California Passes Sweeping AI and Social Media Regulations

California Legislature Advances Major Tech Restrictions

California lawmakers approved a package of bills Monday aimed at regulating artificial intelligence and social media platforms, marking a significant shift in the state's approach to the technology industry that anchors its economy.

The legislation targets multiple fronts: social media features designed to hook young users, AI systems that make employment decisions, and the energy consumption of data centers powering AI infrastructure. The bills now await Governor Gavin Newsom's signature, and his decision will signal whether California—long a permissive home for tech giants—is willing to impose meaningful constraints on the industry.

The Los Angeles Times first reported the legislative developments from Sacramento.

Social Media Restrictions for Minors

Assembly Bill 1709 would prohibit online platforms from providing "addictive features" to users under 16, including autoplay and algorithmically recommended content feeds. The bill also requires age verification mechanisms.

Assemblyman Josh Lowenthal, who authored the legislation, said these features are "harmful, full stop" for developing brains. A companion bill, Assembly Bill 2, would allow social media companies to face fines up to $1 million per child for negligent harm.

These measures go beyond Meta's recent $17 billion settlement with multiple states over child safety. While that agreement gives teens the option to disable algorithmic feeds and autoplay, the California legislation would make such restrictions mandatory and apply across platforms.

Tech industry groups argue the bills are too broad and could eliminate beneficial aspects of social media. TechNet's Robert Boykin said California should instead "enforce the targeted laws California already has and strengthen parental tools."

AI Workplace Protections

Legislators also passed three bills addressing AI's impact on workers. Senate Bill 947 bars employers from using automated decision-making systems as the sole basis for disciplining or firing employees. When such systems are primarily relied upon, a human must verify the decision.

Senate Bill 951 requires employers to provide 60-day advance notice before AI-related layoffs to workers and government agencies. Assembly Bill 1609 mandates that large businesses serving customers provide access to human customer service representatives and disclose chatbot use.

"AI must remain a tool controlled by humans, not the other way around," said Senator Jerry McNerney, who sponsored the automated decision-making bill.

Data Center Energy Regulations

Lawmakers reached a compromise Friday on legislation to regulate energy use by California's expanding data center industry. The measures address community concerns about electricity costs and resource consumption driven by facilities supporting AI infrastructure.

Assemblymember Pilar Schiavo argued that companies poised to "make trillions of dollars" from AI should pay for utility infrastructure upgrades. "People are not even begging to use AI," she said at a June hearing. "They're struggling to figure it out to keep up with the times, but don't even really want it."

Why it matters

California's regulatory push reflects growing public anxiety about technology's unchecked expansion and represents a test case for how states can balance innovation with consumer protection. If Governor Newsom signs these bills, California would establish some of the nation's strictest tech regulations, potentially creating a template for other states while risking friction with an industry central to the state's economic identity. The governor has previously vetoed similar measures, citing concerns about stifling growth, making his decision on this package a critical indicator of California's regulatory direction.

Newsom's Decision Pending

Governor Newsom acknowledged the challenge of protecting the public without hampering industry growth. "We're constantly sort of fighting that balance," he said in a summer interview. Last year, he vetoed a similar automated decision-making bill from McNerney and rejected legislation holding platforms liable for amplifying content contributing to hate crimes, calling it "premature."

Lowenthal described tech regulation as "a kitchen-table topic," saying he has "yet to find a family with school-age children in the state of California, any corner of the state, that is not going through this right now."

The Los Angeles Times reported these developments, with Taryn Luna contributing to the coverage.