S.F. _____ Section 1. NEW SECTION . 659B.1 Short title. 1 This chapter shall be known and may be cited as “The 2 Protecting Online Free Speech Act” . 3 Sec. 2. NEW SECTION . 659B.2 Definitions. 4 As used in this chapter, unless the context otherwise 5 requires: 6 1. “Active state user” means an individual who uses a 7 particular online platform’s platform services three or more 8 times in a quarter while located in this state. 9 2. “Adversely treat” means to delete, remove, demonetize, or 10 restrict access to, or availability of, content. 11 3. “Annual gross revenues” means income or revenue from all 12 sources, before any expenses or taxes, computed according to 13 generally accepted accounting principles. 14 4. “Annual gross revenues attributable to users located in 15 this state” means the part of the annual gross revenues of the 16 corporation that is computed using the apportionment fraction, 17 the numerator of which is the population of residents of this 18 state age thirteen years or older, and the denominator of which 19 is the population of the United States age thirteen years or 20 older, both as reported in the most annual estimates produced 21 by the United States census bureau. 22 5. “Demonetize” means excluding or restricting an 23 information content provider from participating in the 24 service’s advertisement revenue sharing arrangements. 25 6. “Deplatform” means an online platform restricting, 26 in whole or in part, covertly or overtly, the ability of an 27 information content provider to post, upload, or publish 28 content, as opposed to such platform taking such actions on 29 an individual basis against specific and particular content 30 produced by such information content provider. 31 7. “Distinct category of services” means general internet 32 search, personal social networking, microblogging social 33 networking, online video sharing, or online photo sharing. 34 8. “General internet search” means internet-based software 35 -1- LSB 2346XC (3) 90 cm/ns 1/ 12

S.F. _____ that responds to a user’s textual query by using an algorithm 1 or other methods to produce potentially relevant responses to 2 such query, and responds to general queries, not simply those 3 confined to a particular subject or featuring results from a 4 specific internet site. 5 9. “Information content provider” means any person or entity 6 that is responsible, in whole or in part, for the creation or 7 development of information provided through the internet or any 8 other interactive computer service. 9 10. “Microblogging social networking” means a combination of 10 blogging and instant messaging focused around users creating 11 short messages to be posted and shared on an online social 12 networking service. 13 11. “Online photo sharing” means an internet-based service 14 that allows users to upload and store photographs and share 15 them with other users, and that is primarily focused on the 16 posting and transmission of such user-provided photos. 17 12. “Online platform” means any internet site or application 18 that is open to the public and allows users to create and share 19 content electronically or engage in social networking, or any 20 general search engine, provided that an online platform does 21 not include any of the following: 22 a. Electronic mail services. 23 b. An internet site or application that consists primarily 24 of news, sports, entertainment, or other information or content 25 that is not user-generated but is created or preselected by 26 the provider and for which any chat, comments, or interactive 27 functionality is incidental to, directly related to, or 28 dependent upon the provision of such information or content. 29 13. “Online video sharing” means an internet-based service 30 that allows users to upload and store videos and share them 31 with other users, and that is primarily focused on the posting 32 and transmission of such user-provided videos. 33 14. “Personal social networking” means an internet-based 34 service that allows users to construct public or semipublic 35 -2- LSB 2346XC (3) 90 cm/ns 2/ 12

S.F. _____ profiles, publish content on such profiles, articulate a list 1 of other users with whom they share a connection, and view or 2 exchange content with such users, without the service being 3 oriented toward a specific interest or service such as career 4 networking or romantic connections. 5 15. “Platform services” means the distinct category of 6 services an online platform offers to the public for creating 7 and sharing content electronically, engaging in social 8 networking, or searching for content. 9 Sec. 3. NEW SECTION . 659B.3 Platform fees to support 10 universal service programs. 11 1. A corporation with annual gross revenues attributable 12 to users located in this state of more than ten million 13 dollars that owns or operates an online platform or platforms, 14 shall be, in addition to any taxes, fees, or other charges, 15 assessed a quarterly fee on platform services actively 16 used by ten percent or more of individuals located in this 17 state age thirteen and older. Such platform fee shall be 18 equal to the lesser of fifteen percent of the annual gross 19 revenues attributable to users located in this state that the 20 corporation generates through such platform service and the sum 21 of all of the following: 22 a. Seven dollars and fifty cents per quarter per active 23 state user of the corporation’s general internet search 24 platform services. 25 b. Five dollars per quarter per active state user of the 26 corporation’s personal social networking platform services. 27 c. One dollar and fifty cents per quarter per active state 28 user of the corporation’s microblogging social networking 29 platform services. 30 d. One dollar and fifty cents per quarter per active 31 state user of the corporation’s online video sharing platform 32 services. 33 e. Five dollars per quarter per active state user of the 34 corporation’s online photo sharing platform services. 35 -3- LSB 2346XC (3) 90 cm/ns 3/ 12

