Bill Summary – FastDemocracy

Enrolled Copy                                                                           S.B. 152
                      SOCIAL MEDIA REGULATION AMENDMENTS
                                      2023 GENERAL SESSION
                                            STATE OF UTAH
                              Chief Sponsor: Michael K. McKell
                              House Sponsor: Jordan D. Teuscher
 6
 LONG TITLE
 General Description:
        This bill enacts provisions related to the regulation of social media companies and
 social media platforms.
 Highlighted Provisions:
        This bill:
        < defines terms;
        < enacts the Utah Social Media Regulation Act;
        < requires a social media company to verify the age of a Utah resident seeking to
 maintain or open a social media account;
        < requires a social media company to obtain the consent of a parent or guardian before
 a Utah resident under the age of 18 may maintain or open an account;
        < prohibits a social media company from permitting a Utah resident to open an
 account if that person does not meet age requirements under state or federal law;
        < requires that for accounts held by a Utah minor, certain social media companies:
            C   shall prohibit direct messaging with certain accounts;
            C   may not show the minor's account in search results;
            C   may not display advertising;
            C   may not collect, share, or use personal information from the account, with
 certain exceptions;
            C   may not target or suggest ads, accounts, or content; and
            C   shall limit hours of access, subject to parental or guardian direction;
        < requires a social media company to provide a parent or guardian access to the
       S.B. 152                                                                     Enrolled Copy
 content and interactions of an account held by a Utah resident under the age of 18;
        < directs the Division of Consumer Protection to receive and investigate complaints
 of violations of the requirements established under the act and impose
 administrative fines for violations;
        < authorizes the division to seek enforcement through an injunction, civil penalties,
 and other relief through the judicial process;
        < requires fines and civil penalties to be deposited into the Consumer Protection
 Education and Training Fund;
        < requires an annual report from the division;
        < authorizes a private right of action to collect attorney fees and damages from a
 social media company for harm incurred in relation to a violation of the
 requirements established by the act;
        < prohibits certain waivers; and
        < provides a severability clause.
 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
        13-63-102, Utah Code Annotated 1953
        13-63-103, Utah Code Annotated 1953
        13-63-104, Utah Code Annotated 1953
        13-63-105, Utah Code Annotated 1953
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       Enrolled Copy                                                                     S.B. 152
        13-63-201, Utah Code Annotated 1953
        13-63-202, Utah Code Annotated 1953
        13-63-203, Utah Code Annotated 1953
        13-63-301, Utah Code Annotated 1953
        13-63-401, Utah Code Annotated 1953
        13-63-501, Utah Code Annotated 1953
64
 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;
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       S.B. 152                                                                     Enrolled Copy
        (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; [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;
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       Enrolled Copy                                                                         S.B. 152
        (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;
        (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) "Director" means the director of the Division of Consumer Protection created in
 Section 13-2-1.
        (3) "Division" means the Division of Consumer Protection created in Section 13-2-1.
        (4) "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
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        S.B. 152                                                                      Enrolled Copy
 community college, a state college, a state university, or a nonprofit private postsecondary
 educational institution.
        (5) (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.
        (6) "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.
        (7) "Post" means content that an account holder makes available on a social media
 platform for other account holders or users to view.
        (8) "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.
        (9) (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;
        (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:
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        Enrolled Copy                                                                                 S.B. 152
         (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;
         (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;
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        S.B. 152                                                                         Enrolled Copy
         (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;
         (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
         (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:
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       Enrolled Copy                                                                              S.B. 152
           (A) a learning management system;
           (B) a student engagement program; and
           (C) a subject or skill-specific program.
           (10) "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.
           (11) (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.
           (12) "Utah minor account holder" means a Utah account holder who is a minor.
           (13) "Utah resident" means an individual who currently resides in Utah.
           Section 4. Section 13-63-102 is enacted to read:
           13-63-102. Age requirements for use of social media platform -- Parental consent
 -- Rulemaking authority of division.
           (1) Beginning March 1, 2024, a social media company may not permit a Utah resident
 who is a minor to be an account holder on the social media company's social media platform
 unless the Utah resident has the express consent of a parent or guardian.
           (2) Notwithstanding any provision of this chapter, a social media company may not
 permit a Utah resident who is a minor to hold or open an account on a social media platform if
 the minor is ineligible to hold or open an account under any other provision of state or federal
 law.
           (3) (a) Beginning March 1, 2024, a social media company shall verify the age of an
 existing or new Utah account holder and, if the existing or new account holder is a minor,
 confirm that a minor has consent as required under Subsection (1):
           (i) for a new account, at the time the Utah resident opens the account; or
           (ii) for a Utah account holder who has not provided age verification as required under
 this section, within 14 calendar days of the Utah account holder's attempt to access the account.
           (b) If a Utah account holder fails to meet the verification requirements of this section
 within the required time period, the social media company shall deny access to the account:
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        S.B. 152                                                                        Enrolled Copy
        (i) upon the expiration of the time period; and
        (ii) until all verification requirements are met.
        (4) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the