Bill Text: IA SF50 | 2023-2024 | 90th 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.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2023-01-17 - Subcommittee: Koelker, Webster, and Weiner. S.J. 142. [SF50 Detail]

Download: Iowa-2023-SF50-Introduced.html
Senate File 50 - Introduced SENATE FILE 50 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, and 3 including penalties. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1136XS (4) 90 ko/jh
S.F. 50 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, 2024. 10 3. “Filter” means software installed on a device that is 11 capable of preventing the device from accessing or displaying 12 material that is harmful to minors through the internet 13 or through any applications owned and controlled by the 14 manufacturer and installed on the device. 15 4. “Harmful to minors” means any description or 16 representation, in any form, of nudity, sexual conduct, 17 sexual excitement, or sadomasochistic abuse that is all of the 18 following: 19 a. Taken as a whole, appeals to the prurient interest in sex 20 of minors. 21 b. Is patently offensive to prevailing standards in the 22 adult community as a whole with respect to what is suitable 23 material for minors. 24 c. Taken as a whole, does not have serious literary, 25 artistic, political, or scientific value for minors. 26 5. a. “Manufacturer” means a person that is engaged in the 27 business of manufacturing devices and that has a registered 28 office and a registered agent that is one of the following: 29 (1) An individual who resides in this state and whose 30 business office is identical with the registered office. 31 (2) A domestic corporation whose business office is 32 identical with the registered office. 33 (3) A foreign corporation authorized to transact business 34 in this state whose business office is identical with the 35 -1- LSB 1136XS (4) 90 ko/jh 1/ 13
S.F. 50 registered office. 1 b. “Manufacturer” includes a registrant as defined in 2 section 548.101. 3 6. “Minor” means an individual under the age of eighteen who 4 is not emancipated, married, or a member of the armed forces of 5 the United States. 6 7. “Smart phone” means an electronic device that combines 7 a cell phone with a hand-held computer, typically offering 8 internet access, data storage, and text and electronic mail 9 capabilities. 10 8. “Tablet” means a mobile device that is equipped with a 11 mobile operating system, touchscreen display, and rechargeable 12 battery, and has the ability to support access to a cellular 13 network. 14 Sec. 3. NEW SECTION . 710B.3 Required filter. 15 A manufacturer shall manufacture devices that when such 16 a device is activated in this state the device automatically 17 enables a filter that does all of the following: 18 1. Prevents a user of the device from accessing or 19 downloading material that is harmful to minors on any of the 20 following: 21 a. A mobile data network. 22 b. An application owned and controlled by the manufacturer 23 that is installed on the device. 24 c. A wired or wireless internet network. 25 2. Notifies the user of the device if the filter blocks the 26 device from downloading an application or accessing a website. 27 3. Provides a user of the device who has a passcode the 28 ability to unblock a filtered application or internet site. 29 4. Reasonably precludes a user other than a user with a 30 passcode the ability to deactivate, modify, or uninstall the 31 filter. 32 Sec. 4. NEW SECTION . 710B.4 Manufacturer liability. 33 1. A manufacturer of a device is liable to a minor who 34 resides in the state if all of the following occur: 35 -2- LSB 1136XS (4) 90 ko/jh 2/ 13
S.F. 50 a. The device is activated in this state. 1 b. Upon activation in the state, the device does not enable 2 a filter that complies with section 710B.3. 3 c. Using the device, the minor accesses material that is 4 harmful to minors. 5 2. This section shall not be construed to affect any private 6 right of action existing under any other law. 7 3. Notwithstanding subsection 1, this section shall 8 not apply to a manufacturer that makes a good-faith effort 9 to manufacture a device that upon activation in this state 10 automatically enables a generally accepted and commercially 11 reasonable method of filtration in accordance with this chapter 12 and applicable industry standards. 13 Sec. 5. NEW SECTION . 710B.5 Class actions. 14 A class action may be brought under this chapter in 15 accordance with the Iowa rules of civil procedure. 16 Sec. 6. NEW SECTION . 710B.6 Civil actions. 