House File 2199 - Introduced HOUSE FILE 2199 BY SALMON , KERR , OSMUNDSON , GASSMAN , BAXTER , JENEARY , SHIPLEY , and FISHER A BILL FOR An Act relating to requirements for specific digital 1 content-blocking capabilities on devices manufactured, 2 distributed, leased, or sold and services distributed, 3 leased, or sold in the state that make the internet 4 accessible, the prohibition of certain restrictions on 5 specific types of speech on social media internet sites, and 6 the collection and remittance of fees for certain related 7 activities, providing for criminal and civil liability 8 for certain violations, and including applicability and 9 contingent effective date provisions. 10 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 11 TLSB 5155YH (6) 88 ko/rh

H.F. 2199 Section 1. NEW SECTION . 710B.1 Short title. 1 This chapter shall be known and may be cited as the 2 “Modernization Decency Act” . 3 Sec. 2. NEW SECTION . 710B.2 Definitions. 4 As used in this chapter, unless the context otherwise 5 requires: 6 1. “Adult live entertainment establishment” means a place 7 of business where commercial sexual activity, full or partial 8 nudity, sex acts, or sexually explicit performances may be 9 available for viewing by patrons of the establishment. 10 2. “Algorithm” means a process or set of rules to be 11 followed in calculations or other problem-solving operations, 12 especially by a computer. 13 3. “Child pornography” means the same as defined in 18 14 U.S.C. §2256(8). 15 4. “Commercial sexual activity” means the same as defined 16 in section 710A.1. 17 5. “Computer” means the same as defined in 18 U.S.C. §1030 18 (e)(1). 19 6. “Consumer” means an individual who purchases or leases a 20 device or purchases or leases a service that makes the internet 21 accessible from a person in this state that manufactures, 22 distributes, leases, or sells such a device or distributes, 23 leases, or sells such a service. 24 7. “Digital content-blocking capability” means hardware 25 or software that restricts or blocks internet access to 26 internet-based sites and internet-hosted content based on the 27 specific internet site or the category or type of content of 28 the internet-hosted content. 29 8. “Disseminate” means the same as defined in section 728.1. 30 9. “Facilitate” means to enable or to advance. 31 10. “Full or partial nudity” means the same as defined in 32 section 708.7. 33 11. “Human trafficking” means the same as defined in section 34 710A.1. 35 -1- LSB 5155YH (6) 88 ko/rh 1/ 18

H.F. 2199 12. “Knowingly” means the same as defined in section 728.1. 1 13. “Minor” means the same as defined in section 728.1. 2 14. “Nongovernmental” means a charitable organization under 3 section 501(c)(3) of the Internal Revenue Code that has as 4 the organization’s primary purpose ending sexual violence in 5 the state. The organization may be involved with programs 6 for the prevention of sexual violence, or providing technical 7 assistance and support to youth and rape crisis centers. 8 15. “Obscene material” means the same as defined in section 9 728.1. 10 16. “Personal identifying information” means an unexpired 11 student identification card, a valid social security card, 12 an unexpired driver’s license, an unexpired nonoperator’s 13 identification card, an unexpired passport, a certified copy 14 of a birth certificate, or other valid, unexpired proof of 15 identity. 16 17. “Photograph or film” means the same as defined in 17 section 708.7. 18 18. “Place of business” means the same as defined in section 19 728.1. 20 19. “Political speech” means speech relating to social 21 issues or to federal, state, or local government. 22 20. “Prostitution” means the same as described in section 23 725.1. 24 21. “Religious speech” means speech related to an 25 individual’s sincerely held religious, ethical, or moral 26 beliefs. 27 22. “Revenge pornography” means a photograph or film 28 showing another person in a state of full or partial nudity or 29 engaged in a sex act that has been disseminated, published, 30 distributed, or posted without the consent of the person in the 31 photograph or film. 32 23. “Sex act” means the same as defined in section 702.17. 33 24. “Sexually explicit performance” means the same as 34 defined in section 710A.1. 35 -2- LSB 5155YH (6) 88 ko/rh 2/ 18

