MI HB4938

Prohibits distribution of "prohibited material" via the internet in Michigan, including sexually explicit content and depictions of individuals presenting as a gender different from their biological sex

Establishes felony penalties of up to 20 years imprisonment and $100,000 fine for violations, increasing to 25 years and $125,000 for distributing more than 100 pieces of prohibited material

Requires internet service providers to implement mandatory filtering technology to block prohibited material and circumvention tools like VPNs and proxy servers

Mandates internet platforms and social media services to implement AI-driven filtering, human review teams, 2-business-day response times for flagged content, and submit annual transparency reports to state police

Creates a special Internet Content Enforcement Division within the Attorney General's office to investigate violations, conduct audits, and issue binding takedown orders with $250,000 per day civil fines for non-compliance

Exempts scientific/medical research materials and peer-reviewed academic content from the definition of prohibited material