17 1. A court of competent jurisdiction that finds a 18 manufacturer liable under section 710B.4 shall enjoin the 19 manufacturer from committing further violations and may 20 order civil penalties not to exceed five thousand dollars per 21 violation, plus filing and attorney fees, in addition to any 22 other penalty established by law. 23 2. a. For purposes of imposing a civil penalty under 24 subsection 1, a manufacturer shall be considered to have 25 committed a separate violation for each device manufactured on 26 or after January 1, 2024, that is activated in the state and 27 for which all of the following are true: 28 (1) A filter pursuant to section 710B.3 is not enabled. 29 (2) A minor encounters material harmful to minors. 30 b. Notwithstanding paragraph “a” , the maximum civil penalty 31 imposed in a civil action brought under this section shall not 32 exceed fifty thousand dollars. 33 3. a. A plaintiff must prove and a court must find by clear 34 and convincing evidence that a manufacturer manufactured a 35 -3- LSB 1136XS (4) 90 ko/jh 3/ 13
S.F. 50 device, on or after January 1, 2024, that was activated in this 1 state in violation of section 710B.4, subsection 1. 2 b. A plaintiff must prove by a preponderance of the evidence 3 that a minor accessed material harmful to minors on the device 4 referenced in paragraph “a” . 5 c. The court shall specify the amount of each of the 6 following for each violation for which a manufacturer is found 7 liable: 8 (1) The civil penalty. 9 (2) The court costs. 10 (3) Reasonable attorney fees. 11 d. In determining the civil penalty for a violation of this 12 chapter the court shall consider all of the following: 13 (1) The nature and extent of the violation. 14 (2) The severity of the violation. 15 (3) The potential economic effect of the civil penalty on 16 the manufacturer. 17 (4) The good-faith measures the manufacturer took to comply 18 with this chapter. 19 (5) The willfulness of the manufacturer’s misconduct. 20 (6) The deterrent effect that the imposition of the 21 civil penalty will have on both the manufacturer and other 22 manufacturers that are subject to this chapter. 23 (7) Any other factors that the court deems appropriate. 24 e. The attorney general may bring a civil action under this 25 chapter in the name of the people of this state. 26 f. A private individual may file a civil action under this 27 chapter to establish a manufacturer’s liability under section 28 710B.4 after the requirements of paragraphs “g” , ”h” , and 29 “i” , and all of the following prerequisite requirements, are 30 satisfied: 31 (1) The individual has served on the manufacturer and the 32 attorney general’s office a notice of an alleged violation of 33 section 710B.3. 34 (2) Within forty-five days after the date on which the 35 -4- LSB 1136XS (4) 90 ko/jh 4/ 13
S.F. 50 attorney general receives the notice of an alleged violation 1 under subparagraph (1), the attorney general has not provided 2 a letter to the noticing party that indicates any of the 3 following: 4 (a) An action is currently being pursued or will be pursued 5 by the attorney general regarding the alleged violation. 6 (b) The attorney general has determined that there is no 7 merit to the action. 8 (3) The manufacturer has not responded to the notice of 9 alleged violation, or returned the certification of compliance 10 served on the manufacturer pursuant to paragraph “i” . 11 g. (1) The attorney for the noticing party, or the noticing 12 party if the noticing party is not represented by an attorney, 13 shall execute the notice of an alleged violation. 14 (2) The notice of an alleged violation shall do all of the 15 following: 16 (a) State that the individual executing the notice believes 17 in good faith that the manufacturer has committed a violation. 18 (b) Provide factual information sufficient to establish the 19 noticing party’s basis for asserting that the manufacturer has 20 committed the alleged violation. 21 h. (1) The attorney general shall review the notice of an 22 alleged violation and may confer with the noticing party. 23 (2) The attorney general shall provide, within forty-five 24 calendar days after the date on which the attorney general 25 receives the notice of an alleged violation, a letter to the 26 noticing party and to the manufacturer that states whether the 27 attorney general finds merit in the action. 28 i. (1) An individual who serves a notice of an alleged 29 violation described in paragraph “g” shall complete and serve on 30 the manufacturer simultaneously with the notice of the alleged 31 violation, a notice of special compliance procedure and proof 32 of compliance form pursuant to paragraph “j” . 33 (2) The individual may file a civil action against the 34 manufacturer, or recover from the manufacturer, if all of the 35 -5- LSB 1136XS (4) 90 ko/jh 5/ 13
