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Oklahoma Legislature· HB 1762Referred to Rules

An act relating to children, the official text

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1                   STATE OF OKLAHOMA

2   1st Session of the 60th Legislature (2025)

3 HOUSE BILL 1762   By: Kerbs

4

5

6                   AS INTRODUCED

7   An Act relating to children; providing definitions;

    directing covered entities to complete and review

8   impact assessments; requiring covered entities to

    provide impact assessments to Attorney General;

9   requiring certain default privacy settings; directing

    covered entities to publicly provide certain

10  information in clear language suited to age of

    children accessing product; requiring entity provide

11  certain tools; providing information required for

    data protection impact assessment; requiring covered

12  entity act in best interest of children; clarifying

    data protection impact assessments are confidential

13  and not subject to public disclosure; clarifying

    certain information disclosed does not waive

14  privilege or protection; permitting assessments that

    complies with other law; permitting single data

15  protection impact assessment for similar processing

    operations; requiring first impact assessment by

16  certain date; prohibiting covered entities from

    processing personal data of a child in way that is

17  inconsistent with best interest of child; prohibiting

    covered entities from profiling a child unless listed

18  exception applies; prohibiting covered entities from

    processing personal data of child that is not

19  necessary to provide online product; prohibiting

    processing certain personal data for purposes other

20  than reason collected; prohibiting the processing of

    certain geolocation information of children;

21  prohibiting covered entities from using dark patterns

    for certain purpose; requiring covered entity signal

22  a child when being monitored or tracked; providing

    penalties for a covered entity that violates this

23  act; permitting only Attorney General to initiate

    enforcement actions; directing Attorney General

24  provide notice to covered entities in substantial

    Req. No. 10700                                         Page 1
1   compliance; directing covered entities notify

    Attorney General when certain violations are cured;

2   clarifying Act does not serve as basis for private

    right of action; providing list of entities this act

3   does not apply to; clarifying Act does not impose

    certain liability; clarifying Act does not prevent or

4   preclude a child from deliberately searching for

    content; clarifying Act does not require covered

5   entity to restrict access to online products based

    solely on age; clarifying Act applies to certain

6   covered entities; clarifying that Act does not apply

    to online products, services, or features not

7   accessible by public after certain date; providing

    for codification; and providing an effective date.

8

9

10 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:

11  SECTION 1.      NEW LAW  A new section of law to be codified

12 in the Oklahoma Statutes as Section 8001 of Title 10, unless there

13 is created a duplication in numbering, reads as follows:

14  As used in this act:

15  1. "Affiliate" means a legal entity that controls, is

16 controlled by or is under common control with another legal entity;

17  2. "Age-appropriate" means a recognition of the distinct needs

18 and diversities of children in the following age ranges:

19  a. up to five (5) years of age,

20  b. six (6) to nine (9) years of age,

21  c. ten (10) to twelve (12) years of age,

22  d. thirteen (13) to fifteen (15) years of age, and

23  e. sixteen (16) to seventeen (17) years of age;

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    Req. No. 10700                                           Page 2
1   3. "Best interest of children" means the use, by a covered

2 entity, of the personal data of a child or the design of an online

3 product, service or feature in a way that:

4        a. will not benefit the covered entity to the detriment

5        of the child, and

6        b. will not result in:

7        (1) reasonably foreseeable and material physical or

8                   financial harm to the child,

9        (2) reasonably foreseeable and severe psychological

10                  or emotional harm to the child,

11       (3) a highly offensive intrusion on the reasonable

12                  privacy expectations of the child, or

13       (4) discrimination against the child based upon race,

14                  color, religion, national origin, disability, sex

15                  or sexual orientation;

16  4. "Child" means a consumer who is under eighteen (18) years of

17 age;

18  5. "Collect" means buying, renting, gathering, obtaining,

19 receiving or accessing personal data pertaining to a consumer by any

20 means, including receiving personal data from the consumer, either

21 actively or passively, or by observing the consumer's behavior;

22  6. "Common branding" means a shared name, service mark or

23 trademark that the average consumer would understand that two or

24 more entities commonly own;

    Req. No. 10700                                              Page 3
1   7. "Consumer" means a natural person who resides in Oklahoma,

2 however identified, including by a unique identifier;

3   8. "Control" or "controlled" means:

