Companion chatbots: children's safety.
What changed between versions
The deadline for initial child safety audits was pushed from July 1, 2027 to January 1, 2029 (or before first making a chatbot publicly available, whichever is later). Interface design testing with child users was also delayed from July 1, 2027 to January 1, 2028.
A new revenue-based exemption was added: operators with less than $500 million in gross revenue in the prior calendar year are not required to comply with the audit section (Section 21814) before January 1, 2032.
The operator exemption for postsecondary educational institutions making chatbots available exclusively in educational settings was removed. The workplace-only exemption was retained but reworded to apply to any 'entity' rather than specifically an 'employer.'
A conditional operative provision was added stating that the audit section only takes effect if Assembly Bill 1405 of the 2025-26 Regular Session is not chaptered and does not take effect on or before January 1, 2027.
The entire chapter was relocated from Chapter 22.6.1 (Sections 22610-22614) to Chapter 11.6 (Sections 21810-21814) of the Business and Professions Code, changing all cross-references throughout the bill.
The age determination standard was lowered from 'verify the age of a user' to 'determine the age of a user,' which is a less rigorous standard. The fallback mechanism referencing Health and Safety Code Section 27001 was retained.
Record retention requirements were restructured. The old version required preserving all child conversation records for the duration of deployment plus 10 years. The new version uses a trigger-based approach: operators must preserve records indicating serious self-harm or risk of self-harm for at least three years, and must act within 12 hours when they know or have reason to know a child has died or engaged in serious self-harm.
Advertising restrictions were expanded with new specific exceptions: operators may display age-appropriate contextual advertising using a child's age, non-precise geolocation, device information, or session-based interest data, provided this information is not used to profile the child. All ads shown to children must be clearly and conspicuously labeled.
The crisis response protocol was simplified. The old version required detailed multi-part responses including in-service support referrals, parent notification within 12 hours with specific conditions about not risking harm to the child, and streamlined access to 988 helplines. The new version focuses on parent notification within 12 hours and notice to the child user that the parent is being notified.
The private right of action was narrowed: a child must now suffer an 'actual harm' rather than a 'covered harm' to bring a civil action against the operator for punitive damages.
The audit reporting mechanism changed significantly. Previously, the auditor was required to submit the full AI child safety audit report directly to the Attorney General within 90 days. Now, the operator submits a summary to the AG within 30 business days and posts a high-level summary on its website within 90 days. The AG retains authority to request the full report from the operator for cause.
The definition of 'child safety audit' was changed from an audit 'conducted by an independent auditor' to one 'conducted by a third-party auditor to assess internal controls, processes, and systems implemented for a companion chatbot that are necessary for compliance with this chapter.'
The definition of 'persistent conversational memory' was narrowed from 'a companion chatbot's use of information or analysis from prior conversations or usage sessions' to 'a companion chatbot's incorporation of prior conversations for use in future conversations.'