89R13359 MLH-F
 
  By: Shaheen H.B. No. 4294
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the regulation of platforms for the sale and
  distribution of software applications for mobile devices;
  authorizing a civil penalty.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle C, Title 5, Business & Commerce Code, is
  amended by adding Chapter 121 to read as follows:
  CHAPTER 121.  SOFTWARE APPLICATIONS
  SUBCHAPTER A.  GENERAL PROVISIONS
         Sec. 121.001.  DEFINITIONS. In this chapter:
               (1)  "Age category" means information collected by the
  owner of an app store to designate a user based on the age
  categories described by Section 121.021(b).
               (2)  "App store" means a publicly available Internet
  website, software application, or other electronic service that
  distributes software applications from the owner or developer of a
  software application to the user of a mobile device.
               (3)  "Minor" means an individual who is younger than 18
  years of age who has not had the disabilities of minority removed
  for general purposes.
               (4)  "Mobile device" means a portable, wireless
  electronic device, including a tablet or smartphone, capable of
  transmitting, receiving, processing, and storing information
  wirelessly that runs an operating system designed to manage
  hardware resources and perform common services for software
  applications on handheld electronic devices.
               (5)  "Personal data" means any information, including
  sensitive data, that is linked or reasonably linkable to an
  identified or identifiable individual. The term includes
  pseudonymous data when the data is used by a person who processes or
  determines the purpose and means of processing the data in
  conjunction with additional information that reasonably links the
  data to an identified or identifiable individual. The term does not
  include deidentified data or publicly available information.
         Sec. 121.002.  RULES.  The attorney general shall adopt
  rules to implement this chapter.
  SUBCHAPTER B.  DUTIES OF APP STORES
         Sec. 121.021.  DUTY TO VERIFY AGE OF USER; AGE CATEGORIES.
  (a) When an individual in this state creates an account with an app
  store, the owner of the app store shall:
               (1)  request the individual's age;
               (2)  use a commercially reasonable method of
  verification to verify the individual's age; and
               (3)  assign to the individual a designation described
  by Subsection (b).
         (b)  The owner of an app store shall use the following age
  categories for assigning a designation:
               (1)  an individual who is younger than 13 years of age
  is considered a "child";
               (2)  an individual who is at least 13 years of age but
  younger than 17 years of age is considered a "teenager";
               (3)  an individual who is 17 years of age is considered
  an "older teenager";
               (4)  an individual who is at least 18 years of age but
  younger than 21 years of age is considered an "adult"; and
               (5)  an individual who is at least 21 years of age is
  considered a "legal adult."
         Sec. 121.022.  PARENTAL CONSENT REQUIRED. (a)  If the owner
  of the app store determines under Section 121.021 that an
  individual is a minor, the owner must obtain consent from the
  minor's parent or guardian before allowing the minor to:
               (1)  download a software application;
               (2)  purchase a software application; or
               (3)  make a purchase in or using a software
  application.
         (b)  The owner of an app store must obtain consent for each
  individual download or purchase sought by the minor.
         (c)  To obtain consent from a minor's parent or guardian
  under Subsection (a), the owner of an app store may use any
  reasonable means to:
               (1)  disclose to the parent or guardian:
                     (A)  the specific software application or
  purchase for which consent is sought;
                     (B)  the rating under Section 121.052 assigned to
  the software application or purchase; and
                     (C)  the specific content or other elements that
  led to the rating assigned under Section 121.052;
               (2)  give the parent or guardian a clear choice to give
  or withhold consent for the download or purchase; and
               (3)  ensure that the consent is given by an individual
  that the owner of the app store has verified is an adult who is the
  parent or guardian of the minor.
         Sec. 121.023.  DISPLAY OF AGE RATING FOR SOFTWARE
  APPLICATION. (a)  The owner of an app store that operates in this
  state shall display for each software application available for
  download and purchase on the app store:
               (1)  the rating under Section 121.052 assigned to the
  software application; and
               (2)  the specific content or other elements that led to
  the rating assigned under Section 121.052.
         (b)  The information displayed under this section must be
  clear, accurate, and conspicuous.
         Sec. 121.024.  INFORMATION FOR SOFTWARE APPLICATION
  DEVELOPERS. The owner of an app store that operates in this state
  shall, consistent with the owner's data collection practices, allow
  the developer of a software application to access current
  information related to:
               (1)  the age category assigned to each user under
  Section 121.021(b); and
               (2)  whether consent has been obtained for each minor
  user under Section 121.022.
