Bill Summary – FastDemocracy

Enrolled Copy                                                                       H.B. 311
                          SOCIAL MEDIA USAGE AMENDMENTS
                                    2023 GENERAL SESSION
                                         STATE OF UTAH
                            Chief Sponsor: Jordan D. Teuscher
                             Senate Sponsor: Kirk A. Cullimore
 Cosponsors:                        Joseph Elison Carol S. Moss
 Cheryl K. Acton Katy Hall Doug Owens
 Carl R. Albrecht Jon Hawkins Thomas W. Peterson
 Melissa G. Ballard Ken Ivory Candice B. Pierucci
 Stewart E. Barlow Colin W. Jack Susan Pulsipher
 Gay Lynn Bennion Tim Jimenez Angela Romero
 Bridger Bolinder Dan N. Johnson Robert M. Spendlove
 Brady Brammer Marsha Judkins Keven J. Stratton
 Joel K. Briscoe Brian S. King Mark A. Strong
 Jefferson S. Burton Michael L. Kohler                   R. Neil Walter
 Kay J. Christofferson Quinn Kotter Mark A. Wheatley
 Tyler Clancy Trevor Lee Stephen L. Whyte
 James Cobb Anthony E. Loubet
 Paul A. Cutler Steven J. Lund
 Jennifer Dailey-Provost Ashlee Matthews
21
 LONG TITLE
 General Description:
        This bill regulates social media companies and the use and design of social media
 platforms.
 Highlighted Provisions:
        This bill:
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        < defines terms;
        < enacts the Utah Social Media Regulation Act;
        < prohibits a social media company from using a design or feature that causes a minor
 to have an addiction to the company's social media platform;
        < grants the Division of Consumer Protection enforcement and auditing authority to
 enforce requirements under the act;
        < authorizes a private right of action to collect attorney fees and damages from a
 social media company for harm incurred by a minor's use of the company's social
 media platform;
        < creates a rebuttable presumption that harm and causation occurred in some
 circumstances;
        < prohibits certain waivers;
        < provides a severability clause; and
        < makes technical and conforming changes.
 Money Appropriated in this Bill:
        None
 Other Special Clauses:
        This bill provides a special effective date.
 Utah Code Sections Affected:
 AMENDS:
        13-2-1 (Superseded 12/31/23), as last amended by Laws of Utah 2022, Chapter 201
        13-2-1 (Effective 12/31/23), as last amended by Laws of Utah 2022, Chapters 201, 462
 ENACTS:
        13-63-101, Utah Code Annotated 1953
        13-63-201, Utah Code Annotated 1953
        13-63-301, Utah Code Annotated 1953
        13-63-401, Utah Code Annotated 1953
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        13-63-501, Utah Code Annotated 1953
56
 Be it enacted by the Legislature of the state of Utah:
        Section 1. Section 13-2-1 (Superseded 12/31/23) is amended to read:
                                TITLE 13. COMMERCE AND TRADE
        13-2-1 (Superseded 12/31/23). Consumer protection division established --
 Functions.
        (1) There is established within the Department of Commerce the Division of Consumer
 Protection.
        (2) The division shall administer and enforce the following:
        (a) Chapter 5, Unfair Practices Act;
        (b) Chapter 10a, Music Licensing Practices Act;
        (c) Chapter 11, Utah Consumer Sales Practices Act;
        (d) Chapter 15, Business Opportunity Disclosure Act;
        (e) Chapter 20, New Motor Vehicle Warranties Act;
        (f) Chapter 21, Credit Services Organizations Act;
        (g) Chapter 22, Charitable Solicitations Act;
        (h) Chapter 23, Health Spa Services Protection Act;
        (i) Chapter 25a, Telephone and Facsimile Solicitation Act;
        (j) Chapter 26, Telephone Fraud Prevention Act;
        (k) Chapter 28, Prize Notices Regulation Act;
        (l) Chapter 32a, Pawnshop, Secondhand Merchandise, and Catalytic Converter
 Transaction Information Act;
        (m) Chapter 34, Utah Postsecondary Proprietary School Act;
        (n) Chapter 34a, Utah Postsecondary School State Authorization Act;
        (o) Chapter 41, Price Controls During Emergencies Act;
        (p) Chapter 42, Uniform Debt-Management Services Act;
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        (q) Chapter 49, Immigration Consultants Registration Act;
        (r) Chapter 51, Transportation Network Company Registration Act;
        (s) Chapter 52, Residential Solar Energy Disclosure Act;
        (t) Chapter 53, Residential, Vocational and Life Skills Program Act;
        (u) Chapter 54, Ticket Website Sales Act;
        (v) Chapter 56, Ticket Transferability Act; [and]
        (w) Chapter 57, Maintenance Funding Practices Act[.]; and
        (x) Chapter 63, Utah Social Media Regulation Act.