4   a. ownership of or the power to vote more than fifty

5   percent (50%) of the outstanding shares of any class

6   of voting security of a covered entity,

7   b. control in any manner over the election of a majority

8   of the directors or of individuals exercising similar

9   functions of a covered entity, or

10  c. the power to exercise a controlling influence over the

11  management of a covered entity;

12  9. "Covered entity" means a sole proprietorship, partnership,

13 limited liability company, corporation, association, affiliate, or

14 other legal entity that is organized or operated for the profit or

15 financial benefit of the entity's shareholders or other owners and

16 that offers online products, services or features to individuals in

17 Oklahoma and processes children's personal data;

18  10. "Dark pattern" means a user interface designed or

19 manipulated with the purpose of subverting or impairing user

20 autonomy, decision making, or choice;

21  11. "Data protection impact assessment" means a systematic

22 survey to assess compliance with the duty to act in the best

23 interest of children;

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    Req. No. 10700                                               Page 4
1   12. "Default" means a preselected option adopted by a covered

2 entity for an online product, service, or feature;

3   13. "De-identified" means information that cannot reasonably be

4 used to infer information about, or otherwise be linked to, an

5 identified or identifiable individual, if a covered entity that

6 possesses that information:

7   a. takes reasonable measures to ensure that such

8   information cannot be associated with an individual,

9   b. publicly commits to process such information only in a

10  de-identified fashion and not attempt to re-identify

11  such information, and

12  c. contractually obligates any recipients of such

13  information to satisfy the criteria set forth in this

14  subsection;

15  14. "Derived data" means data that is created by the derivation

16 of information, data, assumptions, correlations, inferences,

17 predictions or conclusions from facts, evidence, or another source

18 of information or data about a child or a child's device;

19  15. "Personal data" means any information, including derived

20 data, that is linked or reasonably linkable, alone or in combination

21 with other information, to an identified or identifiable individual.

22 Personal data does not include de-identified information or publicly

23 available information;

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    Req. No. 10700                                                 Page 5
1   16. "Precise geolocation" means any data that is derived from a

2 device and that is used or intended to be used to locate a consumer

3 within a geographic area that is equal to or less than the area of a

4 circle with a radius of one thousand eight hundred (1,800) feet;

5   17. "Process" or "processing" means conduct or an operation

6 performed, whether by manual or automated means, on personal data or

7 on sets of personal data, such as the collection, use, storage,

8 disclosure, analysis, deletion, modification or other handling of

9 personal data;

10  18. "Profiling" means automated processing of personal data

11 that uses personal data to evaluate certain aspects relating to a

12 natural person, including analyzing or predicting aspects concerning

13 a natural person's performance at work, economic situation, health,

14 personal preferences, interests, reliability, behavior, location or

15 movements. Profiling does not include the processing of data that

16 does not result in an assessment or judgment about a natural person;

17  19. "Reasonably likely to be accessed" means an online product,

18 service or feature is accessed or is reasonably likely to be

19 accessed by children based on any of the following indicators:

20  a. the online product, service or feature is directed to

21  children as defined by the federal Children's Online

22  Privacy Protection Act of 1998,

23  b. the online product, service or feature is determined,

24  based on competent and reliable evidence regarding

    Req. No. 10700                                                 Page 6
1   audience composition, to be routinely accessed by a

2   significant number of children,

3   c. the online product, service or feature has

4   advertisements marketed to children,

5   d. the online product, service or feature is

6   substantially similar or the same as an online

7   product, service or feature subject to subparagraph b

8   of this paragraph,

9   e. a significant amount of the audience of the online

10  product, service or feature is determined, based on

11  internal company research, to be children, or

12  f. the covered entity knew or should have known that a

13  user is a child;

14  20. "Sell" means selling, renting, releasing, disclosing,

15 disseminating, making available, transferring or otherwise

16 communicating orally, in writing or by electronic or other means, a

17 consumer's personal data by a covered entity to a third party for

18 monetary or other valuable consideration. Sell does not include:

19  a. the disclosure of personal data to a third party who

20  processes the personal data on behalf of the covered

21  entity,

22  b. the disclosure of personal data to a third party with

23  whom the consumer has a direct relationship for

24

    Req. No. 10700                                             Page 7
1             purposes of providing an online product, service or