H.F. 2199 25. “ Social media internet site” means an internet site or 1 internet-based application that allows a user of the internet 2 site or of the internet-based application to communicate with 3 other users of the internet site or of the internet-based 4 application via community-based input, interaction, 5 content-sharing, or collaboration, and the internet site or 6 the internet-based application meets all of the following 7 requirements: 8 a. Is owned or operated by a person in this state. 9 b. Is available for use by the general public. 10 c. Has more than seventy-five million registered users. 11 d. Has not been specifically affiliated with any one 12 religion or any one political party since the internet site 13 or internet-based application became available to the general 14 public. 15 e. Has a policy and procedure for users to report obscene 16 material and for the removal of user reported obscene material 17 from the internet site or the internet-based application. 18 26. “User” means a natural person who utilizes or makes use 19 of a social media internet site. 20 Sec. 3. NEW SECTION . 710B.3 Digital content-blocking 21 capability requirement. 22 A person in this state that manufactures, distributes, 23 leases, or sells a device or that distributes, leases, or sells 24 a service that makes the internet accessible to a consumer 25 shall not manufacture, distribute, lease, or sell the device or 26 distribute, lease, or sell the service without an active and 27 operating digital content-blocking capability that blocks all 28 internet sites that contain any of the following: 29 1. Obscene material. 30 2. Revenge pornography. 31 3. Sexual exploitation of a minor as described in section 32 728.12. 33 4. Promotion or facilitation of prostitution. 34 5. Promotion or facilitation of human trafficking. 35 -3- LSB 5155YH (6) 88 ko/rh 3/ 18

H.F. 2199 6. Child pornography. 1 Sec. 4. NEW SECTION . 710B.4 Duty to maintain appropriate 2 functioning of digital content-blocking capabilities. 3 A person in this state that manufactures, distributes, 4 leases, or sells a device or that distributes, leases, or sells 5 a service that makes the internet accessible to a consumer of 6 the device or service shall do all of the following: 7 1. Make reasonable and ongoing efforts to ensure proper 8 functioning of the digital content-blocking capability in all 9 devices manufactured, distributed, leased, or sold and in all 10 services distributed, leased, or sold. 11 2. Provide routine digital content-blocking updates to 12 a consumer who has purchased or leased a device or service 13 containing digital content-blocking to ensure the ongoing 14 quality and performance of the digital content-blocking. 15 3. Establish a telephone call center or internet 16 site for a consumer to report a failure of the digital 17 content-blocking requirements of this chapter or to report 18 digital content-blocking of an internet site not subject to the 19 requirements of section 710B.3. 20 4. Report any reports of child pornography received through 21 a telephone call center or internet site to the national center 22 for missing and exploited children cybertipline. 23 5. Investigate a consumer’s report of a violation of 24 this chapter and provide the consumer an appropriate digital 25 content-blocking update within thirty days of the consumer’s 26 initial report if a violation of section 710B.3 has occurred. 27 6. Investigate a consumer’s initial report of digital 28 content-blocking of an internet site not subject to the 29 requirements of section 710B.3 and, if appropriate, enable the 30 consumer’s access to the internet site within thirty days of 31 the consumer’s initial report. 32 Sec. 5. NEW SECTION . 710B.5 Prohibition on digital 33 content-blocking of certain internet sites. 34 A person in this state that manufactures, distributes, 35 -4- LSB 5155YH (6) 88 ko/rh 4/ 18

