Text of MD SB 780 (2024)

Internet-Connected Devices and Internet Service Providers - Default Filtering of Obscene Content (Maryland Online Child Protection Act)

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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW. [Brackets] indicate matter deleted from existing law. *sb0780* SENATE BILL 780 I3, P2, C8 4lr2285 CF HB 772 By: Senator Muse Introduced and read first time: February 1, 2024 Assigned to: Finance A BILL ENTITLED AN ACT concerning 1 Internet–Connected Devices and Internet Service Providers – Default Filtering 2 of Obscene Content 3 (Maryland Online Child Protection Act) 4 FOR the purpose of prohibiting a person from selling an Internet–connected device that is 5 intended for minors unless the device is sold with a certain filter, certain privacy 6 settings, and other features; making a violation of the prohibition an unfair, abusive, 7 or deceptive trade practice that is subject to the enforcement and penalties under the 8 Maryland Consumer Protection Act; requiring that preference be given to certain 9 grant applications that include the use of broadband providers that implement the 10 use of certain filters; requiring that preference be granted in the State procurement 11 process to Internet service providers that implement the use of certain filters; and 12 generally relating to Internet content filtering in the State. 13 BY repealing and reenacting, with amendments, 14 Article – Commercial Law 15 Section 13–301(14)(xl) 16 Annotated Code of Maryland 17 (2013 Replacement Volume and 2023 Supplement) 18 BY repealing and reenacting, without amendments, 19 Article – Commercial Law 20 Section 13–301(14)(xli) 21 Annotated Code of Maryland 22 (2013 Replacement Volume and 2023 Supplement) 23 BY adding to 24 Article – Commercial Law 25 Section 13–301(14)(xlii); and 14–4601 through 14–4604 to be under the new subtitle 26 “Subtitle 46. Default Filters for Internet–Connected Devices for Children” 27 Annotated Code of Maryland 28 2 SENATE BILL 780 (2013 Replacement Volume and 2023 Supplement) 1 BY repealing and reenacting, with amendments, 2 Article – Housing and Community Development 3 Section 6.5–106 and 6.5–107 4 Annotated Code of Maryland 5 (2019 Replacement Volume and 2023 Supplement) 6 BY adding to 7 Article – State Finance and Procurement 8 Section 14–419 9 Annotated Code of Maryland 10 (2021 Replacement Volume and 2023 Supplement) 11 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 12 That the Laws of Maryland read as follows: 13 Article – Commercial Law 14 13–301. 15 Unfair, abusive, or deceptive trade practices include any: 16 (14) Violation of a provision of: 17 (xl) Title 14, Subtitle 13 of the Public Safety Article; [or] 18 (xli) Title 14, Subtitle 45 of this article; or 19 (XLII) TITLE 14, SUBTITLE 46 OF THIS ARTICLE; OR 20 SUBTITLE 46. DEFAULT FILTERS FOR INTERNET–CONNECTED DEVICES FOR 21 CHILDREN. 22 14–4601. 23 (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 24 INDICATED. 25 (B) (1) “DEVICE INTENDED FOR MINORS” MEANS A DEVICE THAT IS 26 MARKETED TOWARD OR PRIMARILY SOLD FOR THE USE OF INDIVIDUALS UNDER THE 27 AGE OF 18 YEARS. 28 (2) “DEVICE INTENDED FOR MINORS” INCLUDES: 29 (I) AN INTERNET–CONNECTED GAMING DEVICE; AND 30 SENATE BILL 780 3 (II) A DEVICE THAT SPECIFICALLY ADVERTISES CHILD SAFETY 1 FEATURES. 2 (C) “FILTER” MEANS SOFTWARE INSTALLED ON A DEVICE THAT IS CAPABLE 3 OF PREVENTING THE DEVICE FROM ACCESSING OR DISPLAYING MATERIAL THAT IS 4 HARMFUL TO MINORS THROUGH THE INTERNET OR ANY APPLICATIONS OWNED AND 5 CONTROLLED BY THE MANUFACTURER AND INSTALLED ON THE DEVICE. 