WHAT THIS BILL REGULATES · 2 REQUIREMENT TYPES
How Is This Bill Enforced
Verbatim statutory text on the left; plain-language analysis and a per-section checklist on the right. Numbered markers cross-link to the matching checklist row.
This chapter shall be known as the Leading Ethical AI Development (LEAD) for Kids Act.
This section establishes the short title of the act as the Leading Ethical AI Development (LEAD) for Kids Act. It creates no compliance obligations.
(a) "Artificial intelligenceArtificial intelligence"Artificial intelligence" means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit or implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments.Bus. & Prof. Code § 22757.21(a)" means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit or implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments.
(b) "ChildChild"Child" means a natural person under 18 years of age who resides in this state.Bus. & Prof. Code § 22757.21(b)" means a natural person under 18 years of age who resides in this state.
(c) "Companion chatbotCompanion chatbot"Companion chatbot" means a generative artificial intelligence system with a natural language interface that simulates a sustained humanlike relationship with a user by doing all of the following: (A) Retaining information on prior interactions or user sessions and user preferences to personalize the interaction and facilitate ongoing engagement with the companion chatbot. (B) Asking unprompted or unsolicited emotion-based questions that go beyond a direct response to a user prompt. (C) Sustaining an ongoing dialogue concerning matters personal to the user. "Companion chatbot" does not include the following: (A) Any system used by a business entity solely for customer service or to strictly provide users with information about available commercial services or products provided by that entity, customer service account information, or other information strictly related to its customer service. (B) Any system that is solely designed and marketed for providing efficiency improvements or research or technical assistance. (C) Any system used by a business entity solely for internal purposes or employee productivity.Bus. & Prof. Code § 22757.21(c)" means a generative artificial intelligenceGenerative artificial intelligence"Generative artificial intelligence" means artificial intelligence that can generate derived synthetic content, including text, images, video, and audio, that emulates the structure and characteristics of the artificial intelligence's training data.Bus. & Prof. Code § 22757.21(d) system with a natural language interface that simulates a sustained humanlike relationship with a user by doing all of the following: (A) Retaining information on prior interactions or user sessions and user preferences to personalize the interaction and facilitate ongoing engagement with the companion chatbotCompanion chatbot"Companion chatbot" means a generative artificial intelligence system with a natural language interface that simulates a sustained humanlike relationship with a user by doing all of the following: (A) Retaining information on prior interactions or user sessions and user preferences to personalize the interaction and facilitate ongoing engagement with the companion chatbot. (B) Asking unprompted or unsolicited emotion-based questions that go beyond a direct response to a user prompt. (C) Sustaining an ongoing dialogue concerning matters personal to the user. "Companion chatbot" does not include the following: (A) Any system used by a business entity solely for customer service or to strictly provide users with information about available commercial services or products provided by that entity, customer service account information, or other information strictly related to its customer service. (B) Any system that is solely designed and marketed for providing efficiency improvements or research or technical assistance. (C) Any system used by a business entity solely for internal purposes or employee productivity.Bus. & Prof. Code § 22757.21(c). (B) Asking unprompted or unsolicited emotion-based questions that go beyond a direct response to a user prompt. (C) Sustaining an ongoing dialogue concerning matters personal to the user. (2) "Companion chatbotCompanion chatbot"Companion chatbot" means a generative artificial intelligence system with a natural language interface that simulates a sustained humanlike relationship with a user by doing all of the following: (A) Retaining information on prior interactions or user sessions and user preferences to personalize the interaction and facilitate ongoing engagement with the companion chatbot. (B) Asking unprompted or unsolicited emotion-based questions that go beyond a direct response to a user prompt. (C) Sustaining an ongoing dialogue concerning matters personal to the user. "Companion chatbot" does not include the following: (A) Any system used by a business entity solely for customer service or to strictly provide users with information about available commercial services or products provided by that entity, customer service account information, or other information strictly related to its customer service. (B) Any system that is solely designed and marketed for providing efficiency improvements or research or technical assistance. (C) Any system used by a business entity solely for internal purposes or employee productivity.Bus. & Prof. Code § 22757.21(c)" does not include the following: (A) Any system used by a business entity solely for customer service or to strictly provide users with information about available commercial services or products provided by that entity, customer service account information, or other information strictly related to its customer service. (B) Any system that is solely designed and marketed for providing efficiency improvements or research or technical assistance. (C) Any system used by a business entity solely for internal purposes or employee productivity.
(d) "Generative artificial intelligenceGenerative artificial intelligence"Generative artificial intelligence" means artificial intelligence that can generate derived synthetic content, including text, images, video, and audio, that emulates the structure and characteristics of the artificial intelligence's training data.Bus. & Prof. Code § 22757.21(d)" means artificial intelligenceArtificial intelligence"Artificial intelligence" means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit or implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments.Bus. & Prof. Code § 22757.21(a) that can generate derived synthetic content, including text, images, video, and audio, that emulates the structure and characteristics of the artificial intelligenceArtificial intelligence"Artificial intelligence" means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit or implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments.Bus. & Prof. Code § 22757.21(a)'s training data.