S.F. 50 following requirements are satisfied: 1 (a) The notice of alleged violation alleges that the 2 manufacturer failed to manufacture a device that when activated 3 in this state automatically enabled a filter as required under 4 section 710B.3. 5 (b) A minor encountered material harmful to minors on the 6 device. 7 (c) Within sixty calendar days after the date on which the 8 manufacturer receives the notice of the alleged violation, the 9 manufacturer has failed to do all of the following: 10 (i) Correct the alleged violation and all similar 11 violations known to the manufacturer. 12 (ii) Agree to pay a penalty to the noticing party for the 13 alleged violation in the amount of ten dollars per violation, 14 up to a maximum of five hundred dollars, regardless of the 15 number of separate violations alleged in the notice. The 16 manufacturer shall deliver the penalty to the noticing 17 party within sixty calendar days after the date on which the 18 manufacturer receives notice of the alleged violation. 19 (iii) Notify the noticing party and the attorney general’s 20 office in writing that the violation has been corrected. The 21 notice must be the notice of special compliance procedure and 22 proof of compliance form specified in paragraph “k” . 23 j. The notice required to be provided to a manufacturer 24 pursuant to paragraph “i” shall be presented as follows: 25 Date. 26 Name of the noticing party or of the attorney for the 27 noticing party. 28 Address of the noticing party or of the attorney for the 29 noticing party. 30 Phone number of the noticing party or of the attorney for the 31 noticing party. 32 SPECIAL COMPLIANCE PROCEDURE 33 PROOF OF COMPLIANCE 34 You are receiving this form because the noticing party 35 -6- LSB 1136XS (4) 90 ko/jh 6/ 13
S.F. 50 listed above has alleged that you are in violation of Iowa Code 1 section 710B.3. The noticing party may bring legal proceedings 2 against you for the alleged violation checked below if: 3 You have not actually taken the corrective steps that you 4 certify in this form. 5 The noticing party has not received this form at the address 6 shown above, accurately completed by you, postmarked within 7 fifty calendar days of the date that you receive this notice. 8 The noticing party has not received the required ten dollar 9 penalty payment for each alleged violation, with a total 10 payment not to exceed five hundred dollars regardless of the 11 number of separate violations alleged in the notice, at the 12 address shown above and postmarked within sixty calendar days 13 of the date of that you receive this notice. 14 PART 1: TO BE COMPLETED BY THE NOTICING PARTY OR THE 15 ATTORNEY FOR THE NOTICING PARTY 16 This notice of alleged violation is for failure to provide 17 an activated filter to protect minors against exposure to 18 materials considered harmful to minors. [Provide a complete 19 description of all alleged violations, including when and where 20 observed and the serial numbers of all devices involved.] 21 Date. 22 Name of the noticing party or of the attorney for the 23 noticing party. 24 Address of the noticing party or of the attorney for the 25 noticing party. 26 Phone number of the noticing party or of the attorney for the 27 noticing party. 28 PART 2: TO BE COMPLETED BY THE MANUFACTURER’S AUTHORIZED 29 REPRESENTATIVE 30 CERTIFICATION OF COMPLIANCE 31 Accurate completion of this form certifies that you have 32 corrected the alleged violations listed above and are now in 33 compliance with Iowa Code section 710B.3. You must complete 34 and submit the form below to the noticing party at the address 35 -7- LSB 1136XS (4) 90 ko/jh 7/ 13
S.F. 50 shown above, and mail a copy to the Iowa Attorney General’s 1 Office, postmarked within fifty calendar days of the date that 2 you received this notice. 3 [Name of manufacturer] hereby agrees to pay to the noticing 4 party within sixty calendar days of the date that [name of 5 manufacturer] received this notice, a penalty of ten dollars 6 for each alleged violation and certifies that [name of 7 manufacturer] has complied with Iowa Code section 710B.3 by 8 (check one of the following): 9 [ ] Providing the noticing party shown above with 10 information about how to enable a filter on a device that did 11 not have a filter automatically enabled upon activation in the 12 state. 13 [ ] Providing the noticing party shown above with 14 information about how to exchange a device that did not have a 15 filter automatically enabled upon activation in the state for a 16 replacement device of the same model that will automatically 17 enable a filter upon activation in the state. 18 CERTIFICATION 19 All statements on this form, and on any attachments to 20 this form, are true, complete, and correct to the best of my 21 knowledge and are made in good faith. I have carefully read 22 the instructions to complete this form. 23 Signature of manufacturer’s authorized representative. 24 Date. 25 Name and title of manufacturer’s authorized representative. 26 k. If a lawsuit is commenced by the plaintiff, the plaintiff 27 may include additional violations in the claim if additional 28 violations are disclosed during the discovery process. 29 l. A manufacturer shall only be required to satisfy the 30 requirements applicable to the manufacturer under paragraph “k” 31 once per device. 32 m. (1) Notwithstanding a manufacturer’s compliance with 33 paragraph “i” , the attorney general may file an action under 34 paragraph “e” . 35 -8- LSB 1136XS (4) 90 ko/jh 8/ 13
