Bill Text: IA HF2066 | 2021-2022 | 89th General Assembly | Introduced


Bill Title: A bill for an act relating to requirements for filters on mobile devices activated in the state, providing for civil liability for manufacturers of mobile devices for certain violations, and including penalties and contingent effective date provisions.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2022-02-15 - Subcommittee recommends passage. Vote Total: 2-0 [HF2066 Detail]

Download: Iowa-2021-HF2066-Introduced.html
House File 2066 - Introduced HOUSE FILE 2066 BY SALMON A BILL FOR An Act relating to requirements for filters on mobile devices 1 activated in the state, providing for civil liability for 2 manufacturers of mobile devices for certain violations, 3 and including penalties and contingent effective date 4 provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 5140YH (8) 89 ko/jh
H.F. 2066 Section 1. NEW SECTION . 710B.1 Short title. 1 This chapter shall be known and may be cited as “Cause of 2 Action to Protect Minors from Unfiltered Devices” . 3 Sec. 2. NEW SECTION . 710B.2 Definitions. 4 As used in this chapter, unless the context otherwise 5 requires: 6 1. “Activate” means the process of powering on a device and 7 associating it with a new user account. 8 2. “Device” means a tablet or a smart phone sold in this 9 state and manufactured on or after January 1 of the calendar 10 year immediately following the calendar year this chapter takes 11 effect. 12 3. “Filter” means software installed on a device that is 13 capable of preventing the device from accessing or displaying 14 material that is harmful to minors through the internet 15 or through any applications owned and controlled by the 16 manufacturer and installed on the device. 17 4. “Harmful to minors” means any description or 18 representation, in any form, of nudity, sexual conduct, 19 sexual excitement, or sadomasochistic abuse that is all of the 20 following: 21 a. Taken as a whole, appeals to the prurient interest in sex 22 of minors. 23 b. Is patently offensive to prevailing standards in the 24 adult community as a whole with respect to what is suitable 25 material for minors. 26 c. Taken as a whole, does not have serious literary, 27 artistic, political, or scientific value for minors. 28 5. “Manufacturer” means a person that is engaged in the 29 business of manufacturing devices and that has a registered 30 office and a registered agent that is one of the following: 31 a. An individual who resides in this state and whose 32 business office is identical with the registered office. 33 b. A domestic corporation whose business office is identical 34 with the registered office. 35 -1- LSB 5140YH (8) 89 ko/jh 1/ 14
H.F. 2066 c. A foreign corporation authorized to transact business 1 in this state whose business office is identical with the 2 registered office. “Manufacturer” includes a registrant as 3 defined in section 548.101. 4 6. “Minor” means an individual under the age of eighteen who 5 is not emancipated, married, or a member of the armed forces of 6 the United States. 7 7. “Smart phone” means an electronic device that combines 8 a cell phone with a hand-held computer, typically offering 9 internet access, data storage, and text and electronic mail 10 capabilities. 11 8. “Tablet” means a mobile device that is equipped with a 12 mobile operating system, touchscreen display, and rechargeable 13 battery, and has the ability to support access to a cellular 14 network. 15 Sec. 3. NEW SECTION . 710B.3 Required filter. 16 A manufacturer shall manufacture devices that when such 17 a device is activated in this state the device automatically 18 enables a filter that does all of the following: 19 1. Prevents a user of the device from accessing or 20 downloading material that is harmful to minors on any of the 21 following: 22 a. A mobile data network. 23 b. An application owned and controlled by the manufacturer 24 that is installed on the device. 25 c. A wired or wireless internet network. 26 2. Notifies the user of the device if the filter blocks the 27 device from downloading an application or accessing a website. 28 3. Provides a user of the device who has a passcode the 29 ability to unblock a filtered application or internet site. 30 4. Reasonably precludes a user other than a user with a 31 passcode the ability to deactivate, modify, or uninstall the 32 filter. 33 Sec. 4. NEW SECTION . 710B.4 Manufacturer liability. 34 1. A manufacturer of a device is liable to a minor who 35 -2- LSB 5140YH (8) 89 ko/jh 2/ 14
