[ THEME MUSIC ] >> WELCOME TO THIS WEEK'S EDITION OF "NEW YORK NOW."

I'M SHANTEL DESTRA.

THIS WEEK, GOVERNOR KATHIE HOCHUL FOLLOWED UP WITH THE FINANCIAL DETAILS OF HER STATE OF THE STATE ADDRESS WITH HER EXECUTIVE BUDGET PROPOSAL.

THE GOVERNOR'S BUDGET COMES IN AT $260 BILLION, WHICH THE EXECUTIVE CHAMBER SAYS IS NOT AN AUSTERITY BUDGET, BUT A DISCIPLINED ONE.

>> LOOKING AT THIS BUDGET AS A WHOLE, YOU CAN SEE IT REFLECTS DISCIPLINE, MOMENTUM AND AMBITION.

AND A READINESS FOR A MORE UNCERTAIN WORLD.

IN MY STATE OF THE STATE, I SAID WE BUILT THE BOAT TO WITHSTAND THE STORM.

WE'RE NOT ASSUMING CALM SEAS AHEAD.

WE'RE STEADYING THE COURSE TO NAVIGATE WHATEVER COMES NEXT.

WE'RE MAKING CAREFUL CHOICES USING OUR RESOURCES RESPONSIBLY.

BECAUSE PROTECTING YOUR FAMILY AND PROTECTING YOUR FUTURE IS MY FIGHT AND THIS BUDGET IS HOW WE GET IT DONE.

>> IN THIS NEXT SEGMENT, OUR ELISE KLINE DOVE INTO THE BIG TICKET ITEMS FROM THE GOVERNOR'S BUDGET PROPOSAL INCLUDING UNIVERSAL CHILD CARE, EDUCATION, POSITIVE REVENUE GROWTH IN THE STATE AND THE IMPACT OF FEDERAL FUNDING.

HERE'S THAT STORY.

[ THEME MUSIC ] >> THIS YEAR, GOVERNOR KATHIE HOCHUL'S $260 BILLION EXECUTIVE BUDGET PROPOSAL LAYS OUT PLANS TO FUND NUMEROUS INITIATIVES, SUCH AS UNIVERSAL CHILD CARE AND TACKLING FEDERAL IMPACT ON HEALTH CARE.

THE BUDGET PROPOSAL PROVIDES FISCAL DETAILS ON WHAT THE GOVERNOR HIGHLIGHT IN HER 2026 STATE OF THE STATE LAST WEEK.

THE GOVERNOR SAID THIS YEAR'S BUDGET IS HOW THE STATE WILL ACHIEVE THE GOALS SHE LAID OUT BY MAKING CAREFUL CHOICES USING THE STATE'S RESOURCES RESPONSIBLY AND CONSIDERING CHANGES AT THE FEDERAL LEVEL.

>> LOOKING AT THIS BUDGET AS A WHOLE, YOU CAN SEE IT REFLECTS DISCIPLINE, MOMENTUM AND AMBITION AND A READINESS FOR A MORE UNCERTAIN WORLD.

IN MY STATE OF THE STATE, I SAID WE HAD BUILT THE BOAT TO WITHSTAND THE STORM.

WE'RE NOT ASSUMING CALM SEAS AHEAD.

WE'RE STEADYING THE COURSE TO NAVIGATE WHATEVER COMES NEXT.

>> ONE OF BIGGEST INITIATIVES TO FUND THIS YEAR IS THE CREATION OF UNIVERSAL CHILD CARE.

THE PROPOSAL HAS SEVERAL MOVING PARTS INCLUDING LAUNCHING NEW PROGRAMS SUCH AS STATEWIDE-2-CARE AND EXPANDING STATEWIDE ON EXISTING PROGRAMS SUCH AS 3-K, CURRENTLY IN NEW YORK CITY.

THE GOVERNOR'S BUDGET PROPOSAL SPECIFICALLY OUTLINES $205 MILLION TO SUPPORT UNIVERSAL 3-K AND $73 MILLION TO BEGIN THE 2-CARE PROGRAM.

THE GOVERNOR ALSO OUTLINED $1.

5 MILLION IN FUNDING FOR THE CREATION OF THE OFFICE OF CHILD CARE AND EARLY EDUCATION TO COORDINATE THE IMPLEMENTATION OF THIS POLICY REFORM.

THE GOVERNOR STRESSED AS THE STATE'S FIRST MOM GOVERNOR, THIS ISSUE IS PARTICULARLY IMPORTANT FOR HER.

>> SINCE I LIVED THROUGH THIS, I KNOW WHAT IT MEANS.

SINCE TAKING OFFICE THROUGH SUSTAINED AND DELIBERATE INVESTMENT, NEW YORK HAS SPENT MORE THAN $8 BILLION ON CHILD CARE AND EARLY EDUCATION.

THIS YEAR, WE'LL INVEST AN ADDITIONAL $4.5 BILLION IN CHILD CARE TO EXPAND ACCESS AND REDUCE COSTS FOR WORKING FAMILIES.

MANY ADVOCATES ARE THRILLED TO SEE THEIR MOVEMENT FOR UNIVERSAL CHILD CARE IS FINALLY MAKING HEADWAY.

REBECCA BAILIN, EXECUTIVE DIRECTOR FOR NEW YORKERS UNITED FOR CHILD CARE, SAYS THE STATE FUNDING PROGRAMS LIKE 3K WILL MAKE A BIG DIFFERENCE, HIGHLIGHTING PREVIOUS ATTEMPTED FUNDING CUTS TO THIS PROGRAM.