H.F. 2199 leases, or sells a device or that distributes, leases, or sells 1 a service that makes the internet accessible to a consumer of 2 the device or service shall not use digital content-blocking 3 on any such device or service to make any of the following 4 internet sites inaccessible: 5 1. A social media internet site. 6 2. An internet site not specified in section 710B.3. 7 3. An internet site that has the primary function of serving 8 as a search engine. 9 4. An internet site that makes movies available that are 10 rated restricted or below by the classification and ratings 11 administration of the motion picture association of America. 12 Sec. 6. NEW SECTION . 710B.6 Restrictions on deactivation of 13 digital content-blocking capability. 14 1. A person in this state that manufactures, distributes, 15 leases, or sells a device or that distributes, leases, or 16 sells a service that makes the internet accessible shall not 17 share, sell, or distribute a method, source code, or any 18 other instruction to deactivate the digital content-blocking 19 capability of the device or service unless all of the following 20 apply: 21 a. A consumer who purchased the device or service submits a 22 written request for deactivation. 23 b. The consumer provides personal identifying information 24 that proves the consumer is eighteen years of age or older. 25 c. The manufacturer, distributor, lessor, or seller of the 26 device or the distributor, lessor, or seller of the service 27 provides the consumer with a written warning that outlines the 28 dangers of deactivation. The attorney general shall adopt by 29 rule pursuant to chapter 17A a written warning which may be 30 used in substantial form by any person required to provide the 31 written warning to a consumer as provided in this paragraph. 32 d. The consumer signs an acknowledgment that a written 33 warning has been provided. 34 e. The consumer pays a one-time twenty dollar deactivation 35 -5- LSB 5155YH (6) 88 ko/rh 5/ 18

H.F. 2199 fee to be deposited into the human trafficking and child 1 exploitation prevention fund established pursuant to section 2 710B.7. 3 2. A person in this state that manufactures, distributes, 4 leases, or sells a device or that distributes, leases, or sells 5 a service that makes the internet accessible to a consumer 6 may charge the consumer an additional fee in order for the 7 manufacturer, distributor, lessor, or seller to deactivate the 8 digital content-blocking capability of the device or service. 9 The fee must be reasonable and the manufacturer, distributor, 10 lessor, or seller may retain the fee. 11 Sec. 7. NEW SECTION . 710B.7 Human trafficking and child 12 exploitation prevention fund. 13 1. A manufacturer, distributor, lessor, or seller of 14 a device or a distributor, lessor, or seller of a service 15 that makes the internet accessible shall annually remit all 16 deactivation fees collected under section 710B.6, subsection 17 1, paragraph “e” , to the treasurer of state in the manner 18 prescribed by the treasurer of state. 19 2. An adult live entertainment establishment shall remit 20 all adult live entertainment establishment fees collected 21 pursuant to section 710B.10 to the treasurer of state in the 22 manner prescribed by the treasurer of state. 23 3. The treasurer of state shall adopt rules pursuant to 24 chapter 17A to administer subsections 1 and 2. 25 4. A human trafficking and child exploitation prevention 26 fund is created in the state treasury as a separate fund under 27 the control of the department of justice. All moneys deposited 28 or paid into the fund pursuant to subsections 1 and 2, and 29 all gifts, grants, donations, and bequests deposited into the 30 fund, are appropriated and made available to the department 31 of justice to be used for administration of the fund and to 32 provide grants to governmental and nongovernmental entities 33 and individuals involved with upholding community standards of 34 decency, strengthening families, or developing, expanding, or 35 -6- LSB 5155YH (6) 88 ko/rh 6/ 18

