Laws & Statutes › CA › CA-SB-468
SB-468
CA · State · USA
CA
USA
● Pending
Proposed Effective Date
2026-01-01
California SB 468 — High-risk artificial intelligence systems: duty to protect personal information
Requires businesses that deploy high-risk AI systems processing personal information ('covered deployers') to develop, implement, and maintain a comprehensive written information security program with administrative, technical, and physical safeguards. The program must be scaled to the deployer's size and resources and must include employee training, access controls, encryption, incident response protocols, third-party service provider oversight, and at least annual security reviews. Violations constitute deceptive trade practices under the California Unfair Competition Law, enforceable by public prosecutors and through private UCL actions. The California Privacy Protection Agency is authorized to adopt implementing regulations.
Legislative History
2025-02-19 introduced Introduced. Read first time. To Com. on RLS. for assignment. To print.
2025-02-26 committee referral Referred to Com. on JUD.
2025-04-23 committee referral From committee: Do pass and re-refer to Com. on APPR. (Ayes 11. Noes 0. Page 835.) (April 22). Re-referred to Com. on APPR.
Mapped Requirements
G-01 AI Governance Program & Documentation
Official Sources
Full Text ↗
Entry Last Reviewed
2026-03-27
AI generated
Summary

Requires businesses that deploy high-risk AI systems processing personal information ('covered deployers') to develop, implement, and maintain a comprehensive written information security program with administrative, technical, and physical safeguards. The program must be scaled to the deployer's size and resources and must include employee training, access controls, encryption, incident response protocols, third-party service provider oversight, and at least annual security reviews. Violations constitute deceptive trade practices under the California Unfair Competition Law, enforceable by public prosecutors and through private UCL actions. The California Privacy Protection Agency is authorized to adopt implementing regulations.

Enforcement & Penalties
Enforcement Authority
California Privacy Protection Agency (CPPA) is authorized to adopt implementing regulations. Violations constitute deceptive trade acts or practices under the Unfair Competition Law (Bus. & Prof. Code § 17200 et seq.), enforceable by the Attorney General, district attorneys, county counsels, and city attorneys. The UCL also permits private enforcement by any person who has suffered injury in fact and lost money or property as a result of the unfair competition. No dedicated private right of action is created by this bill itself. No cure period is specified.
Penalties
Violations are classified as deceptive trade acts or practices under the UCL (Bus. & Prof. Code § 17200 et seq.). UCL remedies include injunctive relief and restitution/disgorgement of profits. Civil penalties up to $2,500 per violation are available in public enforcement actions. The UCL does not provide compensatory damages or attorney fees to private plaintiffs; private UCL actions are limited to injunctive relief and restitution.
Who Is Covered
"Covered deployer" means a business that deploys a high-risk artificial intelligence system that processes personal information.
What Is Covered
"High-risk artificial intelligence system" has the same meaning as "high-risk automated decision system," as that term is defined in Section 11546.45.5 of the Government Code.
Compliance Obligations 6 obligations · click obligation ID to open requirement page
G-01 AI Governance Program & Documentation · G-01.1G-01.2 · Deployer · Automated Decisionmaking
Civ. Code § 1798.91.3(a)-(c)(1)-(2)-(3)-(5)-(6)-(9)-(10)-(11)
Plain Language
Covered deployers must develop, implement, and maintain a comprehensive written information security program with administrative, technical, and physical safeguards scaled to the deployer's size, resources, data volume, and sensitivity. The program must designate at least one responsible employee, identify and assess reasonably foreseeable internal and external security risks, require ongoing employee and contractor training, mandate compliance with program policies, include disciplinary measures for violations, prevent terminated employees from accessing personal information, incorporate regular monitoring for unauthorized access, and document incident response actions with post-incident reviews. The program must be reviewed at least annually and whenever there is a material change in business practices affecting data security. Safeguards must be consistent with existing applicable state and federal data protection requirements.
