House File 143 - Introduced HOUSE FILE 143 BY COMMITTEE ON ECONOMIC GROWTH AND TECHNOLOGY (SUCCESSOR TO HSB 13) A BILL FOR An Act relating to ransomware and providing penalties. 1 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 2 TLSB 1266HV (2) 90 as/rh
H.F. 143 Section 1. Section 715.2, Code 2023, is amended to read as 1 follows: 2 715.2 Title. 3 This chapter shall be known and may be cited as the Computer 4 Spyware , Malware, and Ransomware Protection Act . 5 Sec. 2. Section 715.3, Code 2023, is amended by adding the 6 following new subsections: 7 NEW SUBSECTION . 1A. Computer control language means 8 ordered statements that direct a computer to perform specific 9 functions. 10 NEW SUBSECTION . 1B. Computer database means a 11 representation of information, knowledge, facts, concepts, or 12 instructions that is intended for use in a computer, computer 13 system, or computer network that is being prepared or has been 14 prepared in a formalized manner, or is being produced or has 15 been produced by a computer, computer system, or computer 16 network. 17 NEW SUBSECTION . 9A. Ransomware means a computer or data 18 contaminant, encryption, or lock that is placed or introduced 19 without authorization into a computer, computer network, or 20 computer system that restricts access by an authorized person 21 to a computer, computer data, a computer system, or a computer 22 network in a manner that results in the person responsible for 23 the placement or introduction of the contaminant, encryption, 24 or lock making a demand for payment of money or other 25 consideration to remove the contaminant, encryption, or lock. 26 Sec. 3. Section 715.5, subsection 2, Code 2023, is amended 27 to read as follows: 28 2. Using intentionally deceptive means to cause the 29 execution of a computer software component with the intent of 30 causing an owner or operator to use such component in a manner 31 that violates any other provision of this chapter subchapter . 32 Sec. 4. Section 715.6, Code 2023, is amended to read as 33 follows: 34 715.6 Exceptions. 35 -1- LSB 1266HV (2) 90 as/rh 1/ 7
H.F. 143 Sections 715.4 and 715.5 shall not apply to the monitoring 1 of, or interaction with, an owners or an operators internet 2 or other network connection, service, or computer, by a 3 telecommunications carrier, cable operator, computer hardware 4 or software provider, or provider of information service or 5 interactive computer service for network or computer security 6 purposes, diagnostics, technical support, maintenance, repair, 7 authorized updates of computer software or system firmware, 8 authorized remote system management, or detection, criminal 9 investigation, or prevention of the use of or fraudulent 10 or other illegal activities prohibited in this chapter 11 subchapter in connection with a network, service, or computer 12 software, including scanning for and removing computer software 13 prescribed under this chapter subchapter . Nothing in this 14 chapter subchapter shall limit the rights of providers of wire 15 and electronic communications under 18 U.S.C. 2511. 16 Sec. 5. Section 715.7, Code 2023, is amended to read as 17 follows: 18 715.7 Criminal penalties. 19 1. A person who commits an unlawful act under this chapter 20 subchapter is guilty of an aggravated misdemeanor. 21 2. A person who commits an unlawful act under this chapter 22 subchapter and who causes pecuniary losses exceeding one 23 thousand dollars to a victim of the unlawful act is guilty of a 24 class D felony. 25 Sec. 6. Section 715.8, unnumbered paragraph 1, Code 2023, 26 is amended to read as follows: 27 For the purpose of determining proper venue, a violation 28 of this chapter subchapter shall be considered to have been 29 committed in any county in which any of the following apply: 30 Sec. 7. NEW SECTION . 715.9 Ransomware prohibition. 31 1. A person shall not intentionally, willfully, and without 32 authorization do any of the following: 33 a. Access, attempt to access, cause to be accessed, or 34 exceed the persons authorized access to all or a part of a 35 -2- LSB 1266HV (2) 90 as/rh 2/ 7