H.F. 2066 resides in the state if all of the following occur: 1 a. The device is activated in this state. 2 b. Upon activation in the state, the device does not enable 3 a filter that complies with section 710B.3. 4 c. Using the device, the minor accesses material that is 5 harmful to minors. 6 2. This section shall not be construed to affect any private 7 right of action existing under any other law. 8 3. Notwithstanding subsection 1, this section shall 9 not apply to a manufacturer that makes a good faith effort 10 to manufacture a device that upon activation in this state 11 automatically enables a generally accepted and commercially 12 reasonable method of filtration in accordance with this chapter 13 and applicable industry standards. 14 Sec. 5. NEW SECTION . 710B.5 Class actions. 15 A class action may be brought under this chapter in 16 accordance with the Iowa rules of civil procedure. 17 Sec. 6. NEW SECTION . 710B.6 Civil actions. 18 1. A court of competent jurisdiction that finds a 19 manufacturer liable under section 710B.4 shall enjoin the 20 manufacturer from committing further violations and may 21 order civil penalties not to exceed five thousand dollars per 22 violation, plus filing and attorney fees, in addition to any 23 other penalty established by law. 24 2. a. For purposes of imposing a civil penalty under 25 subsection 1, a manufacturer shall be considered to have 26 committed a separate violation for each device manufactured on 27 or after January 1 of the calendar year immediately following 28 the calendar year that this chapter takes effect that is 29 activated in the state and for which all of the following are 30 true: 31 (1) A filter pursuant to section 710B.3 is not enabled. 32 (2) A minor encounters material harmful to minors. 33 b. Notwithstanding paragraph “a” , the maximum civil penalty 34 imposed in a civil action brought under this section shall not 35 -3- LSB 5140YH (8) 89 ko/jh 3/ 14
H.F. 2066 exceed fifty thousand dollars. 1 3. a. A plaintiff must prove and a court must find by clear 2 and convincing evidence that a manufacturer manufactured a 3 device, on or after January 1 of the calendar year immediately 4 following the calendar year that this chapter takes effect, 5 that was activated in this state in violation of section 6 710B.4, subsection 1. 7 b. A plaintiff must prove by a preponderance of the evidence 8 that a minor accessed material harmful to minors on the device 9 referenced in paragraph “a” . 10 c. The court shall specify the amount of each of the 11 following for each violation for which a manufacturer is found 12 liable: 13 (1) The civil penalty. 14 (2) The court costs. 15 (3) Reasonable attorney fees. 16 d. In determining the civil penalty for a violation of this 17 chapter the court shall consider all of the following: 18 (1) The nature and extent of the violation. 19 (2) The severity of the violation. 20 (3) The potential economic effect of the civil penalty on 21 the manufacturer. 22 (4) The good faith measures the manufacturer took to comply 23 with this chapter. 24 (5) The willfulness of the manufacturer’s misconduct. 25 (6) The deterrent effect that the imposition of the 26 civil penalty will have on both the manufacturer and other 27 manufacturers that are subject to this chapter. 28 (7) Any other factors that the court deems appropriate. 29 e. The attorney general may bring a civil action under this 30 chapter in the name of the people of this state. 31 f. A private individual may file a civil action under this 32 chapter to establish a manufacturer’s liability under section 33 710B.4 after the requirements of paragraphs “g” , ”h” , and 34 “i” , and all of the following prerequisite requirements, are 35 -4- LSB 5140YH (8) 89 ko/jh 4/ 14
