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