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STATE OF OKLAHOMA
1st Session of the 58th Legislature (2021)
HOUSE BILL 2931 By: Randleman
AS INTRODUCED
An Act relating to human trafficking and child
exploitation; creating the Human Trafficking and
Child Exploitation Prevention Act; defining terms;
directing retailers of Internet -enabled devices to
equip products with certain filters; requiring
retailers of Internet -enabled devices to ensure
functionality of filters; establishing reporting
requirements; prohibiting retailers from sharing
filter deactivation information with consumers;
providing for a one-time filter deactivation fee;
providing for remittance of fee; directing the
Oklahoma Tax Commission to deposit fee into certain
revolving fund; providing purpose of fee; providing
construing provision; directing the Attorney General
to prepare and make available certain form; requiring
retailers to use due care to protect privacy rights
of adult consumers; prohibiting disclosure of
personal identification information; providing for
the unblocking of websites under certain
circumstances; authorizing consumers to seek certain
judicial relief; providing for attorney fees and
costs; providing for the filing of civil actions when
filters are breached; providing for attorney fees and
costs; making retailers subject to penalties for
deceptive trade practices; providing an affirmative
defense; making certain acts unlawful; providing
penalties; providing exemptions to provision of the
act; establishing the Oklahoma Human Trafficking and
Child Exploitation Prevention Revolving Fund; stating
purpose of the fund; directing the Attorney General
to utilize funds for specific needs and services;
providing for the use of accrued interest amounts and
remaining balances in the revolving fund; directing
the Attorney General to evaluate activities of grant
recipients and submit annual reports to certain state
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officials; specifying contents of annual report;
authorizing the Attorney General to establish
eligibility requirements for grant recipients;
imposing fee for customers entering live adult
entertainment establishment s; directing remittance of
said fee on a quarterly basis to the Tax Commission;
directing deposit of fee into certain revolving fund;
stating purpose of admission fee; directing live
adult entertainment establishments to record daily
number of customers; requiring the maintenance of
certain records; providing for the inspection and
auditing of records by the Tax Commission; providing
discretion on collect ing and remitting admission fee;
providing for codification; and providing an
effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1031 of Title 15, unless there
is created a duplication in numbering, reads as follows:
Sections 1 through 8 of this act shall be known and may be cited
as the "Human Trafficking and Child Exploitation Prevention Act ".
SECTION 2. NEW LAW A new section of l aw to be codified
in the Oklahoma Statutes as Section 1032 of Title 15, unless there
is created a duplication in numbering, reads as follows:
As used in the Human Trafficking and Child Exp loitation
Prevention Act:
1. "Cellular telephone" means a communication device containing
a unique electronic serial number that is programmed into its
computer chip by its manufacturer and whose operation is dependent
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on the transmission of that electronic serial number along with a
mobile identification number, which is assigned by the cellular
telephone carrier, in the form of radio signals through cell sites
and mobile switching stations;
2. "Child pornography" has the same meaning as provided for in
Section 1024.1 of Title 21 of the Oklahoma Statutes ;
3. "Computer" means an electronic, magnetic, optical,
electrochemical, or other high -speed data-processing device
performing logical, arithmetic or storage functions, and includes
any data storage facility or communications facility directly
related to or operating in c onjunction with such device, but such
term does not include an automated typewriter or typesetter, a
portable handheld calculator, or other similar device;
4. "Consumer" means an individual, business or entity that
purchases or leases for personal, family or household purposes or
any other reason an Internet-enabled device;
5. "Data communications device " means an electronic device that
receives electronic information from one source and transmits or
routes it to another including, but not limited to, any such bridge,
router, switch or gateway;
6. "Filter" means digital blocking capability, hardware or
software that restricts or blocks Internet access to websites,
electronic mail, chat or other Internet-based communications based
on category, site or con tent and may include a digital blinder rack
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that can be deactivated by a retailer upon the satisfaction of
certain nominal conditions;
7. "Harmful to minors" has the same meaning as provided for in
Section 1040.75 of Title 21 of the Oklahoma Statutes;
8. "Human trafficking" has the same meaning as provided for in
Section 748 of Title 21 of the Oklahoma Statutes;
9. "Internet" means the international computer network of
interoperable packet switched data networks ;
10. "Internet-enabled device" means a cellular telephone,
computer, data communications device or other product manufactured,
distributed or sold in this state that provides Internet access or
plays a material role in distributing content on the Internet;
