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 Com-
mittee on Financial Services, and in addition to the Committee on Energy 
and Commerce, for a period to be subsequently determined by the Speak-
er, in each case for consideration of such provisions as fall within the ju-
risdiction of the committee concerned 
A BILL 
To enhance Internet safety and security and to prevent 
exploitation of children online through the use of technology. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Online Age Verification 
and Child Safety Act’’. 
TITLE I—AGE VERIFICATION 
SEC. 101. AGE VERIFICATION REQUIREMENT. 
(a) PORNOGRAPHIC MATERIAL IN GENERAL.—It is 
unlawful for an operator of any pornographic website ac-
VerDate Nov 24 2008 
04:12 Nov 08, 2009
Jkt 089200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H4059.IH
H4059
smartinez on DSKB9S0YB1PROD with BILLS
cessible by any computer located within the United States 
to display any pornographic material, including free con-
tent that may be available prior to the purchase of a sub-
scription or product, without first verifying that any user 
attempting to access their site is 18 years of age or older 
in a manner consistent with the regulations prescribed 
under subsection (c). 
(b) FINANCIAL
TRANSACTIONS
REQUIRING
AGE 
VERIFICATION.— 
(1) IN GENERAL.—It is unlawful for an oper-
ator of any website accessible by any computer lo-
cated within the United States to carry out any fi-
nancial transaction relating to any product or service 
whose sale or access to persons under a legally speci-
fied age is prohibited by law, without first verifying 
that each user attempting to carry out the trans-
action meets the legally required age limitation, con-
sistent with the regulations prescribed under sub-
section (c). 
(2) SCOPE.—The product or services subject to 
paragraph (1) include alcohol, cigarettes and to-
bacco, fireworks, gambling, handguns, pornographic 
material, and any other product or service that the 
Commission determines is age-restricted under Fed-
eral or State law. 
VerDate Nov 24 2008 
04:12 Nov 08, 2009
Jkt 089200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H4059.IH
H4059
smartinez on DSKB9S0YB1PROD with BILLS
(c) REGULATIONS.—Not later than 1 year after the 
date of enactment of this Act, the Commission, in accord-
ance with section 553 of title 5, United States Code, shall 
promulgate regulations that— 
(1) require the operator of any website or on-
line service described in subsection (a) or (b) to— 
(A) establish and maintain a system of in-
ternal policies, procedures and controls to en-
sure that no such material is displayed to any 
user attempting to access their site without 
first verifying that the user is 18 years or older; 
(B) limit the use of any personal informa-
tion collected by the website to age verification, 
except with the express consent of the user; 
(C) establish and maintain reasonable pro-
cedures to protect the confidentiality, security, 
and integrity of personal information collected 
by the website; and 
(D) undertake an independent audit func-
tion to test the system; 
(2) allow the operator to terminate service to 
any user who fails to provide information sufficient 
to verify that the user meets the age requirement re-
lating to the products, services, or content provided 
by the website; and 
VerDate Nov 24 2008 
04:12 Nov 08, 2009
Jkt 089200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H4059.IH
H4059
smartinez on DSKB9S0YB1PROD with BILLS
(3) establish a system under which the Commis-
sion develops and maintains a regularly updated list 
of operators and online sites displaying pornographic 
material which are not in compliance with this sec-
tion. 
SEC. 102. CRIMINAL VIOLATIONS. 
(a) OFFENSES.—Whoever knowingly and with intent 
sells or provides access to any product or service to a per-
son under a legally specified age to whom such sale or 
access is prohibited under applicable law, if the offense 
affects interstate or foreign commerce, shall be fined 
under title 18, United States Code, and imprisoned for 
not more than 10 years, or both. 
(b) ATTEMPTS.—Whoever attempts to commit an of-
fense under subsection (a) of this section shall be subject 
to the same penalties as those prescribed for the offense 
attempted. 
(c) CONSPIRACIES.—Whoever is a party to a con-
spiracy of 2 or more persons to commit an offense under 
subsection (a) of this section, if any of the parties engages 
in any conduct in furtherance of such offense, shall be 
fined an amount not greater than the amount provided 
as the maximum fine for such offense under subsection 
(a) of this section or imprisoned not longer than one-half 
VerDate Nov 24 2008 
04:12 Nov 08, 2009
Jkt 089200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H4059.IH
H4059
smartinez on DSKB9S0YB1PROD with BILLS
the period provided as the maximum imprisonment for 
such offense under subsection (c) of this section, or both. 
