds on California's existing WARN Act by requiring employers to provide 60-day advance notice when 50 or more workers are displaced by AI or other automation. And thanks to the committee amendments, that notice is incorporated directly into the existing Cal WARN framework, so employers are not providing a duplicative notice. But layoffs are only part of the story. AI is also changing whether certain jobs will ever be offered again. Increasingly, employers are making the decision to permanently stop hiring for certain occupations because AI can now perform that work. Today, California has no way of tracking those permanent shifts in our labor market. That is why SB 951 also requires employers to notify EDD when they permanently cease hiring for an occupation because of AI or automation. This bill isn't about telling businesses how to hire. It's about giving California the information it needs to prepare workers for the jobs of tomorrow. If entire occupations are disappearing because of AI, students choosing careers, workers considering retraining, and policymakers investing in workplace development deserve to know. Innovation and worker transparency are not mutually exclusive. California can continue leading in AI while also preparing in a workforce for the future. Here to testify in support of the bill are Sarah Phlox with the California Labor Federation and Samantha Gordon with Tech Equity. Madam Chair, members, Sarah Phlox, California Federation of Labor Unions. We are the sponsor of this bill. Wanted to, again, thank the committee and the staff for their great amendments. The Warren Act was a response to deindustrialization and automation that hollowed out entire communities and regions of the country in the 1980s. 80s. Today, AI threatens the dehumanization of large swaths of the economy, where financially healthy companies are replacing workers and entire occupations with artificial intelligence. But catastrophic job loss is not inevitable. It is a political choice. And this bill is designed to give lawmakers the information they need to make those hard choices as we move forward. And so this bill does exactly that. It collects the information. The way we've been asked about how this interacts with the governor's executive order, we think it's a perfect complement. The governor's executive order in their dashboard uses UI data based and then cross references it with how AI impacts tasks. It's not real world data about who's actually being laid off. And it also doesn't capture this lost generation. Young people, 21 to 25, who are suffering a 17% decline in employment because... because of freezes on hiring. Salesforce has said, we're just not hiring engineers anymore. Duolingo's like, we're not going to hire contractors to do translation because we have AI translate. These are entire occupations that may not exist. This is what this bill attempts to capture. And so we just urge your A vote, your A vote, your I vote. I've been doing this for a day long. It's been a long week. Yeah, I, and yes. Thank you. Good evening, chair and members. Thank you for the opportunity to testify. My name is Samantha Gordon. I'm with TechEquity. Sarah has highlighted some of the things I wanted to talk about. I think it's no surprise to any of us that there are declaration upon declaration that this is coming. And if even the fraction of what the CEOs and many economists are predicting becomes true, we are woefully underprepared. And as Sarah mentioned, there was a recent report done with the California Policy Lab and EDD that found that actually many workers who have a bachelor's degree and higher, and many of them in San Francisco and many of them in the Bay Area, were exposed under their sort of methodology to AI exposure and AI job loss. And so one of the things we've tried to highlight, both in what Sarah just mentioned, but also in all of these reports, both the one that came out from the California Policy Lab, but basically the only data that exists right now on this is from the AI companies and specifically from Anthropic. And all of that methodology is based on this idea of task exposure, meaning that the specific pieces of a job that AI could automate are what's measured. And it's important to note that there's no legal requirement for employers who are actually the ones making decisions about whether or not these jobs get automated. There's no legal requirement for them to report on what's happening with AI and the workforce. And these task exposure studies are tasks that can be automated by AI tools. And this approach often accepts the technical capabilities of these tools as advertised by the AI companies without any expert or independent verification on how it performs on those tasks and functions. So, for instance, it might say, oh, this task, you know, is a medical task that AI could do, but there's not a doctor reviewing whether or not that's true, if the AI handled it appropriately. And task exposure also doesn't say whether a particular job is actually being automated away. It's a prediction. It's based on inference. So these task exposure studies don't talk about the company-level dynamics, such as the cost of technology, the potential impact on production, and many other factors that are used to make decisions about technology, not to mention the role that worker organizing, public policy, all of these things can play in shaping the choices and direction of technological adoption. So while these studies are very helpful, they don't actually capture the scale of what's happening now, and they can't reasonably be a prediction for us to set our public safety nets on. We need employer data and we need government-held data to prepare for this moment. And so we respectfully urge your aye vote on SB 951. Thank you so much. Anyone else here in support? Madam Chair and members, Mike West on behalf of the State Building and Constructing Trades Council of California, also in support. Nevne Puryear on behalf of the California School Employees Association, in support. Chajun Liu with the Electronic Frontier Foundation, in support. Catalina Sanchez on behalf of the California Rural Legal Assistance Foundation a rural legal aid organization servicing or serving farm workers low workers and mixed status families in support Thank you Eric Paredes with the California Faculty Association in support. Good afternoon. Beth Malnowski, the CEO of California in support. Becca Kramer with Green Lining Institute in support. Thank you. Anyone here in opposition to this bill, Premier Opposition? Come on up. The mics are very active. And I'm just stumbling over here. Good afternoon. Andrea Lynch on behalf of the California Chamber of Commerce and respectable opposition to SB 951. We appreciate the author has worked in good faith on amendments, particularly the recent amendments to align the threshold trigger to 50 workers like CalWARN. We are grateful for the dialogue and hope to continue this dialogue to address some outstanding issues. I first want to say that we appreciate the committee consultants thorough analysis and understand the recommendation made in response to SVLG's concerns. However, that is not the chamber's position, and expanding the causation standard beyond caused in whole by AI does not narrow the bill. It again expands it. Substantial is nowhere defined or quantified in the bill, leaving employers, including small businesses, to guess at what percentage of causation triggers compliance and plaintiffs of attorneys to litigate that question in court. This amendment compounds rather than resolves the compliance uncertainty we have identified as a core issue. Independent contractor is still defined as worker. I want to reemphasize that independent contractors are not employees. They are not part of the workforce in the way this bill assumes. Further, CalWARN does not include independent contractors. Second, the right-to-first bid creates an untested preferential hiring mandate that does not exist under CalWARN, and this raises significant operational legal questions about how employers managing internal postings, qualification, and restructuring decisions. Further, the right-to-first bid is a framework that is specific to merit-based civil service governments, not private employers. Third, the notice requires a six-item disclosure that does not exist under CalWARN. Of particular concern is the notice of the specific category or type of AI system or automating technology that caused the layoff, including the entity that developed, sold, or leased the product. This would disclose proprietary business information that could affect California employers' competitive advantage. We believe a workable solution is within reach and remain committed to engaging in discussions with the author. For these and other reasons, we respectfully ask for a no vote. Thank you. Good afternoon, Chair and members. Sarah Ducat, on behalf of the rural county representatives of California, we remain opposed unless amended to SB 951. First, I want to thank the Senator and the committee for their willingness to work with stakeholders. We appreciate the amendments that better align portions of the bill with the existing Cal Warren framework and the changes made to remove local governments from the provisions that require right to first bid. Those are meaningful improvements and reflect some of the concerns public employers raised. However, a few important issues remain. First, the bill continues to define worker to include independent contractors. Public agencies frequently contract for specialized temporary and professional services, and these individuals are not employees under existing public sector labor laws or CalWARM. Expanding the definition in ways creates uncertainty and extends the bill well beyond existing workforce notification requirements. Second, while we appreciate the effort to integrate the bill into the CalWARM framework, public employers are not currently subject to CalWARM. Instead, workforce changes are governed under longstanding public sector labor laws, including the Myers-Millis-Brown Act. Under the MMBA local agencies are already required to find notice and meet and confer with recognized employee organizations before implementing changes that have a significant and adverse effect on wages hours or other terms and conditions of employment We are concerned that layering a separate Cal warrant-based notice and enforcement structure on the existing framework creates overlapping and potentially conflicting legal obligations to public employers. Additionally, we have concerns that the changes to cessation and hiring notification is now much broader by expanding the notice from cause in whole by AI to cause in whole or in substantial part by AI. Finally, we are continuing to review the bill's enforcement. Public sector labor relations are traditionally administered through the Public Employment Relations Board, which has longstanding expertise in resolving disputes involving public employers. Because the bill contemplates enforcement through the Labor Commissioner, we are evaluating whether the enforcement structure is appropriate for public employers. We appreciate the progress made and are committed to having further conversations regarding our remaining issues. For these reasons, we respectfully remain opposed unless amended. Thank you. Thank you. Anyone else here in opposition to the bill? Good afternoon, Madam Chair. Chris McKaylee on behalf of the Civil Justice Association of California, respectfully opposed unless amended. Thank you. Good afternoon, Chair members. Catherine Charles on behalf of the Chamber of Progress. With recent amends, we are actually removing our opposition and going to neutral. So we appreciate your work on this. You read the analysis. You get a gold star. Oh, my God. Thank you. I'm pretty sure not everyone in this room did. Good afternoon. Kira Ross on behalf of the California Association of Recreation and Park Districts, still opposed unless amended. Thank you very much. Elizabeth Esquivel of the California Manufacturers and Technology Association. We remain opposed. Thank you. Good evening. Eric Lohr on behalf of the California State Association and Counties. Appreciate a lot of the amendments. We're opposed unless amended. Align my comments with our CRC. Thank you. Good evening, Madam Chair. Erin Avery, California Special Districts Association. I respectfully oppose unless amended. Align my comments with Ms. Duquette. Thank you. Good afternoon, Chair and members. Robert Boykin with TechNet. Respectfully opposed. Thank you. Good afternoon. Marlon Lara with the California Restaurant Association. Align our comments with the Cal Chamber. Thank you. Good afternoon, Chair and members. Naomi Padron, on behalf of California's credit unions, respectfully opposed. Good evening. Taylor Trifo on behalf of the California Grocers in opposition. Evening. Ryan Elaine with the California Retailers Association in opposition. Thank you. Thank you. Seeing no further. Oh, nope. There's one more. Sorry. It's just me. Sorry. No, you're good. I'm sorry. No worries. Melissa Kosachuk, Western Growers, we align our comments with those at Cal Chamber and opposition. Thank you. Thank you. Sorry I didn't see you. He's very tall. Okay, bringing it back up here. But before we do, I just want to level set because I'm a little confused by some of the opposition comments and perhaps it was because the analysis came out late. Just so we're clear, now public employers' only obligation is under the cessation provision. So if you completely seize hiring in a category, you have to tell the Department of Industrial Relationships. And I think that that, from my perspective, is so that we can do, as Ms. Flock said, prepare for the future. And I think it's not that large of an obligation, and we need to be able to do that. So I just want to make clear that that was a lot of opposition on things that I think are no longer relevant in the bill. So I would recommend all public entities in the room to study the amendments and reconsider your position. That wasn't a question. And with that, anybody else? Mr. Lomenthal. I have Bill Envy This is a wonderful wonderful bill And I truly supportive I love to be added as a co on this bill Absolutely. You know, our chair, not in regards to this bill, I would need to put in this disclaimer, but, you know, often has the opportunity to inform the rest of our caucus, the other members in our caucus about, you know, what's ahead. And in all the conversations, actually, about how the state's finances are looking much more rosy in the years ahead based on the IPOs that are coming from these AI companies. If you study their revenue models, which are subscription-based revenue models, the only way these IPOs are going to do so well, which means the state's finances are going to do well, is by taking away all of these jobs. So it is critically important that we are able to understand and look at things apples to apples and having this information in front of us because we are going to have to make very tough decisions as it relates to balancing these things out. And I'm grateful for you for bringing this forward. Thank you so much. I'll be supporting it today. Thank you. Thank you. And you did say you wanted to be out as a co-author, Mr. Lontal. I would like to be out as a co-author on the bill. Please. I'll make sure we got that. Okay. Any other questions? Seeing none, I want to thank the author for her work on this with the committee. I know, frankly, I don't often get sad that nobody gives us credit for all the work an author does on the amendments, but I felt sad here because I feel like this bill actually, from my perspective, went a long way in aligning with current law through the amendments here today and made the obligations on industry significantly narrower. They already have to do the WARN Act, and now we're adding a category. I will note, as it was not mentioned in the conversation prior, that this is something New York has already done. I will note that that wasn't data U2 cited, but if you look at the data coming out of their version of the WARN Act on this question, because now they have had it in place for a period of time, it is very few jobs on which employers are saying are being lost because of AI, which is interesting data. And it may tell us something and tell us something valuable. And so to add the obligation, and that's why I think even if it is a broadening of the definition of checking that box, it's checking a box. So I don't know that it's that big of an obligation to check the box if it's a substantial reason. And then it gives us information and it allows us to prepare for the future for Californians. And so I think that is incredibly important. I also really appreciate, and it wasn't something, frankly, I had ever thought of, this cessation notice. But again, I think that one of the things that we should be most concerned about in the future is the future of work. And it is our obligation as policymakers to face that head on. And it doesn't mean we stop AI. We can't. It's been here for decades and we won't. But it does mean that maybe we upscale in certain ways. Maybe we support certain job apprenticeship programs, whatever it is, but we cannot do that without information. And right now I think we are woefully uneducated about what's going to happen. And I was just having a conversation actually with one of the sponsors the other day about how there are people that we trust that say it is overblown and we will lose less jobs. There are people we trust who say we're going to lose a And what do we do with that? I don't know what we do with that. And so this will hopefully give us data. And as someone who believes deeply in policy that is data-driven, I think this is one of the most important things. bills moving in the legislature. And so I'm really excited that you are bringing it. I'm really excited it's in the position it is today. I hope you'll add me as a co-author as well. Would you like to close? Thank you. I would love to add you both as co-authors. I do want to thank you and I want to thank the committee. It is a better bill coming out of this committee. I think it is narrower, but it still provides the information and the notice that is needed for our workers today and in the future. And with that, I respectfully ask for your aye vote. We had a motion, I think, maybe? Okay. Second. Let's call the roll. Item number 10, SB 951 by Senator Reyes. The motion is do pass as amended to Appropriations Committee. Barcahan. Aye. Barcahan, aye. Macedo. No. Macedo, no. Bennett. Bryan. Aye. Bryan, aye. Tamayo Hoover. Irwin. Lowenthal. Aye. Lowenthal, aye. McKinner. Ortega. Oh, McKinner. McKinner, aye. Ortega. Patterson. Pellerin. Aye. Hellerin, I. Petrie Norris, Bords, Wilson. It has five. We'll leave it on call for absent members. Thank you all. Thank you. You don't move, Senator. But there might be people coming to join you. We'll move to SB 969, I think. Is that right? Do you want to do 1130? Okay, we'll move to SB 1130. Oh, how many do you have left? We have. All right. We have four left. Four bills left. That's