        Section 2. Section 13-2-1 (Effective 12/31/23) is amended to read:
        13-2-1 (Effective 12/31/23). Consumer protection division established --
 Functions.
        (1) There is established within the Department of Commerce the Division of Consumer
 Protection.
        (2) The division shall administer and enforce the following:
        (a) Chapter 5, Unfair Practices Act;
        (b) Chapter 10a, Music Licensing Practices Act;
        (c) Chapter 11, Utah Consumer Sales Practices Act;
        (d) Chapter 15, Business Opportunity Disclosure Act;
        (e) Chapter 20, New Motor Vehicle Warranties Act;
        (f) Chapter 21, Credit Services Organizations Act;
        (g) Chapter 22, Charitable Solicitations Act;
        (h) Chapter 23, Health Spa Services Protection Act;
        (i) Chapter 25a, Telephone and Facsimile Solicitation Act;
        (j) Chapter 26, Telephone Fraud Prevention Act;
        (k) Chapter 28, Prize Notices Regulation Act;
        (l) Chapter 32a, Pawnshop, Secondhand Merchandise, and Catalytic Converter
 Transaction Information Act;
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        (m) Chapter 34, Utah Postsecondary Proprietary School Act;
        (n) Chapter 34a, Utah Postsecondary School State Authorization Act;
        (o) Chapter 41, Price Controls During Emergencies Act;
        (p) Chapter 42, Uniform Debt-Management Services Act;
        (q) Chapter 49, Immigration Consultants Registration Act;
        (r) Chapter 51, Transportation Network Company Registration Act;
        (s) Chapter 52, Residential Solar Energy Disclosure Act;
        (t) Chapter 53, Residential, Vocational and Life Skills Program Act;
        (u) Chapter 54, Ticket Website Sales Act;
        (v) Chapter 56, Ticket Transferability Act;
        (w) Chapter 57, Maintenance Funding Practices Act; [and]
        (x) Chapter 61, Utah Consumer Privacy Act[.]; and
        (y) Chapter 63, Utah Social Media Regulation Act.
        Section 3. Section 13-63-101 is enacted to read:
                   CHAPTER 63. UTAH SOCIAL MEDIA REGULATION ACT
                                     Part 1. General Requirements
        13-63-101. Definitions.
        As used in this chapter:
        (1) "Account holder" means a person who has, or opens, an account or profile to use a
 social media company's platform.
        (2) "Addiction" means use of a social media platform that:
        (a) indicates the user's substantial preoccupation or obsession with, or the user's
 substantial difficulty to cease or reduce use of, the social media platform; and
        (b) causes physical, mental, emotional, developmental, or material harms to the user.
        (3) "Director" means the director of the Division of Consumer Protection created in
 Section 13-2-1.
        (4) "Division" means the Division of Consumer Protection created in Section 13-2-1.
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        (5) "Educational entity" means a public school, an LEA, a charter school, the Utah
 Schools for the Deaf and Blind, a private school, a denominational school, a parochial school, a
 community college, a state college, a state university, or a nonprofit private postsecondary
 educational institution.
        (6) (a) "Interactive computer service" means an information service, information
 system, or information access software provider that:
        (i) provides or enables computer access by multiple users to a computer server; and
        (ii) provides access to the Internet.
        (b) "Interactive computer service" includes:
        (i) a web service;
        (ii) a web system;
        (iii) a website;
        (iv) a web application; or
        (v) a web portal.
        (7) "Minor" means an individual who is under the age of 18 and:
        (a) has not been emancipated as that term is defined in Section 80-7-102; or
        (b) has not been married.
        (8) "Post" means content that an account holder makes available on a social media
 platform for other account holders or users to view.
        (9) "Social media company" means a person or entity that:
        (a) provides a social media platform that has at least 5,000,000 account holders
 worldwide; and
        (b) is an interactive computer service.
        (10) (a) "Social media platform" means an online forum that a social media company
 makes available for an account holder to:
        (i) create a profile;
        (ii) upload posts;
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         (iii) view the posts of other account holders; and
         (iv) interact with other account holders or users.
