California is known for overbearing compliance, but it isn't known for stifling innovation because of it. Our State recognizes that innovation is its lifeblood.
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.