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.