>> THAT'S ACTUALLY HOW WE GOT STARTED IN NEW YORK CITY WAS TO SAVE 3K FROM MAYOR ADAMS' FUNDING CUTS THAT WERE PREVENTING IT FROM BEING TRULY UNIVERSAL.

SO THIS INFLUX OF FUNDING FOR THE CITY'S 3K WILL REALLY HELP TO MAKE SURE THAT EVERY PARENT WHO NEEDS A SEAT WILL GET A SEAT, EVERY FAMILY WHO NEEDS A SEAT WILL GET A SEAT.

>> BAILIN ADDS A FEW DETAILS ARE MISSING THAT THEY PLAN TO ADVOCATE FOR THROUGHOUT THE BUDGET PROCESS, SUCH AS MAKING SURE ALL STATE DISTRICTS ARE PROVIDING ACCESS TO PRE-K.

>> RIGHT NOW, THERE ARE LIKE 50 COUNTIES THAT DO NOT PROVIDE PRE-K EVEN THOUGH THEY ARE GETTING STATE MONEY.

THERE ARE A FEW REASONS FOR THIS.

ONE IS THAT THE GOVERNOR WASN'T REALLY GIVING ENOUGH MONEY, AND NOW SHE WILL BE.

BUT THE ONE THAT'S MISSING IS A REQUIREMENT.

IT SHOULD BE GUARANTEED ACCESS TO PRE-K IF YOU ARE FOUR YEARS OLD OR HAVE A CHILD WHO'S A FOUR-YEAR-OLD.

>> BAILIN ADDS IT SHOULDN'T MATTER WHICH DISTRICT YOU LIVE IN TO GET ACCESS TO PRE-K.

SOME STATE LAWMAKERS STRESS DETAILS OF HOW THESE PROPOSALS GET WORKED OUT IN THE BUDGET PROCESS ARE YET TO COME, BUT SOME LAWMAKERS ARE NONETHELESS ENCOURAGED BY THE FOCUS ON UNIVERSALITY FOR AFFORDABLE CHILD CARE.

ASSEMBLY MEMBER JO ANNE SIMON, A DEMOCRAT REPRESENTING PARTS OF BROOKLYN, SAYS THIS IS A STEP IN THE RIGHT DIRECTION.

>> THERE ARE LOTS OF WAYS THAT WE CAN DO THIS, BUT IT'S A BIG CHUNK OF MONEY THAT IS REALLY DEVOTED TOWARDS GETTING US TOWARDS UNIVERSAL CHILD CARE, WHICH HAS BEEN A CRITICAL ISSUE IN NEW YORK STATE FOR YEARS AND ONE THAT I'VE CHAMPIONED FOR MANY YEARS.

>> ASSEMBLY MEMBER ED RA, A REPUBLICAN REPRESENTING PARTS OF NASSAU COUNTY AND A RANKING MEMBER OF THE WAYS AND MEANS COMMITTEE, SAYS WHILE HE IS HAPPY TO SEE A FOCUS ON CHILD CARE IN THIS BUDGET, THERE ARE AREAS HE FEELS NEED MORE ATTENTION, SUCH AS LOGISTICALLY EXECUTING THE ROLLOUT OF THE PROGRAM.

>> ONE OF THE THINGS THAT I THINK WE REALLY HAVE TO KEEP AN EYE ON, YOU KNOW, I HAVE TO LOOK FURTHER INTO THE GOVERNOR'S PLAN, IS NOT JUST THE SUPPORT FOR THE FAMILIES BUT FOR THE PROVIDERS, MAKING SURE THERE ARE ACTUALLY ADEQUATE SEATS.

>> THE GOVERNOR'S PROPOSALS OUTLINE ACHIEVING UNIVERSAL PRE-K FOR ALL FOUR-YEAR-OLDS IN THE STATE BY 2029.

MELINDA PERSON, THE PRESIDENT OF NEW YORK STATE UNITED TEACHERS SAYS ACHIEVING UNIVERSAL PRE-K WILL BE SIGNIFICANT FOR THE GOAL OF GETTING TO UNIVERSAL CHILD CARE.

>> SO OUR HOPE IS THAT AS WE PHASE IN ALL OF THESE DIFFERENT LEVELS OF PROGRAMS, WE CAN BRING UNIVERSAL PRE-K INTO THE PUBLIC SCHOOLS, AS IT WAS INTENDED TO BE ORIGINALLY AND THAT WE CAN CREATE SPACE FOR CHILD CARE PROVIDERS OUT IN THE FIELD SO THAT THEY CAN SERVE MORE STUDENTS.

>> WHILE MANY LAWMAKERS WERE PLEASED TO SEE THIS PROPOSAL AMONG OTHERS, THERE WERE ELEMENTS SOME STATE LAWMAKERS FELT WERE MISSING.

STATE SENATE DEPUTY LEADER MICHAEL GIANARIS, A DEMOCRAT REPRESENTING PARTS OF QUEENS, SAYS HE WANTED TO SEE THE GOVERNOR SUPPORT A FREE BUSES INITIATIVE.

>> THE FAST AND FREE BUS PROGRAM THAT THE MAYOR IS PUSHING IN NEW YORK CITY STARTED HERE, WHERE HE AND I HAD A PILOT PROGRAM TO ADDRESS THAT TWO YEARS AGO.

IT WAS VERY SUCCESSFUL.

I'D LOVE TO SEE THAT PROGRAM REINSTATED TO GET ON A PATH TO BIGGER AND BETTER THINGS.

>> DURING A PRESS CONFERENCE AFTER THE BUDGET ANNOUNCEMENT, REPORTERS ASKED THE GOVERNOR ABOUT THIS INITIATIVE AND WHY SHE HASN'T EXPRESSED SUPPORT.

