EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. *sb0739* SENATE BILL 739 J1 4lr2140 CF 4lr2141 By: Senator Hester Introduced and read first time: January 31, 2024 Assigned to: Finance A BILL ENTITLED AN ACT concerning 1 Algorithmic Addiction Fund – Establishment 2 FOR the purpose of establishing the Algorithmic Addiction Fund as a special, nonlapsing 3 fund; requiring interest earnings of the Fund to be credited to the Fund; requiring 4 the Secretary of Health to develop certain goals, objectives, and indicators relating 5 to algorithmic addiction treatment and prevention efforts and to consult with certain 6 stakeholders on a certain basis to identify recommended appropriations from the 7 Fund; and generally relating to the Algorithmic Addiction Fund. 8 BY repealing and reenacting, without amendments, 9 Article – State Finance and Procurement 10 Section 6–226(a)(2)(i) 11 Annotated Code of Maryland 12 (2021 Replacement Volume and 2023 Supplement) 13 BY repealing and reenacting, with amendments, 14 Article – State Finance and Procurement 15 Section 6–226(a)(2)(ii)189. and 190. 16 Annotated Code of Maryland 17 (2021 Replacement Volume and 2023 Supplement) 18 BY adding to 19 Article – State Finance and Procurement 20 Section 6–226(a)(2)(ii)191. and 7–332 21 Annotated Code of Maryland 22 (2021 Replacement Volume and 2023 Supplement) 23 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 24 That the Laws of Maryland read as follows: 25 Article – State Finance and Procurement 26 2 SENATE BILL 739 6–226. 1 (a) (2) (i) Notwithstanding any other provision of law, and unless 2 inconsistent with a federal law, grant agreement, or other federal requirement or with the 3 terms of a gift or settlement agreement, net interest on all State money allocated by the 4 State Treasurer under this section to special funds or accounts, and otherwise entitled to 5 receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 6 Fund of the State. 7 (ii) The provisions of subparagraph (i) of this paragraph do not apply 8 to the following funds: 9 189. the Teacher Retention and Development Fund; [and] 10 190. the Protecting Against Hate Crimes Grant Fund; AND 11 191. THE ALGORITHMIC ADDICTION FUND. 12 7–332. 13 (A) IN THIS SECTION , “FUND” MEANS THE ALGORITHMIC ADDICTION 14 FUND. 15 (B) THERE IS AN ALGORITHMIC ADDICTION FUND. 16 (C) THE PURPOSE OF THE FUND IS TO RETAIN THE AMOUNT OF 17 SETTLEMENT REVENUES DEPOSITED TO THE FUND IN ACCORDANCE WI TH 18 SUBSECTION (F)(1) OF THIS SECTION. 19 (D) THE MARYLAND DEPARTMENT OF HEALTH SHALL ADMIN ISTER THE 20 FUND. 21 (E) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 22 SUBJECT TO § 7–302 OF THIS SUBTITLE. 23 (2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 24 AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 25 (F) THE FUND CONSISTS OF : 26 (1) ALL REVENUES RECEIVE D BY THE STATE FROM ANY SOURCE 27 RESULTING, DIRECTLY OR INDIRECT LY, FROM A JUDGMENT AGAI NST, OR 28 SETTLEMENT WITH , TECHNOLOGY CONGLOMER ATES, TECHNOLOGY COMPANIES , 29 SOCIAL MEDIA CONGLOM ERATES, OR SOCIAL MEDIA COMP ANIES RELATING TO 30 SENATE BILL 739 3 CLAIMS MADE OR PROSECUTED BY THE STATE TO RECOVER DAMA GES FOR 1 VIOLATIONS OF STATE LAW; 2 (2) ANY FUNDS APPROPRIAT ED IN THE STATE BUDGET ; AND 3 (3) THE INTEREST EARNING S OF THE FUND. 4 (G) (1) THE FUND MAY BE USED ONLY TO PROVIDE FUNDS FOR : 5 (I) CONDUCTING A NEEDS AS SESSMENT THROUGHOUT THE 6 STATE TO DETERMINE WH ERE RESOURCES ARE NE EDED AND BEST PRACTI CES FOR 7 ALGORITHMIC ADDICTIO N PREVENTION , INTERVENTION , AND TREATMENT ; 8 (II) IMPROVING AND STRENGT HENING ACCESS TO SER VICES 9 PROVEN TO TREAT THE MENTAL AND PHYSICAL HEAL TH IMPACTS ASSOCIATE D WITH 10 ALGORITHMIC ADDICTIO N, INCLUDING DEPRESSION , ANXIETY, EATING DISORDERS , 11 SUICIDE, AND SLEEP PROBLEMS ; 12 (III) ALGORITHMIC ADDICTIO N INTERVENTION SERVICES ; 13 (IV) ALGORITHMIC ADDICTIO N PREVENTION SERVICES , 14 INCLUDING THE ORGANIZATION OF PRIMARY AND SECONDAR Y SCHOOL EDUCATION 15 CAMPAIGNS TO PREVENT ALGORITHMIC ADDICTIO N AND PROMOTE DIGITA L AND 16 MEDIA LITERACY , INCLUDING FOR ADMINI STRATIVE EXPENSES ; 17 (V) RESEARCH AND