S.F. 50 (2) In a civil action filed under this chapter, the court 1 shall reduce the amount of any civil penalty imposed upon a 2 manufacturer for a violation of this chapter to reflect any 3 payments made by the manufacturer under paragraph “j” for the 4 same violation. 5 Sec. 7. NEW SECTION . 710B.7 Penalties. 6 1. A civil penalty ordered by a court under this chapter 7 shall be paid by the manufacturer to the plaintiff as directed 8 by the court. The court shall provide a copy of the court order 9 to the attorney general’s office. 10 2. A manufacturer shall pay a penalty paid in accordance 11 with the special compliance procedure in section 710B.6, 12 subsection 3, paragraph “j” , directly to the noticing party. 13 3. a. Fifty percent of any penalty paid under this chapter 14 shall be deposited by the attorney general’s office into the 15 victim compensation fund established in section 915.94. The 16 penalty amount upon which the fifty percent is calculated shall 17 not include attorney fees or costs awarded by the court. 18 b. Within thirty calendar days of the date of the receipt of 19 a civil penalty pursuant to subsection 1, the plaintiff shall 20 remit the amount required under paragraph “a” and a copy of the 21 court order to the attorney general’s office. 22 c. Within thirty calendar days of the date of the receipt of 23 a penalty pursuant to subsection 2, the noticing party shall 24 remit the amount required under paragraph “a” and a copy of the 25 special compliance procedure document under section 710B.6, 26 subsection 3, paragraph “j” , to the attorney general’s office. 27 4. The attorney general’s office shall maintain a log of all 28 notices of alleged violations to which the attorney general’s 29 office did not respond with a letter of merit under section 30 710B.6, subsection 3, paragraph “h” , subparagraph (2). 31 5. a. The attorney general’s office shall maintain a 32 record of all documents and payments submitted to the attorney 33 general’s office under subsection 3. 34 b. The attorney general shall annually report to the 35 -9- LSB 1136XS (4) 90 ko/jh 9/ 13
S.F. 50 general assembly in odd-numbered years, beginning in 2025, 1 the following information for the immediately preceding two 2 consecutive calendar years: 3 (1) The number of court orders received by the attorney 4 general’s office under subsection 1. 5 (2) The number of notices received by the attorney general’s 6 office under subsection 4. 7 (3) The total dollar amount received by the attorney 8 general’s office and deposited into the victim compensation 9 fund under subsection 3. 10 Sec. 8. NEW SECTION . 710B.8 Civil penalties —— adjustment. 11 1. Beginning July 1, 2025, and at each subsequent five-year 12 interval, the general assembly shall adjust the dollar amount 13 of the civil penalty provided in section 710B.6 based on the 14 change in the annual consumer price index for the most recent 15 five-year period ending on December 31 of the immediately 16 preceding calendar year, and rounded to the nearest five-dollar 17 increment. 18 2. The attorney general shall publish the dollar amount of 19 the adjusted civil penalty under subsection 1, and the date 20 of the next scheduled adjustment, on the attorney general’s 21 internet site. 22 EXPLANATION 23 The inclusion of this explanation does not constitute agreement with 24 the explanation’s substance by the members of the general assembly. 25 This bill relates to requirements for filters on mobile 26 devices activated in the state, and provides for civil 27 liability for manufacturers of mobile devices for certain 28 violations. 29 “Device” is defined in the bill as a tablet or a smart 30 phone sold in Iowa and manufactured on or after January 1, 31 2024. “Filter” is defined as software installed on a device 32 that is capable of preventing the device from accessing or 33 displaying material that is harmful to minors through the 34 internet, or through any applications owned and controlled by 35 -10- LSB 1136XS (4) 90 ko/jh 10/ 13