S.F. _____ 2. The attorney general shall determine the number of 1 applicable platform services’ active state users on which 2 platform fees are owed, and the proportion of individuals 3 located within this state who actively use such platform 4 services, as follows: 5 a. The attorney general shall estimate the quarterly number 6 and proportion of active state users by any of the following: 7 (1) Utilizing reputable commercially available estimates 8 of the platform services’ active state users age thirteen and 9 older, and computing the proportion of active state users by 10 dividing such number by the most recent annual estimates for 11 the state population age thirteen or older produced by the 12 United States census bureau. 13 (2) Conducting a statistically representative survey of 14 individuals located within this state age thirteen and older 15 with a sample size sufficient to produce a margin of error of 16 less than two percent at the ninety-five percent confidence 17 level. Such survey shall estimate, for each corporation 18 subject to online platform fees, the proportion of individuals 19 located within this state who used each applicable platform 20 service three or more times in the previous quarter. The 21 estimated active state users for that quarter shall be the 22 product of that proportion and the most recent annual estimates 23 for the state population age thirteen and older produced by the 24 United States census bureau. 25 b. The attorney general shall transmit its estimated 26 number of active state users to the applicable corporations 27 within sixty days of the end of the applicable quarter. The 28 proportion and number of active state users shall be the 29 estimated proportion and estimated number of active state 30 users for that quarter, unless the online platform provides 31 administrative records demonstrating by a preponderance of 32 evidence that a different number of users within this state 33 used the applicable platform services three or more times in 34 the previous quarter. In such cases, the fee shall be owed 35 -4- LSB 2346XC (3) 90 cm/ns 4/ 12

S.F. _____ on the administratively determined number of active state 1 users, and the proportion shall be calculated by dividing such 2 administratively determined number by the most recent annual 3 estimates for the state population age thirteen and older 4 produced by the United States census bureau. 5 3. Platform fees collected under this section shall be 6 deposited in the Iowa communications network fund created in 7 section 8D.14 and used for the purposes designated for that 8 fund. 9 4. a. Each corporation that owns or operates an online 10 platform or platforms subject to fees under this chapter shall 11 complete, under oath, and file with the attorney general 12 a return for quarterly fee payments, along with such fee 13 payment, within one hundred twenty days of the completion of 14 the applicable quarter, provided that the attorney general may 15 extend this deadline for good cause related to administratively 16 determining the number of active state users in the applicable 17 quarter. 18 b. A person who willfully files a false return under this 19 section with the intent to evade the payment of fees due under 20 this section is guilty of perjury and shall be punished as 21 provided in section 720.2. 22 c. A person who is required to file a fee return and who 23 willfully fails to file the return as required under this 24 section is guilty of a class “D” felony. 25 5. a. The attorney general shall assess interest on unpaid 26 platform fees from the due date to the date on which the fee is 27 paid if a person who is required to pay an online platform fee 28 under this section either fails to pay an installment when due 29 or pays less than the amount due. 30 b. In addition to such interest, the attorney general 31 shall assess a penalty not exceeding twenty-five percent of 32 the amount due if a corporation required to pay a platform fee 33 under this section fails to pay such tax within one hundred 34 eighty days of the due date of such fee. 35 -5- LSB 2346XC (3) 90 cm/ns 5/ 12

S.F. _____ 6. The attorney general shall issue regulations governing 1 the assessment and collection of platform fees under this 2 section, including the process for corporations to provide 3 administrative data on the number of active state users on 4 which fees are owed and certifying corporations for exemption 5 under section 659B.4. 6 Sec. 4. NEW SECTION . 659B.4 Fee exemption for platforms 7 that foster open discourse. 8 1. Notwithstanding section 659B.3, a corporation shall not 9 owe any platform fees, nor be required to file a platform fee 10 return, for any platform services for which, whether or not 11 such platform services are market dominant, the corporation 12 does all of the following: 13 a. Publishes on a quarterly basis the number of times 14 during the quarter content created by information content 15 providers within this state was adversely treated, the number 16 of information content providers within this state who were 17 deplatformed or demonetized, the number of appeals of such 18 actions filed, and the number of appeals of such actions 19 granted. 20 b. Incorporates into such platform service’s terms of 21 service applicable to users in this state the following 22 contractual terms: 23 Section [Appropriate Section Number] —— Open Discourse and 24 Fair Treatment 25 Part 1. Coverage and Scope. 26 This section applies to individuals who are residents of and 27 physically located in the state of Iowa and are either users, 28 or desired users, of our service. 29 In the event of a conflict between the provisions of this 30 section and any other provision in these terms of service, the 31 provisions of this section shall prevail. 32 Part 2. Definitions. 33 For the purpose of this section: 34 1. “Restricting access to” or “availability of content” 35 -6- LSB 2346XC (3) 90 cm/ns 6/ 12

