Companion chatbots.
What changed between versions
Entirely new companion chatbot regulation added as Section 1, amending Business and Professions Code Section 22602. Requires operators to issue clear notification that a chatbot is AI-generated, maintain protocols preventing suicidal ideation or self-harm content, publish those protocol details on their website, and for minor users: disclose the AI nature, provide break reminders every three hours, and prevent production or exchange of sexually explicit material.
The nonprofit conflict-of-interest exception (now Section 2) was changed from 'Notwithstanding subdivision (c) of Section 87103' to 'Notwithstanding Section 87103,' broadening the exception to apply to the entire section rather than just one subdivision.
For minor users, the trigger changed from when an operator 'knows' a user is a minor to when the operator has 'actual knowledge' that a user is a minor, which is a more specific legal standard.
The sexual content protection for minors was broadened from requiring operators to 'institute reasonable measures to prevent' production of visual material of sexually explicit conduct, to requiring them to 'prevent' the chatbot from producing or facilitating the exchange of such material or directly stating that a minor should engage in sexually explicit conduct. This removes the 'reasonable measures' qualifier and adds facilitation of exchange as a prohibited action.
The nonprofit conflict-of-interest provision was restructured from two somewhat redundant sentences into a single consolidated sentence, removing the earlier general statement about membership dues and keeping only the specific 501(c)(5) and 501(c)(6) organization language.