SB 540

As passed the Senate on 3/6/2026: - Requires operators of conversational AI services to disclose to users that they are interacting with an AI and not a natural person if a person could reasonably be expected to be misled to believe he or she was interacting with a natural person. - Requires disclosure to a minor user that the interaction is with an AI and not a natural person. - Prohibits conversational AI services from generating sexually explicit content for minors, simulating personal relationships with them, or using certain reward mechanisms to increase their engagement. - Requires operators to provide tools for minor users and their parents or guardians to manage privacy and account settings. - Requires operators to adopt a protocol to respond to user prompts about self-harm by referring them to crisis services and prohibits claims that the AI is designed to provide mental health care. - Authorizes the Attorney General to bring enforcement actions for violations, including civil penalties of up to $1,000 per violation. - The 3/6/2026 substitution requires operators of conversational AI services capable of generating sexually explicit synthetic content to use reasonable age verification