What AB 2653 does
An act to add Chapter 6.5 (commencing with Section 12450) to Part 2 of Division 2 of the Public Contract Code, relating to public contracts.
Existing law, the Transparency in Frontier Artificial Intelligence Act, among other things related to ensuring the safety of certain artificial intelligence models, requires a large frontier developer to write, implement, and clearly and conspicuously publish on its internet website a frontier AI framework that applies to the large frontier developer’s frontier models and describes how the large frontier developer approaches, among other things, incorporating national standards, international standards, and industry-consensus best practices into its frontier AI framework. Existing law requires the Department of Technology to make recommendations about whether and how to update certain definitions for the purposes of the act, including the definition of “frontier model” so that it applies to foundation models at the frontier of artificial intelligence development.
Existing law requires a contract entered into by any state agency for the procurement or laundering of apparel, garments, or corresponding accessories, or the procurement of equipment, materials, or supplies, other than procurement related to a public works contract, to require that a contractor certify that nothing furnished to the state pursuant to the contract has been laundered or produced by certain types of labor, including sweatshop labor and forced labor, as defined. Existing law requires the Department of Industrial Relations to establish a contractor responsibility program, including a Sweatfree Code of Conduct, to be signed by all bidders on state contracts and subcontracts, as provided.
This bill would require the Department of Industrial Relations, in consultation with the Department of Technology, to convene a Foundation Model Labor and Procurement Working Group consisting of 9 members, as provided, to, among other things, assess labor practices underlying the development of modern foundation models and associated artificial intelligence systems and develop recommendations regarding whether and how the state should incorporate labor standards into procurement decisions for foundation models and associated artificial intelligence systems. The bill would require the working group to compile their findings and recommendations into a report and submit that report to the Legislature on or before December 31, 2027.
Summary from the Legislative Counsel's Digest of the amended assembly text, April 23, 2026. Read the full text on leginfo.
How it got here
Assemblymember Lee introduced AB 2653 on February 20, 2026. The text was amended 2 times, and heard in 4 committee hearings before its final floor votes.
Committee votes along the way:
- Assembly Labor and Employment, April 8, 2026: Do pass and be re-referred to the Committee on [Privacy and Consumer Protection], 5-0.
- Assembly Privacy and Consumer Protection, April 21, 2026: Do pass as amended, and be re-referred to the Committee on [Appropriations] with recommendation: To Consent Calendar, 15-0.
Who supports and opposes AB 2653
The Assembly Privacy and Consumer Protection analysis dated April 19, 2026 lists 21 organizations in support and 1 in opposition. When Assembly Labor and Employment first listed positions on April 6, 2026, the count was 3 in support and 0 opposed. By the Assembly Privacy and Consumer Protection analysis of April 19, 2026 it was 21 to 1.
In support: Communication Workers of America, District 9 (sponsor); Aapis for Civic Empowerment; Alliance of Californians for Community Empowerment (ACCE) Action; American Federation of Musicians, Local 7; California Federation of Labor Unions; California National Organization for Women; California Nurses Association; California Work & Family Coalition; and 13 more.
Opposed: California Chamber of Commerce.
Read the Assembly Privacy and Consumer Protection analysis.
What happens next
It is in Assembly Appropriations. The last recorded action was on May 14, 2026.
The Governor can sign the bill, veto it, or let it become law without a signature. Until the decision, sign and veto request letters are the remaining channel, and the Department of Finance's enrolled bill report carries weight on anything with a fiscal effect. If signed, most provisions take effect January 1, and implementation moves to the agencies named in the bill.
What it means for AI organizations
This is the stage where language still changes. Amendments taken in committee are the ones that reach the Governor, so an organization with a stake in the drafting has a reason to be in that conversation now rather than after the vote.
The AI group at Capitol Axis handles that for AI clients.
Questions about AB 2653
What does AB 2653 do?
This bill would require the Department of Industrial Relations, in consultation with the Department of Technology, to convene a Foundation Model Labor and Procurement Working Group consisting of 9 members, as provided, to, among other things, assess labor practices underlying the development of modern foundation models and associated artificial intelligence systems and develop recommendations regarding whether and how the state should incorporate labor standards into procurement decisions for foundation models and associated artificial intelligence systems. The bill would require the working g
Has AB 2653 passed the California Legislature?
It is in Assembly Appropriations. The last recorded action was on May 14, 2026.
Who supports and opposes AB 2653?
The Assembly Privacy and Consumer Protection analysis dated April 19, 2026 lists 21 organizations in support and 1 in opposition. Supporters include Communication Workers of America, District 9 (sponsor); Aapis for Civic Empowerment; Alliance of Californians for Community Empowerment (ACCE) Action. Opponents include California Chamber of Commerce.
What happens next with AB 2653?
It still has committee and floor votes ahead of it. Amendments taken now are the ones that reach the Governor, so this is the stage where language changes are still possible.