Virginia HB 635 creates the Artificial Intelligence Chatbots Act, imposing safety, disclosure, and transparency obligations on operators of companion chatbots. Operators must prevent companion chatbots from engaging in specified harmful behaviors when available to minors, including encouraging self-harm, offering unsupervised mental health therapy, sexually explicit interactions, and engagement optimization that overrides safety guardrails. Operators must provide persistent AI identity disclosure and periodic pop-up reminders every 90 minutes during sustained engagement. A crisis response protocol for detecting and responding to suicidal ideation and self-harm is required as a condition of operation. Operators must obtain parental consent before using minor inputs for model training, publish safety test findings, maintain a public incident catalog, and publish semiannual reports on crisis-related outputs and mental health redirects. Violations are enforceable under the Virginia Consumer Protection Act, including private actions and Attorney General enforcement.