JKM C.S.H.B. 1300 75(R) BILL ANALYSIS ECONOMIC DEVELOPMENT C.S.H.B. 1300 By: Corte 3-21-97 Committee Report (Substituted) BACKGROUND It is commonly accepted that the Internet contains information that is of a subject matter inappropriate for children. Software is available, free of charge, that allows parents to effectively screen Internet access to such material. Some Internet service providers, including the largest and best known, currently provide screening software to their clients. PURPOSE To require that all Internet service providers provide easy access to software that will screen material inappropriate for children. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 35, Business & Commerce Code by adding Subchapter I, Provision of Software to Block or Screen Internet Material. Sec. 35.101 defines "freeware," "Internet," "interactive computer service," and "shareware." Sec. 35.102(a) requires Internet service providers to provide a link to a fully-functional shareware, freeware, or demonstration version of software that, for at least one system, enables the subscriber to automatically block or screen material on the Internet. Subsection (b) establishes the criteria that must be met to comply with Subsection (a). Subsection (c) exempts institutions of higher education from this section. Subsection (d) states that a person who provides a link that complies with this section is not liable for any temporary inoperability of the link. Sec. 35.103 establishes a civil penalty, not to exceed $10,000 per violation, for violating Sec. 35.102. The attorney general may institute a suit to recover the civil penalty. SECTION 2. Effective date; September 1, 1997. Civil penalties for violating Sec. 35.102, Business and Commerce Code, may be imposed only for violations that occur on or after January 1, 1998. SECTION 3. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE Section 2. In Subsection (a), HB 1300 contained a provision for cost-free usage for at least 30 days. CSHB 1300 deletes the provision for cost-free usage for 30 days and adds language that is more technically correct. CSHB 1300 adds language stating that "a link leading to" the shareware, freeware, or demonstration versions of the software shall be provided. CSHB 1300 also states that the service should work with at least one operating system; there was no such provision in HB 1300. In Subsection (b), HB 1300 required that the link have a specific on-screen depiction, including that it be created with 10-point type. CSHB 1300 forgoes specific requirements for the on-screen depiction of the link and sets out general requirements for the conspicuous on-screen appearance of the link. Subsection (d) was added to CSHB 1300. It states that a person who provides a link that complies with this section is not liable to a subscriber for any temporary inoperability of the link. Sec. 35.104 (a) and (b) provided for a criminal penalty in HB 1300; CSHB 1300 does not provide for a criminal penalty and this section does not exist in CSHB 1300. Section 2. HB 1300 makes provisions for civil and criminal penalties regarding the effective date. CSHB makes a provision for civil penalties only regarding the effective date.