H.F. 143 computer network, computer control language, computer, computer 1 software, computer system, or computer database. 2 b. Copy, attempt to copy, possess, or attempt to possess 3 the contents of all or part of a computer database accessed in 4 violation of paragraph a . 5 2. A person shall not commit an act prohibited in subsection 6 1 with the intent to do any of the following: 7 a. Cause the malfunction or interruption of the operation 8 of all or any part of a computer, computer network, computer 9 control language, computer software, computer system, computer 10 service, or computer data. 11 b. Alter, damage, or destroy all or any part of data or a 12 computer program stored, maintained, or produced by a computer, 13 computer network, computer software, computer system, computer 14 service, or computer database. 15 3. A person shall not intentionally, willfully, and without 16 authorization do any of the following: 17 a. Possess, identify, or attempt to identify a valid 18 computer access code. 19 b. Publicize or distribute a valid computer access code to 20 an unauthorized person. 21 4. A person shall not commit an act prohibited under this 22 section with the intent to interrupt or impair the functioning 23 of any of the following: 24 a. The state. 25 b. A service, device, or system related to the production, 26 transmission, delivery, or storage of electricity or natural 27 gas in the state that is owned, operated, or controlled by a 28 person other than a public utility as defined in chapter 476. 29 c. A service provided in the state by a public utility as 30 defined in chapter 476. 31 d. A hospital or health care facility as defined in section 32 135C.1. 33 e. A public elementary or secondary school, community 34 college, or area education agency under the supervision of the 35 -3- LSB 1266HV (2) 90 as/rh 3/ 7
H.F. 143 department of education. 1 f. A city, city utility, or city service. 2 5. This section shall not apply to the use of ransomware for 3 research purposes by a person who has a bona fide scientific, 4 educational, governmental, testing, news, or other similar 5 justification for possessing ransomware. However, a person 6 shall not knowingly possess ransomware with the intent to 7 use the ransomware for the purpose of introduction into the 8 computer, computer network, or computer system of another 9 person without the authorization of the other person. 10 6. A person who has suffered a specific and direct injury 11 because of a violation of this section may bring a civil action 12 in a court of competent jurisdiction. 13 a. In an action under this subsection, the court may award 14 actual damages, reasonable attorney fees, and court costs. 15 b. A conviction for an offense under this section is not a 16 prerequisite for the filing of a civil action. 17 Sec. 8. NEW SECTION . 715.10 Criminal penalties. 18 1. A person who commits an unlawful act under this 19 subchapter and who causes pecuniary losses involving less than 20 ten thousand dollars to a victim of the unlawful act is guilty 21 of an aggravated misdemeanor. 22 2. A person who commits an unlawful act under this 23 subchapter and who causes pecuniary losses involving at least 24 ten thousand dollars but less than fifty thousand dollars to a 25 victim of the unlawful act is guilty of a class D felony. 26 3. A person who commits an unlawful act under this 27 subchapter and who causes pecuniary losses involving at least 28 fifty thousand dollars to a victim of the unlawful act is 29 guilty of a class C felony. 30 Sec. 9. NEW SECTION . 715.11 Venue. 31 For the purpose of determining proper venue, a violation of 32 this subchapter shall be considered to have been committed in 33 any county in which any of the following apply: 34 1. Where the defendant performed the unlawful act. 35 -4- LSB 1266HV (2) 90 as/rh 4/ 7
H.F. 143 2. Where the defendant resides. 1 3. Where the accessed computer is located. 2 Sec. 10. CODE EDITOR DIRECTIVE. The Code editor shall 3 divide chapter 715 into subchapters and shall designate 4 sections 715.1 through 715.8, including sections amended in 5 this Act, as subchapter I entitled COMPUTER SPYWARE AND 6 MALWARE, and sections 715.9 through 715.11, as enacted in this 7 Act, as subchapter II entitled RANSOMWARE. 8 EXPLANATION 9 The inclusion of this explanation does not constitute agreement with 10 the explanations substance by the members of the general assembly. 11 This bill relates to ransomware. 