AB 2653: State contracts: report: modern foundation models and associated artificial intelligence systems.

The bill requires state agencies to certify that AI products, excluding public works contracts, are not produced by sweatshop or forced labor, and their subcontractors comply with a new Sweatfree AI Code of Conduct. This code of conduct will include information about AI products requiring data enrichment services, compensation for workers, and a process for independent monitoring of complaints. The bill also updates the existing Sweatfree Code of Conduct to include AI products and requires contractors and subcontractors to ensure their workplaces are free from psychological harms. The bill expands the definition of sweatshop labor to include all work or service extracted contrary to the Sweatfree AI Code of Conduct. The bill establishes a process for independent monitoring and inspections for complaints against contractors and subcontractors, and imposes a state-mandated local program.