(d) FORFEITURE PROCEDURE.—The forfeiture of 
property under this section, including any seizure and dis-
position of the property and any related administrative 
and judicial proceeding, shall be governed by section 413 
of the Controlled Substances Act, except for subsection (d) 
of that section. 
(e) RACKETEERING PREDICATE ACTIVITY.—An of-
fense under subsection (a) of this section shall constitute 
racketeering activity within the meaning of section 
1981(a) of title 18, United States Code. 
SEC. 103. INTERNET PAYMENT SERVICE PROVIDER RE-
QUIREMENT. 
(a) PORNOGRAPHIC MATERIAL.—Any Internet pay-
ment service provider, or business that performs financial 
transactions for an operator relating to pornographic ma-
terial, including any bank, credit card company, payments 
services provider or third-party merchant, shall only proc-
ess age-verified transactions for Internet sales involving 
pornography. 
(b) FINANCIAL TRANSACTIONS.—Any Internet pay-
ment service provider, or business that performs financial 
transactions for an operator relating to any product or 
service whose sale or access to persons below a legally 
VerDate Nov 24 2008 
05:12 Nov 08, 2009
Jkt 089200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H4059.IH
H4059
smartinez on DSKB9S0YB1PROD with BILLS
specified age is prohibited by law, including but not lim-
ited to any bank, credit card company, payments services 
provider or third-party merchant, shall only process age- 
verified transactions for Internet sales relating to such 
product or service. 
(c) SAFE HARBORS.— 
(1) PORNOGRAPHIC MATERIAL.—With regard to 
financial transactions involving any operator under 
section 101, any Internet payment service provider 
may satisfy the requirements of regulations issued 
under subsection (a) by— 
(A) receiving a certification from an oper-
ator that the operator is in compliance with the 
regulations issued under section 101(c); 
(B) determining that the operator or 
website is not on the list of entities determined 
by the Commission not to be in compliance with 
the regulations issued under section 101(c); and 
(C) such other means as the Commission 
may determine would meet the intent of this 
Act to protect children from gaining access to 
Internet pornography. 
(2) FINANCIAL
TRANSACTIONS.—With regard 
to financial transactions involving any operator 
under section 101 of age-restricted products or serv-
VerDate Nov 24 2008 
04:12 Nov 08, 2009
Jkt 089200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H4059.IH
H4059
smartinez on DSKB9S0YB1PROD with BILLS
ices other than pornography, any Internet payment 
service provider may satisfy the requirements of reg-
ulations issued under subsection (b) by— 
(A) receiving a certification from an oper-
ator that the operator is in compliance with the 
regulations issued under section 101(c); or 
(B) such other means as the regulator 
specified in section 105 shall determine would 
meet the intent of this Act to protect children 
from obtaining products and services on the 
Internet whose sale or access to persons below 
a legally specified age is prohibited by law. 
SEC. 104. ENFORCEMENT OF AGE-VERIFICATION. 
(a) UNFAIR OR DECEPTIVE ACTS OR PRACTICES.— 
A violation of section 101 or the regulations issued under 
such section shall be treated as a violation of a rule issued 
under section 18(a) of the Federal Trade Commission Act 
(15 U.S.C. 57a) regarding unfair or deceptive acts or 
practices. 
(b) POWERS OF COMMISSION.—The Federal Trade 
Commission shall enforce section 101 in the same manner, 
by the same means, and with the same jurisdiction, pow-
ers, and duties as though all applicable terms and provi-
sions of the Federal Trade Commission Act (15 U.S.C. 
41 et seq.) were incorporated into and made a part of this 
VerDate Nov 24 2008 
04:12 Nov 08, 2009
Jkt 089200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H4059.IH
H4059
smartinez on DSKB9S0YB1PROD with BILLS
title. Any person who violates such regulations shall be 
subject to the penalties provided in that Act. 
SEC. 105. ENFORCEMENT OF PAYMENT PROVIDER RE-
QUIREMENTS. 
