Key point: Vermont’s legislature passed a consumer data privacy bill, Illinois’ legislature passed an AI frontier model bill, and eight bills crossed chambers in California.

Below is the twentieth update on the status of proposed state privacy and AI legislation in 2026. With the state legislative activity slowing, we have combined our weekly privacy and AI posts.

What’s New

The big news last week was Vermont’s legislature passing a consumer data privacy bill. This is the second time in the last three years the state’s legislature has passed a consumer data privacy bill. The last time was in 2024 when Governor Phil Scott vetoed H.121 and the Senate did not have enough votes to override the veto. This year’s bill is more business-friendly than H.121. It largely tracks the 2025 version of Connecticut’s privacy law. Vermont’s legislature also passed a bill to amend the state’s data broker law.

In other news, according to Connecticut Senator James Maroney, SB 4 and SB 5 were signed into law. SB 4 significantly amends the state’s consumer data privacy law and creates a data broker law. SB 5 contains numerous provisions relating to AI, including companion chatbots and the use of AI in employment. We discussed the employment provisions here.

On the other side of the country, the California Assembly passed seven bills while the Senate passed one. The bills deal with children’s privacy, chatbots, surveillance pricing, workplace surveillance tools, and health care AI.

Moving east, the Illinois legislature passed an AI frontier model bill, joining California and New York as states having passed such a bill.

The New York legislature passed, and Governor Hochul signed, the Safe by Design Act as part of the state’s budget bill.

Finally, while we wait for Louisiana’s governor to sign the consumer data privacy bill into law, the legislature passed a bill to require health care professionals to disclose to patients the use of an AI transcription recording device.

More details on those bills plus updates on all bill movements last week in the below post.

Privacy Updates

Consumer Data Privacy

Vermont’s legislature passed S 71. The bill will next move to Governor Phil Scott for consideration. The bill is largely based on the 2025 version of Connecticut’s consumer data privacy law.

According to Connecticut Senator James Maroney, SB 4 was signed into law. The law makes several changes to Connecticut’s consumer data privacy law and establishes a data broker registration law.

Kid’s Privacy

The California Assembly passed AB 1709 (covered platforms: age restriction: e-Safety Commission) and AB 2246 (online service, product, or feature: access by children).

The New York legislature passed, and Governor Hochul signed, the Safe by Design Act as part of the state’s budget bill (A 10008).

Biometric Privacy

New York’s A 1558 was voted out of a second Assembly committee. The bill requires retailers to post warning signs of the tracking and collecting of customers’ biometric data through electronic devices.

Data Broker

Vermont lawmakers passed a bill (H 211) to amend the state’s data broker registration law.

AI Updates

Chatbot

According to Connecticut Senator James Maroney, SB 5 was signed into law. The law covers several different AI topics, including chatbots and employment. We wrote a summary of the employment provisions here.

California’s SB 867 (toy: companion chatbots) passed the Senate while AB 2023 (companion chatbots: children’s safety) and AB 1609 (customer service chatbots) passed the Assembly.

Pricing

California’s AB 2564 (surveillance pricing) passed the Assembly.

Employment

California’s AB 1883 (workplace surveillance tools) passed the Assembly.

Health

Louisiana’s legislature passed HB 475. The bill requires health care professionals to disclose to patients the use of an AI transcription recording device.

Vermont’s House adopted the conference committee report on HB 816.

California’s AB 2575 (health care services: AI) passed the Assembly.

Frontier Models

The Illinois legislature passed SB 315. The bill will head next to Governor JB Pritzker who has indicated that he will sign it.

Other

New Jersey’s A 4733 was voted out of the Assembly Appropriations Committee. The bill prohibits advertising generative AI as able to practice a regulated profession or occupation.