,,ii #aai? ,,congress #b;d ,session ,s4 #eeca ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,septemb] #bd1 #bjbf,mr4 ,murphy introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,f9ance ,a ,,bill ,to am5d ! ,int]nal ,rev5ue ,code ( #aihf to e/abli% an excise tax on digital adv]tis+1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,9 ,real ,life ,act or ! ,,irl ,act4 #b4 ,purpose ,! purpose ( ?is ,act is to /r5g!n ! social fabric t unites ! ,am]ican p to cont9ue our #bej-ye>-old exp]im5t 9 %>$ self-gov]nance by-- 7#a7 pu%+ big te*nology companies away f bus9ess models t pr(it f scre5 addiction & cause )drawal f 9-p]son connection2 & 7#b7 inve/+ 9 ! local civic infra/ructure & organizations t l9k citiz5s toge!r 9 common cause4 #c4 ,excise tax on digital adv]tisem5ts 7a7 ,9 g5]al ,subtitle ,d ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new *apt]3 #ej;,b ,digital adv]tisem5ts ,sec4 #ejjj;,e4 ,digital adv]tisem5ts4 #ejjj;,e4 ,digital adv]tisem5ts 7a7 ,9 g5]al ,!re is h]eby impos$ on any p]son t receiv$ algori?mic digital adv]tis+ rev5ue dur+ ! taxable ye> a tax det]m9$ 9 accordance ) ! foll[+ table3 ,if algori?mic digital adv]tis+ rev5ue is3,! tax is3,n ov] #ejj1jjj1jjjj,ov] #ejj1jjj1jjj b n ov] #b1ejj1jjj1jjjaj ( ! excess ov] #ejj1jjj1jjj4,ov] #b1ejj1jjj1jjj b n ov] #e1jjj1jjj1jjjbjj1jjj1jjj1 plus #bj ( ! excess ov] #b1ejj1jjj1jjj4,ov] #e1jjj1jjj1jjj b n ov] #g1ejj1jjj1jjjgjj1jjj1jjj1 plus #cj ( ! excess ov] #e1jjj1jjj1jjj4,ov] #g1ejj1jjj1jjj b n ov] #aj1jjj1jjj1jjja1dej1jjj1jjj1 plus #dj ( ! excess ov] #g1ejj1jjj1jjj4,ov] #aj1jjj1jjj1jjjb1dej1jjj1jjj1 plus #ej ( ! excess ov] #aj1jjj1jjj1jjj4 7b7 ,inflation adju/m5t ,9 ! case ( any taxable ye> beg9n+ aft] ,decemb] #ca1 #bjbg1 ea* doll> am\nt 9 ! table 9 subsection 7a7 %all be increas$ by an am\nt equal to-- 7#a7 su* doll> am\nt1 multipli$ by 7#b7 ! co/-(-liv+ adju/m5t det]m9$ "u section #a7;f77#c7 = ! cal5d> ye> 9 :i* ! taxable ye> beg9s1 det]m9$ by sub/itut+ cal5d> ye> #bjbf = cal5d> ye> #bjaf 9 subp>agraph 7,a77ii7 !re(4 ,any increase det]m9$ "u ! prec$+ s5t5ce %all be r\nd$ to ! next l[e/ multiple ( #a1jjj1jjj4 7c7 ,aggregation rules 7#a7 ,9 g5]al ,= purposes ( ! tax impos$ "u subsection 7a71 a corporation or p>tn]%ip %all be treat$ z a s+le p]son = any taxable ye> if su* entity meets ! gross receipts te/ ( section #ddh7;c7 = su* taxable ye>1 except t = purposes ( ! application ( p>agraph 7#b7 ( su* section1 ! ref]5ce to subsection 7b7 ( section #eb %all be appli$ pursuant to ! modifications describ$ 9 p>agraph 7#b74 7#b7 ,modifications ,= purposes ( p>agraph 7#a71 ) respect to ! application ( subsection 7b7 ( section #eb1 ! t]m trade or bus9ess %all include any activity treat$ z a trade or bus9ess "u p>agraph 7#e7 or 7#f7 ( section #dfi7;c7 7det]m9$ )\t reg>d to ! phrase ,to ! ext5t provid$ 9 regulations 9 su* p>agraph 7#f774 7#c7 ,rule ( con/ruction ,no?