it. Four bills left. So we have Senator Cervantes, who I think actually is here. She left. Senator Cervantes and Senator Perez will be after this. Thank you, Madam Chair and committee. I have the opportunity to present SB 1130. SB 1130 updates California's privacy laws to address the rapid rise of wearable recording technology, such as smart glasses. These devices are fundamentally different from smartphones. They are designed to look like ordinary prescription glasses or fashion accessories, making it far more difficult for people to know when they are being recorded. Today, someone can walk into a medical exam room, fitting room, locker room, or a spa wearing AI-powered smart glasses that appear completely ordinary, leaving those around them with little or no indication that recording may be taking place. SB 1130 establishes clear common sense guardrails while preserving innovation. First, it prohibits recording with a wearable recording device without consent in areas of a business where a person has a reasonable expectation of privacy. Second, it requires wearable recording devices to provide a clear recording indicator so that those nearby know when audio or video recording is occurring. Third, it prohibits the manufacture and sale of products specifically designed or marketed and primarily used to disable or bypass those recording indicators. This bill is not a ban on wearable technology. Businesses can continue to innovate, manufacture, sell, and use these products. What this bill does is establish basic rules of the road so consumers know when they are being recorded in places where they reasonably expect privacy. Good businesses benefit. If good businesses benefit from clear standards, consumers are far more likely to embrace new technology when they trust it is being used responsibly. With me today are Becca Kramer on behalf of Consumer Reports and Catherine Crump, clinical professor at UC Berkeley School of Law. Becca Kramer with Consumer Reports in support of SB 1130, which would place reasonable restrictions on the use of wearable cameras to secretly film California residents in sensitive locations without their permission. Last year, 404 Media reported on online influencers recording employees in massage parlors filming their reactions upon being sexually propositioned. And earlier this year, Wired published a story called, quote, The Rise of the Ray-Ban Meta Creep, which described men using metaglasses to record women as they were being harassed. Meta cameras include a small LED light that is meant to indicate that an interaction is being recorded, but many people don't know what the light means if they notice it at all. Moreover, many companies sell cheap defeat technologies on sites like Amazon to cover up the light and film secretly. SB 1130 would put into place common sense protections around the use of this increasingly invasive technology. It would require that users of wearable cameras get consent before filming in commercial spaces where they have a reasonable expectation of privacy, such as gym changing rooms and the massage parlors I just referenced. It would also require an indicator on a wearable device to give fair warning that people are being recorded, and it would prohibit people from disabling recording indicators on wearable cameras or from selling such technologies to others. Arguably, we should have even stronger protections around wearable cameras, such as the limitations on the use of facial recognition technology. However, the protections set in place by SB 1130 are an excellent and needed start. Thank you. Good evening. I'm Katherine Crump from Berkeley Law School. Thanks for the chance to testify. I just want to make two quick points today. First, the threat of wearable technology. We already know bad actors use hidden cameras in private places, but this threat continues to evolve due to wearable devices. Meta alone sold 7 million pairs last year and is projected to sell at least twice that this year. When wearable recording technologies are seamlessly integrated into everyday items like glasses, the risk of non-consensual recording skyrockets. Second, why this bill has a promising solution. At its core, it stands for a simple principle. People have a right to know when they're being recorded. It secures that right with the design of the device itself, requiring a clear indicator that people nearby can notice. With older technology, a camera looked like a camera. Today, it can look like an ordinary pair of eyeglasses. For two decades, Japan and South Korea have required non-silenceable camera phone shutter sounds to deter covert photography. The logic is familiar in our own law. We require that products be built with basic safety principles and that those items can't be removed. It's a crime to tamper with a smoke detector, and FAA rules bar disabling anti-collision lights on a drone SB 1130 extends this common sense approach to wearable technology By making sure that wearable recording devices give people fair notice this takes a step to protecting Californians privacy, and I'd be happy to answer any questions. Thank you. Anyone else here in support of this measure? Sarah Phlox, California Federation of Labor Unions in strong support. Thank you. Tracy Rosenberg with Oakland Privacy. We are in support of the bill. Thank you. I think Mr. Boykin is ready to come up in opposition. If anyone else is here with him, there's a second chair. You brought a friend. Good evening, chair members. Robert Boykin today with TechNet and respectful opposition to SB 1130. First of all, I want to start off by saying I have an immense amount of respect for the author and her staff. We've had a lot of productive conversations around this bill, and I hope that continues on to the future. But first, let me also be clear at the outset. We share the author's goal. People should not be people should be protected from non-consensual recording in genuinely sensitive places, and they should be held accountable for their actions. Our concerns are about drafting precision, not the bill's purpose. And some specific fixes would resolve our concerns. On the anti-circumvention provisions, we do not object to regulating technology that disables a device's recording indicator. Someone who disables the lights to deceive the people around them should be liable. Our concern is the standard language used in the bill, designed for the primarily purpose of or primarily marketed for, the sibling indicator. A retailer has no reliable way to know a product's primary design purpose or a downstream seller were marketed. So having a knowledge standard preserves the intent and gives the businesses a rule they can follow. Second, and most important, without a savings clause, the broad definitions in the bill and in existing law create major criminal and civil exposure for California businesses. The penal code defines person to include businesses. Section 2 creates a misdemeanor but does not define operate, which has a broad ordinary meaning and a violation is also subject to a private right of action under penal code 63637.2. Those things, in combination with a prosecutor or through the private right of action, a plaintiff's attorney could argue that because a business controls how his device functions or captures sound or video, potentially includes storing the data on his servers, the business is operating the device whenever a customer uses it. So we agree with the author that if a customer violates someone's privacy with a wearable device, that customer should be held accountable. But a business has no way to control how a buyer uses a device in public. An action camera or tablet maker cannot control whether a purchaser records where someone else expects privacy. The bill should state plainly that businesses are not liable for the actions of individual users. We share the author's goal, and we appreciate the author's dedication and open door when fully discussing this issue. It is just unfortunate at this time that we do not have yet found agreeable amendments or language that will allow us to remove our opposition. But as far as it stands, we respectfully oppose SB 1130. Thank you. Thank you, Mr. Good evening, Chair and members of the committee. My name is Aidan Downey, and I'm here on behalf of the Computer and Communications Industry Association to voice our respectful opposition to SB 1130. We fully appreciate the author's intent to protect consumer privacy, and I'll echo what Robert said earlier. However, the bill has currently drafted creates severe unintended consequences. First it creates sweeping manufacturer and employer liability SP1130 defines wearable recording device so broadly that it sweeps in everyday consumer tech and essential workplace tools like the Wi headsets restaurant staff use daily to coordinate service. Because the word operate is left undefined, device manufacturers face heavy criminal and civil liabilities for the independent, uncontrollable actions of their customers. We firmly believe that legal responsibility must rest with the individual choosing to record and not the business that manufactured or sold the device. Second, the bill relies on an unworkable primary purpose standard regarding recording indicators. Retailers have no reliable way to evaluate a product's secondary design features, and manufacturers cannot control how downstream retailers market a device. Businesses operating in good faith should not face civil penalties based on a subjective standard. Instead, we recommend a clear knowledge-based requirement to preserve the bill's intent while providing a practical compliance standard. Section 2, subsection E's disability exemptions are exceptionally narrow and may disincentivize manufacturers from offering helpful tools outside of the hearing exemptions. Expanding this definition to allow for assistive tools that can help consumers with any recognized disability would prevent these critical aids from being withheld due to fear of liability. Finally, the bill introduces a vague and unworkable privacy standard. Senate Bill 1130 bans recording in any place of business where someone has a reasonable expectation of privacy. It leaves these boundaries completely undefined. This creates a massive legal uncertainty for innocent everyday conduct. Adding language that would allow for a visual or audio indicator when a device is recording to satisfy consent would help mitigate these concerns and help bring the bill into congruence with established SIPA case law on the subject. For these reasons, we respectfully urge a no vote on Senate Bill 1130. Thank you. Thank you. Yeah, I already see. But if anyone wants to join Ms. Bennett in opposition, now is the time. Wait, the mic's not on, Ms. Bennett. Hold on one second. I'm just going to talk louder. Is your office in opposition? Marlon Lahr with the California Restaurant Association. Not really in opposition. I want to thank the senator and her staff for the potential unintended consequences of restaurant devices. And I want to thank you for the productive conversations. And we really appreciate it. Thank you. Thank you. Okay. Seeing no more opposition. I have questions. I don't know if anyone else has questions. Yeah, Ms. Wilson. Thank you, Senator. I have a few questions. So this prevents someone from selling, manufacturing, creating, all of that stuff. But there's also language that says from a person from acquiring technology. So if you are a resident in the state of California and you are in another state, you buy something and you bring it and you have acquired it, does that fall in there? and they have this particular product that doesn't have those indicator lights or sound or things like that. Is that captured in here as well? I imagine. Let me look to our... Yeah, much like there are many products that we can't buy in California that might be legal to buy elsewhere, but we can't bring it into California, this would be subject to the same piece. Okay. And then if you own a device, like for instance, all existing smartwatches right now allow for recording of audio. and don't necessarily have an indicator light. And yours says audio or visual. So existing devices that don't have that feature, are they allowed to be used in the state of California if this bill was implemented? Allowed to be used in a business where you expect privacy and expect not to be recorded, it would fall under this. It is a wearable device. But I think we can explore whether there might be language to make sure that it's clear that products that were sold legally, as someone wearing a smartwatch right now, that that those are exempted or kind of grandfathered. And we can, I think. So right now the language doesn't have that. So if you have. That's something that could be explained. So if this was signed into law, implemented January 1st, 2027, and there were no further changes. I just want to make sure I understand what I was reading. There are no further changes that there you would not. All of those devices, any device that had the ability to record sound or record video and was connected in some way transferable to another device or internet. So I do get that there is a distinction there. So my old case recorder wouldn't apply. But those would be considered illegal to use just in everyday life here. It isn't just the use. What I mean by use is use in a manner It's video recording or sounding, so not just wearing. I'm talking about using the features that you're talking about banning. Yes, but right now, as the bill is in print, it would need to be, you need to use the indicator light if you're using it in a place or indicator whatever. It could be a sound. It could be a light. The bill is intentionally left open to allow flexibility for the manufacturers. But yes, in a place that someone has a reasonable expectation of privacy, the recording would not be allowed under this bill. Is it limited to a reasonable expectation of privacy? Or if I go to a concert and I'm using my glasses that don't have a light, could I use, would that be disallowable by law? That would be allowable. reasonable expectation of privacy is something that the courts have kind of been clear on what is and what isn't. There's a lot of case law around it, and that would not be a concert. But if, for example, you were in a restroom or a changing room or some other place or doctor's office where you would have a reasonable expectation of privacy, then the bill would come into play. And I think that was part of where my staff was briefing on this to me today, and I was getting confused about this part, is looking at, and this is me basing it primarily on the staff analysis more than going through the language because, you know, I'm not a lawyer, so I heavily rely on staff. It says that you can't sell, it has the thing on the business, right, or person that you can't sell a product that has these types of features where there is no light or sound, right? And then it says a person can't acquire these things either. So that gets to Lori Wilson, right? Lori can't acquire this. And then, so if I can't have it, then how can I then use it? How does it not prevent me from using it anywhere I want to use it outside of a reasonable expectation of privacy if I'm not even allowed to have it? Am I reading that wrong? You're not allowed to have the device that covers or hides the light, but not always a light indicator. Thank you. There are devices being sold today. Right. They don't have a light. Yes, that's right. Okay. So I'm not talking about something that's manufactured. Yes. Talking about something that exists today on January 1 would be illegal to possess that regardless of privacy or not. Because if I go to somewhere where there not a reasonable expectation of privacy the way the bill is written today if I go to a place and use it that would be illegal because I not allowed to have that I think those are two separate pieces So there the question of whether you can acquire it And then the question of whether you can film someone without the indicator on in a reasonable expectation of a place where they have a reasonable expectation of privacy. And so they, let me just help. Maybe I can help. So there are separate sections. So the first section about acquiring, I think it's important to note, has a knowing standard in the penalties. So you wouldn't, If you were to buy something in Nevada, right? I mean, theoretically, if this bill were to pass, if you were to try to buy something like this on Amazon or in a California store, you wouldn't be able to. So that would be that. But let's say you're on vacation and you buy something and you didn't know that it was illegal here. Let me be clear. There is a knowing standard in the penalties. But then there's a separate section around operating it in a reasonable expectation of place where there's a reasonable expectation of privacy. And so I was just on the first part of the make violation, on the four make violation of one, two, or three punishable by a simple penalty. So if I, so I'll use this as an example. I had a Fitbit. I got to upgrade a Fitbit where this does not qualify under the, because a Fitbit doesn't record sound or whatever. But, you know, like when I didn't use it, I gave it to someone who wanted a Fitbit their first time having a Fitbit. It was one of those new to them things. Right. And we do that with old technology. Right. And so technically they would be in violation just by having it post this law. Correct. If it didn't have a light or something, if it was, and don't, I'm, I know I use Fitbit. but I was just talking about the giving of old technology. So technically, if this is in the place, that is something that is... Right, and that's where I said that at least, you know, speaking for Consumer Reports as a supporter, I don't want to speak for the author's office, but I do think that there can be language to clarify what the law is around existing things that were legally purchased prior to this law going into effect. And thank you. And I think that needs clarity in terms of things that are manufactured today and things that are manufactured after January 1st, 2027, should this become law. And I do want something that the chair said is that you knowingly acquire it knowing it has no indicator. I think that is an important part of it. But your point is a very good point, and I think it's something that we do absolutely have to look at. Thank you. And then in the other section, in terms of liability. So as I understand it, the liability, even when the person is disabling it or the person is hiding it or whatever, the company or using a thing, the company still has liability. That's not accurate? No, that is not accurate. Okay, where does the company, then explain to me the company's liability. It is the person. Go ahead. Whoever. If they manufacture something that is manufactured specifically with the intent of hiding the indicator, that is when they would be liable. Only the company would. That's right. Correct. It's only the person that is doing the action. So if they're the ones that are selling something to enable disabling it, or if you are the person who