I 

111TH CONGRESS 

1ST SESSION H. R. 4059 

To enhance Internet safety and security and to prevent exploitation of children 

online through the use of technology. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 6, 2009 

Mr. STUPAK introduced the following bill; which was referred to the Committee on Financial Services, and in addition to the Committee on Energy 

and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To enhance Internet safety and security and to prevent 

exploitation of children online through the use of technology. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Online Age Verification 

5 and Child Safety Act’’. 

6 TITLE I—AGE VERIFICATION 

7 SEC. 101. AGE VERIFICATION REQUIREMENT. 

8 (a) PORNOGRAPHIC MATERIAL IN GENERAL.—It is 

9 unlawful for an operator of any pornographic website acVerDate Nov 24 2008 04:12 Nov 08, 2009 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H4059.IH H4059

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1 cessible by any computer located within the United States 

2 to display any pornographic material, including free con3 tent that may be available prior to the purchase of a sub4 scription or product, without first verifying that any user 

5 attempting to access their site is 18 years of age or older 

6 in a manner consistent with the regulations prescribed 

7 under subsection (c). 

8 (b) FINANCIAL TRANSACTIONS REQUIRING AGE

9 VERIFICATION.— 

10 (1) IN GENERAL.—It is unlawful for an oper11 ator of any website accessible by any computer lo12 cated within the United States to carry out any fi13 nancial transaction relating to any product or service 

14 whose sale or access to persons under a legally speci15 fied age is prohibited by law, without first verifying 

16 that each user attempting to carry out the trans17 action meets the legally required age limitation, con18 sistent with the regulations prescribed under sub19 section (c). 

20 (2) SCOPE.—The product or services subject to 

21 paragraph (1) include alcohol, cigarettes and to22 bacco, fireworks, gambling, handguns, pornographic 

23 material, and any other product or service that the 

24 Commission determines is age-restricted under Fed25 eral or State law. 


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1 (c) REGULATIONS.—Not later than 1 year after the 

2 date of enactment of this Act, the Commission, in accord3 ance with section 553 of title 5, United States Code, shall 

4 promulgate regulations that— 

5 (1) require the operator of any website or on6 line service described in subsection (a) or (b) to— 

7 (A) establish and maintain a system of in8 ternal policies, procedures and controls to en9 sure that no such material is displayed to any 

10 user attempting to access their site without 

11 first verifying that the user is 18 years or older; 

12 (B) limit the use of any personal informa13 tion collected by the website to age verification, 

14 except with the express consent of the user; 

15 (C) establish and maintain reasonable pro16 cedures to protect the confidentiality, security, 

17 and integrity of personal information collected 

18 by the website; and 

19 (D) undertake an independent audit func20 tion to test the system; 

21 (2) allow the operator to terminate service to 

22 any user who fails to provide information sufficient 

23 to verify that the user meets the age requirement re24 lating to the products, services, or content provided 

25 by the website; and 


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1 (3) establish a system under which the Commis2 sion develops and maintains a regularly updated list 

3 of operators and online sites displaying pornographic 

4 material which are not in compliance with this sec5 tion. 

6 SEC. 102. CRIMINAL VIOLATIONS. 

7 (a) OFFENSES.—Whoever knowingly and with intent 

8 sells or provides access to any product or service to a per9 son under a legally specified age to whom such sale or 

10 access is prohibited under applicable law, if the offense 

11 affects interstate or foreign commerce, shall be fined 

12 under title 18, United States Code, and imprisoned for 

13 not more than 10 years, or both. 

14 (b) ATTEMPTS.—Whoever attempts to commit an of15 fense under subsection (a) of this section shall be subject 

16 to the same penalties as those prescribed for the offense 

17 attempted. 

18 (c) CONSPIRACIES.—Whoever is a party to a con19 spiracy of 2 or more persons to commit an offense under 

20 subsection (a) of this section, if any of the parties engages 

21 in any conduct in furtherance of such offense, shall be 

22 fined an amount not greater than the amount provided 

23 as the maximum fine for such offense under subsection 

24 (a) of this section or imprisoned not longer than one-half 


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1 the period provided as the maximum imprisonment for 

2 such offense under subsection (c) of this section, or both. 

