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               A BILL TO BE ENTITLED
             | 
         
         
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			 | 
            
               AN ACT
             | 
         
         
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            relating to the regulation of platforms for the sale and  | 
         
         
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			 | 
            distribution of software applications for mobile devices. | 
         
         
            | 
                
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                   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
         
         
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                   SECTION 1.  Subtitle C, Title 5, Business & Commerce Code, is  | 
         
         
            | 
                
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            amended by adding Chapter 121 to read as follows: | 
         
         
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			 | 
            CHAPTER 121.  SOFTWARE APPLICATIONS | 
         
         
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            SUBCHAPTER A.  GENERAL PROVISIONS | 
         
         
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                   Sec. 121.001.  SHORT TITLE.  This chapter may be cited as the  | 
         
         
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            App Store Accountability Act. | 
         
         
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                   Sec. 121.002.  DEFINITIONS.  In this chapter: | 
         
         
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                         (1)  "Age category" means information collected by the  | 
         
         
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            owner of an app store to designate a user based on the age  | 
         
         
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            categories described by Section 121.021(b). | 
         
         
            | 
                
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                         (2)  "App store" means a publicly available Internet  | 
         
         
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            website, software application, or other electronic service that  | 
         
         
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			 | 
            distributes software applications from the owner or developer of a  | 
         
         
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            software application to the user of a mobile device. | 
         
         
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                         (3)  "Minor" means a child who is younger than 18 years  | 
         
         
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            of age who has not had the disabilities of minority removed for  | 
         
         
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            general purposes. | 
         
         
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                         (4)  "Mobile device" means a portable, wireless  | 
         
         
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            electronic device, including a tablet or smartphone, capable of  | 
         
         
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            transmitting, receiving, processing, and storing information  | 
         
         
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            wirelessly that runs an operating system designed to manage  | 
         
         
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            hardware resources and perform common services for software  | 
         
         
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            applications on handheld electronic devices. | 
         
         
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                         (5)  "Personal data" means any information, including  | 
         
         
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            sensitive data, that is linked or reasonably linkable to an  | 
         
         
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            identified or identifiable individual. The term includes  | 
         
         
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            pseudonymous data when the data is used by a person who processes or  | 
         
         
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            determines the purpose and means of processing the data in  | 
         
         
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            conjunction with additional information that reasonably links the  | 
         
         
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            data to an identified or identifiable individual. The term does not  | 
         
         
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			 | 
            include deidentified data or publicly available information. | 
         
         
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			 | 
            SUBCHAPTER B.  DUTIES OF APP STORES | 
         
         
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                   Sec. 121.021.  DUTY TO VERIFY AGE OF USER; AGE CATEGORIES.  | 
         
         
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            (a) When an individual in this state creates an account with an app  | 
         
         
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            store, the owner of the app store shall use a commercially  | 
         
         
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			 | 
            reasonable method of verification to verify the individual's age  | 
         
         
            | 
                
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            category under Subsection (b). | 
         
         
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                   (b)  The owner of an app store shall use the following age  | 
         
         
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            categories for assigning a designation: | 
         
         
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                         (1)  an individual who is younger than 13 years of age  | 
         
         
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            is considered a "child"; | 
         
         
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                         (2)  an individual who is at least 13 years of age but  | 
         
         
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			 | 
            younger than 16 years of age is considered a "younger teenager"; | 
         
         
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                         (3)  an individual who is at least 16 years of age but  | 
         
         
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			 | 
            younger than 18 years of age is considered an "older teenager"; and | 
         
         
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			 | 
                         (4)  an individual who is at least 18 years of age is  | 
         
         
            | 
                
			 | 
            considered an "adult." | 
         
         
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			 | 
                   Sec. 121.022.  PARENTAL CONSENT REQUIRED.  (a) If the owner  | 
         
         
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			 | 
            of the app store determines under Section 121.021 that an  | 
         
         
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            individual is a minor who belongs to an age category that is not  | 
         
         
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            "adult," the owner shall require that the minor's account be  | 
         