actually disables it, then you are liable. But if you are not using it, doing it in action, taking part in this, then you would not be liable as a company. Okay. And then as far as the individual liability, so if they do something, they have the civil penalty and then they have other things related to the penal code because this is being added to it. Um and then final questioning um centers around the this is only related to wearable devices Um but I can record you with my phone and you not see it And my phone does not have an indicator light People have like these other types of devices that record. And so this is not broad. This is just as it relates to a specific type of device. So why would we treat one product different from another when it comes to recording sound and audio? What was the reasoning for that? when we're talking about surveillance state and privacy and all of that nature? Yeah. So there are in California already some laws around this, like the two-party consent for recording and such that would capture things like your cell phone. This was trying to go after the things that people would not expect have the capability of recording. I think we all are aware that cell phones are able to record, other things are able to record, but it's still relatively novel that someone's glasses, for example, could be recording you. And so trying to bite off that kind of the emerging threat and tackle that in this part of in this piece of the bill. And so you don't think that the two party law is sufficient. The two party permission, whatever it is, two party consent, consent. That was the word I was looking for. Thank you. It's the end of the day. And I've now had a little bit of dinner. so I think I got a little bit of the itis, but that that's sufficient to manage this, given the fact that our phones have been recording for some time. We now know, because it's something you could do with disclosure for the person buying a phone, saying, recognizing that we live in a two-party consent state, you now have this thing, you cannot do these, you cannot do X, Y, Z, why add this additional label on it? And I'm looking at the whole table. I'll begin. I think this is important. It's new technology. We want to be sure that we're not stopping some innovation. But we want to be sure that because it is new and because it is something that you would not expect, I think at this point we would expect that if somebody's holding up a phone, you know they're taking a picture or video of you. Sometimes you don't know they're recording your voice because they simply push a button and they're recording the voice. But we do know that the law is a two-party law. This technology is so new, you would not expect normally that you can be recorded by glasses. And that is why we believe that this is important, to make sure that if you are doing it, if you are recording a person in a business area where that person would expect privacy, You have to get their consent. And that I 100% agree with. I think that the liability is really around the person. And I do think that although this technology is now novel, more people are aware of it completely. And, you know, people now have buttons, right, that are meant that the only sole purpose is to record you. I mean, there's a lot of things of surveillance, things that are terrible. So, whereas glasses have a different purpose and there are those, there's, I appreciate the exceptions around, you know, AIDS for those with disabilities because there's this technology now, you know, this technology is being used to allow people who are blind to have a better, more immersive experience of their surroundings, right? And so my just concern is you know it seems my thought would be it seems to strengthen our two consent system by making sure it covers wearable devices adding disclosures so that people are aware that that responsibility didn just lie with their phone the person personal liability They realize what every device that they have and what the rules are around what you can and can't do in our state versus this additional manufacturing something in a different way. But I appreciate the intent that you have with this bill in regard to privacy, because I think that is key, is we want people to feel like they have—well, one, we want them to exercise our right to privacy. And we do want people to, when they go out in the community, that there is some level of expectation, not that full reasonable, like when you're going to a gym or whatever, but you don't want to be constantly sorrelled, right? But I do know, having had a pair of glasses that light up, that sometimes that light is inconvenient for people when I'm doing my recording. And we're not in an expectation of privacy space. But thank you. Thank you. Thank you, Assemblymember. Madam Vice Chair. Thank you, Madam Chair. So let's just be clear. You're targeting metaglasses with this bill, correct? Wearable devices. We keep talking about glasses. So I'm assuming you're talking about metaglasses. So for the sake of this conversation, I'm going to talk about metaglasses. I own a pair of them. I think it is very clear, in my opinion, people may differ on that, that you can see the cameras on there. Additionally, we have very stringent consent laws when it comes to recording in any way and how those can be used. I would argue that your cell phone could become a wearable device if you have the thing that goes across your chest. You put it in your pocket, a plethora of things when it comes to that, that I understand the wanting to make sure we are people are knowing when they're going to be regular or are knowing when they're being recorded. But now let's say I had my metaglasses and I went to, let's say, a concert, like I said, because I got them before this law went into effect, could meta then be responsible for that? because is it the manufacturing from the time the law goes into effect forward? Or would I have to prove I obtained these metaglasses before? And then if that's the case, that those are then illegal, are you expecting meta to then give me a new pair of glasses with this blinking light? I just think there's so many issues with implementation. The metaglasses have a light. Oh, my metaglasses, I don't know. I don't use them for recording. I don't think meta is in the room, but I've seen people wearing them. Oh, the updated ones. Don't. Okay, the original ones did. And when people recorded, okay. Okay, I just was like, let's not throw meta under the bus. I think they have a light. I personally don't use my meta glasses to record people. So I don't know. I think that this has a long way to go before it's getting to what you're trying to achieve. Because I think when we talk about dressing rooms, we talk about massage parlors, there's laws that you could if you were the victim of this recording, get retribution and have your day in court. So I don't think that this is quite the answer. So I'm not gonna be able to support today. But I think this is an ongoing conversation that we figure out as technology progresses. And also educate people that consume these products of what is proper and improper. And maybe that's where we go with this. So thank you. Thank you. I didn't know Meta got rid of the light. I learned something new every day. Anybody else? Yeah, Mr. Lopal. Thank you for bringing this bill forward. Anytime I'm around this technology, it makes me uncomfortable. comfortable. It makes me feel like I've lost some of my human rights because I don't know what to say or how to act or what to do. I have grown resentful of them. We've seen them on the floor of the legislature, as a matter of fact, violating the laws and the rules of the legislature itself, but the rules that we have are ourselves. I'm grateful that you're bringing this forward. I I know that there are, I concur actually with my colleague from the Central Valley that we do have farther to go with this. And that's why I want to support this bill today in every way so we can continue that journey and not just blunt the conversation. It is going to take some time. The technology is evolving, as we just learned from the questions from the chair, on an annual basis. right? And so we better get started on a framework of rules that make people comfortable because people should not feel brittle when they're in a conversation with somebody in a workplace environment like we've had on the floor of the legislature with this very technology or otherwise without having some ground rules in place. I applaud you for bringing this forward. I'm going to be supporting it today. Thank you. Okay. Nobody else. So thank you. I actually the first time I saw them out of glasses was a colleague of ours who was recording using them. He was making a TikTok and they did have a light. And I actually thought, because to your point, you can see the cameras, but they're not always recording. You said you don't use yours to record at all. And so I do think like, it makes sense to me that people are wearing glasses all the time. They're mostly, I assume, not recording all the time. But when they turned it on, I thought it was appropriate that I knew that he was now recording me. And I think with a phone, most of the time as someone who's recording you, it's pretty obvious, right? They're holding it up. So in the same way that a light would. So I think the light's good. If Meta's listening, I thought the light was a good thing Meta did. So Meta brings back the light. So, but I do think, look, we live in a two consent state and these wearables are now ubiquitous. I mean, some people wear them as their eyeglasses all the time. That is, they're sold that way. And so I do think that if someone were to activate the record feature, the ability for someone who is standing there having a conversation with them to be aware of the recording is a benefit. And again, companies definitely have done it. That I can say with certainty. And so I don't see why they couldn't. And I actually really appreciate that. I also, I didn't know about the devices to cover the indicator until this bill came up. And I actually just, I was listening to the opposition about how do they know? And so I did a search on a major e-commerce platform specifically for device to cover meta indicator light and up popped endless pages of devices clearly marketed for this purpose. So I understand what you're saying about potential workarounds, but I think that maybe we can work on that language for this type of thing where I could actually put the language of the bill into the e-commerce site and see it pop up. I think we can do something about that. That seems pretty straightforward. But I did have a question. So as I read the operator language, I don't understand why, and I think it was more, I don't remember which of you, I apologize, but I think it was more you that said it, that the restaurant, for example, would think they were responsible for the recording and have liability under the bill So where in the language May I respond to that actually because that was brought up And it just like the hearing device The hearing device was something that was brought up The hearing device was brought up to us and we realized that we needed to put some language in there to make sure that any device for for disability was not going to be included here That wasn't the purpose of it. The same thing with the restaurants. They said, you know, they have the headphones and they need to be able to talk to one another. and so we're working on language. In fact, we've been working on it diligently, trying to get the right language so that we're able to exclude them from what it is we're putting here because I think it's valid. They want to be able to wear the headphones in the restaurants and communicate with one another and we're not trying to take that away. Okay, and so honestly, I mean, I'm not saying that you're wrong. I just don't read it as covering you, so I was a little bit confused by that piece of the opposition. So if you wouldn't mind, And really, where in the language did you read that? I mean, I think as we've discussed with the author, we have those concerns. And I think listening to discussions that we've had today, it is just a point of clarity. I think we need to work out with the author. And I think we can get there. Okay, perfect. Yeah, no, I didn't even. Just a little more clarification is sort of what we're looking for. Yeah, yeah, I couldn't even find it. I mean, I understand your lawyers probably spent more time looking at it. So I don't doubt it. But yes, I don't read it that way. So I'm sure we can clarify that. And Ms. Wilson asked to be recognized because she said that Metta has not removed the indicator light. Did they text everybody in the hearing after they heard them say that? That's hilarious. They were listening. Yeah. Okay. That's what I thought. I was like, I've seen people wear these glasses and they light up. And I like that. I actually think that's a good feature of the glasses. I think it is important in a two-party consent state. So I think the platform was surprised I was giving them credit. So that's why they were listening. I know exactly. I said something nice. So yes, thank you. So I appreciate that. I really just want to understand the technical issue, but it sounds like the author is already on top of it, which does not surprise me knowing this author. So I really appreciate this. I think that, like I said, we're a two-party consent state, so having the ability to know somebody's recording you feels important. I actually read right before I learned about your bill on this, I read a New York Times article about a waiter in New York City who was surreptitiously recorded with glasses. And then it went viral. And all of a sudden, everyone started recognizing him and he didn't even know he'd been recorded in the first place. And he felt a certain way about that as I imagine one would. And so his restaurant actually took action to say that people couldn't wear these in this specific instance. But I do think that that person had the right to know he was being recorded as everybody does. So I appreciate the Bill, I think that you'll continue to work on it. And with that, would you like to close? I want to be clear. This is not an anti-MEDA bill. I think that it's just wearable devices. MEDA seems to have, they are manufacturing probably the best ones. And let's say that, right? But I think that we're in the privacy committee. And it's about figuring out how we protect people's privacy where they expect privacy. making sure that somebody doesn't cover the one device on that wearable, on the glasses, that would let the person know that they're being recorded. And that's what the bill is about. And with that, I would just respectfully ask for your aye vote. Great. Did we have a motion? I can't remember. Okay, motion and a second. Let's call the roll. Item number 12, SB 1130 by Senator Reyes. The motion is due pass to the Appropriations Committee. Barcahan Aye Barcahan Aye Macedo No Macedo No Bennett Brian DeMaio No DeMaio no Hoover Irwin Wilenthal Aye Wilenthal aye McKinner? Ortega? Patterson? Pellerin? Aye. Pellerin, aye. Petrie-Norris? Ward? Wilson? Not voting. Wilson, not voting. Bill has three. We'll leave it open for absent members. Oh, you have one more. But to the senators that are here, this one should be fast. Just so you know, they are in the pipeline. Oh, yeah. She's the last bill in the mobile app. So do you want to go? Okay, do you want to? Well, but it's hard. We'll do here. Where? All right. Oh, it's next door. Thank you, Madam Chair, for the opportunity to present SB 969. This bill updates the regulatory framework for EV charging accuracy testing at the Division of Measurement Standards within the California Department of Food and Agriculture. California has established ambitious climate goals, including reaching 100% zero emission vehicle sales by 2035 and having five million zero emission vehicles on the road by 2030. Meeting these goals requires a charging network that is reliable, accurate and scalable. Despite these climate goals, stakeholders report that current enforcement for EV charging accuracy varies widely by county, with some areas lacking the resources or capacity to inspect and test chargers. Under the existing regulatory landscape, newly installed EV chargers are required to be placed into service and tested for accuracy before they can operate. However, there are more chargers out there than there are people available to test them, and the vast majority of chargers are factory tested and type approved before they leave the manufacturer. Simply put, the existing process by which these chargers are regulated is slowing EV charger deployment at a time when the state needs rapid expansion. This bill addresses this gap by removing unnecessary barriers to installing and operating new charging stations across California. This bill, as amended on Monday, reflects a series of discussions with stakeholders that included both regulators and industry to ensure that consumer protection remains as we speed up access to EV charging. Here to testify in the bill today are Marquise Mason on behalf of the Natural Resources Defense Council and Reid Addis on behalf of the EV Charging Association. Good afternoon, Madam Chair and members of the committee. Thank you for the opportunity to speak today. I'll try to keep this quick. My name is Marquise King-Mason, and I'm here on behalf of Natural Resources Defense Council in support of SB 969. California's climate, air quality, and clean transportation goals depend on the rapid deployment of reliable EV charging infrastructure. That means drivers need to have the confidence that charging stations are accurate and transparent, but it also means that a regulatory framework needs to be practical, scalable, and capable of keeping pace with the growth of EV charging. SB 969 strikes that balance. California's existing weights and measures framework was originally designed for traditional fuel dispensing systems. As applied to EV charging, it has created administrative and procedural challenges that can delay charger deployment and increase costs without always providing consumer benefits. SB 969 makes targeted practical forms while preserving strong consumer protections. In particular, the bill allows EV charging equipment that has already been factory tested and certified to be placed into service while maintaining registration requirements, inspection authority, and enforcement of accuracy standards. This bill does not eliminate oversight. It helps folks oversight where it matters the most, on measurement, accuracy, transparency, and most importantly, consumer trust. Reducing unnecessary costs and delays is especially important to expand charging access in multifamily housing workplaces public spaces and other shared charging settings Reliable charging access will determine whether the benefits of transportation and electrification are broadly available to all or not SB 969 is a common-sense set of measured modernization reforms that support both the consumer protection and charging infrastructure bill that