         Sec. 121.025.  PARENT OVERSIGHT OF USAGE BY MINOR. The owner
  of an app store that operates in this state, owns the operating
  system of a mobile device, and provides parental controls to allow
  users to enable certain content filters or limit software
  application or mobile device usage shall take steps to make those
  parental controls easy for a user to find and operate.
         Sec. 121.026.  CONSTRUCTION OF SUBCHAPTER. Nothing in this
  subchapter may be construed to:
               (1)  prevent the owner of an app store that operates in
  this state from taking reasonable measures to:
                     (A)  block, detect, or prevent the distribution
  of:
                           (i)  obscene material, as that term is
  defined by Section 43.21, Penal Code; or
                           (ii)  other material that may be harmful to
  minors;
                     (B)  block or filter spam;
                     (C)  prevent criminal activity; or
                     (D)  protect the security of an app store or
  software application;
               (2)  require the owner of an app store that operates in
  this state to disclose a user's personal data to the developer of a
  software application except as provided by this subchapter; or
               (3)  allow the owner of an app store that operates in
  this state to use a measure required by this chapter in a manner
  that is arbitrary, capricious, anticompetitive, or unlawful.
  SUBCHAPTER C.  DUTIES OF SOFTWARE APPLICATION DEVELOPERS
         Sec. 121.051.  APPLICABILITY OF SUBCHAPTER. This subchapter
  applies only to the developer of a software application that the
  developer makes available to users in this state through an app
  store.
         Sec. 121.052.  DESIGNATION OF AGE RATING. (a) The developer
  of a software application shall assign to each software application
  and to each purchase that can be made through the software
  application an age rating based on the age categories described by
  Section 121.021(b).
         (b)  The developer of a software application shall provide to
  each app store through which the developer makes the software
  application available:
               (1)  each rating assigned under Subsection (a); and
               (2)  the specific content or other elements that led to
  each rating provided under Subdivision (1).
         Sec. 121.053.  CHANGES TO SOFTWARE APPLICATIONS. The
  developer of a software application shall provide notice to each
  app store through which the developer makes the software
  application available before making any change to the terms of
  service or privacy policy of the software application that:
               (1)  affects or changes the rating assigned to the
  software application under Section 121.052 or the content or
  elements that led to that rating; or
               (2)  materially changes the functionality or user
  experience of the software application.
         Sec. 121.054.  TIME RESTRICTION.  The developer of a
  software application shall provide a readily available feature for
  the parent or guardian of a minor to monitor and limit the amount of
  time the minor spends using the application.
         Sec. 121.055.  AGE VERIFICATION.  (a)  The developer of a
  software application shall create and implement a system to verify:
               (1)  for each user of the software application, the age
  category assigned to that user under Section 121.021(b); and
               (2)  for each minor user of the software application,
  whether consent has been obtained under Section 121.022.
         (b)  The developer of a software application shall use
  information provided by the owner of an app store under Section
  121.024 to perform the verification required by this section.
  SUBCHAPTER D.  ENFORCEMENT
         Sec. 121.101.  CIVIL PENALTY; INJUNCTION.  (a)  A person who
  violates this chapter is liable to this state for a civil penalty in
  an amount not to exceed:
               (1)  $10,000; or
               (2)  if the court finds that the person knowingly or
  repeatedly violated this chapter, $20,000.
         (b)  The attorney general may bring an action to:
               (1)  collect the penalty under this section;
               (2)  seek an injunction against further violation of
  this chapter;
               (3)  seek an order from the court for the person to
  disgorge any money received in violation of this chapter; and
               (4)  recover attorney's fees and reasonable court
  costs.
         Sec. 121.102.  PRIVATE CAUSE OF ACTION. (a)  The parent or
  guardian of a minor who is a victim of a violation of this chapter
  may bring an action against the owner of the app store or the
  developer of a software application, as applicable.
         (b)  A parent or guardian of a minor who prevails in an action
  under this section is entitled to recover:
               (1)  actual damages;
               (2)  injunctive relief; and
               (3)  attorney's fees and reasonable court costs.
         SECTION 2.  (a) The attorney general shall adopt initial
  rules to implement Chapter 121, Business & Commerce Code, as added
  by this Act, not later than March 1, 2026.
         (b)  An action under Chapter 121, Business & Commerce Code,
  as added by this Act, may not be brought before March 1, 2027.
         SECTION 3.  This Act takes effect September 1, 2025.