11. "Internet service provider " means a person engaged in the
business of providing a computer and communications facility through
which a consumer may obtain access to the Internet. The term does
not include a common carrier if it provides only telecommunication
services;
12. "Live adult entertainment establishment " means a business
in which, as the major activity, customers congregate primarily for
the purpose of viewing or associating with employees who display
anatomical areas designed to provide sexual stim ulation or sexual
gratification including, but not limited to , human genitals, the
immediate pubic region or pubic hair , buttocks to the extent of
exposing the immediate anal area , female breasts to points below the
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nipples, male genitals in a state of erection even if covered with
opaque clothing, and all of the aforementioned anatomical areas when
covered only by transparent or diaphanous clothing;
13. "Minor" means any unmarried person under the age of
eighteen (18) years;
14. "Nongovernment group" means a nonprofit organization exe mpt
from federal income taxation pursuant to the provisions of the
Internal Revenue Code Title 26, Section 501(c)(3), whose primary
purpose is ending sexual violence in this state through programs
dedicated to preventing sexual violence, outreach programs and
technical assistance and support to youth and rape crisis centers
working to prevent sexual violence. The term also includes
individuals or group s that are doing anything to uphold community
standards of decency;
15. "Obscene material" has the same meaning as provided for in
Section 1024.1 of Title 21 of the Oklahoma Statutes and includes
Internet websites that:
a. are known to facilitate human trafficking or
prostitution, and
b. display or depict images that are harmful to minors or
that constitute sadomasochistic abuse, se xual
excitement, sexual conduct or revenge pornography;
16. "Personal identification information " means any
information that identifies a person including a photograph, Social
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Security number, driver license number, name, email addr ess, home
address or telephone number of an individual;
17. "Prostitution" has the same meaning as provided for in
Section 1030 of Title 21 of the Oklahoma Statutes;
18. "Retailer" means any person who regularly engages in the
manufacturing, sale, offer for sale or lease of Internet -enabled
devices or services in this state that make s content accessible on
the Internet. The term includes Internet service providers;
19. "Revenge pornography" means images promoting the exposure
of a person which may be a criminal offense under the provisions of
Section 1040.13b of Title 21 of the Oklahoma Statutes;
20. "Sadomasochistic abuse " has the same meaning as provided
for in Section 1040.75 of Title 21 of the Oklahoma Statutes;
21. "Sexual conduct" has the same meaning as provided for in
Section 1024.1 of Title 21 of the Oklahoma Statutes;
22. "Sexual excitement" has the same meaning as provided for in
Section 1040.75 of Title 21 of the Oklahoma Statutes; and
23. "Social media website " means an Internet website o r
application that enables users to communicate with each other by
posting information, comments, messages or images and that meets all
of the following requirements:
a. is open to the public,
b. has more than seventy-five million (75,000,000)
subscribers,
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c. from its inception, has not been specifically
affiliated with any one religion or political party ,
and
d. provides a means for the users of its website to
report obscene materials and has in place procedures
for evaluating those reports and thereafter, removing
said obscene material.
SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1033 of Title 15, unless there
is created a duplication in numbering, reads as follows:
A. A retailer that manufactures, sells, offers for sale,
leases, or distributes an Internet-enabled device shall ensure that
the product is equipped with an active and operating filter prior to
sale that blocks by default websites that:
1. Are known to facilitate human tra fficking or prostitution;
and
2. Display child pornography, revenge pornography or obscene
material harmful to minors.
B. A retailer that manufactures, sel ls, offers for sale, leases
or distributes an Internet -enabled device shall:
1. Make reasonable and ongoing efforts to ensure that a
product's filter functions properly;
2. Establish a reporting mechanism, such as a website or call
center, to allow a consumer to report unblocked websites displaying
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content described in subsection A of this section or to report
blocked websites that are not displaying content described in
subsection A of this section;
3. Report child pornography received through the reporting
mechanism to the CyberTipline of the National Center for Missing and
Exploited Children in acc ordance with the provisions of Section
2258A of Title 18 of the United States Code; and
4. Not block access to websites that:
a. are social media websites that p rovide a means for
users of the website to report obscene materials and
have in place procedur es for evaluating those reports
and removing the obscene material,
b. serve primarily as a search engine, or
c. display complete movies that meet the qualifications
for a "G", "PG", "PG-13" or "R" rating by the
Classification and Ratings Administration, as those
qualifications existed on September 1, 2020.