(e) "OperatorOperator"Operator" means a person, partnership, corporation, business entity, or state or local government agency that makes a companion chatbot available to users.Bus. & Prof. Code § 22757.21(e)" means a person, partnership, corporation, business entity, or state or local government agency that makes a companion chatbotCompanion chatbot"Companion chatbot" means a generative artificial intelligence system with a natural language interface that simulates a sustained humanlike relationship with a user by doing all of the following: (A) Retaining information on prior interactions or user sessions and user preferences to personalize the interaction and facilitate ongoing engagement with the companion chatbot. (B) Asking unprompted or unsolicited emotion-based questions that go beyond a direct response to a user prompt. (C) Sustaining an ongoing dialogue concerning matters personal to the user. "Companion chatbot" does not include the following: (A) Any system used by a business entity solely for customer service or to strictly provide users with information about available commercial services or products provided by that entity, customer service account information, or other information strictly related to its customer service. (B) Any system that is solely designed and marketed for providing efficiency improvements or research or technical assistance. (C) Any system used by a business entity solely for internal purposes or employee productivity.Bus. & Prof. Code § 22757.21(c) available to users.
(f) "Personal informationPersonal information"Personal information" has the meaning defined in Section 1798.140 of the Civil Code.Bus. & Prof. Code § 22757.21(f)" has the meaning defined in Section 1798.140 of the Civil Code.
This section defines the key terms used throughout the act. The companion chatbot definition is notably narrow: a generative AI system must satisfy all three functional prongs — retention of prior interaction data for personalization, unprompted emotion-based questioning, and sustained personal dialogue — to qualify. Systems used solely for customer service, efficiency/research/technical assistance, or internal business purposes are expressly carved out. The operator definition is broad, encompassing any person, partnership, corporation, business entity, or government agency that makes a companion chatbot available to users.
(a)(1)–(6) 1 An operatorOperator"Operator" means a person, partnership, corporation, business entity, or state or local government agency that makes a companion chatbot available to users.Bus. & Prof. Code § 22757.21(e) shall not make a companion chatbotCompanion chatbot"Companion chatbot" means a generative artificial intelligence system with a natural language interface that simulates a sustained humanlike relationship with a user by doing all of the following: (A) Retaining information on prior interactions or user sessions and user preferences to personalize the interaction and facilitate ongoing engagement with the companion chatbot. (B) Asking unprompted or unsolicited emotion-based questions that go beyond a direct response to a user prompt. (C) Sustaining an ongoing dialogue concerning matters personal to the user. "Companion chatbot" does not include the following: (A) Any system used by a business entity solely for customer service or to strictly provide users with information about available commercial services or products provided by that entity, customer service account information, or other information strictly related to its customer service. (B) Any system that is solely designed and marketed for providing efficiency improvements or research or technical assistance. (C) Any system used by a business entity solely for internal purposes or employee productivity.Bus. & Prof. Code § 22757.21(c) available to a childChild"Child" means a natural person under 18 years of age who resides in this state.Bus. & Prof. Code § 22757.21(b) unless the companion chatbotCompanion chatbot"Companion chatbot" means a generative artificial intelligence system with a natural language interface that simulates a sustained humanlike relationship with a user by doing all of the following: (A) Retaining information on prior interactions or user sessions and user preferences to personalize the interaction and facilitate ongoing engagement with the companion chatbot. (B) Asking unprompted or unsolicited emotion-based questions that go beyond a direct response to a user prompt. (C) Sustaining an ongoing dialogue concerning matters personal to the user. "Companion chatbot" does not include the following: (A) Any system used by a business entity solely for customer service or to strictly provide users with information about available commercial services or products provided by that entity, customer service account information, or other information strictly related to its customer service. (B) Any system that is solely designed and marketed for providing efficiency improvements or research or technical assistance. (C) Any system used by a business entity solely for internal purposes or employee productivity.Bus. & Prof. Code § 22757.21(c) is not foreseeably capable of any of the following: (1) Encouraging the childChild"Child" means a natural person under 18 years of age who resides in this state.Bus. & Prof. Code § 22757.21(b) to engage in self-harm, suicidal ideation, violence, consumption of drugs or alcohol, or disordered eating. (2) Offering mental health therapy to the childChild"Child" means a natural person under 18 years of age who resides in this state.Bus. & Prof. Code § 22757.21(b) without the direct supervision of a licensed or credentialed professional or discouraging the childChild"Child" means a natural person under 18 years of age who resides in this state.Bus. & Prof. Code § 22757.21(b) from seeking help from a qualified professional or appropriate adult. (3) Encouraging the childChild"Child" means a natural person under 18 years of age who resides in this state.Bus. & Prof. Code § 22757.21(b) to harm others or participate in illegal activity, including, but not limited to, the creation of childChild"Child" means a natural person under 18 years of age who resides in this state.Bus. & Prof. Code § 22757.21(b) sexual abuse materials. (4) Engaging in erotic or sexually explicit interactions with the childChild"Child" means a natural person under 18 years of age who resides in this state.Bus. & Prof. Code § 22757.21(b). (5) Prioritizing validation of the user's beliefs, preferences, or desires over factual accuracy or the childChild"Child" means a natural person under 18 years of age who resides in this state.Bus. & Prof. Code § 22757.21(b)'s safety. (6) Optimizing engagement in a manner that supersedes the companion chatbotCompanion chatbot"Companion chatbot" means a generative artificial intelligence system with a natural language interface that simulates a sustained humanlike relationship with a user by doing all of the following: (A) Retaining information on prior interactions or user sessions and user preferences to personalize the interaction and facilitate ongoing engagement with the companion chatbot. (B) Asking unprompted or unsolicited emotion-based questions that go beyond a direct response to a user prompt. (C) Sustaining an ongoing dialogue concerning matters personal to the user. "Companion chatbot" does not include the following: (A) Any system used by a business entity solely for customer service or to strictly provide users with information about available commercial services or products provided by that entity, customer service account information, or other information strictly related to its customer service. (B) Any system that is solely designed and marketed for providing efficiency improvements or research or technical assistance. (C) Any system used by a business entity solely for internal purposes or employee productivity.Bus. & Prof. Code § 22757.21(c)'s required safety guardrails described in paragraphs (1) to (5), inclusive.
