By Garcia                                             H.B. No. 1295
         77R2599 JMG-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to requiring a person in the business of selling personal
 1-3     computers to provide certain software with each personal computer
 1-4     sold.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Section 35.103,  Business & Commerce Code, is
 1-7     amended to read as follows:
 1-8           Sec. 35.103.  CIVIL PENALTY.  (a)  A person is liable to the
 1-9     state for a civil penalty of $2,000 for each violation of Section
1-10     35.104 and for each day on which the person provides an interactive
1-11     computer  service for a fee but fails to provide a link to software
1-12     or a service as required by Section 35.102.  The aggregate civil
1-13     penalty for failure to comply with the requirements of Section
1-14     35.102 may not exceed $60,000.
1-15           (b)  The attorney general may institute a suit to recover the
1-16     civil penalty.  Before filing suit, the attorney general shall give
1-17     the person notice of the person's noncompliance and liability for a
1-18     civil penalty.  If the person complies with the requirements of
1-19     this subchapter [Section 35.102] not later than the 30th day after
1-20     the date of the notice, the violation is considered cured and the
1-21     person is not liable for the civil penalty.
1-22           SECTION 2.  Subchapter I, Chapter 35, Business & Commerce
1-23     Code, is amended by adding Section 35.104 to read as follows:
1-24           Sec. 35.104.  SOFTWARE TO BE INCLUDED WITH SALE OF PERSONAL
 2-1     COMPUTER.  (a)  A person in the business of selling personal
 2-2     computers shall provide with each personal computer sold by that
 2-3     person software that enables the purchaser of the personal computer
 2-4     to automatically block or screen indecent material on the Internet.
 2-5           (b)  Software provided in compliance with Subsection (a)
 2-6     must be compatible with any operating system that is provided by
 2-7     the seller to the purchaser of the personal computer at the time of
 2-8     purchase.  If an operating system is not provided by the seller of
 2-9     the personal computer, the software required under Subsection (a)
2-10     must be compatible with at least one operating system that may be
2-11     installed to operate on the computer.
2-12           SECTION 3.  This Act takes effect September 1, 2001, except
2-13     that a civil penalty for a violation of Section 35.104, Business &
2-14     Commerce Code, as added by this Act, may be imposed only for a
2-15     violation that occurs on or after January 1, 2002.