SRC-PNG S.B. 106 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 106
76R1268 DWS-FBy: Truan
Technology & Business Growth
3/5/1999
As Filed


DIGEST 

Currently, under Texas law, there is no criminal penalty for the
distribution of unsolicited telecommunications.  This bill creates a
criminal offense for the initiation of a telecommunication to deliver an
advertisement which causes the recipient or a service provider who stores
or transfers the advertisement to incur any fee.  The bill also creates a
criminal offense for providing false information on the point of origin or
routing of a telecommunication for the delivery of an advertisement. 

PURPOSE

As proposed, S.B. 106 creates a criminal offense for the initiation of a
telecommunication to deliver an advertisement which causes the recipient or
a service provider who stores or transfers the advertisement to incur any
fee, and creates a criminal offense for providing false information on the
point of origin or routing of a telecommunication for the delivery of an
advertisement. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Title 4, Business & Commerce Code, by adding Chapter 42,
as follows: 

CHAPTER 42.  ADVERTISEMENT DELIVERED BY TELECOMMUNICATION

SUBCHAPTER A.  GENERAL PROVISIONS

 Sec.  42.001. DEFINITIONS. Defines "advertisement," "internet," and
"telecommunication."   

SUBCHAPTER B.  DELIVERY OF ADVERTISEMENT BY TELECOMMUNICATION

 Sec.  42.011. CERTAIN ADVERTISEMENTS PROHIBITED.  Prohibits a person from
initiating a telecommunication to deliver an advertisement if the delivery
causes the recipient  or a service provider who stores or transfers the
advertisement to incur any fee. Sets forth a  defense to an action under
this subchapter that the plaintiff requests or consents to the
telecommunication, either in writing or electronic format. 
 
 Sec.  42.012. CIVIL ACTION.  Provides certain remedies for an action
brought under this  subchapter. 

Sec.  42.013. AMOUNT OF DAMAGES.  Entitles a plaintiff prevailing in an
action for damages under this subchapter to the greater of $500 for each
violation or the person's actual damages, with exceptions allowing greater
damages. 

 Sec.  42.014. GROUNDLESS ACTION; HARASSMENT.  Provides that if the court
finds  an action brought under this subchapter is groundless or for the
purpose of harassment, the  defendant is entitled to recover court costs
and reasonable attorney's fees. 
 
 Sec.  42.015. FAILURE TO SATISFY JUDGMENT.  Provides that upon the failure
of a  defendant to satisfy a judgment under this subchapter within three
months after the final  judgment date  the defendant's license or authority
to do business in this state may be  revoked or a receiver may be
appointed.  Requires the revocation or appointment to be made  by an agency
authorized to take such an action or the court, if there is no agency with
such  authority.  Requires the cost of receivership to be paid by the
defendant. 

 Sec.  42.016. JURISDICTION. Provides that this subchapter applies to a
telecommunication  for the delivery of an advertisement if the initiator of
the telecommunication knows or with  reasonable diligence should know that
the recipient of the advertisement or a service provider  storing or
transferring the advertisement is a resident of the state, regardless of
the location  of the initiator or where the telecommunication was
initiated. 

 Sec.  42.017. VENUE.  Authorizes an action under this subchapter to be
brought in the  county in which the plaintiff resides or the
telecommunication is initiated as well as any other  venue provided by law. 

SUBCHAPTER C.  INFORMATION CONCERNING ORIGIN OR ROUTING OF TELECOMMUNICATION

 Sec.  42.031. PROVIDING FALSE INFORMATION ON POINT OF ORIGIN OR  ROUTING.
Creates an offense for providing false information on the point of origin
or  routing of a telecommunication for the delivery of an advertisement. 

 Sec.  42.032. CRIMINAL PENALTY.  Provides that an offense under Section
42.031 is  a Class B misdemeanor, except if the offense is committed
knowingly, and then the offense  is a Class A misdemeanor. 

SECTION 2. Repealer: Section 35.47, Business & Commerce Code (Certain
Electronic Communications Made for Purpose of Sales). 

SECTION 3. Effective date:  September 1, 1999.

SECTION 4. Emergency clause.