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By:  Zaffirini, Duncan                                            S.B. No. 327

A BILL TO BE ENTITLED
AN ACT
relating to the installation, copying, or use of computer software for unauthorized purposes; providing a penalty. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Title 4, Business & Commerce Code, is amended by adding Chapter 48 to read as follows:
CHAPTER 48. CONSUMER PROTECTION AGAINST COMPUTER SPYWARE ACT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 48.001. SHORT TITLE. This chapter may be cited as the Consumer Protection Against Computer Spyware Act. Sec. 48.002. DEFINITIONS. In this chapter: (1) "Advertisement" means a communication, the primary purpose of which is the promotion of a commercial product or service, including communication on an Internet website operated for a commercial purpose. (2) "Computer software" means a sequence of instructions written in a programming language that is executed on a computer. The term does not include: (A) a web page; or (B) a data component of a web page that cannot be executed independently of that page. (3) "Damage," with respect to a computer, means significant impairment to the integrity or availability of data, computer software, a system, or information. (4) "Execute," with respect to computer software, means to perform a function or carry out instructions. (5) "Keystroke-logging function" means a function of a computer software program that records all keystrokes made by a person using a computer and transfers that information from the computer to another person. (6) "Owner or operator of a computer" means the owner or lessee of a computer or an individual using a computer with the authorization of the owner or lessee of the computer. If a computer was sold at retail, the phrase "owner of a computer" does not include the person who owned the computer before the date on which the computer was sold. (7) "Person" means any individual, partnership, corporation, limited liability company, or other organization, or a combination of those organizations. (8) "Personally identifiable information," with respect to an individual who is the owner or operator of a computer, means: (A) first name or first initial in combination with last name; (B) a home or other physical address, including street name; (C) an electronic mail address; (D) a credit or debit card number; (E) a bank account number; (F) a password or access code associated with a credit or debit card or bank account; (G) a social security number, tax identification number, driver's license number, passport number, or other government-issued identification number; or (H) any of the following information if the information alone or in combination with other information personally identifies the individual: (i) account balances; (ii) overdraft history; or (iii) payment history. Sec. 48.003. APPLICABILITY OF CHAPTER. (a) This chapter does not apply to the transmission of computer software to the computer of another by a person providing: (1) the Internet connection, telephone connection, or other means of transmission capability such as a compact disc or digital video disc through which the software was made available; (2) the storage or hosting of the software program or an Internet web page through which the software was made available; or (3) an information location tool, such as a directory, index, reference pointer, or hypertext link, through which the user of the computer located the software, unless the person receives a direct economic benefit from the execution of the software on the computer. (b) Section 48.052, other than Subdivision (1) of that section, and Sections 48.053(4) and 48.055 do not apply to a telecommunications carrier, cable operator, computer hardware or software provider, or provider of information service or interactive computer service that monitors or has interaction with a subscriber's Internet or other network connection or service or a protected computer for: (1) network or computer security purposes; (2) diagnostics, technical support, or repair purposes; (3) authorized updates of computer software or system firmware; (4) authorized remote system management; or (5) detection or prevention of unauthorized use of or fraudulent or other illegal activities in connection with a network, service, or computer software, including scanning for and removing software proscribed under this chapter.
[Sections 48.004-48.050 reserved for expansion]
SUBCHAPTER B. PROHIBITED CONDUCT OR ACTIVITIES
Sec. 48.051. UNAUTHORIZED COLLECTION OR TRANSMISSION OF PERSONALLY IDENTIFIABLE INFORMATION. If a person is not the owner or operator of the computer, the person may not knowingly transmit computer software to a computer in this state and use the software to: (1) collect, through intentionally deceptive means: (A) personally identifiable information by using a keystroke-logging function; or (B) personally identifiable information in a manner that correlates that information with information regarding all or substantially all of the websites visited by the owner or operator of the computer, other than websites operated by the person collecting the information; or (2) cull, through intentionally deceptive means, the following kinds of personally identifiable information from the consumer's computer hard drive for a purpose wholly unrelated to any of the purposes of the software or service described to an owner or operator of the computer: (A) a credit or debit card number; (B) a bank account number; (C) a password or access code associated with a credit or debit card number or a bank account; (D) a social security number; (E) account balances; or (F) overdraft history. Sec. 48.052. UNAUTHORIZED TRANSMISSIONS OR MODIFICATIONS OF COMPUTER SETTINGS; COMPUTER DAMAGE. If a person is not the owner or operator of the computer, the person may not knowingly transmit computer software to a computer in this state and use the software to: (1) modify, through intentionally deceptive