Customer service chatbots.

The bill text was reformatted from a printed legislative document (with page numbers, line numbers, and column layout) into a web page format with navigation menus, search tools, and standard website UI elements. No policy content was altered.

The hospital exemption is broadened from 'nonprofit general acute care hospital' (a specific 501(c)(3) entity) to simply 'a hospital,' meaning for-profit and other types of hospitals are now also exempt when their communications relate to health care services.

The exclusive business lines exemption is expanded to cover communications with 'other entities' including businesses, nonprofit entities, and government entities, not just vendors and business-to-business contract lines.

The public utilities exemption is expanded to include General Order 103-A (Rules Governing Water Service) in addition to the existing General Order 133 (Telecommunications Services), bringing water service providers under the exemption.

A new force majeure carve-out is added for 'extraordinary or emergency situations,' specifically naming grid emergencies, public safety power shutoff events, and information technology or telecommunications outages as qualifying circumstances beyond a business's reasonable control.

Customer service requirements are restructured: the old version had separate detailed rules for online chatbot platforms and telephonic platforms. The new version consolidates into a unified framework with a general 15-minute connection or appointment requirement (subdivision b) and a general hold-time limit (subdivision c) that applies across all platforms.

The date by which businesses without telephonic service must offer it (or an equivalent alternative) is pushed from January 1, 2026 to January 1, 2027, giving businesses an additional year of compliance time.

New exemption added: the 15-minute connection requirement does not apply if the request is made via electronic mail, web-based contact form, or voicemail message. Additionally, businesses are not required to offer customer service through a communication platform they did not make available as of January 1, 2027.

The chatbot disclosure trigger changes from 'would be misled' to 'is likely to be misled,' which may represent a slightly lower threshold for when disclosure is required.

Throughout the bill, the term 'consumers' is replaced with 'customers' to align with the bill's defined terminology. The definitions of online and telephonic customer service platforms are updated from 'operators' to 'large private businesses.'

The term 'operator' is replaced throughout with 'large private business.' The definition of large private business is simplified: it no longer requires the entity to make a chatbot available in-state, only that it has over $500 million in gross annual revenue nationally and provides goods and services to consumers.

The emergency waiver is changed from a specific definition of 'extraordinary or emergency situations' (severe weather, wildfire, grid emergencies, telecom outages, Public Safety Power Shutoffs) to a more general standard: 'unforeseen circumstances beyond its reasonable control.'

The time to connect a customer to a human agent after a request is increased from 5 minutes to 15 minutes across all platforms (online, telephonic, and chatbot).

Telephonic hold time limits are relaxed: initial hold time increases from 5 minutes to 15 minutes, and cumulative hold times increase from 10 minutes to one hour total. The term 'escalation queues' is added to the cumulative limit.

The required business hours window changes from a fixed '8 a.m. to 6 p.m. daily' to 'at least the normal 10-hour period that comprises a large private business's regular business hours,' giving businesses flexibility in defining their own schedule as long as it is at least 10 hours.

A new safe harbor provision states that the use of 'commercially reasonable and practicable standards that are designed and intended to achieve compliance' shall satisfy the good faith effort requirements of Section 22627.

Online platform appointment options are expanded: customers can now choose to connect within 15 minutes, or make an appointment within one hour of the request, within one hour of the start of the next business day, or on an alternative day preferred by the consumer.

Penalty structure changes from a flat $10,000 per violation (requiring a 'pattern or practice') to $5,000 for an initial violation and $10,000 for each subsequent violation. The 'pattern or practice' threshold is removed, meaning any single violation can trigger liability.

Enforcement authority changes from 'a district attorney or the Attorney General' to simply 'a public prosecutor,' broadening who may bring enforcement actions.

New exemption for nonprofit general acute care hospitals: communications relating to the provision, coordination, management, administration, payment, or operation of health care services are exempt from the chapter's requirements.

New exemption for 'exclusive business lines': telephone lines, chat lines, or other communications channels not intended for general consumer use (employee-only lines, vendor-only lines, and B2B contract lines) are excluded.

New provision: businesses that as of January 1, 2026 do not utilize any telephonic customer services are not required to provide telephonic customer service, provided they offer other methods by which customers may promptly connect with a customer service agent.

The public utilities exemption is expanded to include compliance with 'a corrective action plan, if any' in addition to General Order 133.

The definition of 'customer service chatbot' is narrowed: the second category (stand-alone consumer electronic devices/smart speakers acting as voice-activated virtual assistants) is removed. The word 'solely' is also removed from the purpose language, making the first category slightly broader.

New definitions added for 'online customer service platforms,' 'telephonic customer service platforms,' 'regular business hours,' and 'exclusive business lines.'