TRAINING FOR ALGORITHMIC ADDICTION 18 TREATMENT AND PREVEN TION, AND SOCIAL MEDIA AND YOUTH MENTAL HEALTH , 19 INCLUDING FOR ADMINI STRATIVE EXPENSES ; AND 20 (VI) SUPPORTING AND EXPAN DING OTHER EVIDENCE –BASED 21 INTERVENTIONS FOR AL GORITHMIC ADDICTION PREVENTION AND TREAT MENT. 22 (2) AFTER SATISFYING THE REQUI REMENTS OF PARAGRAPH (1) OF 23 THIS SUBSECTION , ANY UNSPENT FUNDS IN THE ALGORITHMIC ADDICTION FUND 24 MAY BE EXPENDED BY T HE MARYLAND DEPARTMENT OF HEALTH FOR YOUTH 25 MENTAL HEALTH SERVIC ES. 26 (H) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND 27 IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED. 28 (2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITE D TO 29 THE FUND. 30 4 SENATE BILL 739 (I) (1) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN 1 ACCORDANCE WITH THE STATE BUDGET . 2 (2) FOR REVENUES REC EIVED BY THE STATE FROM ANY SOURCE 3 RESULTING, DIRECTLY OR INDIRECT LY, FROM A JUDGMENT AGAI NST, OR 4 SETTLEMENT WITH , TECHNOLOGY CONGLOMER ATES, TECHNOLOGY COMPANIES , 5 SOCIAL MEDIA CONGLOM ERATES, OR SOCIAL MEDIA COMP ANIES: 6 (I) APPROPRIATIONS FROM THE FUND IN THE STATE BUDGET 7 SHALL BE MADE IN ACC ORDANCE WITH THE ALLOCATION AND DISTR IBUTION OF 8 FUNDS TO THE STATE AND ITS POLITIC AL SUBDIVISIONS AS A GREED ON IN ANY 9 STATE–SUBDIVISION AGREEMEN T, AS AMENDED; AND 10 (II) THE SECRETARY O F HEALTH SHALL ESTABLIS H AND 11 ADMINISTER A GRANT P ROGRAM FOR THE DISTR IBUTION OF FUNDS TO POLITICAL 12 SUBDIVISIONS OF THE STATE IN ACCORDANCE W ITH ANY STATE–SUBDIVISION 13 AGREEMENT , AS AMENDED. 14 (3) THE ATTORNEY GENERAL SHALL IDENTIF Y AND DESIGNATE THE 15 CONTROLLING VERSION OF AN AGREEMENT OR AMENDME NT DESCRIBED UNDER 16 PARAGRAPH (2) OF THIS SUBSECTION . 17 (J) (1) MONEY EXPENDED FROM T HE FUND FOR THE PROGRAMS AND 18 SERVICES DESCRIBED U NDER SUBSECTION (G) OF THIS SECTION IS S UPPLEMENTAL 19 TO AND IS NOT INTEND ED TO TAKE THE PLACE OF FUNDING THAT OTHERWISE 20 WOULD BE APPROPRIATE D FOR THE PROGRAMS A ND SERVICES. 21 (2) EXCEPT AS SPECIFIED I N SUBSECTION (G) OF THIS SECTION , 22 MONEY EXPENDED FROM THE FUND MAY NOT BE USED FOR ADMINISTRATIVE 23 EXPENSES. 24 (K) THE SECRETARY OF HEALTH SHALL: 25 (1) DEVELOP KEY GOALS , KEY OBJECTIVES , AND KEY PERFORMANCE 26 INDICATORS RELATING TO ALGORITHMIC ADDI CTION TREATMENT AND 27 PREVENTION EFFORTS ; 28 (2) SUBJECT TO SUBSECTION (H)(2) OF THIS SECTION , AT LEAST 29 ONCE EACH YEAR, CONSULT WITH ALGORITHMIC ADDICTION TREATMENT AND 30 PREVENTION STAKEHOLD ERS, INCLUDING CONSUMERS , PROVIDERS, FAMILIES, 31 AND ADVOCATES , TO IDENTIFY RECOMMEN DED APPROPRIATIONS F ROM THE FUND; 32 AND 33 SENATE BILL 739 5 (3) ON OR BEFORE NOVEMBER 1 EACH YEAR, REPORT TO THE 1 GENERAL ASSEMBLY, IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT 2 ARTICLE, ON: 3 (I) AN ACCOUNTING OF TOT AL FUNDS EXPENDED FR OM THE 4 FUND IN THE IMMEDIATE LY PRECEDING FISCAL YEAR, BY: 5 1. USE; 6 2. IF APPLICABLE, JURISDICTION; AND 7 3. BUDGET PROGRAM AND S UBDIVISION; 8 (II) THE PERFORMANCE INDI CATORS AND PROGRESS TOWARD 9 ACHIEVING THE GOALS AND OBJECTIVES DEVEL OPED UNDER ITEM (1) OF THIS 10 SUBSECTION; AND 11 (III) THE RECOMMENDED APPR OPRIATIONS FROM THE FUND 12 IDENTIFIED IN ACCORD ANCE WITH ITEM (2) OF THIS SUBSECTION . 13 SECTION 2. AND BE IT FURTHER ENACTED, That: 14 (a) Section 1 of this Act shall take effect contingent on a judgment by a federal or 15 State court against, or settlement with, technology conglomerates, technology companies, 16 social media conglomerates, or social media companies relating to any claims made or 17 prosecuted by the State to recover damages for violations of State law. 18 (b) Within 5 days after a judgment or settlement described in subsection (a) of 19 this section is awarded or approved, the Attorney General shall notify the Department of 20 Legislative Services. 21 (c) Section 1 of this Act shall take effect on the date the notice is received by the 22 Department of Legislative Services in accordance with subsection (b) of this section. 23 SECTION 3. AND BE IT FURTHER ENACTED, That, subject to Section 2 of this 24 Act, this Act shall take effect June 1, 2024. 25