(a) IN GENERAL.—Section 103, and the regulations 
required thereunder, shall be enforced exclusively under— 
(1) section 8 of the Federal Deposit Insurance 
Act (12 U.S.C. 1818), in the case of— 
(A) a national bank, a Federal branch or 
Federal agency of a foreign bank, or any sub-
sidiary thereof (other than a broker, dealer, 
person providing insurance, investment com-
pany, or investment adviser), by the Office of 
the Comptroller of the Currency; 
(B) a member bank of the Federal Reserve 
System (other than a national bank), a branch 
or agency of a foreign bank (other than a Fed-
eral branch, Federal agency, or insured State 
branch of a foreign bank), a commercial lending 
company owned or controlled by a foreign bank, 
an organization operating under section 25 or 
25A of the Federal Reserve Act (12 U.S.C. 
601, 604), or a bank holding company and its 
nonbank subsidiary or affiliate (other than a 
broker, dealer, person providing insurance, in-
VerDate Nov 24 2008 
04:12 Nov 08, 2009
Jkt 089200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H4059.IH
H4059
smartinez on DSKB9S0YB1PROD with BILLS
vestment company, or investment adviser), by 
the Board of Governors of the Federal Reserve 
System; 
(C) a bank, the deposits of which are in-
sured by the Federal Deposit Insurance Cor-
poration (other than a member of the Federal 
Reserve System), an insured State branch of a 
foreign bank, or any subsidiary thereof (other 
than a broker, dealer, person providing insur-
ance, investment company, or investment ad-
viser), by the Board of Directors of the Federal 
Deposit Insurance Corporation; and 
(D) a savings association, the deposits of 
which are insured by the Federal Deposit In-
surance Corporation, or any subsidiary thereof 
(other than a broker, dealer, person providing 
insurance, investment company, or investment 
adviser), by the Director of the Office of Thrift 
Supervision; 
(2) the Federal Credit Union Act (12 U.S.C. 
1751 et seq.), by the National Credit Union Admin-
istration Board with respect to any federally insured 
credit union; 
VerDate Nov 24 2008 
04:12 Nov 08, 2009
Jkt 089200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H4059.IH
H4059
smartinez on DSKB9S0YB1PROD with BILLS
(3) the Securities Exchange Act of 1934 (15 
U.S.C. 78a et seq.), by the Securities and Exchange 
Commission with respect to any broker or dealer; 
(4) the Investment Company Act of 1940 (15 
U.S.C. 80a–1 et seq.), by the Securities and Ex-
change Commission with respect to any investment 
company; 
(5) the Investment Advisers Act of 1940 (15 
U.S.C. 80b–1 et seq.), by the Securities and Ex-
change Commission with respect to any investment 
adviser registered with the Securities and Exchange 
Commission under that Act; 
(6) the Commodity Exchange Act (7 U.S.C. 1 
et seq.), by the Commodity Futures Trading Com-
mission with respect to any futures commission mer-
chant, commodity trading advisor, commodity pool 
operator, or introducing broker; 
(7) the provisions of title XIII of the Housing 
and Community Development Act of 1992 (12 
U.S.C. 4501 et seq.), by the Director of Federal 
Housing Enterprise Oversight (and any successor to 
such functional regulatory agency) with respect to 
the Federal National Mortgage Association, the Fed-
eral Home Loan Mortgage Corporation, and any 
other entity or enterprise (as defined in that title) 
VerDate Nov 24 2008 
04:12 Nov 08, 2009
Jkt 089200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H4059.IH
H4059
smartinez on DSKB9S0YB1PROD with BILLS
subject to the jurisdiction of such functional regu-
latory agency under that title, including any affiliate 
of any such enterprise; 
(8) State insurance law, in the case of any per-
son engaged in providing insurance, by the applica-
ble State insurance authority of the State in which 
the person is domiciled; and 
(9) the Federal Trade Commission Act (15 
U.S.C. 41 et seq.), by the Commission for any other 
covered entity that is not subject to the jurisdiction 
of any agency or authority described under para-
graphs (1) through (8). 
(b) NO PRIVATE RIGHT OF ACTION.— 
(1) IN GENERAL.—This Act, and the regula-
tions prescribed under this Act, may not be con-
strued to provide a private right of action, including 
a class action with respect to any act or practice 
regulated under this Act. 
(2) CIVIL AND CRIMINAL ACTIONS.—No civil or 
criminal action relating to any act or practice gov-
erned under this Act, or the regulations prescribed 
under this Act, shall be commenced or maintained in 
any State court or under State law, including a 
pendent State claim to an action under Federal law. 