California needs. For these reasons, NRDC respectfully requests an aye vote. Thank you so much. Thank you. Thank you, Chair and members. Reed Addis, on behalf of the Electric Vehicle Charging Association, We're here today because of the number 400. That's how many chargers need to be installed every single day for us to meet our ambitious climate goals. We are constantly struggling to find ways in which we can help consumers who buy these technologies once they buy them to get them installed. One of the issues that has plagued us for years has been what has been referred to as field testing. There's only one company that we know that sells this very expensive technology. There's only so many of those devices in state, and that creates a huge drag on the ability for us to get our technologies field tested and certified. When we looked at this bill, the reason we got excited about it is we think at least one element of it solves that problem by allowing you to do factory testing and certification. Our technologies are built in modern facilities today. It makes a lot of sense to allow this factory testing. We appreciate the author advancing this bill. Thank you very much. Thank you for your brief testimony. Do we have anybody else in support? Yeah, Julie Malnowski on behalf of California Electric Transportation Coalition. Thank you. Keaton Murray with the White House of the Group on behalf of Electric Eye America. Thank you. Sam, I'm on behalf of ChargePoint. Lizzie Guansone here on behalf of Tesla in support. Okay. Do we have any primary witnesses in opposition? Let's do it from back here. It'll be quicker. Madam Vice Chair and members, Matthew Seiberling on behalf of the California Agricultural Commissioners and Sealers Association. We were opposed unless amended. We have now removed our opposition and have gone to neutral on the bill. Thank the author for allowing us to work with her and her staff. Thank the committee staff for the great help getting the bill where we needed to go. We think it's a fair compromise, and we are not neutral on the bill. Thank you. We love happy endings like that. So do we. Anybody else in the room in support? Charles Delgado, California State Association of Counties, co-signing a statement from the county sealers. We were opposed unless amended with the recent amendments. We are now moving to a neutral position, and we thank the author for bringing that language. Happy to hear that. bringing it back to the dais. Any members of the committee? We have a motion by Ms. Wilson and a second by Ms. Pellerin. Thank you for bringing this forward. I can tell you in the Central Valley we are a charging desert and the charging stations we do have are not always fully operational. So I appreciate you bringing this forward and with that would you like to close? I respectfully ask for your aye vote. Thank you Senator. Item number 11, SB 969 by Senator Reyes. The motion is due pass to Appropriations Committee. Thank you. Ms. Cervantes. Whenever you are ready, Senator. Thank you so much. Thank you for the opportunity to present Senate Bill 1013 today. This bill is about one simple principle protecting the privacy and safety of Californians while ensuring law enforcement tools are used responsibly before it's too late. Senate Bill 1013 strengthens safeguards governing automated license plate recognition systems by requiring stronger employee access control, requiring annual Department of Justice randomized audits to ensure compliance with existing law, requiring mandatory privacy and cybersecurity training for employees with ALPR access, and limiting retention of ALPR data to no more than 30 days unless associated with an active hot list. Over the past decade, LPR systems have quietly become one of the most expansive surveillance technologies in California. More than 230 police and sheriff departments already use these systems, with additional agencies planning to adopt them. Yet, despite collecting billions of license plate scans, there remains no comprehensive statewide evidence demonstrating their effectiveness across investigations or public safety outcomes. What these systems unquestionably do is collect location and movements of millions of law-abiding Californians. In 2016, the legislature enacted SB 34 to establish safeguards governing ALPR use. Unfortunately, those protections have repeatedly been ignored. Agencies shared ALPR data with hundreds, even thousands of outside entities, including federal immigration authorities and direct violation of state law. Many agencies failed to establish required policies or had none at all. Some commingled ALPR data with sensitive personal information with few safeguards on employee access. Six years later, many of those same violations continue. Recent events show that this is not a historical problem. It's happening today. In 2023, privacy advocates documented 71 California agencies violating ALPR law. The attorney general issued an advisory clarifying agencies' legal obligations. Last year, San Francisco discovered approximately 1.6 million unauthorized searches, including searches conducted on behalf of ICE and out-of-state agencies. Attorney General Rob Bonta was forced to sue the city of El Cajun after it continued to illegally share ALPR data even after being warned. Beyond unlawful data sharing, employee misuse remains a serious concern. Across California, officers have improperly accessed ALPR information to stalk former partners, harass private citizens, and misuse sensitive government databases. In Shasta County, an officer used ALPR data to harass the ex-boyfriend of his fiancée and was charged with six misdemeanors after he used this data to have the ex-boyfriend struck toad and impounded In San Diego investigators also found that a sergeant in the San Diego Police Department used ALPR data to find information on his ex new boyfriend He used this information to stalk both his ex and her boyfriend. Media reports have also documented California ALPR database feeding broader federal surveillance systems targeting immigrant communities. Several California jurisdictions, including Mountain View, Santa Clara, Santa Cruz, South Pasadena, South San Francisco, have suspended or restricted ALPR access after discovering unauthorized usage. Washington recently enacted legislation limiting ALPR retention to 21 days. Hundreds of agencies nationwide have already adopted the 30-day retention policy as a best practice. This bill today responds directly to these documented failures time and time again. It strengthens employee safeguards, as mentioned in the opening, DOJ audits, and it limits retention of data belonging to millions of innocent Californians. This bill does not eliminate ALPR technology. It does not prevent law enforcement from using these systems to investigate crimes. It simply ensures that these powerful tools are governed by clear rules, meaningful oversight, and accountability. California should never have to choose between public safety and privacy. We can have both. SB 1013 protects legitimate law enforcement use while preventing abuse, strengthening public trust, and safeguarding the constitutional rights of millions of Californians. This bill is timely, it's measured, and it's long overdue. Today, with me to testify in support, we have Professor Catherine Crump, Clinical Professor of Practice and Technology Law at UC Berkeley School of Law and Director of the Samuelson Law Technology and Public Policy Clinic. We also have Mike Katz-Lakabe, a Privacy Rights Activist and Director of Research for Oakland Privacy. You will each have two minutes. Good afternoon, honorable committee members. My name is Mike Katsalakabe. I'm the director of research for Oakland Privacy. In February of 2020, the California State Auditor issued a report on automated license plate readers that began, quote, to better protect the privacy of residents, local law enforcement agencies must improve their policies, procedures, and monitoring for the use and retention of license plate images and corresponding data. SB 1013 finally helps to ensure that more than six years later, these recommendations are implemented. Despite opponents desire for a five-year retention period, 165 of 192 law enforcement agencies in California we reviewed have already chosen to retain data for 30 days or less, including 20 county sheriffs. The argument that more than a 30-day retention period is necessary for investigations or public safety is just not borne out by actual practice. Agencies keeping data more than 30 days are the exception. In fact, San Diego PD, which retains data for 30 days, was better at solving violent crimes and property crimes in 2024 than Los Angeles PD, which retains data for five years, according to the California Department of Justice. Recently, we uncovered more than a dozen law enforcement agencies sharing license plate reader data in violation of California state law. Despite a legal requirement to conduct audits, agencies are typically unaware of who they are sharing data with or the reasons that their data is being searched. Too many times audit logs obtained from public records requests have revealed law enforcement performing searches on behalf of immigration agencies that were somehow missed by existing audits required under California law SB 1013 addresses this by requiring audits by the California Department of Justice In nearly every law enforcement agency that we reviewed there are no documented policies or procedures for how or why a license plate is added to a hot list. Hot lists are created and maintained with no oversight, putting California drivers at risk of being stalked or abused by those with access to ALPR systems. Finally, the author has incorporated three-fourths of the amendments proposed by the Police Chiefs Association, and we respectfully ask for your support. Thank you. Two minutes on the dot. Well done. Challenge is on. Let's see if you can do it, too. All right. I'll do my best. Catherine Crump again from Berkeley Law School. We can agree on two things. First of all, ALPR is a valuable law enforcement tool. No one is suggesting that it be banned. And second, over 99 percent of the data collected by ALPR belongs to completely innocent people. The question is how long we should be tracking the movements of innocent Californians. I urge the committee to adopt a statewide data retention limit. The 30-day limit is a reasonable and evidence-based choice, as you've already heard, and it mirrors the default policy of retention for flock safety, which is the most prominent ALPR vendor. A 30-day limit, for example, takes nothing from a missing child emergency. The bill specifically authorizes ALPR to find someone reported missing, and data tied to an active investigation is exempt from deletion. According to the California State Auditor, over 99.9% of the 320 million plate hits Los Angeles stored were not on a hot list. Those people were overwhelmingly innocent, and yet their data is now logged in a law enforcement database. There is also a concrete evidence-based reason why long-term storage actively compromises public safety. Without a strict data retention limit, California data is leaking across state lines, exactly what our law forbids. The state auditor found that agencies weren't even tracking who was searching their data and concluded that the problem was likely statewide. And it continues. In roughly six months, out-of-state agencies ran more than 1.6 million searches of San Francisco's database alone, some of them tied to ICE. This is why a strict data retention limit backed up by an audit requirement is so important. You cannot unlawfully share data that you do not have. The California police chief's vault proposal is a dangerous step backwards. storing billions of records on innocent drivers only multiplies the risk of breaches and unlockable sharing. And I look forward to your questions. With five seconds to spare. Well done. Anybody else in the room in support? Good evening. John Bennett with the California Initiative for Technology and Democracy in support. Thank you. Thank you. Tracy Rosenberg with Oakland Privacy in support of the bill. Thank you. I didn't even have to say it. opposition. Come join us. Whenever you're ready, gentlemen, you each get two minutes. All right. Good evening, everybody. Jonathan Feldman, California Police Chiefs Association, reminiscent of that movie Eight Mile. They kind of tried to catch me before I even got up here. So I do still have some things to say, though. So first of all, a lot of the violations that have occurred were not intentional. There were flaws in the systems that allowed access to out of state and federal agencies that we didn know about once we identified that which again gives reason to the audits and the oversight and the bill that we not opposed to we did take corrective action And I can tell you there are police chiefs who are very very upset about what had occurred because it put them in a very precarious position for the damage trust with the community around their use of this very critical tool to the arguments about the retention on 30 days being the norm. That doesn't include the largest agencies in the state who share data with the smaller agencies who can't afford to hold the data that long. 30 days is the norm because you get charged for holding it longer than that. So a small agency in L.A. is not going to be able to hold data the way that LAPD does. But LAPD shares with those agencies, with CHP. So restricting it to 30 days doesn't just impact those few small large agencies or small number of large agencies. It affects everybody. And the amendments taken, I do want to say I appreciate the author. I appreciate her staff for meeting with me consistently throughout this entire year. And they have taken some technical amendments to address several of the issues that I brought up. But those were some of the low-hanging fruit, non-controversial issues. The biggest issue that remains is the language around the retention period. 30 days is not sufficient. From our perspective, we've talked about why LAPD has around 210, Cold case murder investigations that they're currently trying to solve. Data longer than 30 days would be potentially critical in solving some of those cases. They had three murder cases just from this last year that started as missing persons. Neither were reported until after 90 days that the individual was gone. All of the data that we would have had potentially for those crimes that we, again, didn't know had occurred would have been deleted if this bill were law. We do think that the protections that we've offered last year, and we continue to offer this year, around allowing us to continue to hold the data, but as long as it's protected, unreleasable, except for an investigation to a specific enumerated crime and only accessible by an administrator is reasonable. But we're open to other ideas. We look forward to continuing to work with the author as this bill nears the finish line. And remind everyone the governor did veto a very similar bill. So we also have, you know, the administration that we're in contact with trying to ultimately come up with some type of protections that make sense and still allow law enforcement to use a critical tool that's important. Thank you. I let you go over. So I was trying. I appreciate it. Madam Chair, members, Corey Sazillo on behalf of the California State Sheriff's Association. I'll try not to be duplicative. the 30-day limit. Just because one company says 30 days is what we recommend, that should really have no bearing on how the legislature decides what to mandate. And candidly, an agency choosing a data retention period is materially different than the state mandating one. I just think if we want evidence of efficacy, we can talk to the missing person who was found or the family members of the cold case murder that was solved. See what they think about the technology and see what they think about juxtaposing the utility of this technology. Nobody's saying this bill bans ALPR. What we're saying is it severely restricts the utility of the technology, which captures a picture of a license plate and other data, and retains it so that it can be used potentially in an investigation. These stories about misuse should be told completely to include how those who misuse the technology are disciplined and or prosecuted. So I just, again, I think we've been over the points. We've been over this bill several times for the last few years. This is a crucial law enforcement tool We are not arguing that this is a ban, but the severe limitations in this bill will really keep the tool from being used as effectively as possible. And for those reasons, we ask for your no vote. Thank you. Thank you. Anyone else here in opposition? You both want. I'm sorry. Okay, perfect. I didn't want to skip. Anyone else here in opposition? Yes, Madam Chair and members, Julie DeVores on behalf of the League of California Cities. We have an opposing this amended position. A lot of our comments with the Police Chiefs Association. Thank you. Good evening, Madam Chair. Ryan Sherman with the California Narcotic Officers Association. In opposition, along with the Riverside Sheriff's Association, California Reserve Peace Officers, Placer County Deputy Sheriffs, and the Police Officer Associations of Arcadia, Burbank, Brea, Corona, Culver City, Fullerton, Murrieta, Newport Beach, Nevada, Palos Verdes, Pomona, Riverside, L.A. School Police, L.A. School Police Management, California Coalition of School Safety Professionals, and the California School Police Chiefs, all in opposition. Thank you. Thank you. Good evening, Madam Chair and members. Matthew Seiberling on behalf of the Association for Los Angeles Deputy Sheriffs, the California Peace Officers Association, both opposed. Also on behalf of the California Mobility and Parking Association, opposed unless amended. Thank you. Sam Hood, on behalf of the Security Industry Association, we have an opposed and less amended position, but thank the author for their conversations. Good evening. Kira Ross on behalf of the City of Thousand Oaks and the City of Belmont in opposition. Thank you. Thank you. I'm seeing no further opposition in the room. We'll bring it back to the taist. Madam Vice Chair. Thank you, Madam Chair. And before I get too far into this, I just want to say this technology is critical. And I think you recognize that as well. And I'm hearing that from your witnesses that are here today. Right now, that technology is the only thing that's making me feel safe, not just here at the Capitol, but back home. And I'm happy to share that story with you privately. But I do have concerns around the 30 days. And I had those same concerns last year and in transportation as well. And it sounds like that's kind of the last piece that's missing. are you open at all or are you stuck on that 30 days timeline right now? Through the chat, please. Yes, we've always been open to having those discussions and continue to do so. So to the opposition, what would be a reasonable time? That's not five years because it sounds like that's a non-starter.