6 (D) “HARMFUL TO MINORS” MEANS THAT QUALITY OF ANY DESCRIPTION OR 7 REPRESENTATION OF NUDITY, SEXUAL CONDUCT, SEXUAL EXCITEMENT, OR 8 SADOMASOCHISTIC ABUSE WHEN IT: 9 (1) TAKEN AS A WHOLE, APPEALS TO THE PRURIENT INTEREST IN SEX 10 OF MINORS; 11 (2) IS PATENTLY OFFENSIVE TO PREVAILING STANDARDS IN THE 12 ADULT COMMUNITY AS A WHOLE WITH RESPECT TO WHAT IS SUITABLE MATERIAL 13 FOR MINORS; AND 14 (3) TAKEN AS A WHOLE, LACKS SERIOUS ARTISTIC, EDUCATIONAL, 15 LITERARY, POLITICAL, OR SCIENTIFIC VALUE FOR MINORS. 16 (E) “INTERNET–CONNECTED DEVICE” MEANS A PHYSICAL OBJECT THAT: 17 (1) IS CAPABLE OF CONNECTING TO AND IS IN REGULAR CONNECTION 18 WITH THE INTERNET; AND 19 (2) HAS COMPUTER PROCESSING CAPABILITIES THAT CAN COLLECT, 20 SEND, OR RECEIVE DATA. 21 (F) (1) “PERSONAL DATA” MEANS DATA THAT IS ASSOCIATED WITH A 22 SPECIFIC INDIVIDUAL. 23 (2) “PERSONAL DATA” INCLUDES: 24 (I) RECORDS OF DATA USAGE OR ONLINE ACTIVITY; 25 (II) BROWSING HISTORY; AND 26 (III) OTHER RECORDS THAT TRACK THE ACTIVITY OF A SPECIFIC 27 INDIVIDUAL. 28 4 SENATE BILL 780 (G) “QUALIFYING AGE VERIFICATION PROCEDURE” MEANS AGE 1 VERIFICATION THAT IS ACCOMPLISHED THROUGH THE USE OF A REPUTABLE 2 INDEPENDENT THIRD PARTY THAT IS IN THE BUSINESS OF VERIFYING AN 3 INDIVIDUAL’S PERSONALLY IDENTIFIABLE INFORMATION. 4 14–4602. 5 EXCEPT AS PROVIDED IN § 14–4603 OF THIS SUBTITLE, A PERSON MAY NOT 6 SELL AN INTERNET–CONNECTED DEVICE INTENDED FOR MINORS IN THE STATE. 7 14–4603. 8 (A) A PERSON MAY SELL AN INTERNET–CONNECTED DEVICE INTENDED FOR 9 MINORS IF: 10 (1) THE INTERNET–CONNECTED DEVICE IS SOLD WITH: 11 (I) AN ACTIVATED FILTER THAT BLOCKS CONTENT THAT IS 12 HARMFUL TO MINORS; AND 13 (II) ACTIVATED, CONFIGURABLE PRIVACY SETTINGS THAT ARE 14 THE MOST PROTECTIVE AVAILABLE AGAINST THE COLLECTION OF A USER’S 15 INFORMATION; AND 16 (2) THE INTERNET–CONNECTED DEVICE DOES NOT: 17 (I) DISPLAY ADVERTISEMENTS TARGETED AT MINORS BASED 18 ON CONCLUSIONS DRAWN FROM PERSONAL DATA; OR 19 (II) COLLECT, USE, OR SHARE THE USER’S PERSONAL DATA 20 BEYOND WHAT IS NECESSARY TO PROVIDE THE CORE FUNCTIONS OF THE DEVICE. 21 (B) A FILTER REQUIRED UNDER SUBSECTION (A) OF THIS SECTION: 22 (1) MAY BE DISABLED ONLY BY AN INDIVIDUAL: 23 (I) WHO IS AT LEAST 18 YEARS OLD; AND 24 (II) WHOSE AGE IS VERIFIED THROUGH A QUALIFYING AGE 25 VERIFICATION PROCEDURE; AND 26 SENATE BILL 780 5 (2) SHALL BE PROVIDED ACCOMPANIED BY CLEAR INSTRUCTIONS 1 REGARDING HOW AN INDIVIDUAL UNDER ITEM (1) OF THIS SUBSECTION MAY 2 DISABLE THE FILTER. 3 (C) THE CONFIGURABLE PRIVACY SETTINGS REQUIRED UNDER 4 SUBSECTION (A)(1)(II) OF THIS SECTION MAY BE CONFIGURED ONLY BY AN 5 INDIVIDUAL: 6 (1) WHO IS AT LEAST 18 YEARS OLD; AND 7 (2) WHOSE AGE IS VERIFIED THROUGH A QUALIFYING AGE 8 VERIFICATION PROCEDURE. 9 14–4604. 10 A VIOLATION OF THIS SUBTITLE IS: 11 (1) AN UNFAIR, ABUSIVE, OR DECEPTIVE TRADE PRACTICE UNDER 12 TITLE 13 OF THIS ARTICLE; AND 13 (2) SUBJECT TO THE ENFORCEMENT AND PENALTY PROVISIONS 14 CONTAINED IN TITLE 13 OF THIS ARTICLE. 15 Article – Housing and Community Development 16 6.5–106. 17 (a) (1) In this section[,] THE FOLLOWING WORDS HAVE THE MEANINGS 18 INDICATED. 