Statutory Text
(a) A covered deployer conducting business in this state shall have a duty to protect personal information held by the covered deployer as provided by this section. (b) A covered deployer whose high-risk artificial intelligence systems process personal information shall develop, implement, and maintain a comprehensive information security program that is written in one or more readily accessible parts and contains administrative, technical, and physical safeguards that are appropriate for all of the following: (1) The covered deployer's size, scope, and type of business. (2) The amount of resources available to the covered deployer. (3) The amount of data stored by the covered deployer. (4) The need for security and confidentiality of personal information stored by the covered deployer. (c) The comprehensive information security program required by subdivision (a) shall meet all of the following requirements: (1) The program shall incorporate safeguards that are consistent with the safeguards for the protection of personal information and information of a similar character under state or federal laws and regulations applicable to the covered deployer. (2) The program shall include the designation of one or more employees of the covered deployer to maintain the program. (3) The program shall require the identification and assessment of reasonably foreseeable internal and external risks to the security, confidentiality, and integrity of any electronic, paper, or other record containing personal information, and the establishment of a process for evaluating and improving, as necessary, the effectiveness of the current safeguards for limiting those risks, including by all of the following: (A) Requiring ongoing employee and contractor education and training, including education and training for temporary employees and contractors of the covered deployer, on the proper use of security procedures and protocols and the importance of personal information security. (B) Mandating employee compliance with policies and procedures established under the program. (C) Providing a means for detecting and preventing security system failures. (5) The program shall provide disciplinary measures for violations of a policy or procedure established under the program. (6) The program shall include measures for preventing a terminated employee from accessing records containing personal information. (9) The program shall include regular monitoring to ensure that the program is operating in a manner reasonably calculated to prevent unauthorized access to or unauthorized use of personal information and, as necessary, upgrading information safeguards to limit the risk of unauthorized access to or unauthorized use of personal information. (10) The program shall require the regular review of the scope of the program's security measures that must occur subject to both of the following timeframes: (A) At least annually. (B) Whenever there is a material change in the covered deployer's business practices that may reasonably affect the security or integrity of records containing personal information. (11) The program shall require the documentation of responsive actions taken in connection with any incident involving a breach of security, including a mandatory postincident review of each event and the actions taken, if any, in response to that event to make changes in business practices relating to protection of personal information.
G-01 AI Governance Program & Documentation · G-01.6 · Deployer · Automated Decisionmaking
Civ. Code § 1798.91.3(c)(2)
Plain Language
The covered deployer must formally designate one or more employees as responsible for maintaining the comprehensive information security program. This is a standing obligation — the designation must be current at all times, not merely established at launch.
Statutory Text
(2) The program shall include the designation of one or more employees of the covered deployer to maintain the program.
G-01 AI Governance Program & Documentation · G-01.3 · Deployer · Automated Decisionmaking
Civ. Code § 1798.91.3(c)(4)-(7)-(8)
Plain Language
The information security program must include written security policies governing off-premises storage, access, and transportation of personal information records by employees. It must also include policies for supervising third-party service providers — requiring reasonable diligence in selecting providers capable of maintaining appropriate security and contractually obligating providers to implement and maintain those security measures. Physical access to records containing personal information must be reasonably restricted, including storage in locked facilities or containers.
Statutory Text
(4) The program shall include security policies for the covered deployer's employees relating to the storage, access, and transportation of records containing personal information outside of the covered deployer's physical business premises. (7) The program shall provide policies for the supervision of third-party service providers that include both of the following: (A) Taking reasonable steps to select and retain third-party service providers that are capable of maintaining appropriate security measures to protect personal information consistent with applicable law. (B) Requiring third-party service providers by contract to implement and maintain appropriate security measures for personal information. (8) The program shall provide reasonable restrictions on physical access to records containing personal information, including by requiring the records containing the data to be stored in a locked facility, storage area, or container.