H.F. 2066 satisfied: 1 (1) The individual has served on the manufacturer and the 2 attorney general’s office a notice of an alleged violation of 3 section 710B.3. 4 (2) Within forty-five days after the date on which the 5 attorney general receives the notice of an alleged violation 6 under subparagraph (1), the attorney general has not provided 7 a letter to the noticing party that indicates any of the 8 following: 9 (a) An action is currently being pursued or will be pursued 10 by the attorney general regarding the alleged violation. 11 (b) The attorney general has determined that there is no 12 merit to the action. 13 (3) The manufacturer has not responded to the notice of 14 alleged violation, or returned the certification of compliance 15 served on the manufacturer pursuant to paragraph “i” . 16 g. (1) The attorney for the noticing party, or the noticing 17 party if the noticing party is not represented by an attorney, 18 shall execute the notice of an alleged violation. 19 (2) The notice of an alleged violation shall do all of the 20 following: 21 (a) State that the individual executing the notice believes 22 in good faith that the manufacturer has committed a violation. 23 (b) Provide factual information sufficient to establish the 24 noticing party’s basis for asserting that the manufacturer has 25 committed the alleged violation. 26 h. (1) The attorney general shall review the notice of an 27 alleged violation and may confer with the noticing party. 28 (2) The attorney general shall provide, within forty-five 29 calendar days after the date on which the attorney general 30 receives the notice of an alleged violation, a letter to the 31 noticing party and to the manufacturer that states whether the 32 attorney general finds merit in the action. 33 i. (1) An individual who serves a notice of an alleged 34 violation described in paragraph “g” shall complete and serve on 35 -5- LSB 5140YH (8) 89 ko/jh 5/ 14
H.F. 2066 the manufacturer simultaneously with the notice of the alleged 1 violation, a notice of special compliance procedure and proof 2 of compliance form pursuant to paragraph “j” . 3 (2) The individual may file a civil action against the 4 manufacturer, or recover from the manufacturer, if all of the 5 following requirements are satisfied: 6 (a) The notice of alleged violation alleges that the 7 manufacturer failed to manufacture a device that when activated 8 in this state automatically enabled a filter as required under 9 section 710B.3. 10 (b) A minor encountered material harmful to minors on the 11 device. 12 (c) Within sixty calendar days after the date on which the 13 manufacturer receives the notice of the alleged violation, the 14 manufacturer has failed to do all of the following: 15 (i) Correct the alleged violation and all similar 16 violations known to the manufacturer. 17 (ii) Agree to pay a penalty to the noticing party for the 18 alleged violation in the amount of ten dollars per violation, 19 up to a maximum of five hundred dollars, regardless of the 20 number of separate violations alleged in the notice. The 21 manufacturer shall deliver the penalty to the noticing 22 party within sixty calendar days after the date on which the 23 manufacturer receives notice of the alleged violation. 24 (iii) Notify the noticing party and the attorney general’s 25 office in writing that the violation has been corrected. The 26 notice must be the notice of special compliance procedure and 27 proof of compliance form specified in paragraph “k” . 28 j. The notice required to be provided to a manufacturer 29 pursuant to paragraph “i” shall be presented as follows: 30 Date. 31 Name of the noticing party or of the attorney for the 32 noticing party. 33 Address of the noticing party or of the attorney for the 34 noticing party. 35 -6- LSB 5140YH (8) 89 ko/jh 6/ 14
H.F. 2066 Phone number of the noticing party or of the attorney for the 1 noticing party. 2 SPECIAL COMPLIANCE PROCEDURE 3 PROOF OF COMPLIANCE 4 You are receiving this form because the noticing party 5 listed above has alleged that you are in violation of Iowa Code 6 section 710B.3. The noticing party may bring legal proceedings 7 against you for the alleged violation checked below if: 8 You have not actually taken the corrective steps that you 9 certify in this form. 10 The noticing party has not received this form at the address 11 shown above, accurately completed by you, postmarked within 12 fifty calendar days of the date that you receive this notice. 13 The noticing party has not received the required ten dollar 14 penalty payment for each alleged violation, with a total 15 payment not to exceed five hundred dollars regardless of the 16 number of separate violations alleged in the notice, at the 17 address shown above and postmarked within sixty calendar days 18 of the date of that you receive this notice. 19 PART 1: TO BE COMPLETED BY THE NOTICING PARTY OR THE 20 ATTORNEY FOR THE NOTICING PARTY 21 This notice of alleged violation is for failure to provide 22 an activated filter to protect minors against exposure to 23 materials considered harmful to minors. [Provide a complete 24 description of all alleged violations, including when and where 25 observed and the serial numbers of all devices involved.] 26 Date. 27 Name of the noticing party or of the attorney for the 28 noticing party. 29 Address of the noticing party or of the attorney for the 30 noticing party. 31 Phone number of the noticing party or of the attorney for the 32 noticing party. 33 PART 2: TO BE COMPLETED BY THE MANUFACTURER’S AUTHORIZED 34 REPRESENTATIVE 35 -7- LSB 5140YH (8) 89 ko/jh 7/ 14
