California Gov. Gavin Newsom signed SB 243 on Monday, making the state the first to regulate AI companion chatbots. The law, authored by state Sen. Steve Padilla, requires operators to disclose that users are interacting with an AI rather than a human, to prevent minors from viewing sexually explicit images generated by the chatbot, and to maintain a protocol for addressing suicidal ideation or self-harm, including crisis-service referrals and sharing the protocol and related statistics with the state Department of Public Health. It also bars chatbots from presenting themselves as healthcare professionals, offers break reminders to minors, and creates a private right of action. It takes effect Jan. 1, 2026, and carries penalties of up to $250,000 per offense for illegal deepfakes. The bill passed the Senate 33-3 and the Assembly 59-1.

The same day, Newsom vetoed AB 1064, which would have prohibited companion chatbots for minors unless companies could show the software would not encourage harmful behavior. In his veto message, he said the bill could amount to a total ban on conversational AI for adolescents.

Bioethicist Jodi Halpern welcomed the law, saying she was relieved and applauding Padilla for “taking this first step.” Jai Jaisimha, co-founder of Transparency Coalition, called the law “an important first step.” Rebecca Bauer-Kahan, the author of AB 1064, said she was disappointed Newsom sided with Big Tech over families. TechNet, which opposed AB 1064, said it appreciated the veto.