2             feature requested by the consumer,

3   c. the disclosure or transfer of personal data to an

4             affiliate of the covered entity,

5   d. the disclosure of data that the consumer intentionally

6             made available to the general public via a channel of

7             mass media and did not restrict to a specific

8             audience, or

9   e. the disclosure or transfer of personal data to a third

10            party as an asset that is part of the completed or

11            proposed merger, acquisition, bankruptcy or other

12            transaction in which the third party assumes control

13            of all or part of the covered entity's assets;

14  21. "Sensitive personal data" means personal data that

15 includes:

16  a. data revealing racial or ethnic origin, religious

17            beliefs, mental or physical health condition or

18            diagnosis, sex life, sexual orientation or citizenship

19            or immigration status,

20  b. the processing of genetic or biometric data for the

21            purpose of uniquely identifying an individual, or

22  c. precise geolocation data;

23  22. "Share" means sharing, renting, releasing, disclosing,

24 disseminating, making available, transferring or otherwise

    Req. No. 10700                                               Page 8
1 communicating orally, in writing or by electronic or other means, a

2 consumer's personal data by a covered entity to a third party for

3 cross-context behavioral advertising, whether or not for monetary or

4 other valuable consideration, including transactions between a

5 covered entity and a third party for cross-context behavioral

6 advertising for the benefit of a covered entity in which no money is

7 exchanged; and

8   23. "Third party" means a person other than the consumer of the

9 covered entity.

10  SECTION 2.      NEW LAW  A new section of law to be codified

11 in the Oklahoma Statutes as Section 8002 of Title 10, unless there

12 is created a duplication in numbering, reads as follows:

13  A. A covered entity shall:

14  1. Complete a data protection impact assessment for any online

15 product, service or feature that is reasonably likely to be accessed

16 and maintain documentation of the data protection impact assessment

17 as long as the online product, service or feature is reasonably

18 likely to be accessed;

19  2. Review all data protection impact assessments as necessary

20 to account for material changes to data processing pertaining to the

21 online product, service or feature;

22  3. Within five (5) business days of a written request by the

23 Attorney General, provide to the Attorney General a list of all data

24 protection impact assessments the covered entity has completed;

    Req. No. 10700                                                  Page 9
1   4. Within seven (7) business days of a written request by the

2 Attorney General, provide a data protection impact assessment to the

3 Attorney General pursuant to such a request; provided that the

4 Attorney General may, in the Attorney General's discretion, extend

5 the time allowed for a covered entity to produce a data protection

6 impact assessment;

7   5. Configure all default privacy settings provided to children

8 by the online product, service or feature to settings that offer a

9 high level of privacy, unless the covered entity can demonstrate a

10 compelling reason that a different setting is in the best interest

11 of children;

12  6. Publicly provide privacy information, terms of service,

13 policies and community standards in a prominent, precise manner and

14 use clear language suited to the age of children reasonably likely

15 to access that online product, service or feature; and

16  7. Publicly provide prominent, accessible and responsive tools

17 to help a child or, if applicable, the child's parent or guardian,

18 exercise the child's privacy rights and report concerns.

19  B. The data protection impact assessment required by this

20 section shall identify the purpose of an online product, service or

21 feature and how the online product, service or feature uses

22 children's personal data and determine whether the online product,

23 service or feature is designed and offered in an age-appropriate

24 manner consistent with the best interest of children who are

    Req. No. 10700                                                Page 10
1 accessing or reasonably likely to access the online product, service

2 or feature by examining at least the following:

3   1. Whether the design of the online product, service or feature

4 could lead to children experiencing or being targeted by harmful, or

5 potentially harmful, contacts on the online product, service or

6 feature that would be inconsistent with the best interest of

7 children reasonably likely to access the online product, service or

8 feature;

9   2. Whether the design of the online product, service or feature

10 could permit children to witness, participate in or be subject to

11 conduct on the online product, service or feature that would be

12 inconsistent with the best interest of children reasonably likely to

13 access the online product, service or feature;

14  3. Whether the design of the online product, service or feature

15 is reasonably expected to allow children to be party to or exploited

16 by a contract on the online product, service or feature;

17  4. Whether algorithms used by the online product, service or

18 feature would be inconsistent with the best interest of children

19 reasonably likely to access the online product, service or feature;

20  5. Whether targeted advertising systems used by the online

21 product, service or feature would be inconsistent with the best

22 interest of children reasonably likely to access the online product,

23 service or feature;

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    Req. No. 10700                                              Page 11
1   6. Whether the online product, service or feature uses system

2 design features to increase, sustain or extend the use of the online

3 product, service or feature by children, including the automatic

4 playing of media, rewards for time spent and notifications, that

5 would be inconsistent with the best interest of children reasonably

6 likely to access the online product, service or feature; and

7   7. Whether, how and for what purpose the online product,

8 service or feature collects or processes sensitive personal data of

9 children and whether those practices would be inconsistent with the

10 best interest of children reasonably likely to access the online

11 product, service or feature.