HER RESPONSE-- >> I SAID NOT NOW.

>> GIANARIS SAID IN REACTION TO THE GOVERNOR'S COMMENTS HE PLANS TO GET THE GOVERNOR ON BOARD.

>> IT'S CLEARLY NOT AN INITIATIVE THAT SHE IS PUTTING FORWARD.

I'VE HEARD HER ASK ABOUT IT, WHERE SHE HAS SAID SHE'S NOT SAYING NO.

SHE JUST HASN'T SAID YES YET, AND SO THAT GIVES US JANUARY THROUGH MARCH TO GET HER TO A YES, BUT I THINK IT'S AN IMPORTANT PROGRAM THAT WOULD BENEFIT ENORDER THE BENEFIT OF MILLIONS OF NEW YORKERS.

>> SOME OTHER STATE LAWMAKERS ACROSS THE AISLE SAY THEIR PRIORITIES ARE ALSO ON THE TRANSPORTATION ISSUE.

STATE SENATOR TOM O'MARA, A REPUBLICAN REPRESENTING PARTS OF THE SOUTHERN TIER AND A RANKING MEMBER OF THE SENATE FINANCE COMMITTEE, SAYS HE PLANS TO PUSH FOR MORE FUNDING FOR THE CONSOLIDATED LOCAL STREET AND HIGHWAY IMPROVEMENT PROGRAM, OR CHIPS.

>> I'M ALWAYS LOOKING TO SEE AN INCREASE IN THE CHIPS FUNDING FOR LOCAL ROADS.

IT'S A BIG ISSUE THAT I WORK ON EVERY YEAR.

SO THAT'S FLAT, AT LEAST IT WASN'T CUT, BUT IT'S A FLAT STARTING POINT SO WE'RE GOING TO WORK ON THAT EFFORT.

>> THE GOVERNOR ALSO EMPHASIZED HER FOCUS ON PROTECTING NEW YORKERS FROM UNCERTAINTY AT THE FEDERAL LEVEL THROUGHOUT HER PROPOSALS.

SHE SAYS THE STATE HAS TO BE VIGILANT.

>> MEMBERS OF CONGRESS, CONGRESSIONAL REPUBLICANS, WHO ARE IN POWER RIGHT NOW, INCLUDING SEVEN FROM OUR STATE, WHO ARE NOT RIGHT NOW AT THIS MOMENT STANDING UP TO FIGHT FOR THOSE WHO ELECTED THEM.

THEY HAVE THE POWER TO STOP THE BLEEDING, BUT THEY'RE NOT FIGHTING FOR THEIR CONSTITUENTS.

AND ALL ACROSS THIS COUNTRY, RED STATES, BLUE STATES, REAL AMERICANS ARE FEELING THE CONSEQUENCES, WORKING FAMILIES, NO MATTER WHO THEY VOTED FOR.

THAT'S WHY THIS BUDGET REFLECTS TWO REALITIES AT THE SAME TIME.

>> ACCORDING TO THE EXECUTIVE CHAMBER, THE BUDGET FACES A $10.3 CUT FROM FEDERAL FUNDS.

IN AN EFFORT TO HELP OFFSET THE FEDERAL LOSS, THE GOVERNOR'S PROPOSALS LAY OUT PLANS FOR INCREASING STATE OPERATING FUNDS PRIMARILY TO HELP ENSURE NEW YORKERS DON'T LOSE HEALTH CARE.

GIANARIS STRESSES, HOWEVER, IT'S HARD TO PLAN FOR UNCERTAINTY.

WE DON'T KNOW WHAT'S LURKING AROUND THE CORNER.

RIGHT NOW, THE GOVERNOR AT THE PRESENT SEEMS TO BE IN A GOOD PLACE FOR TODAY'S NEWS.

IF SOMETHING SHOULD CHANGE GOING FORWARD, WE'RE GOING TO OBVIOUSLY HAVE TO REACT TO THAT.

>> OTHER STATE LAWMAKERS AGREE.

ASSEMBLY MEMBER JOHN MCDONALD, A DEMOCRAT REPRESENTING PARTS OF THE CAPITAL REGION, SAYS IT'S IMPORTANT FOR THE STATE TO STEP IN AND DO WHAT THEY CAN.

>> PEOPLE ARE FEELING IT IN THEIR POCKETBOOKS AND IN THEIR HOUSEHOLDS.

WE'VE GOT TO FIND A WAY TO HELP EASE THAT BURDEN AS BEST WE CAN.

>> MEANWHILE, SOME STATE LAWMAKERS FROM THE OTHER SIDE OF THE AISLE SAY THEY HAVE CONCERNS ABOUT THE INCREASED GROWTH OF MEDICAID.

ASSEMBLY MEMBER RA SAYS THE FEDERAL FUNDING CHANGES TO MEDICAID COULD POTENTIALLY BENEFIT THE STATE.

>> IT MAY ULTIMATELY HELP CONTROL THAT GROWTH AND MAYBE GETTING BACK AND THIS IS NOT SOMETHING I REALLY HEARD FROM THE GOVERNOR WITH REGARD TO THIS, KINDA GETTING BACK TO THE BASICS OF MAKING SURE WE'RE PRESERVING THOSE PROGRAMS FOR THOSE PROGRAMS FOR THE PEOPLE WHO NEED IT MOST.

>> SOME OTHER STATE LAWMAKERS HAVE A SIMILAR SENTIMENT.

SENATOR O'MARA SAYS AT SOME POINT, THE GOVERNMENT HAS TO BE RESPONSIBLE.

>> OUR MEDICAID PROGRAM IN NEW YORK IS BLOATED.