H.F. 2199 strengthening programs for child victims of human trafficking, 1 to be used for any of the following: 2 a. Rape kit testing. 3 b. Physical and mental health services. 4 c. Temporary and permanent housing or shelter. 5 d. Employment, education, and job training. 6 e. Training first responders and educational campaigns for 7 the public to increase awareness to prevent, and to protect 8 victims of, human trafficking, domestic violence, prostitution, 9 child abuse, and rape. 10 f. Medical examination costs pursuant to section 915.41. 11 g. The department of justice’s prosecutor-based victim 12 service coordination, including the duties defined in sections 13 910.3 and 910.6. 14 h. Awarding funds to programs that provide services and 15 support to victims of domestic abuse pursuant to chapter 236. 16 i. Victims of sexual abuse as provided in chapter 236A. 17 j. Reimbursement to the Iowa law enforcement academy for 18 domestic abuse and human trafficking training. 19 k. Support of an automated victim notification system 20 pursuant to section 915.10A. 21 l. Training for victim service providers. 22 m. Victim service programming. 23 n. Training concerning homicide, domestic assault, sexual 24 assault, stalking, and harassment. 25 o. To conduct outreach, public awareness, and training on 26 human trafficking pursuant to section 710A.6. 27 p. To support technology in rape crisis centers. 28 q. Family counseling. 29 r. Creative arts that do not contain or promote obscene 30 material. 31 s. Support of the office to combat human trafficking as 32 established pursuant to section 80.45. 33 t. State agency support programs assisting victims of human 34 trafficking. 35 -7- LSB 5155YH (6) 88 ko/rh 7/ 18

H.F. 2199 u. Support of the state’s initiatives on human trafficking, 1 programs upholding community standards of decency, and state 2 security. 3 v. Human trafficking enforcement programs. 4 5. Interest on the fund shall be deposited into the fund. 5 A portion of the interest in the fund, not to exceed fifteen 6 percent of the total interest accrued, shall be used for 7 administration of the fund. 8 6. Notwithstanding section 8.33, any balance in the fund on 9 June 30 of any fiscal year shall not revert to the general fund 10 of the state. 11 7. On or before February 15, the attorney general shall 12 submit an annual report to the general assembly that includes 13 all of the following information as related to the fund: 14 a. The total amount of deactivation fees deposited into the 15 fund pursuant to subsection 1. 16 b. The total amount of adult live entertainment 17 establishment fees deposited into the fund pursuant to 18 subsection 2. 19 c. Each recipient of a grant from the fund and the purpose 20 of each grant. 21 Sec. 8. NEW SECTION . 710B.8 Criminal liability. 22 1. A person in this state that knowingly manufactures, 23 distributes, leases, or sells a device or that knowingly 24 distributes, leases, or sells a service that makes the internet 25 accessible and that is in violation of section 710B.3 or 710B.6 26 shall be subject to a scheduled violation of one thousand 27 dollars for a first offense and two thousand five hundred 28 dollars for a second offense. 29 2. A person in this state that knowingly manufactures, 30 distributes, leases, or sells a device or that knowingly 31 distributes, leases, or sells a service that makes the internet 32 accessible and that is in violation of section 710B.3 or 710B.6 33 three or more times commits a simple misdemeanor. 34 3. A person in this state that knowingly manufactures, 35 -8- LSB 5155YH (6) 88 ko/rh 8/ 18

H.F. 2199 distributes, leases, or sells a device or that knowingly 1 distributes, leases, or sells a service that makes the internet 2 accessible and that violates section 710B.3 or 710B.6 commits 3 an unfair or deceptive trade practice in violation of section 4 714.16, subsection 2, paragraph “a” . 5 4. The affirmative defense specified in section 728.10 6 shall apply to this section. 7 Sec. 9. NEW SECTION . 710B.9 Civil cause of action and 8 injunctive relief. 9 1. A consumer who purchases a device or service from a 10 person in this state that manufactures, distributes, leases, 11 or sells a device or that distributes, leases, or sells a 12 service that makes the internet accessible may bring a civil 13 action seeking relief and recover up to five hundred dollars in 14 damages per reported failure plus reasonable attorney fees and 15 court costs if the person’s violation is substantiated pursuant 16 to an investigation conducted under section 710B.4, subsection 17 5. 18 2. The attorney general or county attorney may seek 19 injunctive relief if a person in this state that manufactures, 20 distributes, leases, or sells a device or that distributes, 21 leases, or sells a service that makes the internet accessible 22 to a consumer of the device or service violates section 710B.3 23 or 710B.4. 24 3. It shall be an affirmative defense in a civil action 25 pursuant to this section that a consumer purchased or leased 26 a device or service that makes the internet accessible from a 27 person in this state that manufactures, distributes, leases, 28 or sells such a device or that distributes, leases, or sells 29 such a service, and the device or service did not digitally 30 block content pursuant to the requirements of section 710B.3 31 because the internet site that is not blocked is the registered 32 domain of an institution or organization that has a scientific, 33 educational, artistic, literary, or similar justification for 34 making the content specified in section 710B.3 accessible. 35 -9- LSB 5155YH (6) 88 ko/rh 9/ 18