3 (d) FORFEITURE PROCEDURE.—The forfeiture of 

4 property under this section, including any seizure and dis5 position of the property and any related administrative 

6 and judicial proceeding, shall be governed by section 413 

7 of the Controlled Substances Act, except for subsection (d) 

8 of that section. 

9 (e) RACKETEERING PREDICATE ACTIVITY.—An of10 fense under subsection (a) of this section shall constitute 

11 racketeering activity within the meaning of section 

12 1981(a) of title 18, United States Code. 

13 SEC. 103. INTERNET PAYMENT SERVICE PROVIDER RE14 QUIREMENT. 

15 (a) PORNOGRAPHIC MATERIAL.—Any Internet pay16 ment service provider, or business that performs financial 

17 transactions for an operator relating to pornographic ma18 terial, including any bank, credit card company, payments 

19 services provider or third-party merchant, shall only proc20 ess age-verified transactions for Internet sales involving 

21 pornography. 

22 (b) FINANCIAL TRANSACTIONS.—Any Internet pay23 ment service provider, or business that performs financial 

24 transactions for an operator relating to any product or 

25 service whose sale or access to persons below a legally 


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1 specified age is prohibited by law, including but not lim2 ited to any bank, credit card company, payments services 

3 provider or third-party merchant, shall only process age4 verified transactions for Internet sales relating to such 

5 product or service. 

6 (c) SAFE HARBORS.— 

7 (1) PORNOGRAPHIC MATERIAL.—With regard to 

8 financial transactions involving any operator under 

9 section 101, any Internet payment service provider 

10 may satisfy the requirements of regulations issued 

11 under subsection (a) by— 

12 (A) receiving a certification from an oper13 ator that the operator is in compliance with the 

14 regulations issued under section 101(c); 

15 (B) determining that the operator or 

16 website is not on the list of entities determined 

17 by the Commission not to be in compliance with 

18 the regulations issued under section 101(c); and 

19 (C) such other means as the Commission 

20 may determine would meet the intent of this 

21 Act to protect children from gaining access to 

22 Internet pornography. 

23 (2) FINANCIAL TRANSACTIONS.—With regard 

24 to financial transactions involving any operator 

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1 ices other than pornography, any Internet payment 

2 service provider may satisfy the requirements of reg3 ulations issued under subsection (b) by— 

4 (A) receiving a certification from an oper5 ator that the operator is in compliance with the 

6 regulations issued under section 101(c); or 

7 (B) such other means as the regulator 

8 specified in section 105 shall determine would 

9 meet the intent of this Act to protect children 

10 from obtaining products and services on the 

11 Internet whose sale or access to persons below 

12 a legally specified age is prohibited by law. 

13 SEC. 104. ENFORCEMENT OF AGE-VERIFICATION. 

14 (a) UNFAIR OR DECEPTIVE ACTS OR PRACTICES.— 

15 A violation of section 101 or the regulations issued under 

16 such section shall be treated as a violation of a rule issued 

17 under section 18(a) of the Federal Trade Commission Act 

18 (15 U.S.C. 57a) regarding unfair or deceptive acts or 

19 practices. 

20 (b) POWERS OF COMMISSION.—The Federal Trade 

21 Commission shall enforce section 101 in the same manner, 

22 by the same means, and with the same jurisdiction, pow23 ers, and duties as though all applicable terms and provi24 sions of the Federal Trade Commission Act (15 U.S.C. 

25 41 et seq.) were incorporated into and made a part of this 


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1 title. Any person who violates such regulations shall be 

2 subject to the penalties provided in that Act. 