H.F. 2066 CERTIFICATION OF COMPLIANCE 1 Accurate completion of this form certifies that you have 2 corrected the alleged violations listed above and are now in 3 compliance with Iowa Code section 710B.3. You must complete 4 and submit the form below to the noticing party at the address 5 shown above, and mail a copy to the Iowa Attorney General’s 6 Office, postmarked within fifty calendar days of the date that 7 you received this notice. 8 [Name of manufacturer] hereby agrees to pay to the noticing 9 party within sixty calendar days of the date that [name of 10 manufacturer] received this notice, a penalty of ten dollars 11 for each alleged violation and certifies that [name of 12 manufacturer] has complied with Iowa Code section 710B.3 by 13 (check one of the following): 14 [ ] Providing the noticing party shown above with 15 information about how to enable a filter on a device that did 16 not have a filter automatically enabled upon activation in the 17 state. 18 [ ] Providing the noticing party shown above with 19 information about how to exchange a device that did not have a 20 filter automatically enabled upon activation in the state for a 21 replacement device of the same model that will automatically 22 enable a filter upon activation in the state. 23 CERTIFICATION 24 All statements on this form, and on any attachments to 25 this form, are true, complete, and correct to the best of my 26 knowledge and are made in good faith. I have carefully read 27 the instructions to complete this form. 28 Signature of manufacturer’s authorized representative. 29 Date. 30 Name and title of manufacturer’s authorized representative. 31 k. If a lawsuit is commenced by the plaintiff, the plaintiff 32 may include additional violations in the claim if additional 33 violations are disclosed during the discovery process. 34 l. A manufacturer shall only be required to satisfy the 35 -8- LSB 5140YH (8) 89 ko/jh 8/ 14
H.F. 2066 requirements applicable to the manufacturer under paragraph “k” 1 once per device. 2 m. (1) Notwithstanding a manufacturer’s compliance with 3 paragraph “i” , the attorney general may file an action under 4 paragraph “e” . 5 (2) In a civil action filed under this chapter, the court 6 shall reduce the amount of any civil penalty imposed upon a 7 manufacturer for a violation of this chapter to reflect any 8 payments made by the manufacturer under paragraph “j” for the 9 same violation. 10 Sec. 7. NEW SECTION . 710B.7 Penalties. 11 1. A civil penalty ordered by a court under this chapter 12 shall be paid by the manufacturer to the plaintiff as directed 13 by the court. The court shall provide a copy of the court order 14 to the attorney general’s office. 15 2. A manufacturer shall pay a penalty paid in accordance 16 with the special compliance procedure in section 710B.6, 17 paragraph “j” , directly to the noticing party. 18 3. a. Fifty percent of any penalty paid under this chapter 19 shall be deposited by the attorney general’s office into the 20 victim compensation fund established in section 915.94. The 21 penalty amount upon which the fifty percent is calculated shall 22 not include attorney fees or costs awarded by the court. 23 b. Within thirty calendar days of the date of the receipt of 24 a civil penalty pursuant to subsection 1, the plaintiff shall 25 remit the amount required under paragraph “a” and a copy of the 26 court order to the attorney general’s office. 27 c. Within thirty calendar days of the date of the receipt of 28 a penalty pursuant to subsection 2, the noticing party shall 29 remit the amount required under paragraph “a” and a copy of the 30 special compliance procedure document under section 710B.6, 31 paragraph “j” , to the attorney general’s office. 32 4. The attorney general’s office shall maintain a log of all 33 notices of alleged violations to which the attorney general‘s 34 office did not respond with a letter of merit under section 35 -9- LSB 5140YH (8) 89 ko/jh 9/ 14
