This legislation aims to prevent individuals classified as sex offenders from obtaining children through surrogacy by imposing strict prohibitions on surrogacy agencies, their employees, and the sex offenders themselves. It defines a sex offender as anyone required to register under the Adam Walsh Child Protection and Safety Act of 2006, and a surrogacy agency as any entity facilitating such agreements. The bill establishes severe penalties for non-compliance, including substantial fines and lengthy imprisonment. Surrogacy agencies found to be recklessly facilitating an agreement with a sex offender face at least 10 years in prison, while those acting knowingly, along with their employees and the sex offenders themselves, face a minimum of 20 years. Convicted agencies also lose their tax-exempt status and eligibility for federal grants. Furthermore, any surrogacy agreement entered into in violation of these prohibitions is declared void and unenforceable . In such cases, the legal custody of a child born from such an agreement would be determined by the best interests of the child under state law, without any consideration for the invalidated surrogacy agreement. The Attorney General is also authorized to pursue civil penalties equal to the compensation involved in the prohibited conduct.