By Corte                                              H.B. No. 1300

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the provision of certain software to persons who access

 1-3     the Internet; providing a civil penalty.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Chapter 35, Business & Commerce Code, is amended

 1-6     by adding Subchapter I to read as follows:

 1-7           SUBCHAPTER I.  PROVISION OF SOFTWARE TO BLOCK OR SCREEN

 1-8                              INTERNET MATERIAL

 1-9           Sec. 35.101.  DEFINITIONS.  In this subchapter:

1-10                 (1)  "Freeware" means software that is distributed to a

1-11     person free of charge regardless of whether use of the software is

1-12     subject to certain restrictions.

1-13                 (2)  "Internet" means the largest nonproprietary

1-14     nonprofit cooperative public computer network, popularly known as

1-15     the Internet.

1-16                 (3)  "Interactive computer service" means any

1-17     information service or system that provides or enables computer

1-18     access by multiple users to the Internet.

1-19                 (4)  "Shareware" means copyrighted software in which

1-20     the copyright owner sets certain conditions for its use and

1-21     distribution, including requiring payment to the copyright owner

1-22     after a person who has secured a copy of the software decides to

1-23     use the software, regardless of whether the payment is for

1-24     additional support or functionality for the software.

 2-1           Sec. 35.102.  SOFTWARE THAT RESTRICTS ACCESS TO CERTAIN

 2-2     MATERIAL ON INTERNET.  (a)  A person who provides an interactive

 2-3     computer service to another person for a fee shall provide free of

 2-4     charge to each subscriber of the service in this state a link

 2-5     leading to fully functional shareware, freeware, or demonstration

 2-6     versions of software that, for at least one operating system,

 2-7     enables the subscriber to automatically block or screen material on

 2-8     the Internet.

 2-9           (b)  A provider is considered to be in compliance with this

2-10     section if the provider places, on the provider's first page of

2-11     world wide web text information accessible to a subscriber, a link

2-12     leading to the software described by Subsection (a).  The identity

2-13     of the link or other on-screen depiction of the link must appear

2-14     set out from surrounding written or graphical material so as to be

2-15     conspicuous.

2-16           (c)  This section does not apply to the General Services

2-17     Commission, in its capacity as the telecommunications provider for

2-18     the state, and an institution of higher education, as that term is

2-19     defined by Section 61.003, Education Code, that provides

2-20     interactive computer service.

2-21           (d)  A person who provides a link that complies with this

2-22     section is not liable to a subscriber for any temporary

2-23     inoperability of the link or for the effectiveness of the software

2-24     that the person links to.

2-25           Sec. 35.103.  CIVIL PENALTY.  (a)  A person who violates

2-26     Section 35.102 is liable to the state for a civil penalty not to

2-27     exceed  $10,000 for each violation.

 3-1           (b)  The attorney general may institute a suit to recover the

 3-2     civil penalty.

 3-3           SECTION 2.  This Act takes effect September 1, 1997, except

 3-4     that a civil penalty for a violation of Section 35.102, Business &

 3-5     Commerce Code, as added by this Act, may be imposed only for a

 3-6     violation that occurs on or after January 1, 1998.

 3-7           SECTION 3.  The importance of this legislation and the

 3-8     crowded condition of the calendars in both houses create an

 3-9     emergency and an imperative public necessity that the

3-10     constitutional rule requiring bills to be read on three several

3-11     days in each house be suspended, and this rule is hereby suspended.