Fiscal Note Summary - Bill 2225 HB, AI Companion Chatbots (OFM, Final 1/16/2026)
Summary
Multiple Agency Fiscal Note Summary for Bill Number 2225 HB, titled AI companion chatbots, marked Final 1/16/2026 and prepared by Val Terre, OFM. The summary table lists estimated operating expenditures for the Office of Attorney General of 66,000 for 2025-27 and 132,000 for 2027-29, and zeros for the Department of Health. It is followed by Individual State Agency Fiscal Notes for the 100-Office of Attorney General and the 303-Department of Health. The packet also includes a Local Government Fiscal Note, which states that the legislation would have no expenditure impacts and no revenue impacts for local governments.
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“Fiscal Note Summary - Bill 2225 HB, AI Companion Chatbots (OFM, Final 1/16/2026).”
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Multiple Agency Fiscal Note Summary
Bill Number: 2225 HB Title: AI companion chatbots
Estimated Cash Receipts
NONE
Agency Name 2025-27 2027-29 2029-31
GF- State Total GF- State Total GF- State Total
Local Gov. Courts
Loc School dist-SPI
Local Gov. Other No fiscal impact
Local Gov. Total
Estimated Operating Expenditures
Agency Name 2025-27 2027-29 2029-31
FTEs GF-State NGF-Outlook Total FTEs GF-State NGF-Outloo Total FTEs GF-State NGF-Outlook Total
Office of .4 66,000 66,000 66,000 .5 132,000 132,000 132,000 .0 0 0 0
Attorney General
Department of .0 0 0 0 .0 0 0 0 .0 0 0 0
Health
Total $ 0.4 66,000 66,000 66,000 0.5 132,000 132,000 132,000 0.0 0 0 0
Agency Name 2025-27 2027-29 2029-31
FTEs GF-State Total FTEs GF-State Total FTEs GF-State Total
Local Gov. Courts
Loc School dist-SPI
Local Gov. Other No fiscal impact
Local Gov. Total
Estimated Capital Budget Expenditures
Agency Name 2025-27 2027-29 2029-31
FTEs Bonds Total FTEs Bonds Total FTEs Bonds Total
Office of Attorney .0 0 0 .0 0 0 .0 0 0
General
Department of Health .0 0 0 .0 0 0 .0 0 0
Total $ 0.0 0 0 0.0 0 0 0.0 0 0
Agency Name 2025-27 2027-29 2029-31
FTEs GF-State Total FTEs GF-State Total FTEs GF-State Total
Local Gov. Courts
Loc School dist-SPI
Local Gov. Other No fiscal impact
Local Gov. Total
FNPID: 75275
FNS029 Multi Agency rollup
Estimated Capital Budget Breakout
NONE
Prepared by: Val Terre, OFM Phone: Date Published:
(360) 280-3073 Final 1/16/2026
FNPID: 75275
FNS029 Multi Agency rollup
Individual State Agency Fiscal Note
Bill Number: 2225 HB Title: AI companion chatbots Agency: 100-Office of Attorney
General
Part I: Estimates
No Fiscal Impact
Estimated Cash Receipts to:
NONE
Estimated Operating Expenditures from:
FY 2026 FY 2027 2025-27 2027-29 2029-31
FTE Staff Years 0.0 0.7 0.4 0.5 0.0
Account
General Fund-State 001-1 0 66,000 66,000 132,000 0
Total $ 0 66,000 66,000 132,000 0
Estimated Capital Budget Impact:
NONE
The cash receipts and expenditure estimates on this page represent the most likely fiscal impact. Factors impacting the precision of these estimates,
and alternate ranges (if appropriate), are explained in Part II.
Check applicable boxes and follow corresponding instructions:
If fiscal impact is greater than $50,000 per fiscal year in the current biennium or in subsequent biennia, complete entire fiscal note
X
form Parts I-V.
If fiscal impact is less than $50,000 per fiscal year in the current biennium or in subsequent biennia, complete this page only (Part I).
Capital budget impact, complete Part IV.
Requires new rule making, complete Part V.
