By: Shaheen, Collier, Schatzline H.B. No. 1181
        (Senate Sponsor - Paxton)
         (In the Senate - Received from the House May 10, 2023;
  May 11, 2023, read first time and referred to Committee on State
  Affairs; May 17, 2023, reported adversely, with favorable
  Committee Substitute by the following vote:  Yeas 11, Nays 0;
  May 17, 2023, sent to printer.)
Click here to see the committee vote
 
  COMMITTEE SUBSTITUTE FOR H.B. No. 1181 By:  Hughes
 
 
 
  COMMITTEE VOTE
 
 
         YeaNayAbsentPNV
         HughesX
         PaxtonX
         BettencourtX
         BirdwellX
         LaMantiaX
         MenéndezX
         MiddletonX
         ParkerX
         PerryX
         SchwertnerX
         ZaffiriniX
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to access to sexually explicit material on the Internet or
  electronic devices; providing civil penalties.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle C, Title 5, Business & Commerce Code, is
  amended by adding Chapter 121 to read as follows:
  CHAPTER 121. ELECTRONIC DEVICE FILTERS
  SUBCHAPTER A. ELECTRONIC DEVICE FILTER REQUIREMENTS
         Sec. 121.001.  DEFINITIONS. In this chapter:
               (1)  "Activate" means the process of powering on an
  electronic device and associating the device with a new user
  account.
               (2)  "Electronic device" means a device with a screen
  that is capable of connecting to a cellular network or the Internet.
               (3)  "Explicit material" means visual material that:
                     (A)  the average person applying contemporary
  community standards would find, taking the material as a whole, is
  intended to appeal to a prurient interest;
                     (B)  depicts, regardless of whether the depiction
  is actual, simulated, or animated, in a patently offensive way:
                           (i)  sexual intercourse, bestiality,
  masturbation, sodomy, oral copulation, flagellation, or excretory
  functions or actions;
                           (ii)  the striking, manipulating, or
  touching of a person's nipple, breast, buttock, anus, or genitals;
                           (iii)  the use of devices, tools,
  instruments, structures, or other items in relation to the
  performance of any of the acts listed in Subparagraph (i) or (ii);
  or
                           (iv)  sadomasochistic abuse or lewd
  exhibition of a person's genitals, anus, pubic hair, or nipple; and
                     (C)  taken as a whole, lacks serious literary,
  artistic, political, religious, or scientific value.
               (4)  "Filter" means software installed on an electronic
  device that, at the time a user activates the device, meets or
  exceeds industry standards and employs the manufacturer's most
  advanced, market-ready technology for preventing the device from
  accessing, downloading, or displaying explicit material using:
                     (A)  a mobile data network;
                     (B)  an Internet network, including wireless
  Internet; or
                     (C)  a software application owned and controlled
  by the device's manufacturer.
               (5)  "Manufacturer" means a person who:
                     (A)  is engaged in the business of manufacturing
  electronic devices or holds a patent for an electronic device; and
                     (B)  maintains a registered agent under Section
  5.201, Business Organizations Code.
               (6)  "Minor" means an individual younger than 18 years
  of age who:
                     (A)  has never been married; and
                     (B)  has not had the disabilities of minority
  removed for general purposes.
               (7)  "Simulated" has the meaning assigned by Section
  21.16, Penal Code.
               (8)  "Visual material" means any film, photograph,
  videotape, negative, or slide or any photographic reproduction that
  contains or incorporates any film, photograph, videotape,
  negative, or slide.
         Sec. 121.002.  APPLICABILITY.  This chapter does not apply
  to a telecommunications provider who activates an electronic device
  on behalf of a user.
         Sec. 121.003.  ELECTRONIC DEVICE FILTER REQUIRED.  (a)  A
  manufacturer shall ensure that an electronic device activated in
  this state will, on activation, automatically enable a filter and
  notify the user of the device when the filter prevents the device
  from accessing, downloading, or displaying explicit material.
         (b)  An electronic device must:
               (1)  allow the user of the device or a minor user's
  parent or guardian to circumvent the filter required under
  Subsection (a) by entering a password or access code; and
               (2)  reasonably prevent a user of the device from