Senator Cervantesother

I'm obviously open to discussing a shorter length of period, understanding that we've got a large gap here and I'm never going to just dig in on one number and just stick to that position. I've always, and I've worked with many of you on many bills, been willing to be amiable to compromise. I think, though, the use of this kind of lockbox vault to allow for longer data retention in a more protected way just makes sense to try and address some of the privacy concerns, The idea being, again, after a certain point, only an administrator, so only a police chief has access and only if they're investigating, say, a violent crime or a serious felony. You know, I think we could hopefully then come to some type of agreement where, you know, maybe it's general access for a shorter period of time. But, you know, multiple years with just administrator having access and we're really then protecting the data at a higher level. But again we at our starting point and kind of waiting to see if we can kind of get some more movement towards the center here I appreciate that and I think there once again sounds like openness on both sides Now to move away from law enforcement for just a second to my understanding, this measure impacts existing camera enforcement programs that public entities like cities, counties, universities, transportation agencies have invested to protect pedestrian safety and ensure that parking is available on our college campuses. If this essentially derailed that, it could negatively impact some of the public entities that have already invested taxpayer money to ensure pedestrian safety in our cities and counties, and that parking is enforced and available on our college campuses. Are you working with stakeholders like colleges and universities to address their concerns for student safety? Colleges and universities have not reached out, but I will tell you parking enforcement folks just sent this over the weekend. So there's no way that we can address amendments from Saturday to Monday. And so we will be having discussions with them.

Chair Bauer-Cahanchair

Just some light reading for your summer break, Senator.

Senator Cervantesother

Well, I appreciate that. And thank you, Madam Chair. I want to thank the author for bringing this forward. I know that this has been a bit of a journey, and it's a journey I'd love to share with you. As I fundamentally believe in this policy, I'd love to be added as a co-author on this bill. It's my understanding that the manufacturer of this technology makes a recommendation that 30 days is actually the appropriate timeline that states should be using in terms of holding on to the data. And I want to say, as much as I love you, Mr. Feldman, deep love. We're probably related somewhere down the line. I'm a Feldman, too. Is that true? It's true, actually. Before you laugh, I am a Feldman. My maternal grandmother, my mom's mom's Feldman. Everybody's going to hate me because we're going to stay here all night talking about the Feldman stuff. This I will talk about with you. is I made a similar challenge in committee in the past, which is how can we make our decisions based on anecdotal information? Fundamentally and constitutionally, we should be starting at a place of privacy. And the only reason that we should be opening up in terms of being beyond that is if there's actual data that the people can assess to give up that privacy. And when I hear anecdotal stories, they resonate with me on an emotional level. But in terms of as a decision maker, I want to know precisely how much safer am I at 60 days? How much safer am I at 120 days? How much safer am I at a year or at five years? And unfortunately, that hasn't been given to me under any circumstances. We hear about anecdotal situations. We also hear about anecdotal situations in the other direction. We talked about in years past on this policy about women's rights to reproductive health in the state of California, people that have been traveling from out of state and actually how that information has been provided to other states and law enforcement in other states. And, you know, that's an anecdotal information that really drives me a little bit crazy, to be honest with you. So I want to get away from the anecdotal information. I want to actually be able to assess what makes us safer and what doesn't, because I certainly can. It resonates with me that law enforcement wants to do the best job possible. And having this information is the most complete way to do so. But fundamentally that imposes upon our liberties I believe That my belief And so I unwilling to waver from what the manufacturer is recommending what other states are able to do successfully Some states, as we know, I think it was New Hampshire, can only hold it for a few hours, as a matter of fact. And I don't see these massive spikes in crime or lack of safety in the variability of this. So love you. I know we're still family. somewhere down the line, but I need real, real data, actual data to help me move off of, of these privacy concerns. Do you want to comment on that at all? Yeah, I can say, I mean, it's been a struggle. First of all, love you, brother. But it has been a struggle to pull the specific data. It's not something that's tracked, right? What ALPR hits past 60 days at a certain point have led to the solving of crime. I will say that there is some information that I've been able to observe that I think we can share with you. I'm just not allowed to speak to it because it's not my data and I'm not the owner of it. So there is information. I can tell you it's tens of thousands of searches on California crimes with California data that are being run past 60 days, tens of thousands. You know, the cold case files that I talked about in LA. That have resulted in convictions? No, that's where it's not specific. Like the number of reviews of ALPR data in reference to a crime that's occurred. Okay. But I can't do clearance rates because it just doesn't exist. Fair. Respectfully, what types of crimes are those? What actually are we talking about? I want to know what I'm getting for this. And that data doesn't exist in any way that we can pull it. What I can say is that agencies routinely do cold case reviews every year at a 365, 366 day mark. So any of those cold cases, and we talked about LA has 200 plus murders right now. Those are reviewed, the files that are there, maybe there's a lead, maybe there's a new suspect. We're going to go back and try and find out, you know, maybe that individual's vehicle was at the scene at a certain time. So, you know, the best I can pull is cold cases. I can try and get you some data from some agencies about the number of files reviewed in reference to a crime that's occurred. Again, it's a lot. But unfortunately, the packaged data that I would like to see, you would like to see, is not something that we can produce without a ton of academic work going through hundreds of agencies. This would be the place. Maybe we do that. I would appreciate your comments. Can I ask a follow-up? I know other people want to talk, but I just have a follow up question to what was just said, because you mentioned. What? Sorry. And it's not about your relation. No, we're not going to do 23andMe. We already passed bills to protect privacy on that. But you mentioned that there's like you use the example of the cold case murders in Los Angeles. My understanding under this bill is that if you have a murderer, I assume you know about it before 30 days. Not necessarily. And I mean, the missing persons, right, those were missing persons not reported after 90 days. Then they became homicide cases. Those were the three examples from L.A. in the last year. But also, you know, in those cold cases, maybe you don't know a suspect. So you're not looking for a specific vehicle. No, but you can pull and preserve all the data from the scene of the crime and keep that indefinitely under this law. I don see why you couldn You don have to solve the crime within 30 days May I Madam Chair go ahead Do you disagree with that reading of the law I do I do Madam Chair Unless there an active investigation

Chair Bauer-Cahanchair

You're not investigating these crimes?

Senator Cervantesother

Well, that's a separate issue, I guess.

Chair Bauer-Cahanchair

Well, okay.