I THINK IT'S FULL OF A LOT OF WASTE, FRAUD AND ABUSE THAT WE NEED TO LOOK AT MORE.

>> O'MARA ADDS THE STATE OVERALL HAS TO DO A BETTER JOB WHEN IT COMES TO SPENDING.

>> SPENDING IS STILL INCREASING BY ABOUT $8 BILLION.

I JUST THINK THAT'S TOO HIGH OF A RATE OF SPENDING.

YOU KNOW, THE BUDGET IS JUST UNSUSTAINABLE.

WE'RE JUST LOOKING AT MORE WAYS TO SPEND MONEY.

>> THIS YEAR'S EXECUTIVE BUDGET PROPOSAL SUGGESTS AN INCREASE FROM LAST YEAR'S BY 5.7%, WHICH IS ABOUT $8 MILLION COMPARED TO LAST YEAR'S SPENDING.

BLAKE WASHINGTON, WHO SERVES AS THE STATE'S BUDGET DIRECTOR, SAYS THE STATE'S REVENUE AND FISCAL HEALTH IS OVERALL IN A GOOD PLACE.

WASHINGTON ADDS THE STATE'S OUT-YEAR BUDGET GAPS AND OUTSTANDING DEBT REMAINS MANAGEABLE.

>> THE STATE'S OUT OUT-YEAR BUDGET GAPS REMAIN MANAGEABLE AND OUR POSITION, WE LOOK AT THESE THROUGH SCRUTINY ON EXPENDITURES AND BY ALWAYS LOOKING AT HOW WE'RE SPENDING MONEY IN THE STATE OF NEW YORK.

WE CAN MEET THE CHALLENGE OF 2026.

>> WASHINGTON ALSO HIGHLIGHTED THEY HAVE REVISED STATE REVENUES, WHICH PRIMARILY COME FROM TAXES ESPECIALLY ON WALL STREET.

>> SO NOT ONLY DO WE RETURN TO BASE IN THE MIDYEAR BUT WE'RE EXCEEDING THE BASE BY AN ADDITIONAL $3.8 BILLION IN THE CURRENT FISCAL YEAR, FISCAL YEAR '26, THE ONE ENDING IN MARCH AND THEN AN ADDITIONAL $5.7 BILLION PROJECTED FOR UPCOMING FISCAL YEAR.

>> BLAKE SAYS THIS GIVES THE STATE A GOOD AMOUNT OF CASH ON HAND PULL DOWN THE BUDGET GAPS AND PLEDGE RESOURCES.

MANY STATE LAWMAKERS FROM BOTH SIDES OF THE AISLE ARE PLEASED TO SEE THE STATE'S REVENUE PERFORM WELL.

STATE SENATOR LIZ KRUEGER, A DEMOCRAT REPRESENTING PARTS OF MANHATTAN AND CHAIR OF THE FINANCE COMMITTEE, SAYS THE BUDGET FINANCIALLY SEEMS CLEAN.

>> SHE'S PUTTING SIGNIFICANT NEW MONEY IN FOR A LOT OF PEOPLE'S PRIORITIES.

IT'S AN ELECTION YEAR AND WE HAVE SEEN GROWTH IN OUR TAX REVENUE THAT IS REALLY HELPING US AVOID ANY PANIC PERIODS.

>> SENATOR O'MARA SAYS HE IS PLEASED THAT THE BUDGET THIS YEAR SEEMS TO BE MORE BALANCED FINANCIALLY.

>> THE RESERVES ARE STAYING STEADY.

THERE'S NO DEPLETING OF THOSE IN THE GOVERNOR'S PROPOSAL AT LEAST AT THIS POINT.

THERE STILL ARE OUT-YEAR BUDGET DEFICITS PROJECTED, ALTHOUGH THEY'RE SMALLER THAN THEY WERE THE LAST COUPLE OF YEARS, WHICH IS GOOD NEWS.

AND AT LEAST THE BUDGET, AS PRESENTED NOW, IS BALANCED.

SO WE'VE COVERED THE DEFICIT THAT WAS PROJECTED FOR THE COMING YEAR.

>> STATE COMPTROLLER TOM DINAPOLI SAYS THE OFFICE IS ACTIVELY PAYING ATTENTION TO OUT-YEAR BUDGET GAPS.

THE COMPTROLLER EXPRESSED CONFIDENCE FOR THIS YEAR BECAUSE THE STATE'S REVENUES HAVE CONSISTENTLY BEEN COMING IN HIGHER THAN PROJECTED.

>> WE'RE ALL HOPING THAT WALL STREET STAYS STRONG AND THAT THOSE TAX REVENUES KEEP COMING IN AND THIS REALLY KICKS OFF THE NEGOTIATION PROCESS WITH THE LEGISLATURE.

>> ANDREW REIN, THE PRESIDENT OF THE CITIZENS' BUDGET COMMISSION, SAYS THE REVENUE INCREASE IS VERY GOOD NEWS FOR THE STATE.

>> OUR PROGRESSIVE TAX SYSTEM AND STRONG FINANCIAL SERVICES SECTOR ARE GENERATING ROBUST REVENUES ENOUGH TO CLOSE NEXT YEAR'S BUDGET GAP AND SHRINK FUTURE BUDGET GAPS.

>> REIN SAYS WHERE HE SEES CHALLENGES MOVING FORWARD IN THE BUDGET PROCESS IS NEW PROGRAMS AND MORE SPENDING.

WHILE EACH YEAR THE STATE BUDGET PRESENTS ISSUES WITH POLICY MEASURES, THIS YEAR THERE SEEMS TO BE LESS, SOMETHING STATE LEADERS ARE ENCOURAGED BY HOPING THAT MEANS A SMOOTHER BUDGET SEASON.

