The California Chamber of Commerce Board of Directors has announced its formal opposition to two proposed ballot measures: The California Kids AI Safety Act and the 2026 Billionaire Tax Act. The decision was made during a board meeting in Yountville, California.
According to the Chamber, The California Kids AI Safety Act would introduce broad regulations on artificial intelligence that could undermine the industry’s growth and contradict new state guidelines signed into law by Governor Gavin Newsom in September. The organization argues that while supporters claim the initiative aims to protect children, it would actually affect nearly all aspects of 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,” stated CalChamber leaders. “Simply put, its passage could easily push the AI industry out of California.”
The board also opposes the 2026 Billionaire Tax Act, which proposes a tax based on an individual’s presumed wealth. The Chamber warns that this approach sets a dangerous precedent by measuring wealth in ways that include unrealized gains from shares held by founders of Silicon Valley startups. They believe this one-time revenue infusion does not address ongoing budget challenges.
“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,” said representatives from the organization.
The Chamber emphasized its intent to inform voters early about what it sees as significant economic risks if either measure qualifies for the November 2026 ballot.
