This bill creates offenses for a person to knowingly possess, distribute, or produce technology, software, or digital tools designed for the purpose of creating material that includes a minor engaged in sexual activity or simulated sexual activity that is patently offensive. This bill provides the following classifications for such offenses:  Possession of technology, software, or digital tools in violation of this bill is a Class E felony, punishable by a term of imprisonment not less than one year nor more than six years. In addition, the jury may assess a fine not to exceed $3,000.  Distribution of technology, software, or digital tools in violation of this bill is a Class C felony, punishable by a term of imprisonment not less than two years nor more than 12 years. In addition, the jury may assess a fine not to exceed $5,000.  Production of technology, software, or digital tools in violation of this bill is a Class B felony, punishable by a term of imprisonment not less than three years nor more than 15 years. In addition, the jury may assess a fine not to exceed $10,000. In determining whether technology, software, or digital tools are designed for the purpose of creating material that includes a minor engaged in sexual activity or simulated sexual activity that is patently offensive, this bill requires the court or other authority making that determination, in addition to all other logically relevant factors, to consider all of the following:  Statements by the defendant concerning its use.  The existence of material that includes a minor engaged in sexual activity or simulated sexual activity that is patently offensive in the defendant's possession.  Instructions, oral or written, provided with the technology, software, or digital tools concerning its use.  Descriptive materials accompanying the technology, software, or digital tools that explain or depict its use.  The manner in which the technology, software, or digital tools were advertised or offered when obtained by the defendant.  The existence and scope of legitimate uses for the technology, software, or digital tools in the community.  Expert testimony concerning use of the technology, software, or digital tools.