By Truan                                               S.B. No. 106
         76R1268 DWS-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to a telecommunication for the delivery of an
 1-3     advertisement; providing penalties.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Title 4, Business & Commerce Code, is amended by
 1-6     adding Chapter 42 to read as follows:
 1-7          CHAPTER 42.  ADVERTISEMENT DELIVERED BY TELECOMMUNICATION
 1-8                      SUBCHAPTER A.  GENERAL PROVISIONS
 1-9           Sec. 42.001.  DEFINITIONS.  In this chapter:
1-10                 (1)  "Advertisement" means a message soliciting the
1-11     sale of a good or service, soliciting a contribution, or otherwise
1-12     seeking a monetary benefit for the person who initiated the message
1-13     or on whose behalf the message is initiated.
1-14                 (2)  "Internet" means the largest nonproprietary
1-15     nonprofit cooperative public computer network, popularly known as
1-16     the Internet.
1-17                 (3)  "Telecommunication" means:
1-18                       (A)  a telephone call, including a call made by
1-19     an automated dialing announcing device;
1-20                       (B)  a transmission to or from a facsimile device
1-21     or other telecopier; or
1-22                       (C)  a communication made over the Internet or a
1-23     similar public computer network.
1-24               (Sections 42.002-42.010 reserved for expansion
 2-1        SUBCHAPTER B.  DELIVERY OF ADVERTISEMENT BY TELECOMMUNICATION
 2-2           Sec. 42.011.  CERTAIN ADVERTISEMENTS PROHIBITED.  (a)  A
 2-3     person may not initiate a telecommunication for the delivery of an
 2-4     advertisement if the delivery causes the recipient of the
 2-5     advertisement or a service provider who stores or transfers the
 2-6     advertisement to incur a fee, expense, or other damages.
 2-7           (b)  It is a defense to an action under this subchapter that
 2-8     the plaintiff, in writing or electronic format, requested or
 2-9     consented to the initiation of the telecommunication.
2-10           Sec. 42.012.  CIVIL ACTION.  A person damaged by a violation
2-11     of Section 42.011 may bring an action against the person who
2-12     initiated the  telecommunication for one or more of the following:
2-13                 (1)  an injunction;
2-14                 (2)  damages in the amount provided by Section 42.013;
2-15                 (3)  restitution of any property acquired as a result
2-16     of the violation;
2-17                 (4)  court costs and reasonable attorney's fees; and
2-18                 (5)  any other relief the court considers proper.
2-19           Sec. 42.013.  AMOUNT OF DAMAGES. A plaintiff prevailing in an
2-20     action for damages under this subchapter is entitled to the greater
2-21     of $500 for each violation or the person's actual damages, except
2-22     that:
2-23                 (1)  if the trier of fact finds that the defendant
2-24     committed the violation knowingly, the plaintiff is entitled to the
2-25     greater of $1,500 for each violation or three times the person's
2-26     actual damages; or
2-27                 (2)  if the trier of fact finds that the defendant
 3-1     committed the violation intentionally, the plaintiff is entitled to
 3-2     the greater of $3,000 for each violation or six times the person's
 3-3     actual damages.
 3-4           Sec. 42.014.  GROUNDLESS ACTION; HARASSMENT.  If the court
 3-5     finds that an action brought under this subchapter is brought for
 3-6     the purpose of harassment or is groundless and otherwise brought in
 3-7     bad faith, the defendant is entitled to recover court costs and
 3-8     reasonable attorney's fees.
 3-9           Sec. 42.015.  FAILURE TO SATISFY JUDGMENT.  (a)  Failure of a
3-10     defendant to satisfy a judgment against the defendant under this
3-11     subchapter before the expiration of three months after the date the
3-12     judgment is final is grounds for revocation of the defendant's
3-13     license or other authority to do business in this state or for
3-14     appointment of a receiver to take over the defendant's affairs.
3-15     The revocation or appointment must be made by:
3-16                 (1)  an agency authorized to make such a revocation or
3-17     appointment; or
3-18                 (2)  if no agency has authority to make such a
3-19     revocation or appointment, an order of the court that rendered the
3-20     judgment.
3-21           (b)  The cost of any receivership under this section shall be
3-22     paid by the defendant.
3-23           Sec. 42.016.  JURISDICTION.  This subchapter applies to a
3-24     telecommunication for the delivery of an advertisement  regardless
3-25     of whether the person initiating the telecommunication resides in
3-26     this state or the telecommunication is initiated in this state, if
3-27     the person who initiates the telecommunication knows or with
 4-1     reasonable diligence should know that the recipient of the
 4-2     advertisement or a service provider storing or transferring the
 4-3     advertisement is a resident of this state.
 4-4           Sec. 42.017.  VENUE.  In addition to venue otherwise provided
 4-5     by law, an action under this subchapter may be brought in the
 4-6     county in which:
 4-7                 (1)  the plaintiff resides; or
 4-8                 (2)  the telecommunication is initiated.
 4-9               (Sections 42.018-42.030 reserved for expansion
4-10         SUBCHAPTER C.  INFORMATION CONCERNING ORIGIN OR ROUTING OF
4-11                              TELECOMMUNICATION
4-12           Sec. 42.031.  PROVIDING FALSE INFORMATION ON POINT OF ORIGIN
4-13     OR ROUTING.  A person commits an offense if the person initiates a
4-14     telecommunication for the delivery of an advertisement that
4-15     contains false information as to the point of origin or routing of
4-16     the telecommunication.
4-17           Sec. 42.032.  CRIMINAL PENALTY.  An offense under Section
4-18     42.031 is a Class B misdemeanor, except that if the offense is
4-19     committed knowingly, the offense is a Class A misdemeanor.
4-20           SECTION 2.  Section 35.47, Business & Commerce Code, is
4-21     repealed.
4-22           SECTION 3.  This Act takes effect September 1, 1999.
4-23           SECTION 4.  The importance of this legislation and the
4-24     crowded condition of the calendars in both houses create an
4-25     emergency and an imperative public necessity that the
4-26     constitutional rule requiring bills to be read on three several
4-27     days in each house be suspended, and this rule is hereby suspended.