Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Supervisor Ray Mueller, District 3
Subject: Introduction of Ordinance Requiring Registration, Permit, and Fee for Commercial Use of Mobile, Autonomous Robots
RECOMMENDATION:
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Introduce an ordinance adding Chapter 5.140 to Title 5 of the San Mateo County Ordinance Code requiring registration, permit, and fee for commercial use of mobile, autonomous AI-Controlled robots, and waive the reading of the ordinance in its entirety.
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BACKGROUND:
Rapid advancements in artificial intelligence (“AI”) and robotics have accelerated the development and commercial availability of untethered, autonomous or semi-autonomous AI-controlled robots (“Mobile Autonomous Robots”) capable of performing tasks traditionally carried out by human workers or working alongside such workers. These systems are increasingly being designed for deployment across a broad range of industries, including restaurants, hospitality, retail, logistics, security, facilities maintenance, customer service, public information, and emergency response support. In January 2026, it was reported that Tesla would end Model S and Model X production at its factory in Fremont and focus on the production of humanoid robots. “According to Tesla, the Gen 3 Optimus is the company's first mass production design, and it is aiming to manufacture a million robots per year in Fremont, with production beginning by the end of 2026.” (https://www.cbsnews.com/sanfrancisco/news/tesla-model-s-and-x-production-ending-humanoid-robots-fremont-factory/).
Although California law regulates autonomous vehicles and establishes workplace safety standards applicable to certain technologies, there is currently no comprehensive regulatory framework governing the commercial deployment and operation of Mobile Autonomous Robots in publicly accessible environments.
As businesses continue to evaluate and adopt these emerging technologies, San Mateo County currently lacks a comprehensive permitting and regulatory framework establishing consistent standards for the deployment and operation of these systems, including requirements related to public safety, accessibility, privacy, emergency response coordination, operator accountability, and a mechanism to recover costs associated with emergency response. This gap is particularly significant given that many of these technologies rely on potentially dangerous battery systems, such as lithium-ion batteries, which are susceptible to a phenomenon known as “thermal runaway,” a condition that can result in rapid ignition, repeated re-ignition, and the release of highly toxic gases.
Thermal runaway incidents require specialized first-responder training, extended containment and monitoring protocols, dedicated hazardous materials (HazMat) resources, and firefighting capabilities that exceed those required for conventional structural fires, creating additional operational demands and costs that should be addressed through an appropriate permitting and cost-recovery framework.
Although Mobile Autonomous Robots are not yet widely deployed in commercial settings, continued advances in AI, machine learning, and robotics are expected to accelerate the development, commercialization, and deployment of autonomous and semi-autonomous robotic systems. As these technologies continue to evolve, evaluating the historical safety performance, manufacturing track record, and recall history of Mobile Autonomous Robot units is necessary to help prevent the deployment of defective, recalled, and inadequately tested technologies in public-facing spaces and ensure they meet established safety and reliability standards.
Establishing a permitting framework in advance of widespread implementation will enable San Mateo County to provide regulatory certainty for businesses, protect public health and safety, preserve privacy and accessibility, and encourage the responsible integration of emerging technologies in a manner that serves the public interest.
DISCUSSION:
The proposed ordinance establishes a comprehensive permitting program governing the commercial deployment and operation of mobile autonomous AI-controlled robots in commercial settings within San Mateo County’s jurisdiction. It is not intended to prohibit the use of robotic technologies. Rather, the permitting program establishes clear, consistent standards that encourage responsible innovation while protecting public health and safety, preserving public trust, safeguarding privacy and accessibility, and providing businesses with predictable regulatory expectations. The framework also provides for the collection of various permitting fees to support the specialized response required for fire-related incidents related to the power systems for this technology.
The proposed ordinance adds Chapter 5.140 to the County Ordinance Code, requiring any commercial establishment in the unincorporated County (restaurants, retail, hospitality, etc.) to obtain an annual permit from the Code Compliance Section of the Planning and Building Department before the establishment can operate a Covered Robot on its premises. Covered Robots include those that are fully or partially autonomous, AI-controlled, and powered by a rechargeable battery, including remote-operated units, operating in a commercial establishment. And the ordinance treats each individual unit and each location where any one unit will be used as separately subject to the permit requirement, even if the model is identical to one already permitted.
To get a permit, a commercial establishment must certify battery safety, ADA pathway clearance, privacy protections, and food-safety compliance where applicable; disclose the manufacturer, incident history, and any recalls; carry insurance; and submit an Economic Impact Assessment plus a Workforce Mitigation Plan, among other requirements. The mitigation plan requires the establishment to commit to one of three options for any displaced workers: redeployment with at least equal pay, 60 days’ notice plus severance, or payment of a new
“County Automation Impact Fee” into a Workforce Retraining Fund. Violations of the ordinance are enforced by Code Compliance through administrative fines and permit suspension or revocation and are also declared a public nuisance and a misdemeanor.
In the preparation of this ordinance, Supervisor Mueller and the County Counsel’s office met with regional stakeholders including academics, and industry experts. The County Attorney has reviewed and approved the proposed ordinance as to form.
COMMUNITY IMPACT:
This ordinance creates a comprehensive permitting system for the deployment and use of Mobile Autonomous Robots by businesses that will protect the health, safety, and general welfare of San Mateo County residents who patronize these businesses and create economic security for County resident who may work in these businesses.
FISCAL IMPACT:
Future fiscal impacts will depend on the number of permit applications and staffing required to administer the permitting within the San Mateo County Building and Planning Department and other appropriate Departments deemed necessary. The ordinance includes fees designed to cover all costs required to implement the ordinance, such that it is expected that there will be no fiscal impact in the long term.