>> SO THERE'S LESS ARTICLE VII'S, BUT THERE'S STILL POLICY IN THE BUDGET, GOVERNOR'S ARE GOING TO, YOU KNOW, THEY FEEL THAT THEY HAVE THE MOST LEVERAGE DURING THE EXECUTIVE BUDGET PROCESS, BUT I'M ENCOURAGED THAT THERE'S LESS THAN NORMAL.

>> THE BUDGET PROCESS CONTINUES NEXT WEEK WHEN BUDGET HEARINGS OFFICIALLY START.

FOLLOWING BUDGET HEARINGS ARE NEGOTIATIONS BETWEEN LEGISLATIVE LEADERS AND THE EXECUTIVE CHAMBER.

TIME WILL TELL WHAT THE BIG ISSUES ARE THAT DRIVE, OR POTENTIALLY EVEN HOLD UP NEGOTIATIONS, THIS YEAR.

ELISE KLINE, "NEW YORK NOW."

[ THEME MUSIC ] >> IN THIS NEXT SEGMENT, WE SAT DOWN WITH STATE SENATOR ANDREW GOUNARDES, TO DISCUSS THE ARTIFICIAL INTELLIGENCE PRIORITIES FOR THE LEGISLATURE THIS YEAR.

THE SENATOR SPOKE AT LENGTH ABOUT A BILL THAT AIMS TO PROTECT CHILDREN ONLINE AND ANOTHER NEWLY SIGNED BILL MEANT TO REQUIRE AI DEVELOPERS TO ESTABLISH SAFETY TOOLS FOR THEIR PRODUCTS.

HERE'S THAT CONVERSATION.

[ THEME MUSIC ] >> THANK YOU SO MUCH FOR JOINING US HERE TODAY, SENATOR.

>> THANK YOU FOR HAVING ME.

>> OF COURSE.

NOW WHAT CAN YOU TELL US ABOUT THE RAISE ACT.

HOW WILL THIS LEGISLATION PROTECT NEW YORKERS FROM THE RISKS AND THREATS ASSOCIATED WITH ARTIFICIAL INTELLIGENCE.

>> THE RAISE ACT IS NOW THE STRONGEST AI SAFETY LAW ANYWHERE IN THE COUNTRY.

I'M INCREDIBLY PROUD OF.

WHAT THIS LAW DOES IS IT REGULATES NOT YOUR EVERYDAY USE OF AI, LIKE YOUR CHATGPT OR GEMINI ASSISTANT.

IT FOCUSES ON WHAT ARE CALLED FRONTIER MODELS.

THESE ARE LABS THAT ARE NOT PUBLIC-- THESE ARE MODELS THAT ARE NOT PUBLIC-FACING, BUT ARE AT THE HIGHEST LEVELS OF THESE COMPANIES IN THESE LABS, AND THEY HAVE THE POTENTIAL TO CAUSE CATASTROPHIC HARM.

SO WE'RE TALKING LIKE DESTABILIZING THE ENTIRE FINANCIAL MARKET, RESULTING IN THE DEATH OF 100 OR MORE PEOPLE, CAUSING ECONOMIC LOSS IN THE BILLIONS OF DOLLARS, YOU KNOW, RE-CREATING BIOLOGICAL CHEMICAL WEAPONS, THAT LEVEL OF SOPHISTICATION AND WHAT THIS ACT WILL DO IS IT REQUIRES THAT THE DEVELOPERS WHO ARE MAKING THESE PRODUCTS OR BUILDING THESE MODELS HAVE TO DO SO WITH SOME COMMON-- WITH SOME COMMON SENSE SAFETY GUARDRAILS PUT IN PLACE.

THEY HAVE TO HAVE A SAFETY PLAN THAT THEY HAVE TO FILE WITH THE STATE AGENCY.

IT WILL BE A NEW OFFICE HOUSED IN THE DEPARTMENT OF FINANCIAL SERVICES.

THEY HAVE TO NOTIFY US WITHIN 72 HOURS, US BEING THE STATE, IF THEY HAVE REASON TO BELIEVE THAT A CRITICAL HARM HAS OCCURRED OR IS ABOUT TO OCCUR AND AGAIN, THAT THRESHOLD OF BILLIONS OF DOLLARS OF ECONOMIC LOSS OR SIGNIFICANT LOSS OF LIFE BECAUSE OF THE USE OF ONE OF THESE MODELS.

AND THEY ALSO HAVE TO BE RESPONSIBLE FOR THE FUTURE DEVELOPMENT OF THAT MODEL.

IT'S REALLY IMPORTANT THAT WE GET THIS RIGHT, AND THAT'S NOT JUST BECAUSE WE SAY SO.

BUT BECAUSE SOME OF THE LEADING AI THEORISTS AND EXPERTS AND CODERS AND COMPUTER SCIENTISTS AND EVEN SOME OF THE CEOS OF THESE COMPANIES, THEMSELVES, HAVE SAID WE NEED GUARDRAILS IN PLACE TO GET THIS TECHNOLOGY RIGHT AND IT HAS TO HAPPEN NOW BECAUSE IF IT DOESN'T, THE TECHNOLOGY WILL EVOLVE TOO QUICKLY TO HAVE ANY MEANINGFUL GUARDRAILS PUT IN PLACE AFTER THE FACT.

>> WHAT WAS SOME OF THE PUSHBACK ON THIS VOTE COMING FROM THE TECHNOLOGY AND BUSINESS SECTORS?