  circumventing, modifying, removing, or uninstalling the filter
  without entering a password or access code.
         Sec. 121.004.  VIOLATION. (a) A manufacturer violates this
  chapter if the manufacturer releases into the market an electronic
  device that, when activated in this state, does not automatically
  enable a filter under Section 121.003 because the device lacks the
  necessary software or is defective.
         (b)  Notwithstanding Subsection (a), a manufacturer does not
  violate this chapter if the manufacturer makes a good faith effort
  to provide an electronic device that automatically enables a filter
  under Section 121.003.
  SUBCHAPTER B. ENFORCEMENT
         Sec. 121.051.  CIVIL PENALTY; INJUNCTION. (a) A
  manufacturer who knowingly violates Section 121.004(a) is liable to
  this state for a civil penalty in an amount not to exceed the lesser
  of:
               (1)  $10,000 for each violation; or
               (2)  $50 million.
         (b)  A manufacturer who negligently violates Section
  121.004(a) is liable to this state for a civil penalty in an amount
  not to exceed the lesser of:
               (1)  $1,000 for each violation; or
               (2)  $5 million.
         (c)  The attorney general may bring an action in the name of
  the state to obtain an injunction preventing further violations of
  this chapter by a manufacturer or to recover a civil penalty under
  this section. The prevailing party shall recover reasonable and
  necessary attorney's fees and costs incurred in an action brought
  under this section.
         (d)  The action may be brought in a district court in:
               (1)  Travis County; or
               (2)  the county in which the defendant's principal
  place of business is located.
         (e)  The attorney general shall deposit a civil penalty
  collected under this section in the state treasury to the credit of
  the general revenue fund.
         SECTION 2.  Title 6, Civil Practice and Remedies Code, is
  amended by adding Chapter 129B to read as follows:
  CHAPTER 129B.  LIABILITY FOR ALLOWING MINORS TO ACCESS PORNOGRAPHIC
  MATERIAL
         Sec. 129B.001.  DEFINITIONS. In this chapter:
               (1)  "Commercial entity" includes a corporation,
  limited liability company, partnership, limited partnership, sole
  proprietorship, or other legally recognized business entity.
               (2)  "Distribute" means to issue, sell, give, provide,
  deliver, transfer, transmute, circulate, or disseminate by any
  means.
               (3)  "Minor" means an individual younger than 18 years
  of age.
               (4)  "News-gathering organization" includes:
                     (A)  an employee of a newspaper, news publication,
  or news source, printed or on an online or mobile platform, of
  current news and public interest, who is acting within the course
  and scope of that employment and can provide documentation of that
  employment with the newspaper, news publication, or news source;
  and
                     (B)  an employee of a radio broadcast station,
  television broadcast station, cable television operator, or wire
  service who is acting within the course and scope of that employment
  and can provide documentation of that employment.
               (5)  "Publish" means to communicate or make information
  available to another person or entity on a publicly available
  Internet website.
               (6)  "Sexual material harmful to minors" includes any
  material that:
                     (A)  the average person applying contemporary
  community standards would find, taking the material as a whole and
  with respect to minors, is designed to appeal to or pander to the
  prurient interest;
                     (B)  in a manner patently offensive with respect
  to minors, exploits, is devoted to, or principally consists of
  descriptions of actual, simulated, or animated displays or
  depictions of:
                           (i)  a person's pubic hair, anus, or genitals
  or the nipple of the female breast;
                           (ii)  touching, caressing, or fondling of
  nipples, breasts, buttocks, anuses, or genitals; or
                           (iii)  sexual intercourse, masturbation,
  sodomy, bestiality, oral copulation, flagellation, excretory
  functions, exhibitions, or any other sexual act; and
                     (C)  taken as a whole, lacks serious literary,
  artistic, political, or scientific value for minors.
               (7)  "Transactional data" means a sequence of
  information that documents an exchange, agreement, or transfer
  between an individual, commercial entity, or third party used for
  the purpose of satisfying a request or event. The term includes
  records from mortgage, education, and employment entities.
