Leading Ethical AI Development (LEAD) for Kids Act.

Assembly Member Bauer-Kahan's Leading Ethical AI Development (LEAD) for Kids Act establishes California's first comprehensive regulatory framework for artificial intelligence systems that interact with or affect children. The legislation creates a nine-member Standards Board tasked with developing and enforcing safeguards for AI products used by or applied to minors.

The act requires developers of AI systems to register their products, conduct risk assessments, and implement protective measures based on potential harm levels. Products deemed to pose "prohibited risks" - including companion chatbots that could manipulate children or systems that generate social scores - must be made inaccessible to minors. High-risk applications, such as those used for educational assessment or targeted advertising, face mandatory pre-deployment evaluations and ongoing audits.

Developers and deployers must obtain parental consent before using children's personal data to train AI systems, publicly disclose product information through standardized labels, and report incidents of adverse impacts within 30 days. The law enables both state enforcement through civil penalties of $25,000 per violation and private legal action by affected children or their guardians. A dedicated state fund, supported by registration fees and penalties, will finance the program's administration.

The Standards Board must adopt implementing regulations by January 2028, with key requirements taking effect that July. Companies already complying with equally stringent state regulations may receive exemptions to avoid duplicative obligations. The framework aims to establish uniform standards while providing flexibility for technological advancement and existing compliance programs.