By Corte                                        H.B. No. 1300

      75R4899 SRC-D                           

                                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 penalties.

 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 fully

 2-5     functional shareware, freeware, or demonstration version of

 2-6     software that enables the subscriber to automatically block or

 2-7     screen material on the Internet and that provides cost-free usage

 2-8     for at least 30 days.

 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     text information accessible to a subscriber, a link to the software

2-12     described by Subsection (a).  The identity of the link or other

2-13     on-screen depiction of the link must appear in the equivalent of

2-14     10-point type that is boldfaced, capitalized, underlined, or

2-15     otherwise set out from surrounding written or graphical material so

2-16     as to be conspicuous.

2-17           (c)  This section does not apply to an institution of higher

2-18     education, as that term is defined by Section 61.003, Education

2-19     Code, that provides interactive computer service.

2-20           Sec. 35.103.  CIVIL PENALTY.  (a)  A person who violates

2-21     Section 35.102 is liable to the state for a civil penalty not to

2-22     exceed  $10,000 for each violation.

2-23           (b)  The attorney general may institute a suit to recover the

2-24     civil penalty.

2-25           Sec. 35.104.  CRIMINAL PENALTY.  (a)  A person commits an

2-26     offense if the person violates Section 35.102.

2-27           (b)  An offense under this section is a Class C misdemeanor.

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

 3-2     that a civil or criminal penalty for a violation of Section 35.102,

 3-3     Business & Commerce Code, as added by this Act, may be imposed only

 3-4     for a violation that occurs on or after January 1, 1998.

 3-5           SECTION 3.  The importance of this legislation and the

 3-6     crowded condition of the calendars in both houses create an

 3-7     emergency and an imperative public necessity that the

 3-8     constitutional rule requiring bills to be read on three several

 3-9     days in each house be suspended, and this rule is hereby suspended.