means, a setting that controls: (A) the page that appears when an Internet browser or a similar software program is launched to access and navigate the Internet; (B) the default provider or web proxy used to access or search the Internet; or (C) a list of bookmarks used to access web pages; (2) take control of the computer by: (A) accessing or using the computer's modem or Internet service to: (i) cause damage to the computer; or (ii) cause the owner or operator of the computer to incur financial charges for a service not previously authorized by the owner or operator; or (B) opening, without the consent of the owner or operator of the computer, an advertisement that: (i) is in the owner's or operator's Internet browser in a multiple, sequential, or stand-alone form; and (ii) cannot be closed by an ordinarily reasonable person using the computer without closing the browser or shutting down the computer; (3) modify settings on the computer that relate to access to or use of the Internet and protection of information for purposes of stealing personally identifiable information of the owner or operator of the computer; or (4) modify security settings on the computer relating to access to or use of the Internet for purposes of causing damage to one or more computers. Sec. 48.053. UNAUTHORIZED INTERFERENCE WITH INSTALLATION OR DISABLING OF COMPUTER SOFTWARE. If a person is not the owner or operator of the computer, the person may not knowingly transmit computer software to a computer in this state and use the software to: (1) prevent, through intentionally deceptive means, reasonable efforts of the owner or operator of the computer to block the installation or execution of or to disable computer software by causing computer software that the owner or operator has properly removed or disabled to automatically reinstall or reactivate on the computer; (2) intentionally misrepresent to another that computer software will be uninstalled or disabled by the actions of the owner or operator of the computer; (3) remove, disable, or render inoperative, through intentionally deceptive means, security, antispyware, or antivirus computer software installed on the computer; or (4) prevent the owner's or operator's reasonable efforts to block the installation of or to disable computer software by: (A) presenting the owner or operator with an option to decline the installation of software knowing that, when the option is selected, the installation process will continue to proceed; or (B) misrepresenting that software has been disabled. Sec. 48.054. KNOWING VIOLATION. A person knowingly violates Section 48.051, 48.052, or 48.053 if the person: (1) acts with actual knowledge of the facts that constitute the violation; or (2) consciously avoids information that would establish actual knowledge of those facts. Sec. 48.055. OTHER PROHIBITED CONDUCT. If a person is not the owner or operator of the computer, the person may not: (1) induce the owner or operator of a computer in this state to install a computer software component to the computer by intentionally misrepresenting the extent to which the installation is necessary for security or privacy reasons, to open or view text, or to play a particular type of musical or other content; or (2) copy and execute or provide for the copying and execution of a computer software component to a computer in this state in a deceptive manner with the intent of causing the owner or operator of the computer to use the component in a manner that violates this chapter. Sec. 48.056. DECEPTIVE ACT OR OMISSION. For purposes of this chapter, a person is considered to have acted through intentionally deceptive means if the person, with the intent to deceive an owner or operator of a computer: (1) intentionally makes a materially false or fraudulent statement; (2) intentionally makes a statement or uses a description that omits or misrepresents material information; or (3) intentionally and materially fails to provide to the owner or operator any notice regarding the installation or execution of computer software. Sec. 48.057. TRANSMISSION OF COMPUTER SOFTWARE. For purposes of this chapter, a person is considered to have transmitted computer software to a computer if the person transfers, sends, or makes available computer software, or a component of the software, through: (1) the Internet; (2) a local area network of computers; (3) other non-wire transmission; (4) a disc or other data storage device; or (5) any other medium.
[Sections 48.058-48.100 reserved for expansion]
SUBCHAPTER C. CIVIL REMEDIES
Sec. 48.101. CIVIL RELIEF. (a) The following persons may bring a civil action against a person who violates this chapter: (1) a provider of computer software who is adversely affected by the violation; (2) an owner of a web page or trademark who is adversely affected by the violation; or (3) the attorney general. (b) In addition to any other remedy provided by law, a person bringing an action under this section may: (1) seek injunctive relief to restrain the violator from continuing the violation; (2) recover damages in an amount equal to the greater of: (A) actual damages arising from the violation; or (B) $100,000 for each violation of the same nature; or (3) both seek injunctive relief and recover damages as provided by this subsection. (c) The court may increase an award of actual damages in an action brought under this section to an amount not to exceed three times the actual damages sustained if the court finds that the violations have occurred with a frequency as to constitute a pattern or practice. (d) A plaintiff who prevails in an action filed under this section is entitled to recover reasonable attorney's fees and court costs. (e) Each separate violation of this chapter is an actionable violation. (f) For purposes of this section, violations are of the same nature if the violations consist of the same course of conduct or action, regardless of the number of times the conduct or act occurred. SECTION 2. This Act takes effect September 1, 2005.