Senator Cervantesother

But here's the very real challenge, Madam Chair. You may have a body, okay? You may know somebody's dead. It may not be a murder investigation until the 31st day or 60 days. You may not know that the person's dead. you may not find the decedent. There are no body homicides prosecuted all the time. So there are absolutely situations in which you don't know, A, that the person's dead, and even if you do have a dead person and a body, that it's a murder and that there's an investigation with a case attached to it, and enough to know, okay, now we've got to go and pull and see who crossed the Golden Gate Bridge at 3.39 a.m. on Tuesday, March 4th. I mean, I think this was what I thought last year when we heard this, or when in years past we've heard this bill, which is like, I just am surprised that if somebody is the victim of a homicide in California, that a coroner is not doing an autopsy within 30 days to identify that it's a homicide and the police department hasn't opened an investigation and pulled the camera data, It just feels like a failure of public safety that we need to address elsewhere. Like that feels shocking to me. If the body is not found, how do you – No, but you said even where you have a body. You may have a body and you don't know that it's a homicide. In the corner, you have a body. The police come. It could be something – the person's dead, okay? You start an investigation. It may not be – it may not rise to the level of criminal investigation and there may not be a homicide charge. Or maybe there is. but how do we know in that situation? So fine, a criminal investigation starts and it goes on because you don't have a suspect. You don't have enough other evidence. How do you know what license plate reader data to hold in connection with this death? I assume there's a location. Sorry. I assume there's a location of some sort. You don't know, but you don't know where that person was necessarily before that. That stuff may not become readily apparent until much later on. Yeah, that's what I was going to say. There's the location of the homicide, but that's obviously not the only evidence that you're going to need. Right. Maybe there's no video vehicle that was in and out of that area, but a suspect. And you need to find out where they were before, where they were separately. Maybe there's a series of crimes that are connected to it. Right. So, yes, we will pull the ALPR data from the location of the body if we find one. But that's not the only evidence that we're going to need in any one of these cases. Okay. Right. But I just, I like, I remember thinking this last year that like, if people in California who have a loved one whose life is taken by homicide are waiting 30 days for a coroner, like, please tell us, like we should be helping people get these answers faster. So I just, I also like, that's a separate concern, but one I think everybody on this committee would want to address because justice delayed is not as good as justice served immediately. And I'm not saying that's the fault of law enforcement. That is a resource question. That's where I'm thinking as a state lawmaker. I sat on public safety for many years and we have lots of resources, concerns. I mean, the example I'm thinking of is rape kits that we didn't have the resource to test. And this body threw money at that problem to get people justice. So I just want to say that if there is something that is causing delays underlying this that we can be partners with, I will speak myself and saying, I want to help with that. We have at times when that's been identified for us, that was identified by a district attorney. So I just want to say that because part of what I did have a conversation directly with the manufacturer of these devices, who, as Mr. Lowell said, does recommend 30 days. That is their recommendation. They said that to me in the meeting. And they explained to me why the vast majority can be pulled within that time. To your point, I'm not saying the crime is solved, but they have been able to segregate the data within that time. And so that made me comfortable, I think, in the way that perhaps it made Mr. Lowenthal comfortable. So I'm trying to get to, like, what is the holistic solution here that does protect privacy and also does get these crimes solved, which I think I know I speak for myself, but probably everyone here wants to get justice for those families.

Chair Bauer-Cahanchair

So but did you want to add something, Senator?

Senator Cervantesother

If I may, through my sponsor who would like to respond.

Chair Bauer-Cahanchair

OK.

Senator Cervantesother

I think we're all sort of in the same place. I mean, just to be clear, right, where there is an investigation, the bill lets you keep the relevant data. The 30-day clock only clears records on people with no connection to the case at all. And the premise that longer retention results in more crime clearance isn't necessarily borne out, right? LAPD, as Mr. Katsalakabe said, holds out over five years and has worse clearance rates than San Diego. Now, I don't want to pretend that this hypothetical couldn't necessarily exist, but I think we ought to reframe the tradeoff, right, going back to the point about data and ask, like, as the alternative seems to be keeping billions of records on everyone indefinitely. And why stop with ALPR data, right? Why not retain all records about everyone all the time?

Chair Bauer-Cahanchair

Okay. Ms. Ortega. Ms. Ortega was next.

Laura Drinoother

Well, I don't love you. and I know we're not related, but I was enjoying the questions.

Chair Bauer-Cahanchair

You don't even know me.

Laura Drinoother

I know, which is why I don't love you.

Chair Bauer-Cahanchair

Oh, my God.

Laura Drinoother

And we're definitely not related, but I did have questions.

Chair Bauer-Cahanchair

It's getting late. It's getting hostile.

Laura Drinoother

Should we go, Madam Chair?

Chair Bauer-Cahanchair

You guys give us a bow.

Laura Drinoother

So the auditor, to the author, The auditor report calls into question how these systems are being run, how their data is being protected, what is being done with the data. I did want to ask your witness here, and I also want to say one of them is my constituent. I know he's here in a different form, but I did want to acknowledge that. You know, the issue of we passed laws here and the Cal Martyrs report stated that over 100 times in one month, the laws that we've passed to protect our immigrant community were violated. And to me, that is fundamentally wrong. I mean, we have a duty to protect our constituents when we pass these laws and the governor signs them. And so then to learn that our public safety officers are violating the laws that we have, that we, you know, put forward is really, you know, at the core of this issue. So I wanted to hear a little bit more about that, how the data was shared, how did it make us more safe, and what happened in that case when the law was broken by these agencies? So the examples you refer to that have gotten the most press recently are what are known as kind of side searches where an agency that has access to another agency data has used that ability to search for information on behalf of a federal agency sometimes Customs and Border Protection, sometimes ICE. So the information is not being directly accessed by immigration enforcement. It's being accessed by people with authorized access from a local California agency on behalf of other federal agencies. Now, there is something we revealed much more recently, which is agencies directly sharing with Border Patrol and ICE. That is a different story that is not currently possible with Flock, but it happens through another license plate reader vendor system that has a similar sharing arrangement, this time with they have the ability to share the information with ICE and Border Patrol directly. And that has happened with agencies as well. And likely has been happening ever since they implemented license plate readers. So 10 years after SB 34 was passed and made that practice illegal, law enforcement agencies responsible for enforcing the law are violating the law. I would just add, if I might briefly, I mean, the auditor's report was from 2020, and we can also give you examples from 2025 and more recently. So I think at this point, the assertion that this was a careless mistake isn't good enough, and the way to solve this is to not keep the data.

Chair Bauer-Cahanchair

Thank you, Ms. Ortega. Mr. DeMaio?

Dawn Kepkeother

Okay. I'm always trying to define what is the problem. Yeah. What's the problem? What are we trying to solve? It sounds like what we're saying is government has access to information, and somehow they're abusing that information. And I can't see a widespread abuse. I'm sure we can cherry pick. We can have examples, but we also have provisions to hold government officials accountable for misuse of data. the balance is what are we giving up and what we are doing is we are undermining and limiting law enforcement's ability to protect us that's what we're doing and this institution has a bad record of putting public safety at risk I don't want to second guess law enforcement. No one sitting around this dais that, to my knowledge, has had that job. No one. And yet we have people quarterbacking and trying to say, well, what about this? What about that? Who's going to keep a body and not report it? How about the woman who's raped, the college girl who's raped on campus? Her attacker has a trail, but she's dealing with the emotional side effects of that, so she doesn't report it for a month or for six weeks. This is not some theory. This happens all the time. She finally gathers the courage and reports it, goes to law enforcement. They say, sorry, we weren't able to keep the data. we don't have camera information, we don't have tracking information. Or how about someone engaging in elder abuse? And maybe a family doesn't know for six months that their loved one is the victim of fraud and perhaps worse. And law enforcement says okay well we need to figure out how many times did this person enter this person home They don have the tracking information This was six months We already have received testimony here to demonstrate that queries have been made that what was it, 10,000 queries? 10,000 records were examined as part of an investigation after the limitations that would be applied for in this bill. So there may be some guardrails that we can consider, but a blanket approach that this bill envisions, those are not appropriate guardrails. We're going to be putting limitations on law enforcement's ability to investigate these crimes. And so I don't see enough of a benefit here. And I'd also argue this. I'm not as libertarian as they come when it comes to privacy and freedom. But I also recognize that we live in a digital world, and things that we used to take for granted that were just out there walking around, no one really knows, not anymore. I mean, this bill would take away the ability from law enforcement that private sector would have. We know that the private sector is able to keep data. They may know that we go to a Chinese restaurant, and they say, well, this person likes to eat Chinese. or maybe they're a vegan. They go to a vegan restaurant. This person likes vegan food, constantly showing up. So what happens is I get served ads for the best vegan restaurants in a city that I'm visiting. Why? Because the private sector is able, I'm not vegan. I'm just giving you an example that perhaps will resonate with some folks sitting around this table. But here's the thing. We would literally be saying the private sector should have more data rights than law enforcement to sell you vegan food versus law enforcement trying to figure out how to track down someone who might have committed a dangerous crime, an important crime. So when we leave the house, unfortunately, in today's day and age, particularly with this bad boy, we literally are tracked everywhere. And we just simply have to make sure that everyone understands, with technology that brings great benefit. Also comes certain tradeoffs. We may not like those tradeoffs, but the Supreme Court has ruled that when we are out and about, there is no presumption of privacy. Knowing that and making sure people act accordingly, I think is going to be important. So I cannot support this, and I would really urge members of this committee to trust the professionals here testifying, saying that this is not a workable approach at this time. I would encourage the author to sit down with law enforcement and see if there are ways that they can come in to support a bill that may address some of these issues. Thank you.

Chair Bauer-Cahanchair

Thank you. I don't see anyone else. So I just want to say, I think that there's an important point to make actually about what our colleague from San Diego was saying, that at least as playing out in my region, which is people are making choices right now between having these cameras and relinquishing all their privacy or not having the cameras. I mean, there are places in my region where they've just opted out of the cameras. And frankly, I don't know that that makes, you know, to the point of my vice chair, I actually think that guardrails around these cameras and having them to keep us safe is my personal preference. Because I do think they have a benefit but I think that guardrails are critical And so you know I sad that places I frequent have now opted out of this frankly that are not far from my home My city has not but cities near me have And so you know I really supportive of this idea of starting to put a framework of guardrails around this And I think that the author deferring to, you know, the standard that is recommended by the cameras that are mostly used in our communities, although probably not exclusively would be my guess, is not a bad place to start. It's also the California Highway Patrol policy. So it's, you know, I didn't ask a question, Mr. Salzillo. And, you know, so I do think that this is a really important step towards privacy while allowing these cameras to be in place. I think that's an important piece of this. So I'll be supporting it today, but would you like to close?

Senator Cervantesother

Yes, thank you, Madam Chair. And I certainly appreciate the dialogue here today. I do want to note that restaurants do not have the power to exercise a monopoly, arrest, or detain people like law enforcement does. To the point that Assemblymember Lowenthal made, we have asked numerous times for data. despite asking for that data, not just by members for a number of years, by stakeholders for a number of years, that has not been presented. And it won't be presented because they don't have it. And that is a problem. So we have asked to come to the table a number of times. I have taken three of the four veto messages by the governor. The last item we're working on is a retention. And I believe we will get there. And I want to close by stating that, yes, ALPR is a valuable tool for public safety when it is being used appropriately, when it's being used for its intended purposes. But it is going beyond that scope. and it time and time again through articles that we are reading, many city governments are not abiding by state law. Many of your own jurisdictions have a 30-day policy retention. The San Diego Sheriff's Department has a 30-day policy retention, one of the largest cities in the state of California. The audit has revealed that agencies have consistently failed to protect individuals' privacy, and many cases couldn't even demonstrate basic control over understanding how their system operates. If specific investigations warrant longer retention, there are mechanisms in place for that to be carried out and for court orders and formal requests to be able to retain that data. That is important. and we want to make sure that that continues to exist. This bill does not take away tools from law enforcement, despite what the opposition says. It ensures that these tools are used ethically, they're used responsibly, in a way that doesn't compromise privacy of the rights of innocent Californians. It's about precision, not overreach. It's about accountability, and I respectfully ask for your aye vote.

Chair Bauer-Cahanchair

Thank you, Madam Secretary. Can you call the roll please? Oh, motion second. Moved by Ms. Ortega, second by Mr. Lowenthal. Okay, item number 13, SB 1013 by Senator Cervantes. The motion is due passed to the Preparations Committee. Barcahan, Macedo? No. Macedo, no. Bennett, Ryan, DeMaio? No. DeMaio, no. Hoover, Irwin? No. Lowenthal? Aye. Lowenthal, aye. McKinner? Aye. McKinner, aye. Ortega? Aye. Ortega, aye. Patterson? Pellerin? Aye. Pellerin, aye. Petrie-Norris? Aye. Petrie-Norris, aye. Ward, Wilson? You have five votes. We'll keep it open. And Mr. Feldman, I love you in all law enforcement, so thank you for being here. All right, Senator Perez, thank you for being so patient. and this is our last bill of the day. So if you are on the privacy committee. She just walked out. Oh, so let's catch up on mixed. Oh, no, she's back. Sorry, psych. She literally just walked out. I know. I couldn't see. I'm back. We can't. We can't. Y'all became a big brother party. Wake up. I have a stalker. The only way I know he's not coming. Oh. Who's threatened to handcuff my hands and feet and take my heart away? Thank you. Yeah. Okay, when we can have quorum in the room, Senator Perez.

