California Privacy and AI Legislation Update: September 8, 2025

Troutman Pepper Locke
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Troutman Pepper Locke

Key point: The California legislature heads into its final week with more than 20 privacy and AI bills still under consideration.

Over the last few weeks, we have been tracking and providing weekly updates on 32 privacy- and AI-related bills that crossed chambers prior to the legislative deadline. Below is an update on last week’s events.

  1. What’s New

Another important deadline passed last week, as September 5 was the last day for lawmakers to amend bills on the floor. As discussed below, numerous bills we are tracking received amendments prior to the deadline. We are now in the final week of the legislative session with the legislature set to close on Friday, September 12. As we discussed in last week’s update, several bills failed to advance out of committee on the August 29 deadline; however, there are still four privacy bills and 17 AI bills under consideration.

Privacy Bills

Three of the four bills we are tracking were amended last week and are now on second or third floor readings.

Among other changes, AB 566 (opt-out preference signal) was amended to remove “browser engine” and add a January 1, 2027, effective date.

AB 1043 (age verification signals) received significant changes, including modifications to the bill’s age brackets, a change in the scope of certain requirements from applying to an “online service, product or feature” to applying to an “operating system provider,” and adding a January 1, 2027, effective date.

SB 771 (social media) was amended to add a January 1, 2027, effective date.

AI Bills

One bill crossed chambers last week. AB 489 (health care professions: deceptive letters: AI) unanimously passed the Senate on September 4. The bill was returned to the Assembly for concurrence in the Senate amendments.

Meanwhile, 15 bills were amended and are now on second or third floor readings:

AB 1018 (automated decision systems): Among other changes, the amendment added several exemptions and qualifications. It also changed all references from “performance evaluations” to “impact assessments” and made changes to what the impact assessment must analyze.

SB 53 (AI models: large developers): As we noted in last week’s update, the bill was amended in committee at the August 29 deadline, but the amendment was not yet available. That amendment changed the definition of “large developer” from persons with annual revenue of $100 million to annual revenue of $500 million. The amendment also removed provisions relating to third-party audits. The September 5 amendment made numerous further changes.

SB 11 (AI technology): The amendment added provisions from SB 683 (use of a person’s name, voice, signature, photograph of likeness).

SB 243 (companion chatbots): The amendment revised the definition of “companion chatbot” and changed the bill’s substantive requirements for when disclosures need to be made.

AB 853 (California AI Transparency Act): The amendment revised the bill’s definitions and rewrote many of the bill’s substantive requirements.

SB 7 (employment: automated decision systems): Two amendments were made last week. The first amendment significantly revised the bill, including removing the right to appeal. The second amendment made changes regarding a worker’s right to request data used by an ADS to make discipline, termination, and deactivation decisions.

AB 1331 (workplace surveillance): Among other changes, the amendment revised the provisions regarding when a worker has the right to leave behind a workplace surveillance tool.

SB 259 (Fair Online Pricing Act): The amendment revised the bill’s treatment of geolocation data and the language exempting activities such as coupons and discounts.

SB 295 (California Preventing Algorithmic Collusion Act of 2025): Last week’s amendment appears to be the committee amendment that was not publicly available last week. Among other changes, the amendment added exemptions for certain insurers.

AB 325 (Cartwright Act: violations): The amendment added clarifying language to the prohibition on distributing certain common pricing algorithms.

SB 503 (Health care services: AI): The amendment removed the requirement to have third-party audits.

AB 682 (Health care coverage reporting): The amendment adjusted terms and modified some of the bill’s effective dates.

AB 723 (real estate: digitally altered images: disclosure): The amendment added a requirement to link to the original unaltered image and expanded the types of digital alterations that fall within the bill’s scope.

AB 1604 (Leading Ethical AI Developing (LEAD) for Kids Act): The amendment significantly revises the entire bill.

AB 316 (AI: defenses): The amendment clarified that the bill does not limit defendants from presenting affirmative defenses or evidence of comparative fault.

Finally, AB 446 (surveillance pricing) was read a second time and ordered to a third reading.

  1. Bill Tracker Chart and Summaries

You can find our latest bill tracker chart containing summaries of each of the bills here.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Attorney Advertising.

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