C. Except as provided by subsection D of this section, a
retailer of an Internet -enabled device may not provide to a consumer
methods, source code or other operating instructions for
deactivating a product's filter.
D. A retailer of an Internet -enabled device shall deactivate
the filter after a consumer:
1. Requests that the capability be disabled;
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2. Presents personal identification information to verify that
the consumer is eighteen (18) years of age or older;
3. Acknowledges receiving a warning regarding the potential
danger of deactivating the filter; and
4. Pays a one-time, filter deactivation fee of Twenty Dollars
($20.00) to be remitted quarterly to the Oklahoma Tax Commission to
be deposited into the Oklahoma Human Trafficking and Child
Exploitation Prevention grant fund established under the provisions
of Section 7 of this act.
E. The filter deactivation fee provided for in paragraph 4 of
subsection D of this section is not content based but shall be
collected and remitted to the Oklahoma Tax Commission to help the
state bear the costs of upholding community standards of decency and
combating sex-related offenses and shall be used as set forth in
subsection B of Section 7 of this act. The Tax Commission shall
prescribe the administration, payment, collection and enforcement of
the fee imposed by the provisions of paragraph 4 of subsection D of
this section. The Tax Commission may annually adjust the one -time
fee to account for inflation.
F. Nothing in this act shall be construed to prevent a retailer
of an Internet-enabled device from charging a reasonable , separate
fee to deactivate the filter which may then be authorized to retain
for profit.
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G. The Attorney General shall prepare and make available to
retailers a form that includes all content that must be in the
warning described in paragraph 3 of subsection D of this section.
H. Nothing in this act shall be construed to require a retailer
of an Internet-enabled device to create a databas e or registry that
contains the names or personal identification information of adults
who knowingly chose to deactivate a product 's filter. A retailer of
an Internet-enabled device shall take due care to protect the
privacy rights of adult consumers unde r this section and shall not
disclose the names or personal identification information of an
adult consumer who decided to deactivate a product 's filter.
SECTION 4. NEW LAW A new section of law to be codified
in the Oklahoma Statute s as Section 1034 of Title 15, unless there
is created a duplication in numbering, reads as follows:
A. Pursuant to paragraph 2 of subsection B of Section 3 of this
act, if a filter blocks a website that is not displaying content
described in subsection A of Section 3 of this act and the block is
reported to a call center or other reporting mechanism, the website
shall be unblocked within a reasonable time, but in no event later
than five (5) business days after the block is first reported. A
consumer may seek judicial relief to unblock a website that was
wrongfully blocked by the filter. The prevailing party in a civil
litigation may seek attorney fees, costs and other forms of relief.
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B. Pursuant to paragraph 2 of subsection B of Section 3 of this
act, if a retailer of an Internet -enabled device is unresponsive to
a report of a website displaying content described in subsection A
of Section 3 of this act that has breached the filter, the Attorney
General or a consumer may file a civil action. The Attorney General
or a consumer may seek monetary damages of up to Five Hundred
Dollars ($500.00) for each website that was reported but not
subsequently blocked. The prevailing party in the civil action may
seek attorney fees, costs and other forms of relief.
C. A retailer of an Internet -enabled device that fails to
comply with a duty described in subsections A and B of this section
has engaged in an unfair and deceptive trade practice in violation
of the Oklahoma Consumer Protection Act and may be subject to the
penalties provided for therein.
D. It shall be an affirmative defense in a civil action to a
charge of violating this section that the dissemination of the
content described in subsection A of Section 3 of this act was
limited to institutions or organ izations having scientific,
educational or other similar justifications for displaying the
material.