VerDate Nov 24 2008 
04:12 Nov 08, 2009
Jkt 089200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H4059.IH
H4059
smartinez on DSKB9S0YB1PROD with BILLS
SEC. 106. DEFINITIONS. 
In this title the following definitions apply: 
(1) COMMISSION.—The term ‘‘Commission’’ 
means the Federal Trade Commission. 
(2) 
PORNOGRAPHIC
MATERIAL.—The 
term 
‘‘pornographic material’’ means any film, video, 
digitally- or computer-manipulated image, digital 
image, picture, or other matter that contains a de-
piction of an actual human being engaged in actual 
sexually explicit conduct that is produced in whole or 
in part with materials that have been mailed or 
shipped in interstate or foreign commerce, or is 
shipped or transported or is intended for shipment 
or transportation in interstate or foreign commerce 
and that contains one or more visual depictions of 
an actual human being engaged in actual sexually 
explicit conduct made after July 3, 1995. 
(3) PORNOGRAPHIC
WEB
SITE.—The term 
‘‘pornographic Web site’’ means a person required to 
maintain documents verifying the age of persons en-
gaged in sexually explicit conduct pursuant to sec-
tion 2257(a) of title 18, United States Code. 
(4) AGE
RESTRICTED.—The term ‘‘age re-
stricted’’ means a product or service whose access, 
sale, or use is limited under applicable Federal or 
State law to persons over a specified age. 
VerDate Nov 24 2008 
04:12 Nov 08, 2009
Jkt 089200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H4059.IH
H4059
smartinez on DSKB9S0YB1PROD with BILLS
(5) OPERATOR.—The term ‘‘operator’’ means a 
person who provides products or services online 
whose sale is limited by applicable law to persons 
over the age of 18 or with regard to alcohol, over the 
age of 21. 
(6) PAYMENT SERVICES PROVIDER.—The term 
‘‘payment services provider’’ means any person who 
engages in any of the following activities: 
(A) Enabling cash to be placed on a pay-
ment account as well as all the operations re-
quired for operating a payment account. 
(B) Enabling cash withdrawals from a 
payment account as well as all the operations 
required for operating a payment account. 
(C) Execution of payment transactions, in-
cluding transfers of funds on a payment ac-
count with the user’s payment service provider 
or with another payment service provider. 
(D) Execution of direct debits, including 
one-time direct debits. 
(E) Execution of payment transactions 
through a payment card or a similar device. 
(F) Execution of credit transfers, including 
standing orders. 
VerDate Nov 24 2008 
04:12 Nov 08, 2009
Jkt 089200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H4059.IH
H4059
smartinez on DSKB9S0YB1PROD with BILLS
(G) Execution of payment transactions 
where the funds are covered by a credit line for 
a payment service user. 
(H) Execution of direct debits, including 
one-off direct debits. 
(I) Execution of payment transactions 
through a payment card or a similar device. 
(J) Execution of credit transfers, including 
standing orders. 
(K) Issuing and/or acquiring of payment 
instruments. 
(L) Money remittance. 
(M) Execution of payment transactions 
where the consent of the payer to execute a 
payment transaction is given by means of any 
telecommunication, digital or IT device and the 
payment is made to the telecommunication, IT 
system or network operator, acting only as an 
intermediary between the payment service user 
and the supplier of the goods and services. 
VerDate Nov 24 2008 
04:12 Nov 08, 2009
Jkt 089200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H4059.IH
H4059
smartinez on DSKB9S0YB1PROD with BILLS
TITLE 
II—ENHANCING 
ANTI- 
MONEY 
LAUNDERING 
LAWS 
TO COVER ONLINE TRANS-
ACTIONS 
SEC. 201. FINANCIAL INSTITUTIONS SPECIFIED IN SUB-
CHAPTER II OF CHAPTER 53 OF TITLE 31, 
UNITED STATES CODE. 
(a) 
PAYMENT
SERVICES
PROVIDERS.—Section 
5312(c) of title 31, United States Code, is amended by 
adding at the end the following: 
‘‘(2) Any payments services provider that is not 
otherwise covered as a financial institution under 
this subsection, including any person who engages in 
any of the following activities: 
‘‘(A) Enabling cash to be placed on a pay-
ment account as well as all the operations re-
quired for operating a payment account. 
