A California senator has proposed ethical guidelines for AI contractors in the state

California State Senator Steve Padilla (D) has introduced two bills – Senate Bill 892 and 893 – in 2016. January 3 to create a “safe and ethical framework” for artificial intelligence (AI) service providers operating in the state.

The first of the two, Senate Bill 892, would require the California Department of Technology to develop security, privacy and nondiscrimination standards for AI services in the state.

If passed Aug. 1, 2025, Padilla's law would bar the state from entering into any contracts involving AI services if the provider of the services does not meet the criteria set forth.

Senate Bill 893 would require the State Operations Agency, the Governor's Office of Business and Economic Development and the Department of Technology to establish an AI research center in the state.

According to Padilla's proposal, “the center should further strengthen the research, development, deployment and use of AI technology for public benefit.

Related: California governor calls for statewide generative AI training

“We're proud of California's legacy as a technology visionary and setting ethical, safe standards. […] But we cannot allow a few monopolies to control the future of AI. This is a public good that should benefit all of our society and we need public investment to ensure that a few billionaires do not control our future.

However, he said the proposed legislation would help stop a few companies from monopolizing the future of AI. “This is a public good that should benefit all of our communities, and we need to make public investments to ensure that a few billionaires don't control our future,” he said.

These two bill proposals are followed by California Governor Gavin Newsom's recent call for statewide generative AI training for Californians.

In September 2023, Assemblyman Ash Kalra introduced a bill intended to protect actors, artists and entertainers by including informed consent for employment contracts with digital AI iterations.

All of these developments come around the Biden administration's executive order for new federal AI security standards. The executive order sets six standards for the safety and security of AI and its ethical use in government.

The executive order's lack of transparency has raised concerns among industry insiders that it will create challenges for companies developing the technology.

Padilla's bill could raise similar concerns, as California is home to the fabled Silicon Valley and many AI-future companies are building in the space. However, no official documents have been published yet.

Padilla's proposed measure will be heard and voted on in the Senate later this year. Cointelegraph has reached out to Senator Padilla's office for comment on the proposed legislation.

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The article was co-authored by Savannah Fortis