         Sec. 129B.002.  PUBLICATION OF MATERIAL HARMFUL TO MINORS.
  (a)  A commercial entity that knowingly and intentionally publishes
  or distributes material on an Internet website, including a social
  media platform, more than one-third of which is sexual material
  harmful to minors, shall use reasonable age verification methods as
  described by Section 129B.003 to verify that an individual
  attempting to access the material is 18 years of age or older.
         (b)  A commercial entity that performs the age verification
  required by Subsection (a) or a third party that performs the age
  verification required by Subsection (a) may not retain any
  identifying information of the individual.
         Sec. 129B.003.  REASONABLE AGE VERIFICATION METHODS. (a)  
  In this section, "digital identification" means information stored
  on a digital network that may be accessed by a commercial entity and
  that serves as proof of the identity of an individual.
         (b)  A commercial entity that knowingly and intentionally
  publishes or distributes material on an Internet website or a third
  party that performs age verification under this chapter shall
  require an individual to:
               (1)  provide digital identification; or
               (2)  comply with a commercial age verification system
  that verifies age using:
                     (A)  government-issued identification; or
                     (B)  a commercially reasonable method that relies
  on public or private transactional data to verify the age of an
  individual.
         Sec. 129B.004.  APPLICABILITY OF CHAPTER. (a)  This chapter
  does not apply to a bona fide news or public interest broadcast,
  website video, report, or event and may not be construed to affect
  the rights of a news-gathering organization.
         (b)  An Internet service provider, or its affiliates or
  subsidiaries, a search engine, or a cloud service provider may not
  be held to have violated this chapter solely for providing access or
  connection to or from a website or other information or content on
  the Internet or on a facility, system, or network not under that
  provider's control, including transmission, downloading,
  intermediate storage, access software, or other services to the
  extent the provider or search engine is not responsible for the
  creation of the content that constitutes sexual material harmful to
  minors.
         Sec. 129B.005.  CIVIL PENALTY; INJUNCTION. (a) If the
  attorney general believes that an entity is knowingly violating or
  has knowingly violated this chapter and the action is in the public
  interest, the attorney general may bring an action in a Travis
  County district court or the district court in the county in which
  the principal place of business of the entity is located in this
  state to enjoin the violation, recover a civil penalty described by
  Subsection (b), and obtain other relief the court considers
  appropriate.
         (b)  A civil penalty imposed under this section may be in an
  amount equal to not more than the total, if applicable, of:
               (1)  $10,000 per day that the entity operates an
  Internet website in violation of the age verification requirements
  of this chapter;
               (2)  $10,000 per instance when the entity retains
  identifying information in violation of Section 129B.002(b); and
               (3)  if, because of the entity's violation of the age
  verification requirements of this chapter, one or more minors
  accesses sexual material harmful to minors, an additional amount of
  not more than $250,000.
         (c)  The amount of a civil penalty under this section shall
  be based on:
               (1)  the seriousness of the violation, including the
  nature, circumstances, extent, and gravity of the violation;
               (2)  the history of previous violations;
               (3)  the amount necessary to deter a future violation;
               (4)  the economic effect of a penalty on the entity on
  whom the penalty will be imposed;
               (5)  the entity's knowledge that the act constituted a
  violation of this chapter; and
               (6)  any other matter that justice may require.
         SECTION 3.  Not later than January 1, 2024, each
  manufacturer shall implement a software update to automatically
  enable an electronic device filter on an electronic device
  activated in this state as required by Chapter 121, Business &
  Commerce Code, as added by this Act.
         SECTION 4.  (a)  Except as provided by Subsection (b) of this
  section, this Act takes effect September 1, 2023.
         (b)  Chapter 121, Business & Commerce Code, as added by this
  Act, takes effect January 1, 2024.
 
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