3 SEC. 105. ENFORCEMENT OF PAYMENT PROVIDER RE4 QUIREMENTS. 

5 (a) IN GENERAL.—Section 103, and the regulations 

6 required thereunder, shall be enforced exclusively under— 

7 (1) section 8 of the Federal Deposit Insurance 

8 Act (12 U.S.C. 1818), in the case of— 

9 (A) a national bank, a Federal branch or 

10 Federal agency of a foreign bank, or any sub11 sidiary thereof (other than a broker, dealer, 

12 person providing insurance, investment com13 pany, or investment adviser), by the Office of 

14 the Comptroller of the Currency; 

15 (B) a member bank of the Federal Reserve 

16 System (other than a national bank), a branch 

17 or agency of a foreign bank (other than a Fed18 eral branch, Federal agency, or insured State 

19 branch of a foreign bank), a commercial lending 

20 company owned or controlled by a foreign bank, 

21 an organization operating under section 25 or 

22 25A of the Federal Reserve Act (12 U.S.C. 

23 601, 604), or a bank holding company and its 

24 nonbank subsidiary or affiliate (other than a 

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1 vestment company, or investment adviser), by 

2 the Board of Governors of the Federal Reserve 

3 System; 

4 (C) a bank, the deposits of which are in5 sured by the Federal Deposit Insurance Cor6 poration (other than a member of the Federal 

7 Reserve System), an insured State branch of a 

8 foreign bank, or any subsidiary thereof (other 

9 than a broker, dealer, person providing insur10 ance, investment company, or investment ad11 viser), by the Board of Directors of the Federal 

12 Deposit Insurance Corporation; and 

13 (D) a savings association, the deposits of 

14 which are insured by the Federal Deposit In15 surance Corporation, or any subsidiary thereof 

16 (other than a broker, dealer, person providing 

17 insurance, investment company, or investment 

18 adviser), by the Director of the Office of Thrift 

19 Supervision; 

20 (2) the Federal Credit Union Act (12 U.S.C. 

21 1751 et seq.), by the National Credit Union Admin22 istration Board with respect to any federally insured 

23 credit union; 


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1 (3) the Securities Exchange Act of 1934 (15 

2 U.S.C. 78a et seq.), by the Securities and Exchange 

3 Commission with respect to any broker or dealer; 

4 (4) the Investment Company Act of 1940 (15 

5 U.S.C. 80a–1 et seq.), by the Securities and Ex6 change Commission with respect to any investment 

7 company; 

8 (5) the Investment Advisers Act of 1940 (15 

9 U.S.C. 80b–1 et seq.), by the Securities and Ex10 change Commission with respect to any investment 

11 adviser registered with the Securities and Exchange 

12 Commission under that Act; 

13 (6) the Commodity Exchange Act (7 U.S.C. 1 

14 et seq.), by the Commodity Futures Trading Com15 mission with respect to any futures commission mer16 chant, commodity trading advisor, commodity pool 

17 operator, or introducing broker; 

18 (7) the provisions of title XIII of the Housing 

19 and Community Development Act of 1992 (12 

20 U.S.C. 4501 et seq.), by the Director of Federal 

21 Housing Enterprise Oversight (and any successor to 

22 such functional regulatory agency) with respect to 

23 the Federal National Mortgage Association, the Fed24 eral Home Loan Mortgage Corporation, and any 

25 other entity or enterprise (as defined in that title) 


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1 subject to the jurisdiction of such functional regu2 latory agency under that title, including any affiliate 

3 of any such enterprise; 

4 (8) State insurance law, in the case of any per5 son engaged in providing insurance, by the applica6 ble State insurance authority of the State in which 

7 the person is domiciled; and 

8 (9) the Federal Trade Commission Act (15 

9 U.S.C. 41 et seq.), by the Commission for any other 

10 covered entity that is not subject to the jurisdiction 

11 of any agency or authority described under para12 graphs (1) through (8). 

13 (b) NO PRIVATE RIGHT OF ACTION.— 

14 (1) IN GENERAL.—This Act, and the regula15 tions prescribed under this Act, may not be con16 strued to provide a private right of action, including 

17 a class action with respect to any act or practice 

18 regulated under this Act. 

