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Bill Summary · HB 559

Overview

HB 559 (2026 Regular Session, Kentucky) establishes a framework for data privacy, portability, and interoperability related to social media services and artificial intelligence systems. The act creates definitions, sets obligations for data access and transfer, mandates interoperability interfaces, outlines enforcement by the Attorney General, and creates a dedicated digital choice fund to support enforcement.

Purpose and intent

  • Promote user control over personal data and contextual data (including social graph data and AI-related contextual data).
  • Facilitate data portability and interoperability between social media services and with artificial intelligence systems designated by the user.
  • Establish a state-level enforcement regime and a dedicated fund to support enforcement actions.

Key provisions and changes

Data concepts and scope (Section 1)

  • Defines terms critical to the act:
    • Artificial intelligence system and model operator.
    • Contextual data: prompts, conversational histories, files, preferences, metadata (excluding model operators’ trade secrets).
    • Personal data and social graph: includes social connections, user-created content, interactions, metadata, and relational references.
    • Social media service and social media company.
    • User: an individual located in Kentucky who uses a social media service.
  • Sets a framework for how these data concepts interact with interoperability and portability requirements.

Data portability and deletion rights (Section 2)

  • If a user requests their personal data (including social graph and contextual data), providers must supply it in a portable, usable format allowing transmission to another provider or model operator if processed automatically.
  • Providers must delete a user’s social graph and contextual data upon a verified delete request.
  • Responsiveness: requests must be fulfilled within five business days.

Interoperability interfaces (Section 3)

  • Social media companies must implement interoperable interfaces that:
    • Let users share a common set of personal data between designated social media services.
    • Allow third parties to access user data with user permission, including notification of updates.
  • Model operators must implement third-party accessible interfaces to share contextual data with designated AI systems, with notifications on updates.
  • Data obtained via these interfaces must be reasonably secured.
  • Interoperability must use an open protocol, support real-time data sharing, avoid discrimination between services, and apply reasonable thresholds for access frequency/volume (with potential fees).
  • Documentation for access interfaces must be complete, accurate, and regularly updated.
  • Privacy and security obligations apply to data shared/received through interfaces, in line with existing privacy notices and security practices.
  • Limitations: providers are not required to share internal inferences, proprietary algorithms, or data in proprietary formats that would reveal such information; also, data in proprietary formats may not be transmitted or displayed if it would disclose protected information.

Open protocols and presumptions (Section 4)

  • The Attorney General, after consultation, may identify open protocols meeting the act’s requirements.
  • If a provider uses an identified open protocol, there is a rebuttable presumption that data access is on reasonable, non-discriminatory terms.

Enforcement and penalties (Section 5)

  • The Attorney General has exclusive authority to enforce Sections 1–6 and can pursue actions in the Commonwealth’s name.
  • A 30-day cure period is required: if a targeted entity cures alleged violations within this window and provides a written statement, damages actions may be foregone.
  • If violations continue after the cure period, penalties up to $7,500 per continued violation may be pursued.
  • There is no private right of action for individuals; enforcement is by the Attorney General.
  • The AG may recover investigative costs, court costs, attorney fees, and other court-ordered relief.

Digital choice fund (Section 6)

  • Establishes the digital choice fund in the state treasury, financed by civil penalties collected under the act.
  • Administered by the Attorney General.
  • Funds are to be used to enforce Sections 1–6 and do not lapse at year-end; unspent funds carry forward.

Miscellaneous (Section 7–8)

  • Severability clause.
  • The act may be cited as the Kentucky Digital Choice Act.

Who/what is affected

  • Social media companies operating in Kentucky (as defined by ownership/operation of social media services).
  • Model operators that deploy AI systems interacting with Kentucky users.
  • Third-party entities that provide interoperability interfaces or access to user data under the act.
  • Kentucky residents who use social media services and wish to exercise data portability, data rights, and interoperability.

Procedural/timeline aspects

  • Enforcement by the Kentucky Attorney General with a 30-day cure window before pursuing damages for violations.
  • Civil penalties capped at $7,500 per continued violation after cure period.
  • Establishment of the digital choice fund to support ongoing enforcement.
  • Open protocol identification and presumptions depend on AG determinations, following consultations with the Consumers’ Advisory Council.

Potential impact (high-level)

  • Enhanced data portability and the ability to transfer social graph and contextual data between services and to designated AI systems.
  • Increased transparency and user control over personal and contextual data.
  • Growth of interoperability practices through open protocols and third-party interfaces.
  • Strengthened state-level enforcement with a dedicated funding mechanism to pursue violations.
  • Providers may incur costs to implement interoperable interfaces, maintain documentation, and manage compliance processes.

Compiled from official sources — confirm details with the bill’s official record.

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