HOW DID YOU WORK TO MITIGATE THAT CRITICISM OF THE BILL AND ULTIMATELY GET IT OVER THE LEGISLATIVE FINISH LINE?

>> WELL, WE DID FACE-- THIS WAS PROBABLY THE HARDEST BILL I HAD TO PASS IN MY SEVEN YEARS HERE IN ALBANY.

AND IT WAS INCREDIBLY DIFFICULT.

WE FACED A VOCIFEROUS LOBBYING CAMPAIGN TRYING TO STOP US, FILLED WITH MISINFORMATION AND TONS AND TONS OF MONEY BEING SPENT TO KILL THE BILL BEFORE WE PASSED IT AND TO WATER IT DOWN AS THE GOVERNOR WAS CONTEMPLATING HER SIGNATURE ON THE BILL.

YOU KNOW THIS IS COMING FROM THE DID,-THE PRIMARY OPPOSITION WE GOT WAS FROM SOME TECH COMPANIES ARGUED THAT ANY REGULATION WHATSOEVER WAS BAD FOR THEIR BUSINESS.

THAT'S CUTE.

THAT'S NICE.

I'M SURE, YOU KNOW, YOU MIGHT MAKE ONE LESS DOLLAR ON THIS TECHNOLOGY BECAUSE WE ASKED YOU TO PUT A COMMON SENSE GUARDRAIL IN PLACE BUT WE DON'T THINK THE PROFITS OF BIG TECH COMPANIES SHOULD COME BEFORE THE SAFETY OF EVERYDAY NEW YORKERS AND THAT WAS A REALLY IMPORTANT THING FOR TO US HOLD FIRM AGAINST AND PUSH BACK AGAINST.

WHENEVER COMPANIES WOULD SAY OH, NO, TRUST US, WE KNOW WHAT'S BEST.

WE DON'T NEED PROTECTIONS, THE ANALOGY THAT WE USE IS CARMAKERS OF DETROIT, THEY DIDN'T PUT SEATBELTS AND AIRBAGS IN CARS OUT OF THE GOODNESS OF THEIR HEARTS BECAUSE THEY THOUGHT IT WAS THE RIGHT THING.

THEY DID IT BECAUSE GOVERNMENT REQUIRED THEM TO MAKE THEIR CARS SAFER AND THEY SPECIFIED WAYS TO DO THAT.

SAME ANALOGY APPLIES HERE.

WE ARE REQUIRING AIRBAGS AND SEATBELTS ON A LAMBORGHINI, AN INCREDIBLY POWERFUL MACHINE THAT HAS A LOT OF POTENTIAL BUT ALSO A LOT OF DANGER.

THAT'S WHAT WE'RE DOING HERE.

THAT'S THE ARGUMENT THAT WE KEPT FALLING BACK ON TIME AND TIME AGAIN, AND ULTIMATELY THAT PREVAILED.

EVEN DESPITE THE FACT THAT THE TECH COMPANIES AND THE VENTURE CAPITAL COMMUNITY SPENT MILLIONS OF DOLLARS TO TRY TO DEFEAT US.

>> AND THE BILL ALSO OFFERS WHISTLEBLOWER PROTECTS FOR EMPLOYEES OF AI COMPANIES THAT TAKE THE STEP TO REPORT SERIOUS HARM RISKS.

WHY WAS IT SO IMPORTANT FOR YOU TO INCLUDE THAT COMPONENT OF THE BILL TO ENSURE THAT IT MADE IT OVER THE LEGISLATIVE FINISH LINE?

>> BECAUSE, AS ALLUDED TO IN MY PREVIOUS ANSWER, SOME OF THESE TECH COMPANIES AND AT LEAST AT THE OFFSET, DIDN'T BELIEVE IN ANY TYPE OF REGULATION WHATSOEVER.

THOUGH BELIEVE VERY FIRMLY THAT NOTHING SHOULD STOP THEM IN THEIR QUEST TO PERFECT THESE MODELS AND TO ACHIEVE, YOU KNOW, SUPER INTELLIGENCE BASICALLY.

THAT MEANS THEY DON'T CARE IF PEOPLE GET HURT, IF PEOPLE DIE OR PEOPLE LOSE LOTS AND LOTS OF MONEY.

THERE ARE PEOPLE OF GOOD CONSCIOUS WHO WORK IN THESE COMPANIES WHO ARE SMART, THOUGHTFUL, CARING PEOPLE WHO BELIEVE IN WHAT THEY'RE DOING AND ALSO BELIEVE IN THEIR RESPONSIBILITY TO THE FELLOW HUMAN BEINGS AND TO CIVILIZATION WHO FEEL EMPOWERED TO COME FORWARD AND SAY, HEY, WE JUST TESTED THIS PRODUCT.

IT DID SOMETHING REALLY BAD.

YOU SHOULD KNOW ABOUT IT.

WE WANT TO OFFER THOSE PROTECTIONS TO THOSE EMPLOYEES SO THEY CAN COME FORWARD AND FEEL SAFE DOING SO SO WE CAN KNOW ACTUALLY WHAT'S GOING ON AS THESE TECHNOLOGIES ARE BEING DEVELOPED.

>> AND ACTUALLY MENTIONED BEFORE A SIMILAR BILL WAS ALSO PASSED IN CALIFORNIA.

SO WAS THE NEW YORK VERSION MODELED AFTER THE CALIFORNIA BILL?

AND CAN YOU UNPACK SOME OF THE DIFFERENCES BETWEEN THE BILLS?

>> SURE.

SO THE ORIGINAL BILL THAT WE PASSED WAS MUCH STRONGER THAN THE BILL THAT CALIFORNIA SIGNED INTO LAW EARLIER, YOU KNOW, LAST FALL.