The definition of 'complaint' is removed, along with the requirement to establish a complaint process. The specific definition of 'extraordinary or emergency situations' is also removed.

Penalty structure changed from a flat $10,000 per violation to a tiered system: $5,000 for an initial violation and $10,000 for each subsequent violation.

The provision authorizing the Attorney General to adopt regulations and provide additional compliance guidance was removed.

New subdivision (b) in Section 22627 allows businesses to offer customers a specific appointment time within one business day as an alternative to connecting with an agent within 15 minutes.

New subdivision (c) in Section 22627 establishes a general hold-time limit: no more than 15 minutes at any time after connection, and cumulative hold or wait times not exceeding one hour total, applying across all platforms.

The customer service feature requirement in Section 22627(a) now explicitly applies to 'all platforms through which the large private business provides customer service, including online chatbot customer service and telephonic customer service platforms.'

The hospital exemption was expanded from 'nonprofit general acute care hospital' to 'A hospital,' with a new definition covering any health facility licensed under subdivision (a), (b), or (f) of Section 1250 of the Health and Safety Code.

A new exemption was added for consumer reporting agencies as defined in the federal Fair Credit Reporting Act (15 U.S.C. Sec. 1681 et seq.).

The definition of 'regular business hours' now includes a specific minimum: a 10-hour period per day over a five-day week or 8 hours per day for a full seven-day week.

References to 'operator' in the definitions of online customer service platforms and telephonic customer service platforms were changed to 'large private business,' narrowing the scope of those terms.

The term 'operator' is replaced throughout with 'large private business,' and a new definition of 'customer' limits protection to natural persons residing in California. A new definition of 'services' excludes free-tier options that offer paid upgrades.

Business hours are changed from a fixed 8 a.m. to 6 p.m. window to a flexible 'normal 10-hour period that comprises a large private business's regular business hours,' allowing businesses to set their own schedule.

A new exemption is added for a large private business's inability to comply due to unforeseen circumstances beyond its reasonable control, which does not constitute a violation.

A new exemption is added for services subject to and in compliance with General Order 133 (Rules Governing Telecommunications Services) of the Public Utilities Commission.

The entire second section declaring legislative intent to enact future legislation regulating telephonic and internet customer service support is removed from the bill.

All response time requirements are tripled: human agent connection changes from 5 minutes to 15 minutes, maximum hold per instance changes from 5 to 15 minutes, and cumulative hold time changes from 10 minutes to one hour.

The obligation to connect customers to a human agent is softened from an absolute requirement to a 'good faith effort' standard in multiple provisions.

The requirement that online platform operators must offer a telephonic customer service platform is removed. Only businesses that already have a phone line are now required to post their number on their website.

New requirements for online platforms when a customer requests a human agent: provide a simple request method, give a wait time estimate, allow the customer to choose immediate connection or appointment, and allow choice of communication channel (text, email, or telephone).

Disclosure requirements are modified to specify that disclosures must be 'clear and conspicuous' and provided in the same medium in which the chatbot interacts with the customer.

Enforcement authority is broadened from 'district attorney or the Attorney General' to 'a public prosecutor.' The penalty threshold is lowered from requiring a 'pattern or practice of violating' to simply 'violates' the chapter.

The bill now has operative legal effect. It adds a new chapter (22625-22629) to the Business and Professions Code rather than merely stating legislative intent. The original intent language is retained but moved after the new code sections.

The chapter is not actionable or enforceable during extraordinary or emergency situations (severe weather, wildfire risk, grid emergencies, widespread IT/telecom outages, Public Safety Power Shutoff events).

New definitions added for 'artificial intelligence,' 'complaint,' 'customer service agent,' 'customer service chatbot' (including stand-alone consumer electronic devices like smart speakers), 'extraordinary or emergency situations,' and 'operator' (entity with over $500 million in gross annual revenue nationally).

Operators must provide a clear and conspicuous disclosure that a customer service chatbot is not human if a reasonable person would be misled. The disclosure must be in plain language, audible for voice interfaces, repeated on request, and readily accessible throughout the interaction.

During 8 a.m. to 6 p.m. daily, operators must connect customers to a human agent within five minutes of a request. For telephonic platforms, cumulative hold times cannot exceed 10 minutes total, and no single hold period can exceed 5 minutes.

Operators providing goods or services through online platforms must offer a telephonic customer service platform and post their phone number conspicuously on their website.

The Attorney General or a district attorney may enforce the chapter. An entity engaging in a pattern or practice of violations is liable for a civil penalty up to $10,000 per violation. No private right of action is created. The AG may adopt implementing regulations.

Fiscal committee review changed from 'no' to 'yes,' reflecting that the bill now has operative provisions with potential penalty costs.