1-1                                   AN ACT

 1-2     relating to the provision of certain software or services to

 1-3     persons who access 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 OR SERVICES

 1-8                    TO BLOCK OR SCREEN 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 OR SERVICES THAT RESTRICT ACCESS TO

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

 2-3     interactive computer service to another person for a fee shall

 2-4     provide free of charge to each subscriber of the service in this

 2-5     state a link leading to fully functional shareware, freeware, or

 2-6     demonstration versions of software or to a service that, for at

 2-7     least one operating system, enables the subscriber to automatically

 2-8     block or screen material on 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 or a service described by Subsection (a).

2-13     The identity of the link or other on-screen depiction of the link

2-14     must appear set out from surrounding written or graphical material

2-15     so as to be 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     or service that the person links to.

2-25           Sec. 35.103.  CIVIL PENALTY.  (a)  A person is liable to the

2-26     state for a civil penalty of $2,000 for each day on which the

2-27     person provides an interactive computer service for a fee but fails

 3-1     to provide a link to software or a service as required by Section

 3-2     35.102.   The aggregate civil penalty may not exceed $60,000.

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

 3-4     civil penalty.  Before filing suit, the attorney general shall give

 3-5     the person notice of the person's noncompliance and liability for a

 3-6     civil penalty.  If the person complies with the requirements of

 3-7     Section 35.102 not later than the 30th day after the date of the

 3-8     notice, the violation is considered cured and the person is not

 3-9     liable for the civil penalty.

3-10           SECTION 2.  This Act takes effect September 1, 1997, except

3-11     that a civil penalty for a violation of Section 35.102, Business &

3-12     Commerce Code, as added by this Act, may be imposed only for a

3-13     violation that occurs on or after January 1, 1998.

3-14           SECTION 3.  The importance of this legislation and the

3-15     crowded condition of the calendars in both houses create an

3-16     emergency and an imperative public necessity that the

3-17     constitutional rule requiring bills to be read on three several

3-18     days in each house be suspended, and this rule is hereby suspended.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I certify that H.B. No. 1300 was passed by the House on April

         8, 1997, by a non-record vote; that the House refused to concur in

         Senate amendments to H.B. No. 1300 on April 29, 1997, and requested

         the appointment of a conference committee to consider the

         differences between the two houses; and that the House adopted the

         conference committee report on H.B. No. 1300 on May 13, 1997, by a

         non-record vote.

                                             _______________________________

                                                 Chief Clerk of the House

               I certify that H.B. No. 1300 was passed by the Senate, with

         amendments, on April 23, 1997, by a viva-voce vote; at the request

         of the House, the Senate appointed a conference committee to

         consider the differences between the two houses; and that the

         Senate adopted the conference committee report on H.B. No. 1300 on

         May 12, 1997, by a viva-voce vote.

                                             _______________________________

                                                 Secretary of the Senate

         APPROVED:  _____________________

                            Date

                    _____________________

                          Governor