         (b) "Social media platform" does not include an online service, website, or application:
         (i) where the predominant or exclusive function is:
         (A) electronic mail;
         (B) direct messaging consisting of text, photos, or videos that are sent between devices
 by electronic means, where messages are:
         (I) shared between the sender and the recipient;
         (II) only visible to the sender and the recipient; and
         (III) are not posted publicly;
         (C) a streaming service that:
         (I) provides only licensed media in a continuous flow from the service, website, or
 application to the end user; and
         (II) does not obtain a license to the media from a user or account holder by agreement
 to its terms of service;
         (D) news, sports, entertainment, or other content that is preselected by the provider and
 not user generated, and any chat, comment, or interactive functionality that is provided
 incidental to, directly related to, or dependent upon provision of the content;
         (E) online shopping or e-commerce, if the interaction with other users or account
 holders is generally limited to:
         (I) the ability to upload a post and comment on reviews;
         (II) the ability to display lists or collections of goods for sale or wish lists; and
         (III) other functions that are focused on online shopping or e-commerce rather than
 interaction between users or account holders;
         (F) interactive gaming, virtual gaming, or an online service, that allows the creation
 and uploading of content for the purpose of interactive gaming, edutainment, or associated
 entertainment, and the communication related to that content;
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         (G) photo editing that has an associated photo hosting service, if the interaction with
 other users or account holders is generally limited to liking or commenting;
         (H) a professional creative network for showcasing and discovering artistic content, if
 the content is required to be non-pornographic;
         (I) single-purpose community groups for public safety if:
         (I) the interaction with other users or account holders is generally limited to that single
 purpose; and
         (II) the community group has guidelines or policies against illegal content;
         (J) providing career development opportunities, including professional networking, job
 skills, learning certifications, and job posting and application services;
         (K) business to business software;
         (L) a teleconferencing or videoconferencing service that allows reception and
 transmission of audio and video signals for real time communication;
         (M) cloud storage;
         (N) shared document collaboration;
         (O) cloud computing services, which may include cloud storage and shared document
 collaboration;
         (P) providing access to or interacting with data visualization platforms, libraries, or
 hubs;
         (Q) to permit comments on a digital news website, if the news content is posted only
 by the provider of the digital news website;
         (R) providing or obtaining technical support for a platform, product, or service;
         (S) academic or scholarly research; or
         (T) genealogical research; or
         (ii) where:
         (A) the majority of the content that is posted or created is posted or created by the
 provider of the online service, website, or application; and
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           (B) the ability to chat, comment, or interact with other users is directly related to the
 provider's content;
           (iii) that is a classified ad service that only permits the sale of goods and prohibits the
 solicitation of personal services; or
           (iv) that is used by and under the direction of an educational entity, including:
           (A) a learning management system;
           (B) a student engagement program; and
           (C) a subject or skill-specific program.
           (11) "User" means a person who has access to view all, or some of, the posts on a
 social media platform, but is not an account holder.
           (12) (a) "Utah account holder" means a person who is a Utah resident and an account
 holder.
           (b) "Utah account holder" includes a Utah minor account holder.
           (13) "Utah minor account holder" means a Utah account holder who is a minor.
           (14) "Utah resident" means an individual who currently resides in Utah.
           Section 4. Section 13-63-201 is enacted to read:
                                   Part 2. Social Media Design Regulations
           13-63-201. Social media platform design regulations -- Enforcement and auditing
 authority -- Penalties.
           (1) Beginning March 1, 2024:
           (a) the division shall administer and enforce the provisions of this section; and
           (b) the division may audit the records of a social media company in order to determine
 compliance with the requirements of this section or to investigate a complaint, including a
 random sample of a social media company's records and other audit methods.
           (2) Beginning March 1, 2024, a social media company shall not use a practice, design,
 or feature on the company's social media platform that the social media company knows, or
 which by the exercise of reasonable care should know, causes a Utah minor account holder to
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 have an addiction to the social media platform.
         (3) Beginning March 1, 2024:
         (a) Subject to Subsection (3)(b), a social media company is subject to:
         (i) a civil penalty of $250,000 for each practice, design, or feature shown to have
 caused addiction; and
         (ii) a civil penalty of up to $2,500 for each Utah minor account holder who is shown to
 have been exposed to the practice, design, or feature found to have caused addiction under
 Subsection (3)(a)(i).
         (b) A social media company shall not be subject to a civil penalty for violating this
 section if the social media company, as an affirmative defense, demonstrates that the social
 media company:
         (i) instituted and maintained a program of at least quarterly audits of the social media
 company's practices, designs, and features to detect practices, designs, or features that have the
 potential to cause or contribute to the addiction of a minor user; and
         (ii) corrected, within 30 days of the completion of an audit described in Subsection
 (3)(b)(i), any practice, design, or feature discovere