Ohio Senate Passes Budget With Social Media Age Rules, Broadband Grant Limits

Ohio senators passed a state budget bill 24-7 Thursday despite industry opposition to provisions requiring age verification for social media and limiting wireless eligibility for broadband grants. A New Jersey Assembly panel later that day approved a bill to set children’s privacy rules. Earlier this week, Texas Gov. Greg Abbott (R) signed a kids’ social media measure, plus bills to ban TikTok and require a council to study artificial intelligence. The Arizona legislature passed a broader bill to regulate social media.

A House-Senate conference will next consider Ohio’s budget bill (HB-33). The Senate changed what was in the original House bill. Wireless ISPs have concerns with a part that would remove wireless broadband from definitions of tier one and tier two broadband services for the purposes of getting grants (see 2306090045). Internet companies don’t support a budget proposal that would require social websites to verify users’ ages and get parental approval for children under 16 to set up accounts.

The proposed budget aims to bring more “geographic balance” to the state’s rural broadband expansion grant program, said Sen. Rob McColley (R) at Thursday’s livestreamed floor session. McColley authored the Senate amendment that limits wireless eligibility and changes the definition of unserved so it won’t exclude areas where construction of tier-one broadband, with speeds less than 100 Mbps download and 20 Mbps upload, is in progress and scheduled to be completed in two years. The proposed formula in HB-33 will ensure broadband “goes to all unserved and underserved areas across the state” and that coming federal funding will allow companies across the industry to be competitive in many parts of the state, said the state senator.

The Senate-passed bill “takes a disappointing step backwards for Ohio’s broadband program by restricting all fixed wireless projects to limited, extremely high cost areas,” emailed Wireless ISP Association State Advocacy Manager Steven Schwerbel. “The Senate rightly recognizes that cost of deployment is a significant factor to the state’s ability to close the digital divide with limited taxpayer dollars” but “completely fails to acknowledge the impact of speed to deployment.” CTIA strongly opposes “any policy efforts that exclude wireless broadband options from the state’s Residential Broadband Expansion Grant Program,” the association wrote state legislators Monday. “Any proposal that unnecessarily limits specific types of broadband options will create further barriers to deployment, especially in rural communities.”

Ohio lawmakers should "consider the impacts that age verification requirements would have on all online users,” Khara Boender, Computer and Communications Industry Association state policy director, said after the Senate vote. “The information required to verify one's age would mandate that users provide potentially sensitive personally identifiable information. While this requirement is framed in the interest of providing additional online protections, in effect, it introduces other risks surrounding privacy by requiring the collection of additional data.”

The Ohio constitution requires a final budget by June 30. Gov. Mike DeWine (R) could line-item veto parts of the bill if he chooses. But DeWine and Lt. Gov. Jon Husted (R) supported the children’s social media proposal at a news conference Monday. “The evidence is building that social media platforms can have a negative impact on kids’ mental health and well-being,” and it can expose them to predators, said DeWine. “If teens must get parental consent when they see an R-rated movie because of exposure to inappropriate content, it only makes sense that parents give kids permission to have social media accounts.” Husted also advocated for the measure in March (see 2303090051).

N.J. Kids’ Privacy Bill

Social media’s harms to children “demand action,” said New Jersey Assemblyman Herb Conaway (D) at a livestreamed Science, Innovation and Technology Committee hearing Thursday. States must step in where the federal government has failed to act, said the deputy speaker and sponsor of A-4919.

The panel voted 5-0 for the bill. Multiple committee members agreed with the need for state action and pressed industry to provide alternatives if they object to the current bill. Chair Christopher Tully (D) said New Jersey should “step up and force” Congress to act on the issue. Assemblywoman DeAnne DeFuccio (R) abstained from voting.

The measure would require social platforms to complete regular data protection impact assessments. It would prohibit platforms from using children’s personal data in a way that may harm their well-being or physical or mental health. It would also restrict using that data for profiling by default and “collecting, selling, sharing, or retaining any personal information that is not necessary to provide an online service, product, or feature with which a child is actively and knowingly engaged,” unless the site can give a compelling reason. Violators could face $2,500 to $7,500 in penalties per affected child.

The bill may cause platforms to “overcorrect” to avoid penalties, testified Claire Park, manager-external affairs for Chamber for Progress, a tech coalition including Apple, Amazon and Google. Websites may choose not to develop any features for children, she said. Compliance with the unconstitutional bill is impossible, said NetChoice Deputy Director-State and Federal Affairs Zach Lilly. TechNet and other business groups also opposed the bill.

More Social Media Bills

In Texas, the governor signed a kids’ privacy bill (HB-18) Tuesday to require social media companies to get parental consent for children under 18. Abbott signed a bill banning TikTok on state devices Wednesday. SB-1893 passed the legislature last month (see 2305300057). The Ohio House passed a TikTok ban (HB-17) in a 73-21 vote Wednesday, sending it to the Senate.

Internet industry associations opposed HB-18 (see 2306010058). NetChoice is “disappointed to see Gov. Abbott sign into law a bill that erodes parental rights while violating the First Amendment and digital freedoms for every Texan,” said General Counsel Carl Szabo in a news release. Forcing even secure sites to track and store private user information “will undermine data security and enact unlawful barriers to constitutionally-protected speech.”

The Arizona legislature passed a social media bill (SB-1106) that would prohibit websites from deplatforming candidates and require them to publish and follow standards for censoring users. The Senate concurred with the House Tuesday. The tech industry says the proposed law would be unconstitutional (see 2303290033). To be enacted, the bill passed by the GOP-controlled legislature would need a signature from Democratic Gov. Katie Hobbs, who was secretary of state during the last presidential election year. Hobbs didn’t comment Thursday.

The California Assembly Privacy Committee voted 10-0 Tuesday to advance a Senate-passed bill to require social media platforms to remove posts on illegal drug sales (see 2305250048). The bill goes next to the Judiciary Committee.

Texas will establish an advisory council to study AI developed, used or procured by state agencies. Abbott signed the bill (HB-2060) Tuesday. “As AI becomes more prevalent as a revolutionary tool in our lives and in our workforce, we must ensure that this technology is developed in a responsible and ethical way in Texas to help boost our state's growing economy,” said Abbott: The council will ensure “our state continues designing and employing the latest and greatest AI technology while prioritizing the security of all Texans.” Connecticut Gov. Ned Lamont (D) last week signed a bill to study AI.