Legislative Contact: Emily Poole Phone: 360-786-7106 Date: 01/06/2026
Agency Preparation: Amy Flanigan Phone: 509-456-3123 Date: 01/12/2026
Agency Approval: Leah Snow Phone: 360-586-2104 Date: 01/12/2026
OFM Review: Val Terre Phone: (360) 280-3073 Date: 01/16/2026
Form FN (Rev 1/00) 207,773.00 Request # 015-1
FNS063 Individual State Agency Fiscal Note 1 Bill # 2225 HB
Part II: Narrative Explanation
II. A - Brief Description Of What The Measure Does That Has Fiscal Impact
Significant provisions of the bill and any related workload or policy assumptions that have revenue or expenditure impact on the responding agency
by section number.
Section 1 – New Section. Legislative findings.
Section 2 – New Section. Definitions.
Section 3 – New Section. Requires AI operators to issue clear and conspicuous notification indicating that a companion
chatbot is artificially generated and not human if a reasonable person could be misled to believe that they are
communicating with a human. Provides requirements for that notification.
Section 4 – New Section. Provided additional requirements when the AI operator knows that a user of the AI chatbot is a
minor. Includes notification requirements and measures to prevent the AI chatbot from generating or producing sexually
explicit content or engaging in suggestive dialog with the minor. Also prohibits manipulative engagement techniques,
which are further defined in this section.
Section 5 – New Section. Prohibits AI operators from deploying AI companion chatbots unless they maintain and
implement a protocol for detecting and addressing suicidal ideation or expressions of self-harm by users. Provides
requirements for such protocol and public disclosure requirements.
Section 6 – New Section. Clarifies that this act does not apply to general purpose AI models unless those models are
deployed or behave as an AI companion.
Section 7 – New Section. Provides that the practices covered under this act vitally affect the public interest for purposes of
applying the consumer protection act (chapter 19.86 RCW). Violations of this chapter are unfair or deceptive acts in trade
or commerce and unfair methods of competition under the consumer protection act.
Section 8 – New Section. Sections 1-7 of this act are a new chapter in Title 19 RCW.
Section 9 – New Section. Savings clause.
Section 10 – New Section. Act takes effect on January 1, 2027.
II. B - Cash receipts Impact
Cash receipts impact of the legislation on the responding agency with the cash receipts provisions identified by section number and when appropriate,
the detail of the revenue sources. Description of the factual basis of the assumptions and the method by which the cash receipts impact is derived.
Explanation of how workload assumptions translate into estimates. Distinguished between one time and ongoing functions.
None.
Attorney General’s Office (AGO) Consumer Protection Division (CPR) activities are funded with General Fund-State
dollars. No cash receipt impact. There is no client agency to bill for legal services.
II. C - Expenditures
Agency expenditures necessary to implement this legislation (or savings resulting from this legislation), with the provisions of the legislation that result
in the expenditures (or savings) identified by section number. Description of the factual basis of the assumptions and the method by which the
expenditure impact is derived. Explanation of how workload assumptions translate into cost estimates. Distinguished between one time and ongoing
functions.
Legal services associated with the enactment of this bill will begin on January 1, 2027.
Location of staffing is assumed to be in a King County office building.
AI companion chatbots 100-Office of Attorney General
Form FN (Rev 1/00) 207,773.00 Request # 015-1
FNS063 Individual State Agency Fiscal Note 2 Bill # 2225 HB
Total workload impact in this request includes standard assumption costs for goods & services, travel, and capital outlays
for all FTE identified.
Agency administration support FTE are included in the tables. The Management Analyst 5 FTE (MA) is used as a
representative classification. An example ratio is for every 1.0 Assistant Attorney General FTE (AAG), the AGO includes