+ 9 p>agraph 7#b7 %all be con/ru$ to create any inf]5ce ) respect to ! prop] application ( section #eb ) respect to any o!r provision ( ?is title4 7d7 ,def9itions ,9 ?is section-- 7#a7 ,algori?mic digital adv]tis+ rev5ue ,! t]m algori?mic digital adv]tis+ rev5ue means ! total gross rev5ue d]iv$ f ! sale ( any digital adv]tisem5ts t are-- 7,a7 view$ f a location 9 ! ,unit$ ,/ates1 & 7,b7 display$ by a social m$ia plat=m us+ a p]sonaliz$ recomm5dation sy/em4 7#b7 ,digital adv]tisem5t ,! t]m digital adv]tisem5t means an adv]tisem5t t is s]v$ electronically ov] a comput] network1 includ+ ! int]net4 7#c7 ,p]sonal data 7,a7 ,9 g5]al ,! t]m p]sonal data means in=mation t id5tifies or is l9k$ or reasonably l9kable1 alone or 9 comb9ation ) o!r in=mation1 to an individual or a device t id5tifies or is l9k$ or reasonably l9kable to an individual4 7,b7 ,d]iv$ data ,! t]m p]sonal data may include data t is creat$ by ! d]ivation ( in=mation1 data1 assumptions1 correlations1 inf]5ces1 pr$ictions1 or conclusions f facts1 evid5ce1 or ano!r s\rce ( in=mation or data ab\t an individual or an individual's device4 7,c7 ,exclusion ,! t]m p]sonal data does n include publicly available in=mation4 7#d7 ,p]sonaliz$ recomm5dation sy/em 7,a7 ,9 g5]al ,! t]m p]sonaliz$ recomm5dation sy/em means a fully or p>tially automat$ sy/em us$ to sugge/1 promote1 or rank cont5t1 includ+ o!r us]s or po/s1 bas$ on ! p]sonal data ( us]s4 7,b7 ,exception ,a sy/em %all n be deem$ to be a p]sonaliz$ recomm5dation sy/em solely on ! basis t su* sy/em only uses ! foll[+ p]sonal data ( ! us]3 7i7 ,! type ( device us$ by ! us]4 7ii7 ,! languages us$ by ! us] to communicate4 7iii7 ,! recogniz$ place 9 :i* ! us] is locat$4 7iv7 ,! age ( ! us]4 7,c7 ,rule ( con/ruction ,a sy/em %all n be deem$ to be a p]sonaliz$ recomm5dation sy/em on ! basis ( su* sy/em-- 7i7 provid+ se>* results to a us] delib]ately or indep5d5tly se>*+ = 7su* z by typ+ a phrase into a se>* b> or provid+ spok5 input71 or specifically reque/+1 cont5t1 s long z su* results are n bas$ on ! p]sonal data ( ! us] 7) ! exception ( p]sonal data describ$ 9 subp>agraph 7,b771 7ii7 tak+ reasonable measures to-- 7,i7 block1 detect1 or prev5t ! di/ribution ( unlawful or obsc5e mat]ial1 7,,ii7 block or filt] spam1 or protect ! security ( su* plat=m or s]vice1 or 7,,iii7 prev5t crim9al activity1 or 7iii7 display+ us]-g5]at$ cont5t t has be5 select$1 foll[$1 or subscrib$ to by a us] z long z ! display ( ! cont5t is bas$ on a *ronological =mat4 7#e7 ,recogniz$ place 7,a7 ,9 g5]al ,! t]m recogniz$ place means any ( ! foll[+3 7i7 ,a ,/ate4 7ii7 ,indian l&s4 7iii7 ,a c\nty1 municipality1 city1 t[n1 t[n%ip1 village1 bor\gh1 or simil> unit ( g5]al gov]nm5t t is incorporat$ pursuant to a ,/ate law4 7iv7 ,a c5sus designat$ place 7z def9$ 9 ! mo/ rec5t gloss>y ( ! ,bureau ( ! ,c5sus74 7v7 ,a designat$ m>ket area 7z def9$ 9 section #abb7;j7 ( title #ag1 ,unit$ ,/ates ,code74 7vi7 ,a congressional di/rict4 7,b7 ,exclusions ,! t]m recogniz$ place does n include-- 7i7 a subdivision ( any item li/$ 9 subp>agraph 7,a7 t is n itself li/$ 9 su* subp>agraph1 or 7ii7 a ,,zip ,code4 7#f7 ,social m$ia plat=m 7,a7 ,9 g5]al ,! t]m social m$ia plat=m means a public-fac+ website1 onl9e s]vice1 onl9e application1 or mobile application t-- 7i7 is direct$ to consum]s1 7ii7 collects p]sonal data1 7iii7 prim>ily d]ives rev5ue f adv]tis+ or ! sale ( p]sonal data1 & 7iv7 z its prim>y function provides a community =um = us]-g5]at$ cont5t1 includ+ messages1 videos1 & audio files among us]s :]e su* cont5t is prim>ily int5d$ = view+1 re%>+1 or plat=m-enabl$ di/ribut$ social