12 The bill defines ransomware as a computer or data 13 contaminant, encryption, or lock that is placed or introduced 14 without authorization into a computer, computer network, or a 15 computer system that restricts access by an authorized person 16 to a computer, computer data, a computer network, or a computer 17 system in a manner that results in the person responsible for 18 the placement or introduction of the contaminant, encryption, 19 or lock making a demand for payment of money or other 20 consideration to remove the contaminant, encryption, or lock. 21 The bill provides that a person shall not do any of 22 the following with the intent to cause the malfunction or 23 interruption of the operation of, or alter, damage, or destroy, 24 all or any part of a computer, computer network, computer 25 control language, computer software, computer system, computer 26 service, or computer data: intentionally, willfully, and 27 without authorization access, attempt to access, cause to be 28 accessed, or exceed the persons authorized access to all 29 or a part of a computer network, computer control language, 30 computer, computer software, computer system, or computer 31 database; or copy, attempt to copy, possess, or attempt to 32 possess the contents of all or part of a computer database. 33 The bill provides that a person shall not intentionally, 34 willfully, and without authorization possess, identify, 35 -5- LSB 1266HV (2) 90 as/rh 5/ 7
H.F. 143 or attempt to identify a valid access code or publicize or 1 distribute a valid access code to an unauthorized person. 2 The bill provides that a person shall not commit a prohibited 3 act with the intent to interrupt or impair the functioning of 4 the state government; a service, device, or system related 5 to the production, transmission, delivery, or storage of 6 electricity or natural gas in the state that is owned, 7 operated, or controlled by a person other than a public utility 8 as defined in Code chapter 476; a service provided in the state 9 by a public utility as defined in Code chapter 476; a hospital 10 or health care facility; a public elementary or secondary 11 school, community college, or area education agency under the 12 supervision of the department of education; or a city, city 13 utility, or city services. 14 The bill does not apply to the use of ransomware for 15 research purposes by a person who has a bona fide scientific, 16 educational, governmental, testing, news, or other similar 17 justification for possessing ransomware. However, a person 18 shall not knowingly possess ransomware with the intent to 19 use the ransomware for the purpose of introduction into the 20 computer, computer network, or computer system of another 21 person without the authorization of the other person. 22 The bill provides that a person who has suffered a specific 23 and direct injury because of a violation of the bill may bring 24 a civil action in a court of competent jurisdiction, and the 25 court may award actual damages, reasonable attorney fees, and 26 court costs. A conviction for an offense under the bill is not 27 a prerequisite for the filing of a civil action. 28 The bill provides that a person who commits a violation 29 of the bill and who causes pecuniary losses involving less 30 than $10,000 to a victim of the unlawful act is guilty of an 31 aggravated misdemeanor. A person who commits a violation of 32 the bill and who causes pecuniary losses involving at least 33 $10,000 but less than $50,000 to a victim of the unlawful 34 act is guilty of a class D felony. A person who commits a 35 -6- LSB 1266HV (2) 90 as/rh 6/ 7
H.F. 143 violation of the bill and who causes pecuniary losses involving 1 at least $50,000 to a victim of the unlawful act is guilty of a 2 class C felony. 3 An aggravated misdemeanor is punishable by confinement for 4 no more than two years and a fine of at least $855 but not more 5 than $8,540. A class D felony is punishable by confinement 6 for no more than five years and a fine of at least $1,025 but 7 not more than $10,245. A class C felony is punishable by 8 confinement for no more than 10 years and a fine of at least 9 $1,370 but not more than $13,660. 10 The bill provides that for the purpose of determining 11 venue, a violation of the bill shall be considered to have 12 been committed in any county where the defendant performed 13 the unlawful act, where the defendant resides, or where the 14 accessed computer is located. 15 -7- LSB 1266HV (2) 90 as/rh 7/ 7