S.F. 50 the manufacturer and installed on the device. “Manufacturer”, 1 “harmful to minors”, and “activate” are also defined in the 2 bill. 3 The bill requires manufacturers to manufacture devices that 4 when activated in this state automatically enable a filter 5 that performs the functions detailed in the bill. The bill 6 provides that a manufacturer of a device is liable to a minor 7 who resides in the state if the device is activated in this 8 state and upon activation does not enable a filter and the 9 minor uses the device to access material that is harmful to 10 minors. Liability does not extend to a manufacturer that 11 makes a good-faith effort to manufacture a device that upon 12 activation automatically enables a generally accepted and 13 commercially reasonable method of filtration in accordance with 14 the requirements in the bill, and with applicable industry 15 standards. 16 The bill provides that a class action may be brought in 17 accordance with the Iowa rules of civil procedure. A court of 18 competent jurisdiction that finds a manufacturer liable must 19 enjoin the manufacturer from committing further violations, and 20 may order civil penalties not to exceed $5,000 per violation, 21 plus filing fees and reasonable attorney fees, in addition to 22 any other penalty available by law. A manufacturer shall be 23 considered to have committed a separate violation for each 24 device manufactured on or after January 1, 2024. The total 25 civil penalty imposed in a civil action cannot exceed $50,000. 26 A plaintiff must prove, and a court must find, by clear and 27 convincing evidence, that a manufacturer manufactured a device 28 in violation of the bill on or after January 1, 2024, and 29 prove by a preponderance of the evidence that a minor accessed 30 material harmful to minors on such a device. The court must 31 specify the amount of the civil penalty, court costs, and 32 attorney fees for each violation for which the manufacturer is 33 found liable. In determining the civil penalty for a violation 34 of the bill, the court must consider the factors as detailed 35 -11- LSB 1136XS (4) 90 ko/jh 11/ 13
S.F. 50 in the bill. 1 The attorney general may bring a civil action in the name 2 of the people of this state, and a private individual may file 3 a civil action to establish a manufacturer’s liability, after 4 satisfying prerequisite requirements, including a notice to the 5 manufacturer to which the manufacturer must respond as detailed 6 in the bill. The manufacturer’s response may include a penalty 7 paid directly to the noticing party by the manufacturer. 8 If a lawsuit is commenced, the plaintiff may include 9 additional violations in the claim if additional violations 10 are disclosed during the discovery process. A civil penalty 11 ordered by a court under the bill must be paid to the plaintiff 12 as directed by the court, and the court must provide a copy 13 of the order to the office of the attorney general. Fifty 14 percent of any penalty paid must be deposited by the office of 15 the attorney general in the victim compensation fund (fund) 16 established in Code section 915.94. The penalty amount upon 17 which the 50 percent is calculated shall not include attorney 18 fees or costs awarded by the court. Within 30 calendar days 19 of the date of the receipt of a civil penalty ordered by the 20 court, the plaintiff must remit 50 percent and a copy of the 21 court order to the office of the attorney general. Within 30 22 calendar days of the date of the receipt of a penalty paid 23 directly to the noticing party by a manufacturer, the noticing 24 party must remit 50 percent and specific documentation as 25 detailed in the bill to the office of the attorney general. 26 The attorney general’s office must maintain a log of all 27 notices of alleged violations to which the attorney general’s 28 office did not respond with a letter of merit. The office of 29 the attorney general must maintain a record of all documents 30 and payments submitted to the office of the attorney general 31 pursuant to the provisions of the bill. The attorney general 32 shall annually report to the general assembly in odd-numbered 33 years, beginning in 2025, information as specified in the bill 34 for the immediately preceding two consecutive calendar years. 35 -12- LSB 1136XS (4) 90 ko/jh 12/ 13
S.F. 50 Beginning July 1, 2025, and at each subsequent five-year 1 interval, the general assembly must adjust the dollar amount 2 of the civil penalty provided for in the bill, based on the 3 change in the annual consumer price index for the most recent 4 five-year period ending on December 31 of the immediately 5 preceding calendar year, and rounded to the nearest $5 6 increment. The attorney general shall publish the dollar 7 amount of the adjusted penalty and the date of the next 8 scheduled adjustment on the attorney general’s internet site. 9 -13- LSB 1136XS (4) 90 ko/jh 13/ 13
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