19 (2) “FILTER” MEANS SOFTWARE THAT: 20 (I) IS CAPABLE OF PREVENTING ACCESS TO OR THE DISPLAY OF 21 OBSCENE MATERIAL ON ANY COMPUTER OR DEVICE CONNECTED TO THE INTERNET; 22 AND 23 (II) MAY BE DISABLED BY THE END USER. 24 (3) “Fund” means the Digital Connectivity Fund. 25 (4) “OBSCENE” MEANS: 26 6 SENATE BILL 780 (I) THAT THE AVERAGE ADULT APPLYING CONTEMPORARY 1 COMMUNITY STANDARDS WOULD FIND THAT THE WORK, TAKEN AS A WHOLE, 2 APPEALS TO THE PRURIENT INTEREST; 3 (II) THAT THE WORK DEPICTS SEXUAL CONDUCT IN A WAY THAT 4 IS PATENTLY OFFENSIVE TO PREVAILING STANDARDS IN THE ADULT COMMUNITY AS 5 A WHOLE WITH RESPECT TO WHAT IS SUITABLE MATERIAL; AND 6 (III) THAT THE WORK, TAKEN AS A WHOLE, LACKS SERIOUS 7 ARTISTIC, EDUCATIONAL, LITERARY, POLITICAL, OR SCIENTIFIC VALUE. 8 (b) There is a Digital Connectivity Fund. 9 (c) The purpose of the Fund is to assist in the establishment and expansion of 10 affordable broadband communication services in disconnected areas and communities in 11 the State. 12 (d) (1) The Office shall administer the Fund. 13 (2) The Office shall adopt application procedures for grants distributed 14 from the Fund. 15 (3) The Office shall work with other offices within the Department and the 16 Department of Commerce to adopt regulations specifying: 17 (i) procedures for applying for financial assistance; and 18 (ii) priorities for allocating, selecting, and distributing financial 19 assistance from the Fund. 20 (e) (1) The Fund is a continuing, nonlapsing special fund that is not subject to 21 § 7–302 of the State Finance and Procurement Article. 22 (2) The State Treasurer shall hold the Fund separately, and the 23 Comptroller shall account for the Fund. 24 (f) The Fund consists of: 25 (1) money appropriated by the State to the Fund; 26 (2) financial assistance provided to the State by the federal government for 27 the Fund; 28 (3) interest earnings; and 29 SENATE BILL 780 7 (4) any other money from any other source accepted for the benefit of the 1 Fund. 2 (g) The Fund may be used only to distribute competitive grants: 3 (1) for planning, construction, and maintenance of broadband 4 communication services, equipment, and activities; and 5 (2) to provide financial assistance to local governments to expand 6 high–speed Internet access in disconnected communities in the State. 7 (h) IN DISTRIBUTING GRANTS UNDER THIS SECTION, THE OFFICE SHALL 8 GIVE PREFERENCE TO APPLICATIONS FOR GRANTS THAT INCLUDE THE USE OF 9 BROADBAND PROVIDERS THAT IMPLEMENT THE USE OF FILTERS BY DEFAULT. 10 (I) (1) The State Treasurer shall invest the money of the Fund in the same 11 manner as other State money may be invested. 12 (2) Any interest earnings of the Fund shall be credited to the Fund. 13 [(i)] (J) Expenditures from the Fund may be made only in accordance with the 14 State budget. 15 6.5–107. 16 (a) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS 17 INDICATED. 18 (2) “FILTER” MEANS SOFTWARE THAT: 19 (I) IS CAPABLE OF PREVENTING ACCESS TO OR THE DISPLAY OF 20 OBSCENE MATERIAL ON ANY COMPUTER OR DEVICE CONNECTED TO THE INTERNET; 21 AND 22 (II) MAY BE DISABLED BY THE END USER. 23 (3) “FUND” MEANS THE RURAL BROADBAND ASSISTANCE FUND. 24 (4) “OBSCENE” MEANS: 25 (I) THAT THE AVERAGE ADULT APPLYING CONTEMPORARY 26 COMMUNITY STANDARDS WOULD FIND THAT THE WORK, TAKEN AS A WHOLE, 27 APPEALS TO THE PRURIENT INTEREST; 28 8 SENATE BILL 780 (II) THAT THE WORK DEPICTS SEXUAL CONDUCT IN A WAY THAT 1 IS PATENTLY OFFENSIVE TO PREVAILING STANDARDS IN THE ADULT COMMUNITY AS 2 A WHOLE WITH RESPECT TO WHAT IS SUITABLE MATERIAL; AND 3 (III) THAT THE WORK, TAKEN AS A WHOLE, LACKS SERIOUS 4 ARTISTIC, EDUCATIONAL, LITERARY, POLITICAL, OR SCIENTIFIC VALUE. 5 (B) There is a Rural Broadband Assistance Fund in the Department. 