H.F. 2066 710B.6, subsection 3, paragraph “h” , subparagraph (2). 1 5. a. The attorney general’s office shall maintain a 2 record of all documents and payments submitted to the attorney 3 general’s office under subsection 3. 4 b. The attorney general shall annually report to the general 5 assembly in odd-numbered years, beginning the calendar year 6 following the calendar year that this chapter takes effect, 7 the following information for the immediately preceding two 8 consecutive calendar years: 9 (1) The number of court orders received by the attorney 10 general’s office under subsection 1. 11 (2) The number of notices received by the attorney general’s 12 office under subsection 4. 13 (3) The total dollar amount received by the attorney 14 general’s office and deposited into the victim compensation 15 fund under subsection 3. 16 Sec. 8. NEW SECTION . 710B.8 Civil penalties —— adjustment. 17 1. Beginning July 1 of the calendar year immediately 18 following the calendar year in which this chapter takes effect, 19 and at each subsequent five-year interval, the general assembly 20 shall adjust the dollar amount of the civil penalty provided in 21 section 710B.6 based on the change in the annual consumer price 22 index for the most recent five-year period ending on December 23 31 of the immediately preceding calendar year, and rounded to 24 the nearest five-dollar increment. 25 2. The attorney general shall publish the dollar amount of 26 the adjusted civil penalty under subsection 1, and the date 27 of the next scheduled adjustment, on the attorney general’s 28 internet site. 29 Sec. 9. NEW SECTION . 710B.9 Future repeal. 30 This chapter is repealed effective January 1, 2031, if the 31 conditions to satisfy the contingent effective date do not 32 occur on or before December 31, 2030. 33 Sec. 10. CONTINGENT EFFECTIVE DATE. This Act takes effect 34 on the first day of the January immediately following the 35 -10- LSB 5140YH (8) 89 ko/jh 10/ 14
H.F. 2066 date on which legislation in substantially the same form has 1 been enacted and has taken effect in at least five states in 2 addition to Iowa. The attorney general shall notify the Iowa 3 Code editor upon occurrence of this condition. 4 EXPLANATION 5 The inclusion of this explanation does not constitute agreement with 6 the explanation’s substance by the members of the general assembly. 7 This bill relates to requirements for filters on mobile 8 devices activated in the state, and provides for civil 9 liability for manufacturers of mobile devices for certain 10 violations. 11 “Device” is defined in the bill as a tablet or a smart phone 12 sold in Iowa and manufactured on or after January 1 of the 13 calendar year immediately following the calendar year the bill 14 takes effect. “Filter” is defined as software installed on a 15 device that is capable of preventing the device from accessing 16 or displaying material that is harmful to minors through the 17 internet, or through any applications owned and controlled by 18 the manufacturer and installed on the device. “Manufacturer”, 19 “harmful to minors”, and “activate” are also defined in the 20 bill. 21 The bill requires manufacturers to manufacture devices that 22 when activated in this state automatically enable a filter 23 that performs the functions detailed in the bill. The bill 24 provides that a manufacturer of a device is liable to a minor 25 who resides in the state if the device is activated in this 26 state and upon activation does not enable a filter and the 27 minor uses the device to access material that is harmful to 28 minors. Liability does not extend to a manufacturer that 29 makes a good faith effort to manufacture a device that upon 30 activation automatically enables a generally accepted and 31 commercially reasonable method of filtration in accordance with 32 the requirements in the bill, and with applicable industry 33 standards. 34 The bill provides that a class action may be brought in 35 -11- LSB 5140YH (8) 89 ko/jh 11/ 14