19 (2) CIVIL AND CRIMINAL ACTIONS.—No civil or 

20 criminal action relating to any act or practice gov21 erned under this Act, or the regulations prescribed 

22 under this Act, shall be commenced or maintained in 

23 any State court or under State law, including a 

24 pendent State claim to an action under Federal law. 


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1 SEC. 106. DEFINITIONS. 

2 In this title the following definitions apply: 

3 (1) COMMISSION.—The term ‘‘Commission’’ 

4 means the Federal Trade Commission. 

5 (2) PORNOGRAPHIC MATERIAL.—The term 

6 ‘‘pornographic material’’ means any film, video, 

7 digitally- or computer-manipulated image, digital 

8 image, picture, or other matter that contains a de9 piction of an actual human being engaged in actual 

10 sexually explicit conduct that is produced in whole or 

11 in part with materials that have been mailed or 

12 shipped in interstate or foreign commerce, or is 

13 shipped or transported or is intended for shipment 

14 or transportation in interstate or foreign commerce 

15 and that contains one or more visual depictions of 

16 an actual human being engaged in actual sexually 

17 explicit conduct made after July 3, 1995. 

18 (3) PORNOGRAPHIC WEB SITE.—The term 

19 ‘‘pornographic Web site’’ means a person required to 

20 maintain documents verifying the age of persons en21 gaged in sexually explicit conduct pursuant to sec22 tion 2257(a) of title 18, United States Code. 

23 (4) AGE RESTRICTED.—The term ‘‘age re24 stricted’’ means a product or service whose access, 

25 sale, or use is limited under applicable Federal or 

26 State law to persons over a specified age. 


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1 (5) OPERATOR.—The term ‘‘operator’’ means a 

2 person who provides products or services online 

3 whose sale is limited by applicable law to persons 

4 over the age of 18 or with regard to alcohol, over the 

5 age of 21. 

6 (6) PAYMENT SERVICES PROVIDER.—The term 

7 ‘‘payment services provider’’ means any person who 

8 engages in any of the following activities: 

9 (A) Enabling cash to be placed on a pay10 ment account as well as all the operations re11 quired for operating a payment account. 

12 (B) Enabling cash withdrawals from a 

13 payment account as well as all the operations 

14 required for operating a payment account. 

15 (C) Execution of payment transactions, in16 cluding transfers of funds on a payment ac17 count with the user’s payment service provider 

18 or with another payment service provider. 

19 (D) Execution of direct debits, including 

20 one-time direct debits. 

21 (E) Execution of payment transactions 

22 through a payment card or a similar device. 

23 (F) Execution of credit transfers, including 

24 standing orders. 


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1 (G) Execution of payment transactions 

2 where the funds are covered by a credit line for 

3 a payment service user. 

4 (H) Execution of direct debits, including 

5 one-off direct debits. 

6 (I) Execution of payment transactions 

7 through a payment card or a similar device. 

8 (J) Execution of credit transfers, including 

9 standing orders. 

10 (K) Issuing and/or acquiring of payment 

11 instruments. 

12 (L) Money remittance. 

13 (M) Execution of payment transactions 

14 where the consent of the payer to execute a 

15 payment transaction is given by means of any 

16 telecommunication, digital or IT device and the 

17 payment is made to the telecommunication, IT 

18 system or network operator, acting only as an 

19 intermediary between the payment service user 

20 and the supplier of the goods and services. 


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1 TITLE II—ENHANCING ANTI2 MONEY LAUNDERING LAWS 

3 TO COVER ONLINE TRANS4 ACTIONS 

5 SEC. 201. FINANCIAL INSTITUTIONS SPECIFIED IN SUB6 CHAPTER II OF CHAPTER 53 OF TITLE 31, 

7 UNITED STATES CODE. 

8 (a) PAYMENT SERVICES PROVIDERS.—Section 

9 5312(c) of title 31, United States Code, is amended by 

10 adding at the end the following: 

11 ‘‘(2) Any payments services provider that is not 

12 otherwise covered as a financial institution under 

13 this subsection, including any person who engages in 

14 any of the following activities: 

15 ‘‘(A) Enabling cash to be placed on a pay16 ment account as well as all the operations re17 quired for operating a payment account. 