H.F. 2199 Sec. 10. NEW SECTION . 710B.10 Adult live entertainment 1 establishment fee. 2 1. Each adult live entertainment establishment located in 3 the state shall collect a five dollar fee from each individual 4 allowed entry into the establishment for purposes of adult live 5 entertainment. 6 2. All fees collected pursuant to subsection 1 shall be 7 deposited into the human trafficking and child exploitation 8 prevention fund pursuant to section 710B.7, subsection 2. 9 3. The director of revenue shall adopt rules pursuant to 10 chapter 17A to administer this section. 11 Sec. 11. NEW SECTION . 710B.11 Social media censorship —— 12 civil cause of action. 13 1. A user of a social media internet site who is eighteen 14 years of age or older may bring a civil cause of action seeking 15 relief and recover up to seventy-five thousand dollars in 16 damages per violation, plus reasonable attorney fees and court 17 costs, if the social media internet site is found liable in a 18 court of competent jurisdiction of knowingly doing any of the 19 following on the social media internet site: 20 a. Censoring the user’s religious speech or political 21 speech. 22 b. Using an algorithm to suppress the user’s religious 23 speech or political speech. 24 2. It shall be an affirmative defense in a civil action 25 pursuant to this section that the social media internet site 26 ceased censoring a user’s religious speech or political speech, 27 or discontinued use of an algorithm to suppress a user’s 28 religious speech or political speech, in a reasonable amount 29 of time after an allegation of censorship has been reported by 30 a user to the social media internet site. 31 3. It shall not be an affirmative defense in a civil action 32 pursuant to this section that the social media internet site 33 censored a user’s religious speech or political speech because 34 of alleged hate speech by the user. 35 -10- LSB 5155YH (6) 88 ko/rh 10/ 18

H.F. 2199 4. The attorney general or county attorney may seek 1 injunctive relief on behalf of a social media internet site 2 user whose religious speech or political speech has been 3 censored by a social media internet site. 4 5. This section does not apply to any of the following: 5 a. A social media internet site that censors a user’s 6 religious speech or political speech or that uses an algorithm 7 to suppress a user’s religious speech or political speech that 8 is any of the following: 9 (1) Calls for an act of violence. 10 (2) Obscene or pornographic in nature. 11 (3) Originates from an inauthentic source or involves false 12 impersonation. 13 (4) Incites criminal conduct. 14 (5) Involves bullying. As used in this subparagraph, 15 “bullying” means electronic speech directed towards an 16 individual that creates an objectively hostile social media 17 environment, and the electronic speech is severe, persistent, 18 or pervasive and threatens actions or conduct putting the 19 individual in fear of physical harm. 20 b. A social media internet site that censors a user’s 21 religious speech or political speech or that uses an algorithm 22 to suppress a user’s religious speech or political speech, 23 either through error or in response to a court order. 24 c. A user of a social media internet site censoring the 25 religious speech or political speech of another user of the 26 social media internet site. 27 Sec. 12. NEW SECTION . 710B.12 Applicability. 28 1. The sections of this Act relating to persons in this 29 state that manufacture, distribute, lease, or sell a device 30 or that distribute, lease, or sell a service that makes the 31 internet accessible to a consumer applies to a person in this 32 state that manufactures, distributes, leases, or sells the 33 device or that distributes, leases, or sells a service on or 34 after the effective date of this Act. 35 -11- LSB 5155YH (6) 88 ko/rh 11/ 18