H.F. 2066 accordance with the Iowa rules of civil procedure. A court of 1 competent jurisdiction that finds a manufacturer liable must 2 enjoin the manufacturer from committing further violations, and 3 may order civil penalties not to exceed $5,000 per violation, 4 plus filing fees and reasonable attorney fees, in addition to 5 any other penalty available by law. A manufacturer shall be 6 considered to have committed a separate violation for each 7 device manufactured on or after January 1 of the calendar year 8 immediately following the calendar year that the bill takes 9 effect as described in the bill. The total civil penalty 10 imposed in a civil action cannot exceed $50,000. 11 A plaintiff must prove, and a court must find, by clear and 12 convincing evidence, that a manufacturer manufactured a device 13 in violation of the bill on or after January 1 of the calendar 14 year immediately following the calendar year that the bill 15 takes effect, and prove by a preponderance of the evidence that 16 a minor accessed material harmful to minors on such a device. 17 The court must specify the amount of the civil penalty, court 18 costs, and attorney fees for each violation for which the 19 manufacturer is found liable. In determining the civil penalty 20 for a violation of the bill, the court must consider the 21 factors as detailed in the bill. 22 The attorney general may bring a civil action in the name 23 of the people of this state, and a private individual may file 24 a civil action to establish a manufacturer’s liability, after 25 satisfying prerequisite requirements, including a notice to the 26 manufacturer to which the manufacturer must respond as detailed 27 in the bill. The manufacturer’s response may include a penalty 28 paid directly to the noticing party by the manufacturer. 29 If a lawsuit is commenced, the plaintiff may include 30 additional violations in the claim if additional violations 31 are disclosed during the discovery process. A civil penalty 32 ordered by a court under the bill must be paid to the plaintiff 33 as directed by the court, and the court must provide a copy 34 of the order to the office of the attorney general. Fifty 35 -12- LSB 5140YH (8) 89 ko/jh 12/ 14
H.F. 2066 percent of any penalty paid must be deposited by the office of 1 the attorney general in the victim compensation fund (fund) 2 established in Code section 915.94. The penalty amount upon 3 which the 50 percent is calculated shall not include attorney 4 fees or costs awarded by the court. Within 30 calendar days 5 of the date of the receipt of a civil penalty ordered by the 6 court, the plaintiff must remit 50 percent and a copy of the 7 court order to the office of the attorney general. Within 30 8 calendar days of the date of the receipt of a penalty paid 9 directly to the noticing party by a manufacturer, the noticing 10 party must remit 50 percent and specific documentation as 11 detailed in the bill to the office of the attorney general. 12 The attorney general’s office must maintain a log of all 13 notices of alleged violations to which the attorney general’s 14 office did not respond with a letter of merit. The office of 15 the attorney general must maintain a record of all documents 16 and payments submitted to the office of the attorney general 17 pursuant to the provisions of the bill. The attorney general 18 shall annually report to the general assembly in odd-numbered 19 years, beginning the calendar year following the calendar year 20 that the bill takes effect, information as specified in the 21 bill for the immediately preceding two consecutive calendar 22 years. 23 Beginning July 1 of the calendar year immediately following 24 the calendar year in which the bill takes effect, and at each 25 subsequent five-year interval, the general assembly must adjust 26 the dollar amount of the civil penalty provided for in the 27 bill, based on the change in the annual consumer price index 28 for the most recent five-year period ending on December 31 of 29 the immediately preceding calendar year, and rounded to the 30 nearest $5 increment. The attorney general shall publish the 31 dollar amount of the adjusted penalty and the date of the next 32 scheduled adjustment on the attorney general’s internet site. 33 The bill takes effect on the first day of the January 34 immediately following the date on which legislation in 35 -13- LSB 5140YH (8) 89 ko/jh 13/ 14
H.F. 2066 substantially the same form has been enacted and has taken 1 effect in at least five states in addition to Iowa. The 2 attorney general must notify the Iowa Code editor upon 3 occurrence of this condition. The chapter is repealed 4 effective January 1, 2031, if the conditions to satisfy the 5 contingent effective date do not occur on or before December 6 31, 2030. 7 -14- LSB 5140YH (8) 89 ko/jh 14/ 14
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