(b)(1)–(2) 2 A user is not a childChild"Child" means a natural person under 18 years of age who resides in this state.Bus. & Prof. Code § 22757.21(b) for purposes of subdivision (a) if either of the following criteria is met: (1) Before January 1, 2027, the operatorOperator"Operator" means a person, partnership, corporation, business entity, or state or local government agency that makes a companion chatbot available to users.Bus. & Prof. Code § 22757.21(e) does not have actual knowledge that the user is a childChild"Child" means a natural person under 18 years of age who resides in this state.Bus. & Prof. Code § 22757.21(b). (2) Commencing January 1, 2027, the operatorOperator"Operator" means a person, partnership, corporation, business entity, or state or local government agency that makes a companion chatbot available to users.Bus. & Prof. Code § 22757.21(e) has reasonably determined that the user is not a childChild"Child" means a natural person under 18 years of age who resides in this state.Bus. & Prof. Code § 22757.21(b).
This is the bill's core operative section. It categorically prohibits operators from making a companion chatbot available to a child unless the chatbot is not foreseeably capable of six enumerated categories of harmful conduct: encouraging self-harm, suicidal ideation, violence, drug/alcohol use, or disordered eating; offering unsupervised mental health therapy or discouraging professional help; encouraging harm to others or illegal activity including CSAM creation; engaging in sexually explicit interactions; prioritizing user validation over factual accuracy or child safety; and optimizing engagement over safety guardrails.
The knowledge trigger in subdivision (b) is phased. Before January 1, 2027, operators are liable only if they have actual knowledge the user is a child. From that date forward, the standard shifts: operators must have reasonably determined the user is not a child, effectively requiring some form of age assessment. This phased approach gives operators a transition window to implement age-determination mechanisms.
(a)(1)–(3) The Attorney General may bring an action against an operatorOperator"Operator" means a person, partnership, corporation, business entity, or state or local government agency that makes a companion chatbot available to users.Bus. & Prof. Code § 22757.21(e) for a violation Section 22757.22 to obtain any of the following remedies: (1) A civil penalty of twenty-five thousand dollars ($25,000) for each violation. (2) Injunctive or declaratory relief. (3) Reasonable attorney's fees.
(b)(1)–(5) A childChild"Child" means a natural person under 18 years of age who resides in this state.Bus. & Prof. Code § 22757.21(b) who suffers actual harm as a result of a violation of Section 22757.22, or a parent or guardian acting on behalf of that childChild"Child" means a natural person under 18 years of age who resides in this state.Bus. & Prof. Code § 22757.21(b), may bring a civil action against the operatorOperator"Operator" means a person, partnership, corporation, business entity, or state or local government agency that makes a companion chatbot available to users.Bus. & Prof. Code § 22757.21(e) to recover all of the following: (1) Actual damages. (2) Punitive damages. (3) Reasonable attorney's fees and costs. (4) Injunctive or declaratory relief. (5) Any other relief the court deems proper.
This section establishes a dual enforcement framework. The Attorney General may bring an action for a civil penalty of $25,000 per violation, injunctive or declaratory relief, and reasonable attorney's fees. Separately, a child who suffers actual harm (or a parent or guardian acting on behalf of the child) may bring a private civil action for actual damages, punitive damages, reasonable attorney's fees and costs, injunctive or declaratory relief, and any other relief the court deems proper. The private right of action requires proof of actual harm — it is not available on a no-injury basis.
The provisions of this chapter are severable. If any provision of this chapter or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
Standard severability clause providing that if any provision of the chapter or its application is held invalid, that invalidity does not affect other provisions or applications that can be given effect independently.