SECTION 5. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1035 of Title 15, unless there
is created a duplication in numbering, reads as follows:
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A. It shall be unlawful for a retailer of an Internet -enabled
device to knowingly:
1. Sell an Internet-enabled device without an activated filter
that at least makes an attempt to block by default websites that
display content described in subsection A of Section 3 of this act;
2. Violate the provisions of subsection C of Section 3 of this
act;
3. Fail to comply with the requirements of subsection D of
Section 3 of this act before deactivating a product 's filter; or
4. Disclose to a third party the name or the personal
identification information of adult consumers who have elected to
deactivate a product 's filter in violation of subsection H of
Section 3 of this act without a court order directing otherwis e.
B. A retailer of an Internet -enabled device that commits an
offense under the provisions of subsection A of this section shall ,
upon conviction, be guilty of a misdemeanor subject to a fine not
exceeding One Thousand Dollars ($1,000.00) , or by imprisonment in a
county jail for a term not exceeding two (2) days, or by both such
fine and imprisonment. A retailer convicted of a second violation
shall be subject to a fine not exceeding Two Thousand Five Hundred
Dollars ($2,500.00), or by imprisonment in a county jail for a term
not exceeding ten (10) days, or by both such fine and imprisonment.
A retailer convicted of a third o r subsequent offense shall be
subject to a fine not exceeding Two Thousand Five Hundred Dollars
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($2,500.00), or by imprisonment in a county jail for a term not
exceeding sixty (60) days, or by both such fine and imprisonment.
C. A retailer of an Internet -enabled device that commits an
offense under the provisions of subsection A of this section has
engaged in an unfair and deceptive trade practice in violation of
the Oklahoma Consumer Protection Act and may be subject to the
penalties provided for therein.
D. Only the Attorney General or a district attorney can enforce
the provisions of this section.
SECTION 6. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1036 of Title 15, unless there
is created a duplication in numbering, reads as follows:
A. The provisions of the Human Trafficking and Child
Exploitation Prevention Act shal l not apply to:
1. An occasional sale of an Internet -enabled device by a person
who is not regularly engaged in the trade business of selling
Internet-enabled devices;
2. Products produced or sold before the effective date of this
act; and
3. Independent third-party routers that are not affiliated with
an Internet service provider.
B. The provisions of this act do not apply to a retailer of an
Internet-enabled device that is not subje ct to the jurisdiction of
this state.
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SECTION 7. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1037 of Title 15, unless there
is created a duplication in numbering, reads as follows:
A. There is hereby created in the State Treasury a revolving
fund for the Office of the Attorney General, to be designated as the
"Oklahoma Human Trafficking and Child Exploitation Prevention
Revolving Fund". The fund shall be a continuing fund, not subject
to fiscal year limitations, and shall consist of filter deactivation
fees collected by the Oklahoma Tax Commission from retailers of
Internet-enabled devices pursuant to the provisions of paragraph 4
of subsection D of Section 3 of this act , live adult entertainment
admission fees collected by the Tax Commission from live adult
entertainment establishments pursuant to the provisions of
subsection A of Section 8 of this act and any other appropriations,
gifts, grants, donations , bequests or monies designated to the fund
by law. All monies accruing to the credit of said fund are hereby
appropriated and may be budgeted and expended by the Attorney
General for the following purposes:
1. Promote throughout the state , the development of locally-
based nonprofit programs for the survivors of sexual -related
offenses and support for quality services to said survivors;
2. Empower government and nongovernment entities working to
uphold community standards of decency to protect children and
strengthen families;
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3. Prevent or offset the costs of sex-related offenses; and
4. Maximize human flourishing and protect the safety, health
and welfare of the public.
The purposes can be interpreted broadly to meet the evolving needs
of the state. Expenditures from said fund shall be made upon
warrants issued by the State Treasurer against claims filed as
prescribed by law with the Director of the Office of Management and
Enterprise Services for approval and payment.