S.F. _____ means restricting, in whole or in part, covertly or overtly, 1 manually or algorithmically, the availability, visibility, or 2 distribution of content a user posts, uploads, or publishes; 3 provided that this phrase does not encompass the output of an 4 algorithm we use for presenting or prioritizing content when 5 such algorithm is: 6 a. Generally applicable. 7 b. Viewpoint neutral. 8 c. Not designed to restrict the visibility or distribution 9 of content of a specific user. 10 2. “Demonetize” means excluding or restricting a user 11 from participating in user advertisement revenue-sharing 12 arrangements. 13 3. “Deplatform” means restricting, in whole or in part, 14 covertly or overtly, a user’s or desired user’s ability to 15 post, upload, or publish content, as opposed to our taking such 16 actions on a case-by-case basis against specific and particular 17 content produced by such individual. 18 Part 3. Commitments to Open Discourse and Fair Treatment. 19 We promise: 20 1. We will not deplatform or otherwise categorically deny 21 service to you, although this commitment does not prejudice 22 the ability of other users to decide with whom they interact, 23 continue to interact, or accept to dialogue from. 24 2. We will provide you an open forum for public debate or 25 dialogue, without regard to differing ideological, political, 26 philosophical, or religious perspectives. 27 3. We will not demonetize or restrict access to or 28 availability of your content based on ideological, political, 29 philosophical, or religious views implied or expressed; 30 provided that nothing in this paragraph prevents us from 31 removing content that is otherwise obscene, lewd, lascivious, 32 filthy, excessively violent, harassing, or otherwise 33 objectionable on similar grounds even though such content 34 may also express philosophical, political, ideological, or 35 -7- LSB 2346XC (3) 90 cm/ns 7/ 12

S.F. _____ religious views. 1 4. We will only demonetize or restrict access to, or 2 availability of, your content if it is not permitted under 3 specific and plain and particular provisions of either our 4 community standards or other provisions of our terms of 5 service. We will apply those community standards and terms 6 of service transparently, consistently, in good faith, and 7 without pretext. We will not apply our community standards 8 or terms of service selectively to some users and not others. 9 If we demonetize or restrict access to or availability of 10 your content, evidence that we have intentionally declined to 11 demonetize or restrict access to or availability of similarly 12 situated content from other users may be taken as evidence we 13 have violated our obligations under this paragraph. 14 5. If we demonetize or restrict access to or availability 15 of your content, we will give you written notification within 16 seven days of the action being taken. That notification will 17 provide a specific and detailed explanation of the reason that 18 content violated our community standards or terms of service, 19 including a description of the plain and particular provisions 20 of our community standards or terms of service such content 21 violated. 22 6. Appeals: Upon any restriction, demonetization, or 23 content moderation as described above or under relevant law, 24 you will have a meaningful opportunity to appeal to have such 25 actions reversed. The grounds for appeal include, but are 26 not limited to, the fact that our act of content moderation, 27 whatever form it is in, must be made in good faith, without 28 pretext, and applied consistently to all users. 29 Part 4. Limitations. 30 Nothing in this section affects our ability to demonetize or 31 restrict access to or availability of content that is obscene 32 or pornographic. Nor does anything in this section limit our 33 ability to demonetize or restrict access to or availability of 34 any content that is illegal under state or federal law, such as 35 -8- LSB 2346XC (3) 90 cm/ns 8/ 12