Senator Tom Umbergsenator

Good evening, Madam Chair and members. I will be accepting the committee amendments reflected in comment six on pages eight and nine of the committee analysis. I appreciate the work and collaboration of the committee staff in working with my office on these amendments. The amendments will do the following. Expand the bill to cover all retail stores over 100,000 square feet. Eliminates the requirement for retailers to post daily website updates on immigration enforcement activity occurring on their premises. Authorizes counties to request in writing access to any retailers documentation related to immigration enforcement activity on the premises. Requires each county board of supervisors to designate an agency authorized to request information on federal immigration enforcement activity at large retail stores. require large retailers to retain all documentation of immigration enforcement activity for at least 60 days, and grants County Councils the authority to enforce the bill's provisions. SB 1103, the Repair Act, as proposed to be amended in committee, requires large retailers doing business in California to provide the counties or the Attorney General with copies of any documentation of immigration enforcement activity gathered in the normal course of business upon receipt of an administrative subpoena or written request. This bill will also require retailers to publicly disclose their policies on employee interactions with immigration authorities and whether they directly or indirectly share surveillance data with federal immigration agencies. Every morning across California, day laborers gather in the parking lots of large home improvement retailers, which have long served as informal hiring sites for workers seeking jobs from homeowners and contractors in need of labor. Recently, we have witnessed these same locations increasingly become targets for immigration enforcement activity. Authorities carrying out these raids have utilized deceptive and legally questionable tactics during raids, including showing up masked driving unmarked vehicles utilizing military equipment and otherwise racially profiling a predominantly Latino workforce These dangerous practices have spread fear chaos, and harm among workers, shoppers, and surrounding communities. Individuals who are simply seeking honest work and otherwise abiding by the law are being kidnapped in broad daylight. In many cases, they are seriously injured, and in some instances, they have lost their lives. This is an issue that has deeply impacted my district. In 2025, Carlos Roberto Montoya Valdez was seeking work in the parking lot of a Home Depot in Monrovia when an immigration enforcement raid occurred. He was chased and fled onto a nearby freeway where he was struck by a vehicle and later died from his injuries. Despite lives lost and communities terrorized, there has been no accountability taken for the actions that continue to occur on the premises of these companies. Even when there have been efforts to enforce basic constitutional protections, these orders have been ignored with little consequence. In April of this year, a federal judge of the Eastern District of California ruled that agents again violated a court order by continuing to detain individuals without reasonable suspicion of any law violations, relying instead on generalized assumptions about day laborers. We cannot allow these assaults to take more lives and continue to spread fear in our communities. As these actions have continued, there is little to no information available for the appropriate parties to pursue legal action against the aggressive and borderline delinquent behavior directed largely at innocent people. This includes information about when these enforcement actions occur, how they are conducted, and whether surveillance data collected on these premises is being shared with federal authorities. authorities. That lack of transparency creates fear, spreads misinformation, and undermines public safety for workers, businesses, and communities across the state, especially as efforts to curb these attacks have stalled. SB 1103 is a transparency and accountability measure to address that gap. It does not interfere with federal enforcement activity. It simply ensures that when these actions occur, the public has access to basic information. I understand the opposition is concerned about the privacy rights of corporations, but I am concerned about the privacy rights of all Californians. This bill is asking for the bare minimum from entities when there have been repeated raids in our communities. While there are numerous steps that large home improvement retailers can take to promote the safety of workers and shoppers, this bill simply ask for transparency to ensure individuals are informed about enforcement activity occurring at these sites. These are the same large home improvement retailers that, across the country, have themselves installed flock automated license plate readers, cameras that surveil and collect data accessible to law enforcement agencies. For example, records obtained from a Texas Sheriff's Office revealed that the office can access ALPR cameras at numerous Lowe's and Home Depot locations within the state. Recently, a lawsuit was filed in California alleging that Home Depot installed ALPR cameras at all its locations in our state without notifying shoppers raising serious privacy concerns While that behavior calls into question their intentions and potential responsibility SB 1103 is focused on providing timely information to the appropriate parties seeking to defend the rights and lives of some of our most vulnerable people. I want to note that my office has engaged in ongoing conversations with stakeholders and opposition, and we are open to working collaboratively to address their concerns and have been doing so. Joining me to provide testimony in support of this bill is Cal Soto,

Chair Bauer-Cahanchair

staff attorney and National Workers' Rights Director for the National Day Labor Organizing Network, and Nancy Meza, community organizer from Los Angeles. We each have two minutes. Thank you. Thank you, and good evening. Thank you, members of the Privacy Committee, for having us in after a long day. My name is Cal Soto. I'm the workers' rights director and staff attorney at the National Day Labor Organizing Network based in Los Angeles, California. And I'm here to speak in strong support of SB 1103, what we call the Repair Act. So across California, mass and armed agents in unmarked cars have carried out immigration raids in and around large retail stores. Workers, customers, and families are caught in the middle. Rumors travel much faster than facts. The fear is real, and it keeps people away from work, from commerce, and from public spaces they have every right to enjoy and use. SB 1103, the Repair Act, answers that fear by preserving a clear record of the facts. The bill creates no news surveillance. It asks for nothing to be filmed that the stores are not already filming. It requires two things. First, when the attorney general issues a subpoena or a county submits a written request, the store provides the footage and documentation it already keeps in the normal course of business. Second, the store posts its own policies online so the public can see whether the company shares data with federal immigration authorities. This, because of the work of many members of the committee and the offices working on this diligently, is a privacy protective bill. The records go to the attorney general and to a county agency chosen by a board of supervisors. They're exempt from the Public Records Act. Stores hold the records for at least 60 days and the law sunsets in 2030. Moreover, this transparency is of great importance to the community. Access to this information is exactly what has been sought by advocates to understand the tragic death of Carlos Alberto Montoya Valdez in Monrovia. This is accountability without exposure or undermining the privacy of Californians. It lets California see clearly what's happening in front of these stores and it stops the spread of false information. So I respectfully urge your aye vote. Thank you. Whenever you're ready, two minutes. Buenas noches. Good night. My name is Nancy Mesa. I am a volunteer with Endelon's Adopt a Day Labor Corner campaign. I specifically support Adopt a Day Labor Corner volunteers in L.A., Southeast L.A., and the South Bay communities, often acting as a switchboard between on-the-ground volunteers, attorneys, and resources. The adopted day labor corner campaign actually began because the rapid response networks that we had in place when the race began in June here in L.A. were not fast enough to stop these kidnapping operations. They were just happening too quickly. So, Endelon made the decision that knowing, right, that this is where kidnapping enforcements are happening at these home people sites, we needed to train volunteers to already be there, right, given just the quickness that these things happen. And it really is everyday community members that are standing out there alongside workers at these Home Depot parking lots making sure that their rights are being respected and that workers have a safe workplace just like everyone deserves I want to be very clear that these are kidnapping operations I unfortunately have been a witness to various of these operations, both in Paramount and in Huntington Park. While I witnessed the Paramount kidnappings operations, this actually happened while there was a temporary restraining order. DHS did not care. ICE did not care about the law. they went ahead and continued with their human rights abuses. At the Huntington Park Home Depot has been one of the largest hit in our area. A day laborer was also run over to try and seek safety. And the majority of day laborers that have been kidnapped from that have been elderly workers who unfortunately were not physically able to flee safety. And I want to make sure that the work that we are doing as volunteers on the ground is supporting both workers, customers, and the general public who are put at risk by these kinds of operations. I urge a yes vote on the Repair Act, SB 1103, so we can begin the important accountability and repair work that our community is currently forced to do on our own. I recently checked in with one of our daily labor networks in the South Bay Area, and a worker who was kidnapped in June was recently released because of our advocacy. As Endalon, we often say, que solo el pueblo salva al pueblo, only the people save the people, but we would appreciate some help. Home Depot has the responsibility to share footage. It already collects where human rights abuse are happening. Thank you. Thank you. Okay, anybody else here in support of this measure? Name, organization, and position. There were some folks out in the hall. I think they may have all come in, hopefully. Okay, good. Thank you. Monica Madrid with the Coalition for Humane Immigrant Rights. Cheerla, in support. Diego Zamaiova, Paul Cien, to the group here on behalf of Inclusive Action for the City, in support. Giovanni Rossell, here with Endalon, and as a member of Grupo Autodefensa Pasadena Rapid Response Network, and I'm in support of the bill. Thank you. Blanca Flores Morales It's something very necessary, so we're fighting many people. Thank you. Thank you. Good afternoon. My name is Cyril O'Hoyos. I'm supporting the Pasadena. I'm supporting the organization BS1103. Thank you. Thank you. Good afternoon. My name is Maria Ortega. I'm supporting the B.S.1103. Thank you. Hello, my name is Jose Rivera and I'm here to support a bill. Thank you. Good evening. My name is Fatima Garcia. I am the executive director of Sembrando Semillas Day Labor Workers Center here in Sacramento in strong support of SB 1103. Thank you. Good evening. My name is Christina Alvarez here with Sembrando Semillas Day Labor Workers Center in Sacramento here in strong support. Thank you. Good evening. My name is Finn West. I'm a volunteer with the LA Rapid Response Network and I urge your support. thank you good evening my name is jose madera director of the pasadena community job center which is is part of the National Daily Organizing Network, also part of the DINARISEUP Coalition, and I strongly support this bill. Thank you. Thank you. Hi, my name is Felix Menendez, CEO from Salva Organization. We serve as L.A. County in San Bernardino County, and I am here to support 1103. Thank you. Good evening, everyone. My name is Eduardo, proud to be an immigrant Mexican, and I support SB 1103. Thank you. Good evening. My name is Rafael Guerrero, and I'm here with Salva Organization. I'm here to support SB 1103. Thank you. Buenas tardes. Mi nombre es Freddy. Vengo de la Organización Salva en PANDEL a apoyar la ley 1103. Thank you. Anyone here? Primary opposition, I think I see you. Come on up. Good evening, Chair and members. My name is Ryan Elaine with the California Retailers Association in respectful opposition to SB 1103. First, I'd like to recognize the profound impact that immigration enforcement activities have had on employees, customers, and our communities. I do appreciate, I read through the analysis, I appreciate a lot of the amendments that are laid out. Most importantly, removing the provision that required retailers to post a daily record of immigration enforcement on their websites. Narrowing the definition of premises is also appreciated, among a few others. Unfortunately, we must oppose the amendments that expand the bill to the retail industry. And we have concerns with the amendments that give county boards of supervisors the ability to select agencies within the county to access the same information retailers would give to the AG. That would create a patchwork of different agencies across the state requesting access to that information and that retailers would have to decipher and verify. And also we're curious who could be an agency that the Board of Supervisors could select. Given the amends, expand retailers who are covered. Under this bill, I'm still gathering some feedback from additional retailers. Overall, CRA still has concerns with the bill. We remain in opposition and ask for no vote. Thank you. Good evening, Madam Chair. members. Taylor Trifle on behalf of the California Grocers Association, with the acceptance of the committee amendments, we regrettably moved to an opposed position. So unfortunately, we haven't been able to engage with the Senator's office in the last day on the bill. So rightfully, we've not engaged on the bill that's in print, but the new amendments do bring grocery stores into the bill We understand the prior version of the bill and according to the author testimony mandated surveillance and data sharing by large home improvement retailers to manage immigration enforcement activities Regardless of the policy merit we understood why the bill was targeting those particular venues as gathering sites for potentially vulnerable employees and areas that have experienced ice raids and ice events Unfortunately, however, with the broadening of the definition of retail to not just be explicit to home improvement sites, grocery stores are now included in that definition. Though we align with the author's concerns, our grocers are distinct from those large home improvement sites and subsequent ICE enforcement sites. We provide essential food goods and have unconventionally served as informal hiring sites. We do believe that the enforcement scenarios contemplated in the bill are maybe inappropriate for grocery stores and for this reason. So we oppose the bill eventually. Thank you. I missed that last word. But anyone else here in opposition? Name, organization, and position. Ronald DeLamy on behalf of Cal Chamber, respectfully opposed. Thank you. Thank you. Seeing no additional opposition in the room, we'll bring it back to the dais. Questions, concerns, comments, thoughts? Yeah, Ms. Ortega. Can we have a motion? I also want to thank the office for bringing this bill forward. I think I was low at the whole second here. Thank you, Ms. Ortega. Mr. Bennett? Really appreciate the bill. Lots of challenges out there. And I hope that we continue to be able to make sure this is enforceable and in the proper way. But good bill. Thank you very much. Thank you, Mr. Bennett. Seeing no one out. Yeah, Ms. Wilson. Just noting that, and I definitely understand the intent, and I do think there's an opportunity to improve the bill before it gets to the floor, especially given the amendments are very recent. And I think there's an opportunity to, like, refine and make sure there's not unintended consequences. and that we're just being mindful of who's enforcing, how, what rights do they have. When I say rights, I'm talking about the agency that's selected rights and how similar they are to the AG, how, you know, being clear around how long from the actual action that was identified, how long you're keeping the data. because I do agree when looking at some of the notes from opposition that if you don't have a written request 60 days, when is 60 days in? If you're not aware of an enforcement incident, you'd have to be specifically aware. And I don't think that language is particularly clear yet, and I think it can be. But just being mindful of that, I appreciate the amendments. I think in the original form, my office had notified yours that we wouldn't be able to support, But I think the direction you're heading is better and would ask you to continue to refine. Thank you. Thank you, Ms. Wilson. Anybody else? Seeing none, I want to thank the author, the sponsors, and everybody who came today to use their voices, as my colleague said, to advocate for this important work that the senator is doing. She and I had a couple of conversations, I think more than one conversation about this bill. And it was helpful to hear what was happening in your community and why this work was so important and it helped us land in this place. I really appreciate the amendments. I was concerned with you know I share all of the concerns with what is happening and what the federal government is doing in our state and hope that we as a state including our counties as part of government are doing everything we can to support and protect our community members who hold this state together There's no question that everybody who is here is vital to our communities. But I just was a little bit concerned with the obligations we were putting on private industry to police government. That felt a little bit not as tight as I was hoping it to be. And I think the amendments really took it in a better direction where hopefully we can be partners with the people who have this data and protecting our community. And so I'm really grateful for the work that you were willing to do with this committee and the amendments that are here today. And I know I will take credit for the expansion that the opposition is complaining about before I close because one of the things that is really important to me as someone who believes competition is one of the things that keeps us healthy as a state is that we not have bills in this committee that target one particular store industry. Because honestly, then the competitors that don't have this obligation have an advantage. And that felt actually uncomfortable to me that we were targeting such a narrow subset. And so I felt like for the purposes of competition, I needed this to be equally applicable. but I understand that it brought you on additional opposition. So for that, I'm sorry, but I think the policy is better. Although one of the committee members did call me with a question of the original form of the bill where they had in their district a Target and a Home Depot that share a parking lot. The parking lot is not owned by either store, and it wasn't clear in that scenario what happens there. Like how do we, like this part of the parking lot has an obligation, but this part doesn't, but no one owns the parking lot. And so I do think that this expansion hopefully helps a little bit with that technical problem that we were having prior as well. So with that, would you like to close? Well, first of all, Chair, I just want to thank you for all of the time that you've taken. We did have several phone calls about this, and I think I have a better bill as a result and because of that. And I just really want to highlight that I think, you know, with this piece of legislation and the work and the amendments that you've offered, we're really doing something significant here in the state. We've watched ice raids occur, not just here in California, but all across the country. And it's had devastating impacts, not just for our immigrant community, but for all of our communities and created so much fear and so much concern, so much confusion. And what my sponsors are really desiring to do here and tracking some of this data and really work that's being led. And I just want to highlight You know, Nancy here is one of many volunteers that exist across the state that are independently out there doing this work to witness what is happening when ice raids are occurring because our news stations have stopped covering these events. And so it's everyday people like her that are tracking when our neighbors are taken. And because there's no more reporting on this, there's been less attention. And so what they're desiring to do here is to gather this data so we could better track what is happening, so we can create a heat map. Because even though we might not see these events occurring on the news, they are happening every day in our community. We reached a peak last week in Los Angeles. And if you just watched mainstream media, you'd have no idea that that happened. That's terrifying to me. And so the vision that my sponsors have and what they would like to do with this bill, I think, is incredibly meaningful. And I hope should we pass this should we implement this that we start to see the same thing occur across the state Because one day whether it 10 years from now or 20 years from now or 30 years from now we going to look back at this moment and we all going to reflect on what happened and the history that took place when we saw everything that happened all across this country. So with that, I respectfully ask for your aye vote. Thank you. We have a motion in a second. Let's open the roll. Item number 14, SB 1103 by Senator Perez. The motion is do pass as amended to appropriations. Barcahan. Aye. Barcahan, aye. Macedo. No. Macedo, no. Bennett. Aye. Bennett, aye. Bryan. DeMaio. No. DeMaio, no. Hoover. Irwin. Aye. Irwin, aye. Lowenthal. Aye. Lowenthal, aye. McKinner. Aye. McKinner, aye. Ortega. Aye. Ortega, aye. Patterson. Pellerin. Aye. Pellerin, aye. Petrie Norris. Aye. Petrie Norris, aye. Ward? Wilson? Aye. Wilson, aye. That bill has an eye needs out, but we'll leave it open for the absent member. And before you leave, Senator, I just want to say your close is incredibly powerful. And as you may know, my grandparents were taken during the Holocaust and disappeared. And I think the work they're doing is history. We'll look back on it. So thank you. Thank you. We're all so tired, we can't even clap. Okay, we will go through the roll. We will start at the top. I think it's easiest, so we just start at the top. As long as I have a vote on everything, I was okay with the consent calendar. Yep. Bennett. Aye. Bennett, aye. Demayo. Which one? Consent. Consent. Yes. Demayo, aye. Petrie Norris, aye. Petrie Norris, aye. Ward. That bill has 15 votes. It is out, but we'll leave it open. Oh, 14 votes. Sorry. 14 votes. It's out, but we'll leave it open. I'm going to text him. Okay. Thank you. Item number two, SB 300, Senator Padilla. Bennett. Bennett, aye. DeMaio? No. DeMaio, no. McKinner. Aye. McKinner, aye. Item number two, SB 300. Pay attention, team. McKinner, aye. Ortega? Aye. Ortega, aye. Petrie Norris? Aye. Petrie Norris, aye. Ward? Wilson? Aye. Wilson, aye. That bill has 11 votes. It is out. We'll leave it open for absent members. Item number three, SP903 by Senator Padilla. Bennett. Bennett, aye. DeMaio. DeMaio, no. McKenner. Aye. McKenner, aye. Ortega. Aye. Ortega, aye. Petrie-Norse. Aye. Petrie-Norse, aye. Ward. Wilson. Aye. Wilson, aye. That bill has 13. It's out. We'll leave it open for the absent member. Item number 14. SB 1119 by Senator Padilla. Bennett? Aye. Bennett, aye. DeMaio? No. DeMaio, no. McKinner? Aye. McKinner, aye. Petrie-Norse? Aye. Petrie-Norse, aye. That bill has 12 votes. It's out. Item number five, SB 354 by Senator Loma. I was supposed to say the final tally on that was 12-2. Go ahead. Okay. Bennett. Bennett, aye. DeMaio? No. DeMaio, no. McKinner? Aye. McKinner, aye. Ortega? Aye. Ortega, aye. Petra Norris? Aye. Petra Norris, aye. That is out 11-4. SB SB 479 by Senator Argin. The vote is 11-0. Bennett, aye. DeMaio, aye. Ortega, aye. Petra Norris, aye. Petra Norris, aye. That's 15. That bill is out 15-0. Yes. Item number seven, SB 574 by Senator Umberg. The vote is eight, zero. Bennett. Bennett, aye. DeMaio. Aye. DeMaio, aye. McKinner. Aye. McKinner, aye. Ortega. Aye. Ortega, aye. Petrie-Norris. Aye. Petrie-Norris, aye. Ward. Wilson. Aye. Wilson, aye. 14. That bill has 14 votes. We'll leave it open for the absent member. Item number 8, SB 690 by Senator Caballero. We have 10 votes. Bennett? Aye. Bennett, aye. DeMaio? Aye. DeMaio, aye. Petra Norris? Aye. Petra Norris, aye. Ward? That has 14 votes. We'll leave it open if they have some number. Item number 9, SB 813 by Senator McNerney. Five votes. Bennett? Aye. Bennett, aye. DeMaio? No. DeMaio, no. McKinner? McKinner aye Ortega aye Ortega aye Petra Norris Aye Petra Norris aye Ward Wilson Aye Wilson aye That bill has 10 votes. We'll leave it open for the absent member. It's out. Item number 10, SB 951 by Senator Reyes. Bennett? Aye. Bennett, aye. DeMaio? Which one? Item 10? 951. DeMaio, no. Hoover? Irwin? Aye. Irwin, aye. Ortega? Aye. Ortega, aye. Patterson? Petrie-Norris? Aye. Petrie-Norris, aye. Ward? Wilson? Item number 10, SB 951. That's by Senator Reyes. No, this is the first one. I have you on the other two. They're recording. All right, Wilson. This is AI displacement, yeah. We have 10. That boat has, oh, we can call word on that one. Can you call word on that one? Do not. Can we go back? Can we finish? Okay. Yeah, she's not voting on 16. That's right. We were going to call Ward on Reyes number one. Item number 10, SB 951. Ward. Ward, aye. That bill is out on a vote of 11-2. Right now. That's right. Sorry. Yeah. Item number 11, SB 969 by Senator Reyes. We have six votes. Bauer-Cahan?

