The California Chamber of Commerce Board of Directors voted formally last week to oppose two proposed ballot measures that would inflict lasting damage on the state’s economy.
The Board took action on December 5 to oppose what proponents call The California Kids AI Safety Act — an effort to impose sweeping, unworkable limits on artificial intelligence — and a proposed tax based on an individual’s presumed wealth, the 2026 Billionaire Tax Act.
CalChamber leaders believed it was important to weigh in early, before either measure qualifies for the November 2026 ballot, to warn California voters of the far-reaching consequences should these proposals become law.
Sweeping Overreach on AI
CalChamber opposes The California Kids AI Safety Act because it seeks to impose far-reaching regulations that would undermine both AI’s potential and the new guidelines signed into law by Gov. Gavin Newsom in September.
Contrary to its supporters claiming their effort is only focused on protecting children, the initiative would affect almost all AI development and deployment.
Developers would face new compliance risks as well as scores of frivolous lawsuits. And oddly enough, the measure’s extreme enforcement provisions would likely require AI companies to access even more of a user’s private information to avoid legal liabilities.
Simply put, its passage could easily push the AI industry out of California.
Untested Tax Increase Sets Dangerous Precedent
CalChamber leaders believe voters should be wary of any proposal promising easy solutions to erasing state government’s looming budget deficit, especially one that sets a reckless precedent without careful consideration of the consequences.
The proposal measures “wealth” in ways that would include unrealized gains on shares held by founders of Silicon Valley startups, all in service of a one-time infusion of tax revenue that does nothing to solve the state’s systemic budget problems.