endorsem5t or comm5t4 7,b7 ,limitation ,! t]m social m$ia plat=m does n include a plat=m t1 z its prim>y function = consum]s1 provides or facilitates any ( ! foll[+3 7i7 ,! pur*ase & sale ( comm]cial goods4 7ii7 ,teleconf]5c+ or videoconf]5c+ s]vices t all[ reception & transmission ( audio or video signals = real-"t communication1 provid$ t ! real-"t communication is initiat$ by us+ a unique l9k or id5tifi] to facilitate access4 7iii7 ,cr[d-s\rc$ ref]5ce guides su* z encyclop$ias & diction>ies4 7iv7 ,cl\d /orage1 file %>+1 or file collaboration s]vices1 includ+ su* s]vices t all[ collaborative edit+ by invit$ us]s4 7v7 ,! play+ or creation ( video games4 7vi7 ,cont5t t consi/s prim>ily ( news1 sports1 sports cov]age1 ent]ta9m5t1 or o!r in=mation or cont5t t is n us]-g5]at$ b is preselect$ by ! plat=m & = :i* any *at1 comm5t1 or int]active functionality is incid5tal1 directly relat$ to1 or dep5d5t on ! provision ( ! cont5t provid$ by ! plat=m4 7vii7 ,bus9ess1 product1 or travel in=mation includ+ us] reviews or rank+s ( su* bus9esses1 products1 or o!r travel in=mation4 7viii7 ,educational in=mation1 exp]i5ces1 tra9+1 or in/ruction provid$ to build k1 skills1 or a craft1 di/rict-sanction$ or s*ool-sanction$ le>n+ managem5t sy/ems & s*ool in=mation sy/ems = ! purposes ( s*ools convey+ cont5t relat$ to ! education ( /ud5ts1 or s]vices or s]vices on behalf ( or 9 support ( an elem5t>y s*ool or second>y s*ool1 z su* t]ms are def9$ 9 section #haja ( ! ,elem5t>y & ,second>y ,education ,act ( #aife 7#bj ,u4,s4,c4 #ghja74 7ix7 ,an email s]vice4 7x7 ,a wireless messag+ s]vice1 includ+ su* a s]vice provid$ ?r\gh %ort message s]vice or multim$ia messag+ protocols1 t is n a compon5t (1 or l9k$ to1 a social m$ia plat=m & :]e ! pr$om9ant or exclusive function ( ! messag+ s]vice is direct messag+ consi/+ ( ! transmission ( text1 photos1 or videos t are s5t by electronic means1 :]e messages are transmitt$ f ! s5d] to ! recipi5t & are n po/$ publicly or )9 a social m$ia plat=m4 7xi7 ,a broadb& int]net access s]vice 7z su* t]m is def9$ = purposes ( section #h4a7;b7 ( title #dg1 ,code ( ,f$]al ,regulations1 or any successor regulation74 7xii7 ,a virtual private network or simil> s]vice t exi/s solely to r\te int]net traffic betwe5 locations4 7#g7 ,/ate ,! t]m ,/ate means any ,/ate ( ! ,unit$ ,/ates1 ! ,di/rict ( ,columbia1 ! ,commonweal? ( ,pu]to ,rico1 ! ,virg9 ,isl&s ( ! ,unit$ ,/ates1 ,guam1 ,am]ican ,samoa1 ! ,commonweal? ( ! ,nor!rn ,m>iana ,isl&s1 & any possession ( ! ,unit$ ,/ates4 7#h7 ,us] ,! t]m us] means1 ) respect to a social m$ia plat=m1 an individual :o regi/]s an acc\nt or creates a pr(ile on ! social m$ia plat=m4 7e7 ,regulations & guidance 7#a7 ,9 g5]al ,! ,secret>y %all issue su* regulations or o!r guidance z may be necess>y or appropriate to c>ry out ! purposes ( ?is section1 includ+ any regulations or guidance to require report+ ) respect to algori?mic digital adv]tis+ rev5ue z is necess>y & appropriate to implem5t & en=ce ! requirem5ts "u ?is section4 7#b7 ,consultation ,) respect to any regulations issu$ pursuant to p>agraph 7#a71 ! ,secret>y may consult ) o!r relevant ,f$]al ag5cies1 includ+ ! ,f$]al ,communications ,commission & ! ,dep>tm5t ( ,comm]ce4 4 7b7 ,social ,capital ,fund ,sub*apt] ,a ( *apt] #ih ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new section3 #ieab4 ,social ,capital ,fund 7a7 ,creation ( tru/ fund ,!re is e/abli%$ 9 ! ,treasury ( ! ,unit$ ,/ates a tru/ fund to be kn[n z ! ,social ,capital ,fund1 consi/+ ( su* am\nts z may be-- 7#a7 appropriat$ to su* ,tru/ ,fund z provid$ 9 ?is section1 or 7#b7 cr$it$ to su* ,tru/ ,fund z provid$ 9 section #ifjb7;b74 7b7 ,transf]s to tru/ fund ,!re are h]eby appropriat$ to ! ,social ,capital ,fund am\nts equival5t to ! taxes receiv$ 9 ! ,treasury "u *apt] #ej;,b4 7c7 ,exp5ditures f tru/ fund 7#a7 ,9 g5]al ,subject to p>agraph 7#b71 am\nts 9 ! ,social ,capital ,fund %all be available to ! ,secret>y ( ,h\s+ & ,urban ,developm5t1 )\t fur!r appropriation & to rema9 available until exp5d$1 to make grants = ! fund+ ( eligible activities4 7#b7 ,allocation & di/ribution ( funds ,= purposes ( mak+ grants "u p>agraph 7#a7-- 7,a7 #ge p]c5t ( am\nts 9 ! ,social ,capital ,fund %all be allocat$ pursuant to rules simil> to ! rules "u section #ajf ( ! ,h\s+ & ,community ,developm5t ,act ( #aigd 7#db ,u4,s4,c4 #ecjf7 to recipi5ts t-- 7i7 submit an application describ$ 9 subsection 7e71 & 7ii7 are eligible = grants au?oriz$ by section #ajc ( ! ,h\s+ & ,community ,developm5t ,act ( #aigd 7#db ,u4,s4,c4 #ecjc71 & 7,b7 #be p]c5t ( am\nts 9 ! ,social ,capital ,fund %all be allocat$ on a competitive basis to recipi5ts t-- 7i7 submit an application describ$ 9 subsection 7e71 & 7ii7 are-- 7,i7 a unit ( g5]al local gov]nm5t 7z def9$ 9 section #ajb7;a7 ( ! ,h\s+ & ,community ,developm5t ,act ( #aigd 7#db ,u4,s4,c4 #ecjb7;a7771 7,,ii7 an organization describ$ 9 section #eja7;c77#c7 & exempt f tax "u section #eja7;a71 7,,iii7 a religi\s or civic n-=-pr(it organization :i* is at lea/ p>tially gov]n$1 op]at$1 & fund$ by individuals :o are resid5ts ( ! community s]v$ by su* organization1 7,,iv7 an ,indian tribe 7z def9$ section #ajb7;a7 ( ! ,h\s+ & ,community ,developm5t ,act ( #aigd 7#db ,u4,s4,c4 #ecjb7;a7771 or 7,v7 a consortium ( any entities describ$ 9 subclauses 7,i7 ?r\gh 7,,iv74 7#c7 ,non5titlem5t areas ,) respect to any allocations made pursuant to p>agraph 7#b77;,a7 to ,/ates = use 9 non5titlem5t areas1 su* am\nt %all be di/ribut$ pursuant to rules simil> to ! rules "u section #ajf ( ! ,h\s+ & ,community ,developm5t ,act ( #aigd 7#db ,u4,s4,c4 #ecjf74 7d7 ,eligible activities ,= purposes ( subsection 7c71 ! t]m eligible activities means any ( ! foll[+3 7#a7 ,an a?letic or o!r recreational program op]at$ by a gov]nm5tal1 tribal1 or n-=-pr(it organization4 7#b7 ,con/ruction1 r5ovation1 op]ation 7includ+ programm+71 or ma9t5ance (-- 7,a7 p>ks1 trails1 playgr\nds1 recreation c5t]s1 pools1 libr>ies1 or o!r public spaces t are accessible at no co/ to resid5ts ( ! community1 7,b7 museums1 arts & cultural c5t]s1 or p]=m+ arts v5ues t are af=dable = resid5ts ( ! community1 or 7,c7 bea*es t are op5 & accessible to ! public at no co/1 includ+ tra9+1 supplies1 uni=ms1 & relat$ infra/ructure = lifegu>ds1 ma9t5ance /aff1 & o!r p]sonnel /aff+ or ma9ta9+ a bea*4 7#c7 ,support = any n-=-pr(it organization t is =m$ to support any ( ! spaces & v5ues describ$ 9 p>agraph 7#b71 su* z a fri5ds gr\p4 7#d7 ,support = any ,p>5t ,tea*] ,organization = a public elem5t>y or second>y s*ool4 7#e7 ,programs or s]vices provid$ by a religi\s or civic n-=-pr(it organization :i*-- 7,a7 is at lea/ p>tially gov]n$1 op]at$1 & fund$ by individuals :o are resid5ts ( ! community s]v$ by su* organization1 & 7,b7 c]tifies t any am\nts provid$ "u subsection 7c7 %all be us$ to support programs or s]vices :i* are-- 7i7 n sect>ian wor%ip1 in/ruction1 or proselytization1 & 7ii7 made available to all resid5ts ( ! community4 7#f7 ,support = locally own$ small bus9esses t s]ve z social spaces = resid5ts ( ! community4 7#g7 ,support = fe/ivals or ev5ts t are op5 to ! public at no co/4 7#h7 ,dissem9at+ in=mation ab\t local civic life1 :i* may include opportunities to volunte]1 organizations to jo91 or ev5ts to att5d4 7#i7 ,support = programs to tea* responsible use ( te*nology or treat addiction to social m$ia or artificial intellig5ce4 7#aj7 ,support = community developm5t f9ancial in/itutions 7z def9$ 9 section #ajc ( ! ,community ,developm5t ,bank+ & ,f9ancial ,in/itutions ,act ( #aiid 7#ab ,u4,s4,c4 #dgjb77 to exp& _! f9anc+ = any ( ! activities describ$ 9 p>agraphs 7#a7 ?r\gh 7#i74 7#aa7 ,community p>ticipation1 public outrea*1 adm9i/rative co/s1 & program evaluation = any ( ! activities describ$ 9 p>agraphs 7#a7 ?r\gh 7#aj74 7e7 ,application ,an applicant = a grant "u subsection 7c7 %all provide ! ,secret>y ( ,h\s+ & ,urban ,developm5t ) a detail$ proposal = h[ ! grant w help to cultivate civic life1 :i* %all include ! foll[+3 7#a7 ,! capacity ( ! applicant to implem5t its proposal & act z a responsible /ew>d ( ,f$]al funds1 includ+ ?r\gh its community p>tn]%ips & collaborative networks4 7#b7 ,! ext5t to :i* ! proposal is likely to increase social connection1 tru/1 & p>ticipation by p ( all incomes & backgr\nds 9 ! community4 7#c7 ,! ext5t to :i* ! proposal cultivates organizations t are at lea/ p>tially gov]n$1 op]at$1 & fund$ by individuals :o are resid5ts ( ! community by involv+ su* organizations 9 ! design & implem5tation ( ! proposal1 :i* may include enc\rag+ ! creation ( new organizations4 7#d7 ,any o!r in=mation deem$ necess>y by ! ,secret>y ( ,h\s+ & ,urban ,developm5t4 7f7 ,program evaluation 7#a7 ,9 g5]al ,! ,secret>y ( ,h\s+ & ,urban ,developm5t1 act+ ?r\gh ! ,(fice ( ,policy ,developm5t & ,rese>*1 %all-- 7,a7 evaluate programs fund$ by ?is section1 & 7,b7 dissem9ate be/ practices = cultivat+ civic life4 7#b7 ,report+ ,any recipi5t ( grant fund+ "u ?is section %all provide reports & in=mation deem$ necess>y by ! ,secret>y ( ,h\s+ & ,urban ,developm5t to audit or evaluate _! program4 7#c7 ,/&>diz$ metrics ,any evaluation "u p>agraph 7#a77;,a7 or report "u p>agraph 7#b7 %all utilize /&>diz$ metrics to m9imize adm9i/rative & compliance co/s1 includ+ sci5tifically validat$ measurem5ts ( evid5ce-bas$ compon5ts ( social capital4 4 7c7 ,cl]ical am5dm5ts 7#a7 ,! table ( *apt]s = subtitle ,d ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ aft] ! item relat+ to *apt] #ej;,a ! foll[+ new item3 ,*apt] #ej;,b--,digital adv]tisem5ts 4 7#b7 ,! table ( sections = sub*apt] ,a ( *apt] #ih ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new item3 ,sec4 #ieab4 ,social ,capital ,fund4 4 7d7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjbf4