criminalizing and creating a private right of action for the facilitation, encouragement, offer, solicitation, or recommendation of certain acts or actions through a responsive generative communication to a child, and relative to the termination of tenancy at the expiration of the tenancy or lease term.

SB 263 prohibits AI chat services (like chatbots or character AI) from knowingly facilitating harmful acts with children, such as promoting sexual conduct, drug use, self-harm, or violence. It directly affects providers of AI chat applications designed for open-ended, responsive communication with minors. Key provisions create criminal liability for violations and establish a private right to sue for $1,000 per violation (minimum), plus civil damages, while exempting gaming/AI features integral to interactive entertainment and cloud service providers. The law takes effect January 1, 2026, and does not apply to AI used within video games or streaming content.