18 ‘‘(B) Enabling cash withdrawals from a 

19 payment account as well as all the operations 

20 required for operating a payment account. 

21 ‘‘(C) Execution of payment transactions, 

22 including transfers of funds on a payment ac23 count with the user’s payment service provider 

24 or with another payment service provider. 


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1 ‘‘(D) Execution of direct debits, including 

2 one-time direct debits. 

3 ‘‘(E) Execution of payment transactions 

4 through a payment card or a similar device. 

5 ‘‘(F) Execution of credit transfers, includ6 ing standing orders. 

7 ‘‘(G) Execution of payment transactions 

8 where the funds are covered by a credit line for 

9 a payment service user. 

10 ‘‘(H) Execution of direct debits, including 

11 one-off direct debits. 

12 ‘‘(I) Execution of payment transactions 

13 through a payment card or a similar device. 

14 ‘‘(J) Execution of credit transfers, includ15 ing standing orders. 

16 ‘‘(K) Issuing or acquiring of payment in17 struments. 

18 ‘‘(L) Money remittance. 

19 ‘‘(M) Execution of payment transactions 

20 where the consent of the payer to execute a 

21 payment transaction is given by means of any 

22 telecommunication, digital or IT device and the 

23 payment is made to the telecommunication, IT 

24 system or network operator, acting only as an 


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1 intermediary between the payment service user 

2 and the supplier of the goods and services.’’. 

3 (b) EFFECTIVE DATE.—The amendment made by 

4 subsection (a) shall take effect at the end of the 180-day 

5 period beginning on the date of enactment of this Act. 

6 (c) DATE OF APPLICATION OF REGULATIONS; FAC7 TORS TO BE TAKEN INTO ACCOUNT.—Before the end of 

8 the 180-day period beginning on the date of enactment 

9 of this Act, the Secretary of the Treasury shall prescribe 

10 regulations that consider the extent to which the require11 ments imposed under this section are commensurate with 

12 the size, location, and activities of the financial institu13 tions to which such regulations apply. 

14 SEC. 202. CURRENCIES NOT BACKED BY UNITED NATIONS 

15 MEMBER STATES. 

16 (a) IN GENERAL.—No financial institution may proc17 ess a financial transaction denominated in or otherwise in18 volving an electronic currency not backed by the full faith 

19 and credit of a member state of the United Nations. 

20 (b) EXCLUSION.—For the purposes of this sub21 section, an electronic currency does not include— 

22 (1) any activity governed by the securities laws 

23 (as that term is defined in section 3(a)(47) of the 

24 Securities Exchange Act of 1934 for the purchase or 


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1 sale of securities (as that term is defined in section 

2 3(a)(10) of that Act); 

3 (2) any transaction conducted on or subject to 

4 the rules of a registered entity or exempt board of 

5 trade under the Commodity Exchange Act; 

6 (3) any over-the-counter derivative instrument; 

7 (4) any contract of indemnity or guarantee; 

8 (5) any contract for insurance; 

9 (6) any deposit or other transaction with an in10 sured depository institution; and 

11 (7) any other form of financial instrument or 

12 payment, however denominated, that the Secretary 

13 determines should not be subject to the prohibition 

14 of this subsection. 

15 (c) EFFECTIVE DATE.—The amendment made by 

16 subsection (a) shall take effect at the end of the 180-day 

17 period beginning on the date of enactment of this Act. 

18 (d) DATE OF APPLICATION OF REGULATIONS.—Be19 fore the end of the 180-day period beginning on the date 

20 of enactment of this Act, the Secretary shall prescribe reg21 ulations to implement the prohibitions set forth in sub22 section (a). 


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1 SEC. 203. DEFINITIONS. 

2 In this title, the term ‘‘Secretary’’ means Secretary 

3 of the Treasury. 

Æ 


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