Bauer-Cahanother

Aye.

Chair Bauer-Cahanchair

Bauer-Cahan, aye. Bennett?

Bennettother

Aye.

Chair Bauer-Cahanchair

Bennett, aye. Brian? Hoover? Irwin?

Assemblymember Jacqui Irwinassemblymember

Aye.

Chair Bauer-Cahanchair

Irwin, aye. McKinner?

McKinnerother

Aye.

Chair Bauer-Cahanchair

McKinner, aye. Patterson? Petrie-Norris?

Petrie-Norrisother

Aye.

Chair Bauer-Cahanchair

Petrie-Norris, aye. Ward?

Mr. Wardother

Aye.

Chair Bauer-Cahanchair

Ward, aye. 12. And that's out. That bill is out. 12-0. 12-0. Item number 12 SB 1130 by Senator Reyes Bennett Aye Bennett aye Brian Hoover Irwin Aye Irwin not voting McKinner Aye McKinner aye Ortega Aye Ortega aye Patterson Petrie Aye Petrie aye Ward Aye Ward aye That bill is out 8 Item number 13, SB 1013 by Senator Cervantes. Barra Cahan?

Mr. Wardother

Aye.

Chair Bauer-Cahanchair

Barra Cahan, aye. Bennett?

Mr. Wardother

Aye.

Chair Bauer-Cahanchair

Bennett, aye. Brian? Hoover? Irwin?

Assemblymember Jacqui Irwinassemblymember

Aye.

Chair Bauer-Cahanchair

Irwin not voting. Patterson? Ward?

Mr. Wardother

Aye.

Chair Bauer-Cahanchair

Ward, aye. Wilson? SB 1013? Cervantes. Cervantes.

Cervantesother

Aye.

Chair Bauer-Cahanchair

Wilson, aye. That bill is out 9-2. Item number 14, SB 11-03 by Senator Perez. Brian, Hoover, Patterson, Ward.

Cervantesother

Ward, aye.

Chair Bauer-Cahanchair

That bill is out 10-2. Item number 15, SB1106 by Senator Cabaldon. Bennett?

Cervantesother

Aye.

Chair Bauer-Cahanchair

Bennett, aye. DeMaio?

DeMaioother

Aye.

Chair Bauer-Cahanchair

DeMaio, aye. Hoover? Irwin?

Assemblymember Jacqui Irwinassemblymember

Aye.

Chair Bauer-Cahanchair

Irwin, aye. Lewenthal?

Lewenthalother

Aye.

Chair Bauer-Cahanchair

Lewenthal, aye. Ortega?

Ortegaother

Aye.

Chair Bauer-Cahanchair

Ortega, aye. Petrie Norris?

Ortegaother

Aye.

Chair Bauer-Cahanchair

Petrie Norris, aye. Now, what is that? No. Ortega, 1112. That bill is at 12-0. Item number 16, SB 1276. Senator Rubio. Bennett.

Ortegaother

Aye.

Chair Bauer-Cahanchair

Bennett, aye. DeMaio.

Ortegaother

Aye.

Chair Bauer-Cahanchair

DeMaio, aye. McKinner.

Ortegaother

Aye.

Chair Bauer-Cahanchair

McKinner, aye. Ortega.

Ortegaother

Aye.

Chair Bauer-Cahanchair

Ortega, aye. Petrie-Norris.

Ortegaother

Aye.

Chair Bauer-Cahanchair

Petrie-Norris, aye. Ward.

Ortegaother

Aye.

Chair Bauer-Cahanchair

Ward, aye. Wilson.

Wilsonother

Aye.

Chair Bauer-Cahanchair

Wilson, aye. That's out 15-0. Item number 17, SB 1279 by Senator Gonzalez. Bennett.

Wilsonother

Aye.

Chair Bauer-Cahanchair

Bennett, aye. DeMaio? Aye. DeMaio, aye. Petrie-Norris? No. Okay. For SB 1279, DeMaio, no. Petrie-Norris? Aye. Petrie-Norris, aye. Ward? Aye. Ward, aye. Wilson? Aye. Wilson, aye. That's 14-1. That bill is out, 14-1, and that's it for everyone except Mr. Ward. We'll go back to the top for Mr. Ward. Yeah. Oh, that last one was out 13-2. Corrected. Gonzalez is out 13-2. And we'll go back to the top for Mr. Ward. Okay. Thank you for coming back Okay Okay on consent Ward Aye Ward aye 15 for consent Item number two, SB 300. Ward.

Wilsonother

Aye.

Chair Bauer-Cahanchair

Ward, aye. 12. That bill is out 12-0. Item number three, SB 903. 300. 12-1. Oh. I'm not making the news. Okay. That bill is out 12-1, SB 300. Thank you for the correction notice. Item number three, SB 903, Ward I. That's 14-1. That's out 14-1. Item number... You have a couple more. Item number seven, SB 574, Ward I. That's 15. That bill is out 15-0. Item number 8, SB 690, Ward, I. That's 15. That's out 15-0. Item number 9, SB 813, Ward. Wait, what are we? Oh, yeah, McKenna not voting, so 690 is out 14-0. Sorry, thank you. Item number 9, SB 813, Ward.

Wilsonother

I.

Chair Bauer-Cahanchair

Ward, I. That's out 11-2. Item number 10, SB 955. We got it. I think that's it. Thank you, Mr. Ward. Have a good night. This hearing is adjourned. See everyone in August. Thank you. Thank you.

Source: Assembly Privacy And Consumer Protection Committee · July 1, 2026 · Gavelin.ai