S.F. _____ constitutionally unprotected content in furtherance of unlawful 1 activity, content that is in violation of intellectual property 2 laws, or content subject to a final judgment of a federal court 3 or state court directing the removal of such content. 4 Part 5. Enforcement and Damages. 5 1. The provisions of this section are contractual and are 6 enforceable at law or in equity. We expressly do not contract 7 for any venue, jurisdiction, judicial forum, or choice of law 8 provision for enforcement of this section. Notwithstanding 9 any other provision in these terms of service, we waive said 10 forum and choice of law provisions as applied to this section, 11 allowing you or any proper legal authority to determine those, 12 should the need arise, under all relevant and applicable laws. 13 If you bring an action against us to enforce the terms of this 14 section and obtain a final judgment prevailing against us, we 15 will, in addition to any other remedies or penalties provided 16 by law: 17 a. Reimburse your court costs, fees, and reasonable 18 attorney fees. 19 b. Pay any actual damages you incurred through our failure 20 to abide by the terms of this section. 21 2. The fee exemption provided under this section shall 22 not apply to any corporation’s platform services if a court 23 of competent jurisdiction issues a final order holding the 24 contractual language set forth in subsection 1, paragraph “b” , 25 unenforceable, in whole or in part, against such corporation 26 and platform services. In such event, the attorney general 27 shall submit a notice within thirty days informing such 28 corporation that it will be liable for the platform fees of 29 section 659B.3. Such liability shall commence the first full 30 quarter beginning after the attorney general submits such 31 notice. 32 Sec. 5. NEW SECTION . 659B.5 Rules of construction. 33 1. This chapter shall not be construed as requiring online 34 platforms to verify the state of residency of users of their 35 -9- LSB 2346XC (3) 90 cm/ns 9/ 12

S.F. _____ services. An online platform fulfills its duties under this 1 chapter if it satisfies them with regard to conduct that occurs 2 within this state. 3 2. Platform services of an online platform shall be 4 construed as mutually distinct categories. 5 Sec. 6. NEW SECTION . 659B.6 Severability. 6 1. Subject to the provisions of this section, the provisions 7 of this chapter are severable pursuant to section 4.12. If 8 any section, subsection, or other part of this chapter is 9 declared invalid or unconstitutional by a court of competent 10 jurisdiction, that declaration shall not affect the part which 11 remains. 12 2. The provisions of section 659B.4 are not severable. 13 If any provision or a part thereof is declared invalid or 14 unconstitutional, that declaration shall invalidate the whole 15 of section 659B.4; provided that such declaration shall not 16 affect the rest of this chapter which remains. 17 EXPLANATION 18 The inclusion of this explanation does not constitute agreement with 19 the explanation’s substance by the members of the general assembly. 20 This bill relates to the censorship of expression on 21 market dominant online platforms and creates the protecting 22 online free speech Act. The bill defines “active state 23 user”, “adversely treat”, “annual gross revenues”, “annual 24 gross revenues attributable to users located in this state”, 25 “demonetize”, “deplatform”, “distinct category of services”, 26 “general internet search”, “information content provider”, 27 “microblogging social networking”, “online photo sharing”, 28 “online platform”, “online video sharing”, “personal social 29 networking”, and “platform services”. 30 The bill provides a corporation with more than 10 million 31 users in the state shall be assessed a quarterly fee on 32 platform services to support universal service programs. The 33 bill provides that the attorney general shall determine the 34 number of applicable platform services’ active state users on 35 -10- LSB 2346XC (3) 90 cm/ns 10/ 12

S.F. _____ which platform fees are owed, and the proportion of individuals 1 located within this state who actively use such platform 2 services and provide its estimated number of active state users 3 to the applicable corporations within 60 days of the end of 4 the applicable quarter. The fees collected shall be deposited 5 in the Iowa communications network fund for the purposes of 6 that fund. A corporation subject to platform fees shall file 7 a return for quarterly fee payments and the fee payment to 8 the attorney general within 120 days of the completion of the 9 quarter. A person who willfully files a false return with the 10 intent to evade the payment of fees or willfully fails to file 11 a fee return is guilty of a class “D” felony. A class “D” 12 felony is punishable by confinement for no more than five years 13 and a fine of at least $1,025 but not more than $10,245. 14 The bill provides that the attorney general shall assess 15 interest on unpaid platform fees from the due date to the date 16 on which the fee is paid if a person who is required to pay an 17 online platform fee and shall assess a penalty not exceeding 18 25 percent of the amount due if a corporation required to pay a 19 platform fee fails to pay such tax within 180 days of the due 20 date of such fee. The bill provides that the attorney general 21 shall issue regulations governing the assessment and collection 22 of platform fees. 23 The bill provides that a corporation shall not owe any 24 platform fees when the corporation publishes the statistics 25 called for by the bill and incorporates into such platform 26 service’s terms of service applicable to users in this state 27 contractual terms provided in new Code section 659B.4. 28 The bill provides that the protecting online free speech 29 Act shall not be construed as requiring online platforms to 30 verify the state of residency of users of their services and 31 that platform services shall be construed as mutually distinct 32 categories. 33 The bill provides that provisions of the bill are severable 34 pursuant to Code section 4.12 except for Code section 659B.4 35 -11- LSB 2346XC (3) 90 cm/ns 11/ 12