IT'S FUNNY, YOU KNOW, CALIFORNIA CREATED A COMMISSION TO STUDY THE QUESTION OF HOW TO BEST REGULATE THESE FRONTIER MODELS.

THE COMMISSION PUT OUT A REPORT A WEEK AFTER WE PASSED THE RAISE ACT SO WE HAD NO ADVANCE KNOWLEDGE OF WHAT THE COMMISSION'S FINDINGS WERE GOING TO BE, BUT WHAT THE COMMISSION RECOMMENDED LARGELY ALIGNED WITH WHAT WE HAD ACTUALLY PROPOSED IN THE ORIGINAL RAISE ACT THAT WE PASSED IN THE LEGISLATURE.

THAT WAS THE MODEL WE WERE WORKING OFF OF THAT WE THINK A LOT OF EXPERTS COALESCED AROUND.

NEVERTHELESS, AS WE BEGAN NEGOTIATION WITH THE GOVERNOR'S OFFICE, IT BECAME CLEAR THAT THERE WAS A LOT OF CONCERN AROUND CREATING TWO DIFFERENT TYPES OF STANDARDS, ONE IN CALIFORNIA, ONE IN NEW YORK AND SO THE GOVERNOR REALLY FOUGHT VERY HARD TO ALIGN THE STANDARD, AT LEAST AS A BASELINE, AND THEN WE PUSHED FROM THAT BASELINE TO MAKE IT EVEN BETTER TO MAKE IT EVEN STRONGER.

SO I'LL GIVE YOU TWO EXAMPLES.

FIRST, IN THE CALIFORNIA LAW, COMPANIES HAVE 15 DAYS TO REPORT IF A CRITICAL HARM HAS HAPPENED OR BELIEVED TO BE IMMINENT.

WE HAVE 72 HOURS.

A MUCH TIGHTER TIME WINDOW WHICH WE THINK IS REALLY, REALLY MUCH BETTER.

SECONDLY, IN OUR SIGNED LAW, WE ARE CREATING A BRAND NEW GOVERNMENT OFFICE THAT IS GOING TO BE CHARGED SPECIFICALLY WITH THE TASK OF DEVELOPING EXPERTISE ON THE FUTURE REGULATION AND SAFETY PROCEDURES AND PROTOCOLS FOR FRONTIER MODELS.

IT'S GOING TO DEVELOP EXPERTISE AND INSTITUTIONAL CAPACITY.

IT HAS THE POWER TO ISSUE REGULATIONS TO THESE COMPANIES AND IT ALSO IS REQUIRED TO SUBMIT AN ANNUAL REPORT TO THE LEGISLATURE AND TO THE GOVERNOR RECOMMENDING ADDITIONAL PROTECTIONS THAT SHOULD BE ADOPTED AS THIS TECHNOLOGY EVOLVES.

THE CALIFORNIA LAW DOES NOT INCLUDE THAT.

IN FACT, A PREVIOUS VERSION OF A CALIFORNIA AI SAFETY BILL TWO YEARS AGO THAT WAS VETOED INCLUDED A SIMILAR OFFICE AND THE TECH INDUSTRY LOST THEIR MIND AT THE IDEA THAT SOME GOVERNMENT REGULATOR WOULD HAVE TO TELL THEM WHAT TO DO WITH IT OR THEY WEREN'T DOING A GOOD ENOUGH JOB.

WE WON THAT FIGHT HERE IN NEW YORK.

>> AND FROM YOUR PURVIEW, WHAT ROLE SHOULD THE FEDERAL GOVERNMENT HAVE IN REGULATING AI?

>> I WOULD LOVE NOTHING MORE THAN THE FEDERAL GOVERNMENT TO WAKE UP, GET ITS ACT TOGETHER AND ACTUALLY PASS COMPREHENSIVE AI SAFETY LEGISLATION, JUST LIKE I WOULD COMPREHENSIVE KIDS' ONLINE SAFETY LEGISLATION.

THE FACT OF THE MATTER IS CONGRESS IS BROKEN.

IT IS FAILING TO DO ITS JOB AND YOU KNOW, THAT'S EXACTLY WHAT THE TECH COMPANIES WANT.

THE SAME PEOPLE THAT WERE PUSHING FOR TRUMP, THE AI MORATORIUM, DAVID SACHS, TRUMP'S AI ADVISOR AND ALL OF THESE TECH CEOS AND VENTURE CAPITAL BILLIONAIRES, THEY DON'T WANT ANY REGULATION, SO THEY BASICALLY TRIED TO BUY OFF CONGRESS TO GET THEM TO NOT DO ANYTHING HERE.

SO CONGRESS SHOULD REALLY FEEL ASHAMED OF THEMSELVES FOR NOT STEPPING UP TO THE PLATE.

THIS HE HAVE A RESPONSIBILITY.

IN ESSENCE OF THEM ACTING, STATES LIKE NEW YORK ARE GOING TO STEP UP AND DO THE RIGHT THING AND FILL THAT GAP.

MAKING SURE THAT WE CAN ACTUALLY HARNESS THE PROMISE OF THIS TECHNOLOGY WITHOUT HAVING TO ENDURE ANY OF THE PITFALLS.

>> AND THE GOVERNOR JUST DELIVERED HER STATE OF THE STATE ADDRESS WHERE SHE ALSO INCLUDED ANOTHER BILL THAT YOU SPONSORED THAT WOULD ESSENTIALLY REQUIRE ONLINE PLATFORMS TO VERIFY AGE AND MAKE KIDS' PROFILES PRIVATE.