0.5 Paralegal 1 FTE (PL1) and 0.4 MA.
1. Assumptions for the Attorney General’s Office (AGO) Consumer Protection Division (CPR) Legal Services:
The AGO’s CPR Division assumes the enactment of HB 2225 will require AAG, Paralegal 2 (PL2) and Investigator (INV)
positions in order to monitor for compliance and conduct investigations. CPR assumes that other regulators outside WA, in
particular other states, will enforce similar laws against industry participants, incentivizing compliance. The effective date
of January 1, 2027, as set forth in Section 10, will allow industry participants additional time following passage to come
into compliance with bill requirements. CPR assumes enforcement activity during the first 18 months after the effective
date will take the form of monitoring for compliance and one to two new investigations, with no litigation activity. CPR
assumes in FY 2027 0.2 AAG to investigate potential violations; draw conclusions from investigation; draft criminal
investigative demands (CID)/discovery requests; engage in settlement negotiations, and 0.2 INV to interview witnesses;
review investigative records; other investigative tasks as assigned, and 0.1 PL2 FTE to assist with CID preparation;
document management; other tasks as assigned, and $1,000 in direct costs for electronic document management for
investigative records. CPR assumes in FY 2028 0.3 AAG, 0.3 INV, and 0.1 PL2 along with $1,000 in direct costs for
electronic document management for investigative records. Other states have passed bills addressing this issue. When
multiple states take action on the same issue, companies are incentivized to come into compliance nationwide. CPR
assumes that in the first 18 months, the industry will come into full or nearly-full compliance, requiring no further
enforcement activity by CPR and no costs are assumed beyond FY 2028.
CPR total workload hours:
FY 2026: 0 hours
FY 2027: 225 AAG hours, 225 INV hours, and 90 PL2 hours
FY 2028: 450 AAG hours, 450 INV hours, and 180 PL2 hours
FY 2029 and every year thereafter: 0 hours
CPR total King County workload impact:
FY 2026: $0
FY 2027: $66,000 for 0.2 AAG, 0.1 PL1, 0.1 PL2, 0.2 INV, which includes direct litigation costs of $1,000
FY 2028: $132,000 for 0.3 AAG, 0.2 PL1, 0.1 PL2, 0.3 INV, which includes direct litigation costs of $1,000
FY 2029 and every year thereafter: $0
AGO total workload hours:
FY 2026: 0 hours
FY 2027: 225 AAG hours, 225 INV hours, and 90 PL2 hours
FY 2028: 450 AAG hours, 450 INV hours, and 180 PL2 hours
FY 2029 and every year thereafter: 0 hours
AGO total workload impact:
FY 2026: $0
FY 2027: $66,000 for 0.2 AAG, 0.1 PL1, 0.1 PL2, 0.2 INV, which includes direct litigation costs of $1,000
FY 2028: $132,000 for 0.3 AAG, 0.2 PL1, 0.1 PL2, 0.3 INV, which includes direct litigation costs of $1,000
FY 2029 and every year thereafter: $0
AI companion chatbots 100-Office of Attorney General
Form FN (Rev 1/00) 207,773.00 Request # 015-1
FNS063 Individual State Agency Fiscal Note 3 Bill # 2225 HB
Part III: Expenditure Detail
III. A - Operating Budget Expenditures
Account Account Title Type FY 2026 FY 2027 2025-27 2027-29 2029-31
001-1 General Fund State 0 66,000 66,000 132,000 0
Total $ 0 66,000 66,000 132,000 0
III. B - Expenditures by Object Or Purpose
FY 2026 FY 2027 2025-27 2027-29 2029-31
FTE Staff Years 0.7 0.4 0.5
A-Salaries and Wages 46,000 46,000 92,000
B-Employee Benefits 12,000 12,000 24,000
C-Professional Service Contracts 1,000 1,000 1,000
E-Goods and Other Services 7,000 7,000 14,000
G-Travel 1,000
J-Capital Outlays
M-Inter Agency/Fund Transfers
N-Grants, Benefits & Client Services
P-Debt Service
S-Interagency Reimbursements
T-Intra-Agency Reimbursements
9-
Total $ 0 66,000 66,000 132,000 0
III. C - Operating FTE Detail: List FTEs by classification and corresponding annual compensation. Totals need to agree with total FTEs in
Part I and Part IIIA
Job Classification Salary FY 2026 FY 2027 2025-27 2027-29 2029-31
Assistant Attorney General King 139,558 0.2 0.1 0.2
County
Management Analyst 5 98,040 0.1 0.1 0.1
Paralegal 1 King County 747,000 0.1 0.1 0.1
Paralegal 2 King County 82,392 0.1 0.1 0.1
Senior Investigator King County 108,156 0.2 0.1 0.2
Total FTEs 0.7 0.4 0.5 0.0
III. D - Expenditures By Program (optional)
Program FY 2026 FY 2027 2025-27 2027-29 2029-31
Consumer Protection Division (CPR) 66,000 66,000 132,000
Total $ 66,000 66,000 132,000
Part IV: Capital Budget Impact
IV. A - Capital Budget Expenditures
NONE
IV. B - Expenditures by Object Or Purpose
NONE
IV. C - Capital Budget Breakout
Acquisition and construction costs not reflected elsewhere on the fiscal note and description of potential financing methods.