‘‘(B) Enabling cash withdrawals from a 
payment account as well as all the operations 
required for operating a payment account. 
‘‘(C) Execution of payment transactions, 
including transfers of funds on a payment ac-
count with the user’s payment service provider 
or with another payment service provider. 
VerDate Nov 24 2008 
04:12 Nov 08, 2009
Jkt 089200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H4059.IH
H4059
smartinez on DSKB9S0YB1PROD with BILLS
‘‘(D) Execution of direct debits, including 
one-time direct debits. 
‘‘(E) Execution of payment transactions 
through a payment card or a similar device. 
‘‘(F) Execution of credit transfers, includ-
ing standing orders. 
‘‘(G) Execution of payment transactions 
where the funds are covered by a credit line for 
a payment service user. 
‘‘(H) Execution of direct debits, including 
one-off direct debits. 
‘‘(I) Execution of payment transactions 
through a payment card or a similar device. 
‘‘(J) Execution of credit transfers, includ-
ing standing orders. 
‘‘(K) Issuing or acquiring of payment in-
struments. 
‘‘(L) Money remittance. 
‘‘(M) Execution of payment transactions 
where the consent of the payer to execute a 
payment transaction is given by means of any 
telecommunication, digital or IT device and the 
payment is made to the telecommunication, IT 
system or network operator, acting only as an 
VerDate Nov 24 2008 
04:12 Nov 08, 2009
Jkt 089200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H4059.IH
H4059
smartinez on DSKB9S0YB1PROD with BILLS
intermediary between the payment service user 
and the supplier of the goods and services.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall take effect at the end of the 180-day 
period beginning on the date of enactment of this Act. 
(c) DATE OF APPLICATION OF REGULATIONS; FAC-
TORS TO BE TAKEN INTO ACCOUNT.—Before the end of 
the 180-day period beginning on the date of enactment 
of this Act, the Secretary of the Treasury shall prescribe 
regulations that consider the extent to which the require-
ments imposed under this section are commensurate with 
the size, location, and activities of the financial institu-
tions to which such regulations apply. 
SEC. 202. CURRENCIES NOT BACKED BY UNITED NATIONS 
MEMBER STATES. 
(a) IN GENERAL.—No financial institution may proc-
ess a financial transaction denominated in or otherwise in-
volving an electronic currency not backed by the full faith 
and credit of a member state of the United Nations. 
(b) EXCLUSION.—For the purposes of this sub-
section, an electronic currency does not include— 
(1) any activity governed by the securities laws 
(as that term is defined in section 3(a)(47) of the 
Securities Exchange Act of 1934 for the purchase or 
VerDate Nov 24 2008 
04:12 Nov 08, 2009
Jkt 089200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H4059.IH
H4059
smartinez on DSKB9S0YB1PROD with BILLS
sale of securities (as that term is defined in section 
3(a)(10) of that Act); 
(2) any transaction conducted on or subject to 
the rules of a registered entity or exempt board of 
trade under the Commodity Exchange Act; 
(3) any over-the-counter derivative instrument; 
(4) any contract of indemnity or guarantee; 
(5) any contract for insurance; 
(6) any deposit or other transaction with an in-
sured depository institution; and 
(7) any other form of financial instrument or 
payment, however denominated, that the Secretary 
determines should not be subject to the prohibition 
of this subsection. 
(c) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall take effect at the end of the 180-day 
period beginning on the date of enactment of this Act. 
(d) DATE OF APPLICATION OF REGULATIONS.—Be-
fore the end of the 180-day period beginning on the date 
of enactment of this Act, the Secretary shall prescribe reg-
ulations to implement the prohibitions set forth in sub-
section (a). 
VerDate Nov 24 2008 
04:12 Nov 08, 2009
Jkt 089200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6201
E:\BILLS\H4059.IH
H4059
smartinez on DSKB9S0YB1PROD with BILLS
SEC. 203. DEFINITIONS. 
In this title, the term ‘‘Secretary’’ means Secretary 
of the Treasury. 
Æ 
VerDate Nov 24 2008 
04:12 Nov 08, 2009
Jkt 089200
PO 00000
Frm 00019
Fmt 6652
Sfmt 6301
E:\BILLS\H4059.IH
H4059
smartinez on DSKB9S0YB1PROD with BILLS