H.F. 2199 2. The sections of this Act relating to persons in this 1 state that manufacture, distribute, lease, or sell a device 2 or that distribute, lease, or sell a service that makes the 3 internet accessible to a consumer do not apply to a person in 4 this state that manufactures, distributes, leases, or sells a 5 device or that distributes, leases, or sells a service that 6 makes the internet accessible to a consumer if the device or 7 service was produced, sold, leased, or purchased prior to the 8 effective date of this Act. 9 3. The sections of this Act relating to persons in this 10 state that manufacture, distribute, lease, or sell a device 11 or that distribute, lease, or sell a service that makes the 12 internet accessible to a consumer do not apply to any of the 13 following: 14 a. The sale of a device or service that makes the internet 15 accessible to a consumer by a person that is not regularly 16 engaged in the business of selling devices or services that 17 make the internet accessible. 18 b. The owner or operator of an independent third-party 19 router that is not affiliated with an internet service 20 provider. 21 c. A person that is not subject to the jurisdiction of the 22 state that manufactures, distributes, leases, or sells a device 23 or that distributes, leases, or sells a service that makes the 24 internet accessible to a consumer. 25 Sec. 13. CONTINGENT EFFECTIVE DATE. This Act takes effect 26 upon enactment of substantially similar legislation by four 27 additional states. Within ten business days of enactment of 28 substantially similar legislation by the fourth state of the 29 four additional states, the attorney general shall advise the 30 governor and the Iowa Code editor of the effective date of this 31 Act. 32 EXPLANATION 33 The inclusion of this explanation does not constitute agreement with 34 the explanation’s substance by the members of the general assembly. 35 -12- LSB 5155YH (6) 88 ko/rh 12/ 18

H.F. 2199 This bill relates to requirements for specific digital 1 content-blocking capabilities on devices manufactured, 2 distributed, leased, or sold and services distributed, leased, 3 or sold in the state that make the internet accessible, the 4 prohibition of certain restrictions on specific types of 5 speech on social media internet sites, and the collection and 6 remittance of fees for certain activities, and provides for 7 criminal and civil liability. 8 The bill prohibits a person that manufactures, distributes, 9 leases, or sells a device or that distributes, leases, or sells 10 a service from manufacturing, distributing, leasing, or selling 11 the device or that distributes, leases, or sells the service 12 without an active and operating digital content-blocking 13 capability that blocks any internet site that contains material 14 that is obscene, constitutes sexual exploitation of a minor, 15 promotes or facilitates prostitution, promotes or facilitates 16 human trafficking, contains child pornography, or contains 17 revenge pornography. 18 The bill requires such a person to make reasonable and 19 ongoing efforts to ensure proper functioning of the digital 20 content-blocking capability, to provide routine updates for the 21 digital content-blocking to a consumer who has purchased or 22 leased a device or service containing digital content-blocking, 23 to establish a call center or internet site that allows 24 consumers to report a failure of the digital content-blocking 25 or to report digital content-blocking of an internet site that 26 is not required to be blocked. In addition, such a person 27 is required to investigate a consumer’s report of a failure 28 to comply with the bill, provide the consumer an appropriate 29 update of the digital content-blocking capability within 30 30 days of the consumer’s initial report, investigate any consumer 31 report of digital content-blocking of an internet site that 32 is not required to be blocked, and if appropriate, enable the 33 consumer’s access to the incorrectly blocked internet site 34 within 30 days of the consumer’s initial report. 35 -13- LSB 5155YH (6) 88 ko/rh 13/ 18

