In one paragraph
California's AB 2653 (2025-26 Regular Session) would add Public Contract Code Chapter 6.5 requiring the Department of Industrial Relations, in consultation with the Department of Technology, to convene a nine-member Foundation Model Labor and Procurement Working Group. It would assess labor practices behind modern foundation models and recommend whether and how the state should include labor standards in procurement, reporting by December 31, 2027. Held in Assembly Appropriations May 14, 2026; not passed.
Plain-English summary, written with AI assistance. The official text controls.
What it means for business
None: the bill died and never became law. It would have created a state working group on AI labor practices and procurement, with no direct duties on vendors.
Key provisions
- Would add Chapter 6.5 (commencing with Section 12450) to Part 2 of Division 2 of the Public Contract Code
- Would require the Department of Industrial Relations, in consultation with the Department of Technology, to convene a 9-member Foundation Model Labor and Procurement Working Group
- Would require the group to assess labor practices underlying the development of modern foundation models and associated AI systems
- Would require recommendations on whether and how the state should incorporate labor standards into procurement of foundation models and AI systems
- Would require a report of findings and recommendations to the Legislature on or before December 31, 2027
- Held under submission in Assembly Appropriations on May 14, 2026; dead after the session ended
Latest legislative action
May 14, 2026. In committee: Held under submission.
Sponsors
| Name | Role |
|---|---|
| Lee | Author |
Topics and industries
Affected industries
This page is general information, not legal advice. Summaries are AI-assisted and may contain errors; read the statute for the controlling text and talk to a lawyer about your situation. Full disclaimer · Report an error