6 [(b)] (C) The purpose of the Fund is to assist in the establishment of broadband 7 communication services in rural and underserved areas of the State. 8 [(c)] (D) The Office shall administer the Fund. 9 [(d)] (E) (1) The Fund is a special, nonlapsing fund that is not subject to § 10 7–302 of the State Finance and Procurement Article. 11 (2) The Treasurer shall hold the Fund separately, and the Comptroller 12 shall account for the Fund. 13 [(e)] (F) The Fund consists of: 14 (1) money appropriated in the State budget to the Fund; 15 (2) money appropriated in the State budget to the Maryland Economic 16 Development Assistance Fund under Title 5, Subtitle 3 of the Economic Development 17 Article for the purpose of assisting in the establishment of broadband communication 18 services in rural and underserved areas of the State; 19 (3) federal money allocated or granted to the Fund; 20 (4) interest earnings; and 21 (5) any other money from any source accepted for the benefit of the Fund. 22 [(f)] (G) The Fund may be used only for planning, construction, and 23 maintenance of broadband communication services and equipment in rural and 24 underserved areas and related activities. 25 (H) IN DISTRIBUTING GRANTS UNDER THIS SECTION, THE OFFICE SHALL 26 GIVE PREFERENCE TO APPLICATIONS FOR GRANTS THAT INCLUDE THE USE OF 27 BROADBAND PROVIDERS THAT IMPLEMENT THE USE OF FILTERS BY DEFAULT. 28 [(g)] (I) (1) The Treasurer shall invest the money in the Fund in the same 29 manner as other State money may be invested. 30 SENATE BILL 780 9 (2) Any interest earnings of the Fund shall be credited to the Fund. 1 [(h)] (J) The Office shall make payments from the Fund within 30 days after 2 notice of a decision of the Maryland Rural Broadband Coordination Board under § 3 13–504(3) of the Economic Development Article. 4 Article – State Finance and Procurement 5 14–419. 6 (A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS 7 INDICATED. 8 (2) “FILTER” MEANS SOFTWARE THAT: 9 (I) IS CAPABLE OF PREVENTING ACCESS TO OR THE DISPLAY OF 10 OBSCENE MATERIAL ON ANY COMPUTER OR DEVICE CONNECTED TO THE INTERNET; 11 AND 12 (II) MAY BE DISABLED BY THE END USER. 13 (3) “INTERNET SERVICE PROVIDER” MEANS A PERSON THAT 14 PROVIDES SERVICES FOR ACCESSING, USING, OR PARTICIPATING IN THE INTERNET. 15 (4) “OBSCENE” MEANS: 16 (I) THAT THE AVERAGE ADULT APPLYING CONTEMPORARY 17 COMMUNITY STANDARDS WOULD FIND THAT THE WORK, TAKEN AS A WHOLE, 18 APPEALS TO THE PRURIENT INTEREST; 19 (II) THAT THE WORK DEPICTS SEXUAL CONDUCT IN A WAY THAT 20 IS PATENTLY OFFENSIVE TO PREVAILING STANDARDS IN THE ADULT COMMUNITY AS 21 A WHOLE WITH RESPECT TO WHAT IS SUITABLE MATERIAL; AND 22 (III) THAT THE WORK, TAKEN AS A WHOLE, LACKS SERIOUS 23 ARTISTIC, EDUCATIONAL, LITERARY, POLITICAL, OR SCIENTIFIC VALUE. 24 (5) “PREFERENCE” MEANS: 25 (I) A PERCENTAGE PRICE PREFERENCE; OR 26 (II) ANY OTHER PROVISION THAT FAVORS INTERNET SERVICE 27 PROVIDERS THAT IMPLEMENT THE USE OF FILTERS BY DEFAULT. 28 10 SENATE BILL 780 (B) BEGINNING OCTOBER 1, 2026, ALL STATE AGENCIES SHALL GIVE 1 PREFERENCE TO INTERNET SERVICE PROVIDERS THAT IMPLEMENT THE USE OF 2 FILTERS BY DEFAULT. 3 (C) THE BOARD SHALL ADOPT REGULATIONS THAT REQUIRE STATE 4 SCHOOLS AND FACILITIES TO ESTABLISH A PERCENTAGE PRICE PREFERENCE FOR 5 INTERNET SERVICE PROVIDERS THAT IMPLEMENT THE USE OF FILTERS BY 6 DEFAULT. 7 (D) THIS SECTION DOES NOT APPLY TO A CONTRACT OR PROCUREMENT 8 AGREEMENT IN EFFECT ON OCTOBER 1, 2024. 9 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 10 October 1, 2024. 11