By Shapleigh                                          S.B. No. 1218
         77R343 DAK-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to liability for prohibited initiation or delivery of
 1-3     unsolicited electronic mail advertisements.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Title 4, Civil Practice and Remedies Code, is
 1-6     amended by adding Chapter 94 to read as follows:
 1-7       CHAPTER 94.  LIABILITY FOR PROHIBITED INITIATION OR DELIVERY OF
 1-8                 UNSOLICITED ELECTRONIC MAIL ADVERTISEMENTS
 1-9           Sec. 94.001.  DEFINITIONS.  In this chapter:
1-10                 (1)  "Initiation" of an unsolicited electronic mail
1-11     advertisement does not include an action by a service provider that
1-12     receives, processes, or retransmits an electronic message initiated
1-13     by another person.
1-14                 (2)  "Registered user" means a person that maintains an
1-15     electronic mail address with a service provider.
1-16                 (3)  "Service provider" means a person that:
1-17                       (A)  is qualified to do business in this state;
1-18                       (B)  provides a registered user the ability to
1-19     send or receive electronic mail through equipment located in this
1-20     state; and
1-21                       (C)  is an intermediary in sending or receiving
1-22     electronic mail.
1-23                 (4)  "Unsolicited electronic mail advertisement" means
1-24     an electronic mail message the principal purpose of which is to
 2-1     promote, directly or indirectly, the sale or other distribution of
 2-2     goods or services to the recipient of the message and that:
 2-3                       (A)  is addressed to a recipient with which the
 2-4     initiator of the message does not have an existing business or
 2-5     personal relationship; and
 2-6                       (B)  is not sent at the request of or with the
 2-7     express consent of the recipient.
 2-8           Sec. 94.002.  CERTAIN RIGHTS NOT LIMITED OR RESTRICTED.  This
 2-9     chapter does not limit or restrict the right of a service provider
2-10     to:
2-11                 (1)  permit or restrict access to or use of its system;
2-12     or
2-13                 (2)  exercise its editorial function in relation to
2-14     electronic mail.
2-15           Sec. 94.003.  POLICY RELATING TO UNSOLICITED ELECTRONIC MAIL
2-16     ADVERTISEMENTS.  (a)  A service provider may not establish the
2-17     liability of a person as provided by Section 94.006 unless the
2-18     service provider adopts a  policy prohibiting or restricting the
2-19     use of its equipment for the initiation or delivery of an
2-20     unsolicited electronic mail advertisement.
2-21           (b)  This chapter does not require a service provider to
2-22     adopt a policy described by Subsection (a).
2-23           Sec. 94.004.  PROHIBITION RELATING TO INITIATION.  A
2-24     registered user may not use or cause to be used the service
2-25     provider's equipment located in this state in violation of the
2-26     service provider's policy prohibiting or restricting the use of its
2-27     service or equipment for the initiation of unsolicited electronic
 3-1     mail advertisements.
 3-2           Sec. 94.005.  PROHIBITION RELATING TO DELIVERY.  A person may
 3-3     not use or cause to be used, by initiating an unsolicited
 3-4     electronic mail advertisement, a service provider's equipment
 3-5     located in this state in violation of the service provider's policy
 3-6     prohibiting or restricting the use of its equipment to deliver an
 3-7     unsolicited electronic mail advertisement to a registered user.
 3-8           Sec. 94.006.  LIABILITY; DAMAGES.  (a)  A person that
 3-9     violates a service provider's policy on unsolicited electronic mail
3-10     advertisements in a manner described by Section 94.004 or 94.005 is
3-11     liable to the service provider for damages in the amount described
3-12     by Subsection (b) if the person, before the violation, had actual
3-13     notice:
3-14                 (1)  of the service provider's policy; and
3-15                 (2)  that the person's unsolicited electronic mail
3-16     advertisements would use or cause to be used the service provider's
3-17     equipment located in this state.
3-18           (b)  A person that is liable to a service provider under
3-19     Subsection (a) is liable for the greater of:
3-20                 (1)  the actual monetary loss by the service provider
3-21     arising from the violation; or
3-22                 (2)  $50 for each electronic mail message initiated or
3-23     delivered that resulted in the violation, not to exceed $25,000 for
3-24     each day the violation occurred.
3-25           Sec. 94.007.  ATTORNEY'S FEES.  A court may award reasonable
3-26     attorney's fees to a party that prevails in an action under this
3-27     chapter.
 4-1           SECTION 2. This Act takes effect September 1, 2001, and
 4-2     applies only to a violation of a service provider's policy as
 4-3     described by Section 94.004 or 94.005, Civil Practice and Remedies
 4-4     Code, as added by this Act, that occurs on or after that date,
 4-5     without regard to whether:
 4-6                 (1)  the policy that is violated is adopted before, on,
 4-7     or after that date; or
 4-8                 (2)  actual notice, as described by Section 94.006(a),
 4-9     Civil Practice and Remedies Code, as added by this Act, occurred
4-10     before, on, or after that date.