Bill aimed at protecting youth online narrowed, advanced

A proposal meant to protect children’s private information and provide parental tools to monitor their online safety was amended and advanced from select file April 9.

LB504, introduced by Lincoln Sen. Carolyn Bosn at the request of Gov. Jim Pillen, would create the Age-Appropriate Online Design Code Act. Under the bill, a covered online service would be required to “exercise reasonable care” in protecting user data and in the design and implementation of covered online services to prevent harms such as compulsive use, severe emotional distress, identity theft and severe psychological harm.

A covered online service is defined as one that operates in Nebraska, is reasonably likely to be accessed by minors and meets certain revenue or volume thresholds. The bill would not apply to government entities.

Among other provisions, the bill would require a covered online service to provide users with “easy-to-use tools” that limit communications from other users, prevent the viewing of personal data, control in-game purchases and other transactions and place limits on the amount of time a user spends on the service.

LB504 as introduced also would place limits on data retention and sharing and would require a covered online service to treat all users as minors unless they have knowledge that they are not. Parents would be provided with the ability to view, manage and control a child’s privacy and account settings. The bill defines a “child” as an individual who is 13 or younger.

The state attorney general’s office would enforce the bill’s provisions and violations could result in a civil penalty of not more than $50,000 per violation.

Bosn offered an amendment during select file debate to address a number of concerns that were raised during first-round discussions. The amendment would replace the bill and make a number of changes, including:
• removing reporting requirements;
• adding a definition of dark patterns;
• removing the definition of sensitive personal data;
• changing the definition of compulsive usage;
• adding a definition of a covered minor;
• changing the definition of covered online service;
• removing promulgation of rules and regulations from the state attorney general’s office; and
• removing a section regarding the exercise of “reasonable care” on behalf of a covered online service.

Bosn said the amendment would allow online platforms to operate in Nebraska while still keeping children safe. For example, the bill as amended would apply only to “known minors,” she said, and not to entities that are “likely to be accessed by minors” as in the previous version of the measure.

“The reason for the change was to accommodate those companies who were inadvertently scooped up in the previous definition,” Bosn said. “Think companies in the automotive industry who are not what you think of when you think of social media companies but who are accessed by young adults, perhaps looking to buy their first car.”

Lincoln Sen. George Dungan said he appreciated the intent of the bill and the amendment, but that the changes wouldn’t address all of his concerns — including that the requirements for covered entities would cross the line into restricting their content.

Dungan offered an amendment to strike provisions of the bill requiring covered entities to establish default settings that he said continued to raise First Amendment concerns. He said those provisions would require social media companies to curate their content in a way that would infringe on their free speech rights.

That amendment failed 10-26.

An amendment offered by Omaha Sen. John Cavanaugh, adopted 39-0, would specify that all monetary penalties collected under the measure would be remitted to the state treasurer for distribution in accordance with Nebraska Constitution.

Cavanaugh said such civil penalties in Nebraska ultimately are distributed to the school district in which the offense occurred and that his amendment simply would affirm that would be the case for LB504 as well.

Following the 45-0 adoption of Bosn’s amendment, lawmakers advanced LB504 to final reading by voice vote.