NONE
IV. D - Capital FTE Detail: FTEs listed by classification and corresponding annual compensation. Totals agree with total FTEs in Part IVB.
NONE
AI companion chatbots 100-Office of Attorney General
Form FN (Rev 1/00) 207,773.00 Request # 015-1
FNS063 Individual State Agency Fiscal Note 4 Bill # 2225 HB
Part V: New Rule Making Required
Provisions of the bill that require the agency to adopt new administrative rules or repeal/revise existing rules.
AI companion chatbots 100-Office of Attorney General
Form FN (Rev 1/00) 207,773.00 Request # 015-1
FNS063 Individual State Agency Fiscal Note 5 Bill # 2225 HB
Individual State Agency Fiscal Note
Bill Number: 2225 HB Title: AI companion chatbots Agency: 303-Department of Health
Part I: Estimates
X No Fiscal Impact
Estimated Cash Receipts to:
NONE
Estimated Operating Expenditures from:
NONE
Estimated Capital Budget Impact:
NONE
The cash receipts and expenditure estimates on this page represent the most likely fiscal impact. Factors impacting the precision of these estimates,
and alternate ranges (if appropriate), are explained in Part II.
Check applicable boxes and follow corresponding instructions:
If fiscal impact is greater than $50,000 per fiscal year in the current biennium or in subsequent biennia, complete entire fiscal note
form Parts I-V.
If fiscal impact is less than $50,000 per fiscal year in the current biennium or in subsequent biennia, complete this page only (Part I).
Capital budget impact, complete Part IV.
Requires new rule making, complete Part V.
Legislative Contact: Emily Poole Phone: 360-786-7106 Date: 01/06/2026
Agency Preparation: Bekki Ayres Phone: 3604703623 Date: 01/08/2026
Agency Approval: Kristin Bettridge Phone: 3607911657 Date: 01/08/2026
OFM Review: Amy Hatfield Phone: (360) 280-7584 Date: 01/13/2026
Form FN (Rev 1/00) 207,364.00 Request # FN26-019-1
FNS063 Individual State Agency Fiscal Note 1 Bill # 2225 HB
Part II: Narrative Explanation
II. A - Brief Description Of What The Measure Does That Has Fiscal Impact
Significant provisions of the bill and any related workload or policy assumptions that have revenue or expenditure impact on the responding agency
by section number.
The bill requires developers and operators of artificial intelligence systems to implement protocols for the detection of
suicidal ideation or self-harm and for appropriate intervention or response.
This bill does not require any action by the Department of Health; therefore, there is no fiscal impact.
II. B - Cash receipts Impact
Cash receipts impact of the legislation on the responding agency with the cash receipts provisions identified by section number and when appropriate,
the detail of the revenue sources. Description of the factual basis of the assumptions and the method by which the cash receipts impact is derived.
Explanation of how workload assumptions translate into estimates. Distinguished between one time and ongoing functions.
II. C - Expenditures
Agency expenditures necessary to implement this legislation (or savings resulting from this legislation), with the provisions of the legislation that result
in the expenditures (or savings) identified by section number. Description of the factual basis of the assumptions and the method by which the
expenditure impact is derived. Explanation of how workload assumptions translate into cost estimates. Distinguished between one time and ongoing
functions.
Part III: Expenditure Detail
III. A - Operating Budget Expenditures
NONE
III. B - Expenditures by Object Or Purpose
NONE
III. C - Operating FTE Detail: FTEs listed by classification and corresponding annual compensation. Totals agree with total FTEs in Part I
and Part IIIA.
NONE
III. D - Expenditures By Program (optional)
NONE
Part IV: Capital Budget Impact
IV. A - Capital Budget Expenditures
NONE
IV. B - Expenditures by Object Or Purpose
NONE
IV. C - Capital Budget Breakout
Acquisition and construction costs not reflected elsewhere on the fiscal note and description of potential financing methods.
NONE
IV. D - Capital FTE Detail: FTEs listed by classification and corresponding annual compensation. Totals agree with total FTEs in Part IVB.
