HB2586 is a bill that proposes to hold commercial entities liable for damages if they distribute material harmful to minors on their websites without implementing a reasonable age verification method. The bill defines "material harmful to minors" and sets the threshold for a "substantial portion" of such material on a website at more than 33.33%. It also outlines what constitutes a "reasonable age verification method," including independent third-party services or other commercially reasonable methods based on transactional data.

The bill prohibits commercial entities or third parties from retaining an individual's identifying information after granting access to the material. If a commercial entity or third party knowingly retains such information, they are liable for damages, including court costs and attorney fees. The bill exempts bona fide news or public interest broadcasts and does not affect the rights of news-gathering organizations. Internet service providers and related entities are not held liable under this bill simply for providing access to content they do not create. The bill was vetoed by the Governor due to conflicts with settled case law and the need for a bipartisan solution that respects the First Amendment.