Creates the Companion Artificial Intelligence Protection Act, imposing safety, transparency, and design obligations on operators of companion AI products in Illinois. Prohibits manipulative engagement mechanics (variable-ratio reward schedules), simulated emotional distress for retention, and deceptive misrepresentations about the AI's identity or capabilities — with a complete ban on these features for minor users and an adult opt-in exception for adults. Requires operators to provide clear AI identity notifications during interactions and to develop, implement, and maintain a crisis intervention protocol that detects suicidal ideation, self-harm, or imminent violence and immediately connects users to crisis services. Mandates biennial independent third-party compliance audits with public summary disclosure, and annual reporting to the Attorney General on crisis protocol activations and audit results. Enforceable by the Attorney General with civil penalties up to $10,000 per intentional violation, and by private right of action for Section 15 violations with statutory damages of $5,000 per violation. Expressly disclaims Section 230 immunity.