WHY DO YOU THINK IT WAS IMPORTANT FOR THE GOVERNOR TO THROW HER SUPPORT BEHIND THIS BILL?

AND WHAT WILL YOU BE DOING IN THE COMING MONTHS TO ENSURE THAT THE BILL IS INCLUDED IN THE FINAL STATE BUDGET?

>> AS A PARENT, I AM VERY CONCERNED ABOUT THE IMPACT OF SOCIAL MEDIA AND THE INTERNET ON KIDS' WELLBEINGS, ON THEIR MENTAL HEALTH WHEN IT COMES TO ALGORITHMS AND WHO COULD BE MESSING TO THEM AND WHO THEY'RE EXPOSED TO, RIGHT?

THIS IS THE MODERN DAY VERSION OF NOT LETTING YOUR KID BE AT THE PLAYGROUND BY THEMSELVES WHEN THEY'RE REALLY LITTLE BECAUSE YOU DON'T KNOW WHO'S THERE, WHO MIGHT BE PREYING UPON THEM.

I THINK THE GOVERNOR TAKES A VERY SIMILAR APPROACH, SHE CARES VERY DEEPLY ABOUT KEEPING KIDS SAFE ONLINE.

WE'RE IN ALIGN THAT TWO MILLION OF THESE ONLINE PLATFORMS ARE NOT SUFFICIENTLY SAFE FOR KIDS.

THERE'S NO REASON WHY AN ADULT USER ON A GAMING PLATFORM SHOULD BE ABLE TO SEE THE PROFILE DETAILS OF A USER WHO IS UNDER THE AGE OF 13 OR UNDER THE AGE OF 15 OR A KID AT ALL.

ON A PLATFORM LIKE ROBLOX, FOR EXAMPLE, 40% OF THE USERS ARE UNDER THE AGE OF 13.

WHY SHOULD SOME 45-YEAR-OLD MAN SITTING IN A BASEMENT SOMEWHERE PLAYING A VIDEOGAME BE ABLE TO LOOK UP THE PROFILE OF A 12-YEAR-OLD WHO IS PLAYING THAT SAME GAME?

WHY SHOULD THEY BE ABLE TO SEND THEM AN UNSOLICITED MESSAGE?

THERE'S NO REASON FOR THAT.

THAT'S WHY THESE PROTECTIONS ARE SO NECESSARY AND THAT'S WHY I'M SO EXCITED THAT THE GOVERNOR HAS SUPPORT MY STOP ONLINE PREDATORS ACT, AND I'M LOOKING FORWARD TO WORKING HER TO TRY TO MAKE THAT-- TO PASS THAT LAW AS QUICKLY AS WE CAN.

>> AND LOOKING BEYOND THESE BILLS, HOW ARE YOU HOPING TO FURTHER PROTECT NEW YORKERS FROM THE RISK OF AI THIS YEAR?

>> SO I HAVE ANOTHER BILL THAT WE PASSED IN THE SENATE BUT FELL SHORT IN THE ASSEMBLY THIS YEAR CALLED THE STOP DEFACE ACT AND THIS IS A BILL-- AGAIN, I THINK THE GOVERNOR ADOPTED A SIMILAR VERSION IN HER STATE OF THE STATE, WOULD REQUIRE THE PROVIDENCE DATA OF ANY TYPE OF IMAGE THAT'S GENERATED OR SHARED ONLINE THROUGH THE USE OF AI TO INCLUDE IN ITS MICRODATA WHO CREATED IT, WHEN IT WAS CREATED AND WHAT PLATFORM WAS USED TO CREATE IT AS A WAY TO VERIFY WHETHER OR NOT THE IMAGE IS REAL OR FAKE OR OTHERWISE MODIFIED.

THAT, I THINK, WILL HELP SIGNIFICANTLY AS IT RELATES TO MISINFORMATION, DISINFORMATION AND I'M GLAD TO SEE THE GOVERNOR PICK THAT UP AS WELL.

I DON'T HAVE LEGISLATION ON THIS YET, BUT I'M REALLY UNCOMFORTABLE WITH THE IDEA THAT TOY MANUFACTURERS ARE PROPOSING TO PUT AI CHATBOTS IN THEIR TOYS.

I DON'T THINK ANY KID NEEDS A TEDDY BEAR WITH AN AI CHATBOT IN IT OR A BARBIE DOLL WITH AN AI CHATBOT OR A G.I.

JOE WITH AN AI CHATBOT, SO I KNOW THAT THERE ARE MANY PEOPLE WHO SHARE THAT CONCERN.

THE GOVERNOR PROPOSED SOME LANGUAGE ON REGULATING CHATBOTS.

I WANT TO LEARN MORE ABOUT WHAT SHE'S PROPOSING.

HER BUDGET BILLS COME OUT NEXT WEEK.

I HAVE A LOT OF DISCOMFORT WITH THAT IDEA.

THAT FEELS LIKE A BAD THING THAT WE SHOULD GET AHEAD OF BECAUSE THERE'S NO REASON FOR THAT.

>> UNFORTUNATELY, THAT IS ALL THE TIME WE HAVE FOR TODAY, BUT WE THANK YOU SO MUCH FOR TAKING THE TIME TO CONNECT WITH US TODAY, SENATOR.

>> THANK YOU.

THANK YOU.

ANYTIME.

>> AND WE WERE SPEAKING WITH STATE SENATOR ANDREW GOUNARDES, REPRESENTING THE 26TH STATE SENATE DISTRICT IN BROOKLYN.

[ THEME MUSIC ] >> WELL, THAT DOES IT FOR THIS EDITION OF "NEW YORK NOW."

THANK YOU FOR TUNING IN AND SEE YOU NEXT WEEK.

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