B. Money deposited into the revolving fund may be used only by
the Office of the Attorney General for grants to government and
nongovernment entities and individuals that are working to uphold
community standards of decency to protect children and strengthen
families, that are developing, expanding or strengthening programs
for victims of human t rafficking or child exploitation and
specifically include the following:
1. The needs of any human trafficking task force or anti-human
trafficking coalition based in Oklahoma;
2. The needs of the Department of Mental Health and Substance
Abuse Services, District Attorney 's Council and the State Department
of Health;
3. The needs of the Oklahoma Crime Victims Compensation Board;
4. Substance abuse services to persons with substance abuse
problems;
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5. Counselors and victim advocates who are trained to assist
victims of domestic violence and sexual abuse ;
6. Shelters for persons who have been exposed to prostitution
or sex trafficking;
7. Research-based organizations;
8. Faith-based organizations working to uphold community
standards of decency and assisting victims of human tra fficking or
other sex offenses;
9. Child advocacy centers;
10. Organizations that provide legal advocacy to abused,
neglected and at-risk children;
11. Physical and mental health services ;
12. Temporary and permanent housing placemen;
13. Employment, placement, education an d training;
14. Independent school distr icts;
15. Family counseling and therapy ;
16. Law enforcement;
17. Musical, writing, design, cinematic or pictorial creative
art projects that promote decency ;
18. Regional nonprofit providers of civil legal serv ices to
provide legal assistance for sexual assault victims ;
19. Grants to support technology in rape crisis center s;
20. Sexual violence awareness and prevention campaigns ;
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21. Scholarships for students demonstrating outstanding
character or leadership skills; and
22. Any other state agency or organization for the purpose of
conducting human trafficking enforcement programs or uphold ing
community standards of decency.
C. Interest accruing on investments and deposits of the fund
shall be credited to th e fund, shall not revert to the general fund
and shall be carried forward into the subsequent fiscal year.
D. Any balance in the fund remaining unexpected at the end of a
fiscal year shall not revert to the general fund but shall be
carried forward into t he subsequent fiscal year.
E. The Attorney General shall annually evaluate activities
conducted under this section and shall, on or before the fifteenth
of February of each year, submit an annual report containing the
result of the evaluation to the President Pro Tempore of the
Oklahoma State Senate and the Speaker of the Oklahoma House of
Representatives. The report shall include:
1. The amount of filter deactivation fees received under
paragraph 4 of subsection D of Section 3 of this act;
2. The amount of live adult entertainment admission fees
received under subsection A of Section 8 of this act;
3. The manner in which the monies deposited in the revolving
fund are distributed; and
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4. The manner in which the entities that received funds
pursuant to subsection B of this section utilized said funds.
F. The Attorney General shall be authorized to:
1. Determine eligibility requirements for any grant awarded
under the provisions of this section;
2. Require a grant applicant to offer minimum services for a
period of time before receiving said grant and continue to offer
minimum services during the grant period; and
3. Require a grant recipient to submit financial and
programmatic reports.
G. The Attorney General shall be prohibited from expend more
than ten percent (10%) of the available funds on the administration
of the fund.
SECTION 8. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1038 of Title 15, unless there
is created a duplication in numbe ring, reads as follows:
A. Upon the effective date of this act, a n admission fee of
Five Dollars ($5.00) shall be imposed for each entry by each
customer admitted to a live adult entertainment establishment .
B. The fee prescribed by subsection A of this section shall be
remitted quarterly to the Oklahoma Tax Commission on such forms as
the Commission may prescribe for such purpose. All required forms
and remittances shall be filed with the Tax Commission no later than
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the fifteenth day of the month follo wing the close of each calendar
quarter.
C. The Tax Commission shall apportion all revenues derived from
the fee to the Oklahoma Human Trafficking and Child Exploitation
Prevention Revolving Fund established in Section 7 of this act .
D. The admission fee is not content-based but shall be imposed
and remitted to the state to offset secondary harmful effects , to
help the state uphold community standards of decency , to combat sex-
related crimes and to be used as described in subsection B of
Section 7 of this act.
E. The admission fee shall be in addition to all other taxes
imposed on the business that offers live adult entertainment.
F. Each live adult entertainment establishment shall record
daily in the manner required by the Tax Commission the number of
customers admitted to the business. The business shall maintain the
records for the period required by the Tax Commission and make the
records available only for inspection and audit on request by the
Tax Commission. The records shall not contain the na mes or personal
information of any of the customers of the live adult entertainment
establishment.
G. This section shall not require a live adult entertainment
establishment to impose a tax on customer s of the establishment.
The live adult entertainment establishment shall have the discretion
to determine the manner by which the establishment derives the funds
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required to pay the fee imposed under the provisions of this
section.
SECTION 9. This act shall become effective November 1, 2021.
58-1-5741 GRS 12/30/20