Relating to requirements for filters on mobile devices activated in the state, providing for civil liability for manufacturers of mobile devices for certain violations, and including penalties and contingent effective date provisions

“Manufacturer”, “harmful to minors”, and “activate” are also defined in the bill. The bill requires manufacturers to manufacture devices that when activated in this state automatically enable a filter that performs the functions detailed in the bill. The bill provides that a manufacturer of a device is liable to a minor who resides in the state if the device is activated in this state and upon activation does not enable a filter and the minor uses the device to access material that is harmful to minors. Liability does not extend to a manufacturer that makes a good faith effort to manufacture a device that upon activation automatically enables a generally accepted and commercially reasonable method of filtration in accordance with the requirements in the bill, and with applicable industry standards. The bill provides that a class action may be brought in accordance with the Iowa rules of civil procedure. A court of competent jurisdiction that finds a manufacturer liable must enjoin the manufacturer from committing further violations, and may order civil penalties not to exceed $5,000 per violation, plus filing fees and reasonable attorney fees, in addition to any other penalty available by law. A manufacturer shall be considered to have committed a separate violation for each device manufactured on or after January of the calendar year immediately following the calendar year that the bill takes effect as described in the bill. The total civil penalty imposed in a civil action cannot exceed $50,000. A plaintiff must prove, and a court must find, by clear and convincing evidence, that a manufacturer manufactured a device in violation of the bill on or after January of the calendar year immediately following the calendar year that the bill takes effect, and prove by a preponderance of the evidence that a minor accessed material harmful to minors on such a device. The court must specify the amount of the civil penalty, court costs, and attorney fees for each violation for which the manufacturer is found liable. In determining the civil penalty for a violation of the bill, the court must consider the factors as detailed in the bill. The attorney general may bring a civil action in the name of the people of this state, and a private individual may file a civil action to establish a manufacturer’s liability, after satisfying prerequisite requirements, including a notice to the manufacturer to which the manufacturer must respond as detailed in the bill. The manufacturer’s response may include a penalty paid directly to the noticing party by the manufacturer. If a lawsuit is commenced, the plaintiff may include additional violations in the claim if additional violations are disclosed during the discovery process. A civil penalty ordered by a court under the bill must be paid to the plaintiff as directed by the court, and the court must provide a copy of the order to the office of the attorney general.94. The penalty amount upon which the percent is calculated shall not include attorney fees or costs awarded by the court. Within calendar days of the date of the receipt of a civil penalty ordered by the court, the plaintiff must remit percent and a copy of the court order to the office of the attorney general. Within calendar days of the date of the receipt of a penalty paid directly to the noticing party by a manufacturer, the noticing party must remit percent and specific documentation as detailed in the bill to the office of the attorney general. The attorney general’s office must maintain a log of all notices of alleged violations to which the attorney general’s office did not respond with a letter of merit. The office of the attorney general must maintain a record of all documents and payments submitted to the office of the attorney general pursuant to the provisions of the bill. The attorney general shall annually report to the general assembly in odd-numbered years, beginning the calendar year following the calendar year that the bill takes effect, information as specified in the bill for the immediately preceding two consecutive calendar years. Beginning July of the calendar year immediately following the calendar year in which the bill takes effect, and at each subsequent five-year interval, the general assembly must adjust the dollar amount of the civil penalty provided for in the bill, based on the change in the annual consumer price index for the most recent five-year period ending on December of the immediately preceding calendar year, and rounded to the nearest $5 increment. The attorney general shall publish the dollar amount of the adjusted penalty and the date of the next scheduled adjustment on the attorney general’s internet site. The bill takes effect on the first day of the January immediately following the date on which legislation in substantially the same form has been enacted and has taken effect in at least five states in addition to Iowa. The attorney general must notify the Iowa Code editor upon occurrence of this condition. The chapter is repealed effective January 1, 2031, if the conditions to satisfy the contingent effective date do not occur on or before December 31, 2030.