12  C. When a covered entity identifies an online product, service

13 or feature reasonably likely to be accessed by children that may be

14 inconsistent with the best interest of children, the covered entity

15 shall include in a data protection impact assessment a detailed plan

16 describing the steps the covered entity has taken and will take to

17 ensure that the online product, service or feature will be

18 consistent with the best interest of children.

19  D. A data protection impact assessment is protected as

20 confidential and shall be exempt from public disclosure, including

21 pursuant to the Oklahoma Open Records Act.

22  E. To the extent any information contained in a data protection

23 impact assessment disclosed to the Attorney General includes

24 information subject to attorney-client privilege or work product

    Req. No. 10700                                               Page 12
1 protection, disclosure pursuant to subsection A of this section

2 shall not constitute a waiver of that privilege or protection.

3   F. A data protection impact assessment conducted by a covered

4 entity for the purpose of compliance with any other law complies

5 with this section if the data protection impact assessment meets the

6 requirements of this act.

7   G. A single data protection impact assessment may contain

8 multiple similar processing operations that present similar risks

9 only if each relevant online product, service or feature is

10 addressed.

11  H. A covered entity shall complete a data protection impact

12 assessment on or before January 1, 2026, for any online product,

13 service or feature that is reasonably likely to be accessed by

14 children after December 31, 2025.

15  SECTION 3.      NEW LAW      A new section of law to be codified

16 in the Oklahoma Statutes as Section 8003 of Title 10, unless there

17 is created a duplication in numbering, reads as follows:

18  A covered entity that provides an online product, service or

19 feature that is reasonably likely to be accessed shall not:

20  A. Process the personal data of a child in a way that the

21 covered entity knows, or has reason to know, is inconsistent with

22 the best interest of children reasonably likely to access the online

23 product, service or feature.

24  B. Profile a child by default unless:

    Req. No. 10700                                                 Page 13
1   1. The covered entity can demonstrate that the covered entity

2 has appropriate safeguards in place to ensure that profiling is

3 consistent with the best interest of children reasonably likely to

4 access the online product, service or feature; and

5   2. Profiling is necessary to provide the online product,

6 service or feature requested, and only with respect to the aspects

7 of the online product, service or feature with which the child is

8 actively and knowingly engaged; or

9   3. The covered entity can demonstrate a compelling reason that

10 profiling is in the best interest of children.

11  C. Process any personal data that is not necessary to provide

12 an online product, service or feature with which a child is actively

13 and knowingly engaged.

14  D. If the end user is a child, process personal data for any

15 reason other than a reason for which that personal data was

16 collected.

17  E. Process any precise geolocation information of children by

18 default unless the collection of that precise geolocation

19 information is strictly necessary for the covered entity to provide

20 the online product, service or feature requested and then only for

21 the limited time that the collection of precise geolocation

22 information is necessary to provide the online product, service or

23 feature.

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    Req. No. 10700                                              Page 14
1   F. Process any precise geolocation information of a child

2 without providing an obvious sign to the child for the duration of

3 that collection that precise geolocation information is being

4 collected.

5   G. Use dark patterns to cause children to provide personal data

6 beyond what is reasonably expected to provide that online product,

7 service or feature, to forego privacy protections or to take any

8 action that the covered entity knows, or has reason to know, is not

9 in the best interest of children reasonably likely to access the

10 online product, service or feature.

11  H. Process any personal data that is not reasonably necessary

12 to provide an online product, service or feature with which a child

13 is actively and knowingly engaged to reasonably estimate age.

14  I. Allow a child's parent, guardian or any other consumer to

15 monitor the child's online activity or track the child's location

16 without providing an obvious signal to the child when the child is

17 being monitored or tracked.