G-01 AI Governance Program & Documentation · G-01.3 · Deployer · Automated Decisionmaking
Civ. Code § 1798.91.3(c)(12)
Plain Language
To the extent feasible, the information security program must include specific computer system security protocols: secure user authentication (credential control, secure password methods, access restricted to active users, lockout after failed attempts); least-privilege access controls with unique credentials per employee/contractor (no vendor-default passwords); encryption of personal information transmitted over public or wireless networks and stored on portable devices; monitoring for unauthorized access; reasonably current firewall protection and OS patches for internet-connected systems; and current anti-malware software with regular security updates. The 'to the extent feasible' qualifier provides limited flexibility, but covered deployers should document why any listed protocol was not implemented.
Statutory Text
(12) The program shall, to the extent feasible, include all of the following procedures and protocols with respect to computer system security requirements or procedures and protocols providing a higher degree of security, for the protection of personal information: (A) The use of secure user authentication protocols that include all of the following features: (i) The control of user login credentials and other identifiers. (ii) The use of a reasonably secure method of assigning and selecting passwords or using unique identifier technologies, which may include biometrics or token devices. (iii) The control of data security passwords to ensure that the passwords are kept in a location and a format that do not compromise the security of the data the passwords protect. (iv) The restriction of access to only active users and active user accounts. (v) The blocking of access to user credentials or identification after multiple unsuccessful attempts to gain access. (B) The use of secure access control measures that include both of the following: (i) The restriction of access to records and files containing personal information to only employees or contractors who need access to that personal information to perform the job duties of the employees or contractors. (ii) The assignment of a unique identification and a password to each employee or contractor with access to a computer containing personal information, that may not be a vendor-supplied default password, or the use of another protocol reasonably designed to maintain the integrity of the security of the access controls to personal information. (C) The encryption of both of the following: (i) Transmitted records and files containing personal information that will travel across public networks. (ii) Data containing personal information that is transmitted wirelessly. (D) The use of reasonable monitoring of systems for unauthorized use of or access to personal information. (E) The encryption of all personal information stored on laptop computers or other portable devices. (F) For files containing personal information on a system that is connected to the internet, the use of reasonably current firewall protection and operating system security patches that are reasonably designed to maintain the integrity of the personal information. (G) The use of both of the following: (i) A reasonably current version of system security agent software that shall include malware protection and reasonably current patches and virus definitions. (ii) A version of a system security agent software that is supportable with current patches and virus definitions, and is set to receive the most current security updates on a regular basis.
Other · Automated Decisionmaking
Civ. Code § 1798.91.3(d)
Plain Language
Any violation of the information security program requirements by a covered deployer is automatically classified as a deceptive trade act or practice under the California Unfair Competition Law. This means UCL enforcement mechanisms — including injunctive relief, restitution, and civil penalties — are available to the Attorney General, district attorneys, and private parties who have suffered injury in fact. This creates no new compliance obligation but rather establishes the enforcement consequence for noncompliance with the program requirements.
Statutory Text
(d) A violation of this section by a covered deployer constitutes a deceptive trade act or practice under the Unfair Competition Law (Chapter 5 (commencing with Section 17200) of Part 2 of Division 7 of the Business and Professions Code).
Other · Automated Decisionmaking
Civ. Code § 1798.91.4(a)-(b)
Plain Language
The California Privacy Protection Agency is authorized to adopt implementing regulations through the standard Administrative Procedure Act process, except that fee-related regulations are exempt from APA requirements. This signals that additional compliance requirements may emerge through rulemaking. Covered deployers should monitor CPPA rulemaking activity for supplemental obligations.
Statutory Text
(a) Except as provided in subdivision (b), the California Privacy Protection Agency may adopt regulations pursuant to the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) to implement and administer this title. (b) Notwithstanding subdivision (a), any regulation adopted by the California Privacy Protection Agency to establish fees authorized by this title shall be exempt from the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).