I'm not too worried about them stifling innovation. For one, it was stated elsewhere that they are working with Lambda school to get them certified, and for two, I think the fact that most of the self-driving car companies are working here now is a perfect example.
At first they experimented outside the state in areas with less regulation, but the state was happy to work with them to come up with a viable regulatory framework that still protects people while allowing innovation.
What industries do you think are being stymied by regulation in CA?
Are you familiar with the regs? Your conclusion seems to be based on no actual knowledge, just assumptions.
I mean there's a reason we don't allow everyone to perform surgery or fly commercial aircraft.
It was only in last decade that it became a mockery of what it used to be.
On the other hand you see this mighty government unilaterally fining them for providing this service.
However, the problem is the law has to work in the abstract for every case and not just for this benign case.
If they don't ask them to work with the law now, what happens when a terrible institution that doesn't provide value and really takes advantage of its customers opens up?
Then they can say, hey you didn't fine lambda, why are you fining us?
And, worst of all, they would be right.
In the long run, this ought to provide a barrier to entry for sub-par institutions.
(Btw, I haven't gone through lambda or any competitor, and I don't have an opinion as to the quality of the programs).