18  SECTION 4.      NEW LAW     A new section of law to be codified

19 in the Oklahoma Statutes as Section 8004 of Title 10, unless there

20 is created a duplication in numbering, reads as follows:

21  A. A covered entity that violates this act shall be:

22  1. Subject to injunctive relief to cease or correct the

23 violation;

24

    Req. No. 10700                                                Page 15
1   2. Liable for a civil penalty of not more than Two Thousand

2 Five Hundred Dollars ($2,500.00) per affected child for each

3 negligent violation; and

4   3. Liable for a civil penalty of not more than Seven Thousand

5 Five Hundred Dollars ($7,500.00) per affected child for each

6 intentional violation.

7   B. Enforcement actions pursuant to subsection A of this section

8 shall only be initiated by the Attorney General.

9   C. If a covered entity is in substantial compliance with the

10 requirements of Sections 3 through 5 of this act, the Attorney

11 General shall provide written notice to the covered entity, before

12 initiating an action pursuant to subsection A of this section,

13 identifying the specific provisions of that act that the Attorney

14 General alleges have been or are being violated.

15  D. If a covered entity in compliance with subsection H of this

16 section cures the alleged violations identified in a notice pursuant

17 to subsection C of this section and provides the Attorney General a

18 written statement that the alleged violations have been cured and

19 sufficient measures have been taken to prevent future violations,

20 the covered entity shall not be liable for a civil penalty for any

21 violation cured pursuant to this subsection.

22  E. Nothing in this act shall be interpreted to serve as the

23 basis for a private right of action under this act or any other law.

24

    Req. No. 10700                                                 Page 16
1   SECTION 5.      NEW LAW  A new section of law to be codified

2 in the Oklahoma Statutes as Section 8005 of Title 10, unless there

3 is created a duplication in numbering, reads as follows:

4   This act shall not apply to:

5   A. Protected health information that is collected by a covered

6 entity associate governed by the privacy, security and breach

7 notification rules issued by the United States Department of Health

8 and Human Services, Parts 160 and 164 of Title 45 of the Code of

9 Federal Regulations, established pursuant to the federal Health

10 Insurance Portability and Accountability Act of 1996.

11  B. A covered entity governed by the privacy, security and

12 breach notification rules issued by the United States Department of

13 Health and Human Services, Parts 160 and 164 of Title 45 of the Code

14 of Federal Regulations, established pursuant to the federal Health

15 Insurance Portability and Accountability Act of 1996, to the extent

16 the provider or covered entity maintains patient information in the

17 same manner as medical information or protected health information

18 as described in subsection A of this section.

19  C. Information collected as part of a clinical trial subject to

20 the federal policy for the protection of human subjects, also known

21 as the common rule, pursuant to good clinical practice guidelines

22 issued by the International Council for Harmonization of Technical

23 Requirements for Pharmaceuticals for Human Use or pursuant to human

24

    Req. No. 10700                                               Page 17
1 subject protection requirements of the United States Food and Drug

2 Administration.

3   D. A telecommunications service as defined in 47 U.S.C. Section

4 153.

5   E. The delivery or use of a physical product.

6   SECTION 6.      NEW LAW  A new section of law to be codified

7 in the Oklahoma Statutes as Section 8006 of Title 10, unless there

8 is created a duplication in numbering, reads as follows:

9   Nothing in this act shall be interpreted or construed to:

10  A. Impose liability in a manner that is inconsistent with 47

11 U.S.C., Section 230.

12  B. Prevent or preclude a child from deliberately or

13 independently searching for, or specifically requesting, content.

14  C. Require a covered entity to restrict access to online

15 products, services, or features based solely on age.

16  SECTION 7.      NEW LAW  A new section of law to be codified

17 in the Oklahoma Statutes as Section 8007 of Title 10, unless there

18 is created a duplication in numbering, reads as follows:

19  A. This act shall apply to covered entities in Oklahoma or

20 persons that provide online products, services, or features that are

21 targeted to residents of this state and that during the preceding

22 calendar year:

23  1. Controlled or processed the personal data of not fewer than

24 one hundred thousand (100,000) consumers, excluding personal data

    Req. No. 10700                                             Page 18
1 controlled or processed solely for the purpose of completing a

2 payment transaction; or

3   2. Controlled or processed the personal data of not fewer than

4 twenty-five thousand (25,000) consumers and derived more than

5 twenty-five percent (25%) of the covered entity's gross revenue from

6 the sale of personal data.

7   B. This act does not apply to an online product, service, or

8 feature that is not accessible by the public after December 31,

9 2025.

10  SECTION 8. This act shall become effective November 1, 2025.

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12  60-1-10700      MJ        01/14/25

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    Req. No. 10700                                                Page 19
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