H.F. 2199 The bill prohibits digital content-blocking of social media 1 internet sites that have existing processes to manage consumer 2 complaints or digital content-blocking of any internet site 3 that does not contain the following material: 1) obscene 4 material, 2) revenge pornography, 3) sexual exploitation 5 of a minor, 4) child pornography, or 5) the promotion or 6 facilitation of prostitution or human trafficking. The bill 7 also prohibits digital content-blocking of an internet site 8 that has the primary function of serving as a search engine or 9 an internet site that makes movies available that are rated 10 restricted or below. 11 The bill prohibits a manufacturer, distributor, lessor, 12 or seller from sharing, selling, or distributing a method, 13 source code, or any other instruction to deactivate a digital 14 content-blocking capability unless a consumer who purchases a 15 product submits a written request for deactivation, provides 16 proof the consumer is age 18 or older, signs an acknowledgment 17 that a written warning outlining the dangers of deactivation 18 has been provided by the manufacturer, distributor, lessor, 19 or seller, and pays a one-time $20 deactivation fee. The 20 bill also allows a manufacturer, distributor, lessor, or a 21 seller to charge a consumer an additional fee in order for the 22 manufacturer, distributor, lessor, or seller to deactivate the 23 digital content-blocking capability of the product. The fee 24 must be reasonable and the manufacturer, distributor, lessor, 25 or seller may retain the fee. 26 The manufacturer, distributor, lessor, or seller must 27 annually remit all deactivation fees that are collected to 28 the treasurer of state. The treasurer of state shall deposit 29 all deactivation fees received into the human trafficking and 30 child exploitation prevention fund established in the bill. 31 All moneys deposited or paid into the fund are appropriated 32 and made available to the department of justice to be used to 33 provide grants to governmental and nongovernmental entities 34 and individuals involved with upholding community standards of 35 -14- LSB 5155YH (6) 88 ko/rh 14/ 18

H.F. 2199 decency, strengthening families, or developing, expanding, or 1 strengthening programs for child victims of human trafficking 2 to be used for any of the purposes specified in the bill. 3 A person in this state that knowingly manufactures, 4 distributes, leases, or sells a device or that knowingly 5 distributes, leases, or sells a service that makes the internet 6 accessible and that violates a provision of the bill related to 7 digital content-blocking is subject to a scheduled violation 8 of $1,000 for a first offense and $2,500 for a second offense, 9 and commits a simple misdemeanor if the person commits three or 10 more offenses. A person also commits an unfair or deceptive 11 trade practice by violating a provision of the bill related to 12 digital content-blocking. 13 The bill provides for a civil cause of action if a person 14 that manufactures, distributes, leases, or sells a device 15 or that distributes, leases, or sells a service that makes 16 the internet accessible does not respond appropriately to a 17 consumer’s report of a failure of the digital content-blocking 18 capability requirement. A consumer that purchased the product 19 may bring a civil action seeking relief and recover up to $500 20 in damages per reported failure, plus reasonable attorney fees 21 and court costs. The attorney general or county attorney may 22 seek injunctive relief if devices or services are sold or 23 leased without the required digital content-blocking or the 24 manufacturer, distributor, or if a seller fails to maintain the 25 digital content-blocking capabilities or fails to respond as 26 required to a consumer complaint. 27 It is an affirmative defense in a civil action asserting 28 that a consumer purchased a device or service that makes 29 the internet accessible from a person in this state that 30 manufactures, distributes, leases, or sells such a device or 31 that distributes, leases, or sells such a service that the 32 device or service did not digitally block content as required 33 by the bill or that the internet site that is not blocked is 34 the registered domain of an institution or organization that 35 -15- LSB 5155YH (6) 88 ko/rh 15/ 18