NONE
AI companion chatbots 303-Department of Health
Form FN (Rev 1/00) 207,364.00 Request # FN26-019-1
FNS063 Individual State Agency Fiscal Note 2 Bill # 2225 HB
Part V: New Rule Making Required
Provisions of the bill that require the agency to adopt new administrative rules or repeal/revise existing rules.
AI companion chatbots 303-Department of Health
Form FN (Rev 1/00) 207,364.00 Request # FN26-019-1
FNS063 Individual State Agency Fiscal Note 3 Bill # 2225 HB
LOCAL GOVERNMENT FISCAL NOTE
Department of Commerce
Bill Number: 2225 HB Title: AI companion chatbots
Part I: Jurisdiction-Location, type or status of political subdivision defines range of fiscal impacts.
Legislation Impacts:
Cities:
Counties:
Special Districts:
Specific jurisdictions only:
Variance occurs due to:
Part II: Estimates
X No fiscal impacts.
Expenditures represent one-time costs:
Legislation provides local option:
Key variables cannot be estimated with certainty at this time:
Estimated revenue impacts to:
None
Estimated expenditure impacts to:
None
Part III: Preparation and Approval
Fiscal Note Analyst: Alice Zillah Phone: 360-725-5035 Date: 01/08/2026
Leg. Committee Contact: Emily Poole Phone: 360-786-7106 Date: 01/06/2026
Agency Approval: Allan Johnson Phone: 360-725-5033 Date: 01/08/2026
OFM Review: Val Terre Phone: (360) 280-3073 Date: 01/16/2026
Page 1 of 2 Bill Number: 2225 HB
FNS060 Local Government Fiscal Note
Part IV: Analysis
A. SUMMARY OF BILL
Description of the bill with an emphasis on how it impacts local government.
Sec. 2 creates a new section to define "AI companion chatbot" or "AI companion," "user," and other terms used
throughout the bill.
Sec. 3 creates a new section. If a reasonable person interacting with an AI chatbot would be misled to believe they are
communicating with a human, the operator must issue a clear and conspicuous notification indicating that the companion
chatbot is artificially generated and not human.
Sec. 4 creates a new section. If the operator knows that the user of an AI companion chatbot is a minor, the operator
shall: (a) Issue a clear and conspicuous notification indicating that the chatbot is artificially generated and not human;
(b) Implement reasonable measures to prevent its AI companion chatbot from generating or producing sexually explicit
content or suggestive dialogue with minors; and (c) Prohibit the use of manipulative engagement techniques, which
cause the AI companion chatbot to engage in or prolong an emotional relationship with the user.
Sec. 5 creates a new section. An operator may not make available or deploy an AI companion chatbot unless it maintains
and implements a protocol for detecting and addressing suicidal ideation or expressions of self-harm by users. The
operator shall publicly disclose on their website the details of the protocols required by this section, including safeguards
used to detect and respond to self-harm expressions and the number of crisis referral notifications issued to users in the
preceding calendar year.
Sec. 7 establishes that a violation of this chapter is an unfair or deceptive act in trade or commerce and an unfair method
of competition for the purpose of applying the Consumer Protection Act, RCW 19.86.
Sec. 10 establishes that this act takes effect January 1, 2027.
B. SUMMARY OF EXPENDITURE IMPACTS
Expenditure impacts of the legislation on local governments with the expenditure provisions identified by section number and when
appropriate, the detail of expenditures. Delineated between city, county and special district impacts.
The legislation would have no expenditure impacts for local governments.
A violation of the new provisions concerning AI chatbots would constitute an offense covered by the Consumer
Protection Act, RCW 19.86. The Attorney General's Office enforces the Consumer Protection Act, and a company
accused of a violation would not be entitled to a court-appointed defense attorney. Awarded penalties are civil in nature.
As a result, there would not be any cost impacts for cities, counties, or special purpose districts.
C. SUMMARY OF REVENUE IMPACTS
Revenue impacts of the legislation on local governments, with the revenue provisions identified by section number, and when appropriate,
the detail of revenue sources. Delineated between city, county and special district impacts.
The legislation would have no revenue impacts for local governments.
Page 2 of 2 Bill Number: 2225 HB
FNS060 Local Government Fiscal Note
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