SB 1106 Initials PRB/HG Page 1 Commerce ARIZONA HOUSE OF REPRESENTATIVES Fifty-sixth Legislature First Regular Session Senate: TAT DP 4-3-0-0 | 3 rd Read 16-13-1-0 SB 1106: social media platforms; standards; notification Sponsor: Senator Rogers, LD 7 Committee on Commerce Overview Establishes standards for social media platforms relating to deplatforming candidates, user censorship, algorithm categorization and notification requirements. History A social media platform is an organization that provides a service for public users to disseminate speech, expression, information or other content to other users or the public and includes both the organization and any of its officers, agents, employees, contractors or any other person employed by or acting on behalf of the social media platform, as well subcontractors or entities used to conduct fact-checking or any other activities relating to content modulation. Provisions Social Media Platforms (Sec. 1) 1. Establishes laws governing social media platforms (Platforms). 2. Defines social media platform as any information service, system, internet search engine or access software provider that meets all of the following: a) provides or enables computer access by multiple users to a computer server, including an internet platform or social media site; b) operates as a sole proprietorship, partnership, limited liability company, corporation, association or other legal entity; c) does business in Arizona; and d) has either annual gross revenues of more than $100,000,000, as adjusted in January of each odd-numbered year to reflect any increase in the consumer price index, or at least 100,000,000 monthly individual platform participants globally. Candidates 3. Prohibits a Platform from wilfully deplatforming a candidate from the date of the candidate's qualification to the date of the election or cessation of candidacy. 4. Requires a social media platform to provide a method: a) by which a user can be identified as a candidate; and b) that provides the social media platform with sufficient information to confirm the candidate's qualification. 5. Stipulates the Secretary of State may, upon finding that a Platform has violated the deplatforming prohibition, impose a civil penalty of: a) $250,000 per day for deplatforming a candidate for statewide office; and SB 1106 Initials PRB/HG Page 2 Commerce b) $25,000 per day for deplatforming a candidate for any other office. 6. Requires a platform to inform the candidate, when free advertising is wilfully provided, of the in-kind consideration and specifies what is not considered as free advertising. Censorship Standards 7. Mandates the Platform to publish the standards used for determining how it will censor, deplatform and shadow ban the Platform's users. 8. Requires the Platform's censorship, deplatforming and shadow banning standards to be applied in a consistent manner among the Platform's users. 9. Instructs the Platform, before the implementation of changes to the rules, terms and agreements, to inform each user about any such changes. 10. Prohibits the platform from making changes more than once every 30 days. 11. Prohibits the Platform from censoring or shadow banning a user's content or material or deplatforming a user: a) without delivering a specified notification to the user; or b) in a manner that violates censorship standards. 12. Instructs the Platform to: a) provide a mechanism that allows a user to request the number of other Platform participants who were provided or shown the user's content or posts; b) provide a user with the number of other Platform participants who were provided or shown the user's content or posts; c) categorize algorithms used for postprioritization and shadow banning; and d) permit a user to opt out of postprioiritization and shadow banning algorithm categories to allow sequential or chronological posts and content. 13. Requires the Platform to annually provide notice on algorithms used for postprioritization and shadow banning and reoffer the opt-out opportunity. 14. Prohibits a Platform from applying or using postprioritization or shadow banning algorithms for content posted by or about a user who is a candidate, during the user's candidacy. 15. Asserts postprioritization of certain content from or about a candidate based on payments to the Platform by the candidate or a third party is not a violation of censorship standards. 16. Requires a social media platform to provide a user with a method: a) by which a user can be identified as a candidate; and b) that provides the social media platform with sufficient information to confirm the user's qualification of candidacy. 17. Requires the Platform to permit a user, who has been deplatformed, to access or retrieve all of their information, content, material and data for at least 60 days after the required notification of deplatforming has been received. 18. Prevents a Platform from censoring, deplatforming or shadow banning a journalistic enterprise based on the content of the journalistic enterprise's publication or broadcast, unless the content is obscene. 19. Asserts postprioritization of certain journalistic enterprise content based on payments to the Platform by the journalistic enterprise is not a violation of censorship standards. ☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note SB 1106 Initials PRB/HG Page 3 Commerce 20. Stipulates that a Platform is not required to notify a user if the censored content or material is obscene. 21. Asserts a violation of the censorship standards constitutes an unlawful practice under consumer fraud statutes and is in addition to all other causes of action, remedies and penalties available to this state. 22. Permits the Attorney General to investigate and take appropriate action against anyone who commits a violation in accordance with consumer fraud statutes. 23. Allows a user who is harmed by a Platform's violation of certain censorship standards to bring a private cause of action for the violation for which the court may award: a) a maximum of $100,000 in statutory damages for each proven claim; b) actual damages; c) punitive damages, if aggravating factors are present; d) other forms of equitable relief, including injunctive relief; and e) costs and reasonable attorney fees, if the user was deplatformed in violation of censorship, deplatforming or shadow banning standards. 24. Stipulates that the failure of a Platform's compliance with the standards regarding allowing users to opt out of postprioritization and shadow banning algorithms will be treated as a separate violation, act or practice. 25. Specifies a Platform that censors, shadow bans, deplatforms or applies postprioritization algorithms to candidates and users in Arizona is conclusively presumed to be engaged in substantial and not isolated activities within Arizona and operating, conducting, engaging in or carrying on a business and doing business in Arizona, and the social media platform is therefore subject to the jurisdiction of the courts of Arizona. 26. Excludes, from the Platform censorship standards, a publisher, broadcaster, printer or other person engaged in disseminating information or reproducing printed or pictorial matter if the information or matter has been disseminated or reproduced on behalf of others without knowledge of violation. 27. Defines pertinent terms.