H.F. 2199 has a scientific, educational, artistic, literary, or similar 1 justification for making the content accessible. 2 The bill requires each adult live entertainment 3 establishment located in the state to collect a $5 fee 4 from each individual allowed entry into the establishment 5 for purposes of adult live entertainment. “Adult live 6 entertainment establishment” is defined in the bill as a place 7 of business where commercial sexual activity, full or partial 8 nudity, sex acts, or sexually explicit performances may be 9 available for viewing by patrons of the establishment. All of 10 the collected fees must be deposited in the human trafficking 11 and child exploitation prevention fund. The director of 12 revenue is required to adopt rules to administer the collection 13 and deposit of such fees. 14 The bill allows a user of a social media internet site who 15 is 18 years of age or older to bring a civil cause of action 16 seeking relief, and to recover up to $75,000 in damages per 17 violation, if the social media internet site is found liable in 18 a court of competent jurisdiction of knowingly censoring the 19 user’s religious or political speech or of using an algorithm 20 to suppress the user’s religious or political speech. “Social 21 media internet site”, “religious speech”, and “political 22 speech” are defined in the bill. It is an affirmative defense 23 in a civil action that the a social media internet site 24 ceased censoring a user’s religious or political speech, or 25 discontinued use of an algorithm to suppress a user’s religious 26 or political speech, in a reasonable amount of time after an 27 allegation of censorship has been reported by a user to the 28 social media internet site. It is not an affirmative defense 29 that the social media internet site censored a user’s religious 30 or political speech because of alleged hate speech by the user. 31 The attorney general or county attorney may seek injunctive 32 relief on behalf of a social media internet site user whose 33 religious speech or political speech has been censored by a 34 social media internet site. 35 -16- LSB 5155YH (6) 88 ko/rh 16/ 18

H.F. 2199 The bill allows a social media internet site to censor a 1 user’s speech or to use an algorithm to suppress a user’s 2 speech if the speech calls for an act of violence, is obscene 3 or pornographic in nature, originates from an inauthentic 4 source or involves false impersonation, incites criminal 5 conduct, or involves bullying. “Bullying” is defined in the 6 bill. 7 A social media internet site that censors a user’s speech or 8 uses an algorithm to suppress a user’s speech through error or 9 in response to a court order is not civilly liable. A social 10 media internet site is also not civilly liable if a user of the 11 social media internet site censors the political or religious 12 speech of another user of the social media internet site. 13 The sections of the bill relating to persons in this state 14 that manufacture, distribute, lease, or sell a device or that 15 distribute, lease, or sell a service that makes the internet 16 accessible to a consumer applies to a person in this state that 17 manufactures, distributes, leases, or sells such a device or 18 that distributes, leases, or sells such a service on or after 19 the effective date of the provisions in the bill. 20 The sections of the bill relating to persons in this state 21 that manufacture, distribute, lease, or sell a device or that 22 distribute, lease, or sell a service that makes the internet 23 accessible to a consumer do not apply to a person in this state 24 that manufactures, distributes, leases, or sells a device or 25 that distributes, leases, or sells a service that makes the 26 internet accessible to a consumer if the device or service was 27 produced, sold, leased, or purchased prior to the effective 28 date of the provisions in the bill. 29 The sections of the bill relating to persons in this state 30 that manufacture, distribute, lease, or sell a device or that 31 distribute, lease, or sell a service that makes the internet 32 accessible to a consumer do not apply to the sale of a device 33 or service that makes the internet accessible to a consumer 34 by a person that is not regularly engaged in the business of 35 -17- LSB 5155YH (6) 88 ko/rh 17/ 18

H.F. 2199 selling devices or services that make the internet accessible, 1 the owner or operator of an independent third-party router 2 that is not affiliated with an internet service provider, or 3 a person that is not subject to the jurisdiction of the state 4 that manufactures, distributes, leases, or sells a device or 5 that distributes, leases, or sells a service that makes the 6 internet accessible to a consumer. 7 The provisions of the bill take effect upon enactment 8 of substantially similar legislation by four additional 9 states. Within 10 days of enactment of substantially similar 10 legislation by the fourth state of the four additional states, 11 the attorney general must advise the governor and the Iowa Code 12 editor of the effective date of the provisions of the bill. 13 -18- LSB 5155YH (6) 88 ko/rh 18/ 18