         
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			 | 
            affiliated with a parent account belonging to the minor's parent or  | 
         
         
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			 | 
            guardian. | 
         
         
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			 | 
                   (b)  For an account to be affiliated with a minor's account  | 
         
         
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            as a parent account, the owner of an app store must use a  | 
         
         
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            commercially reasonable method to verify that the account belongs  | 
         
         
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			 | 
            to an individual who: | 
         
         
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			 | 
                         (1)  the owner of the app store has verified belongs to  | 
         
         
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			 | 
            the age category of "adult" under Section 121.021; and | 
         
         
            | 
                
			 | 
                         (2)  has legal authority to make a decision on behalf of  | 
         
         
            | 
                
			 | 
            the minor with whose account the individual is seeking affiliation. | 
         
         
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                   (c)  A parent account may be affiliated with multiple minors'  | 
         
         
            | 
                
			 | 
            accounts. | 
         
         
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                   (d)  The owner of an app store must obtain consent from the  | 
         
         
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			 | 
            minor's parent or guardian through the parent account affiliated  | 
         
         
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			 | 
            with the minor's account before allowing the minor to: | 
         
         
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                         (1)  download a software application; | 
         
         
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                         (2)  purchase a software application; or | 
         
         
            | 
                
			 | 
                         (3)  make a purchase in or using a software  | 
         
         
            | 
                
			 | 
            application. | 
         
         
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			 | 
                   (e)  The owner of an app store must: | 
         
         
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                         (1)  obtain consent for each individual download or  | 
         
         
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			 | 
            purchase sought by the minor; and | 
         
         
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			 | 
                         (2)  notify the developer of each applicable software  | 
         
         
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			 | 
            application if a minor's parent or guardian revokes consent through  | 
         
         
            | 
                
			 | 
            a parent account. | 
         
         
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                   (f)  To obtain consent from a minor's parent or guardian  | 
         
         
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            under Subsection (d), the owner of an app store may use any  | 
         
         
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			 | 
            reasonable means to: | 
         
         
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                         (1)  disclose to the parent or guardian: | 
         
         
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			 | 
                               (A)  the specific software application or  | 
         
         
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			 | 
            purchase for which consent is sought; | 
         
         
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                               (B)  the rating under Section 121.052 assigned to  | 
         
         
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			 | 
            the software application or purchase; | 
         
         
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                               (C)  the specific content or other elements that  | 
         
         
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            led to the rating assigned under Section 121.052; | 
         
         
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                               (D)  the nature of any collection, use, or  | 
         
         
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            distribution of personal data that would occur because of the  | 
         
         
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            software application or purchase; and | 
         
         
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                               (E)  any measures taken by the developer of the  | 
         
         
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            software application or purchase to protect the personal data of  | 
         
         
            | 
                
			 | 
            users; | 
         
         
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                         (2)  give the parent or guardian a clear choice to give  | 
         
         
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			 | 
            or withhold consent for the download or purchase; and | 
         
         
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                         (3)  ensure that the consent is given: | 
         
         
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                               (A)  by the parent or guardian; and | 
         
         
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                               (B)  through the account affiliated with a minor's  | 
         
         
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			 | 
            account under Subsection (a). | 
         
         
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			 | 
                   (g)  If a software developer provides the owner of an app  | 
         
         
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			 | 
            store with notice of a change under Section 121.053, the owner of  | 
         
         
            | 
                
			 | 
            the app store shall: | 
         
         
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                         (1)  notify any individual who has given consent under  | 
         
         
            | 
                
			 | 
            this section for a minor's use or purchase relating to a previous  | 
         
         
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			 | 
            version of the changed software application; and | 
         
         
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                         (2)  obtain consent from the individual for the minor's  | 
         
         
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			 | 
            continued use or purchase of the software application. | 
         
         
            | 
                
			 | 
                   Sec. 121.023.  DISPLAY OF AGE RATING FOR SOFTWARE  | 
         
         
            | 
                
			 | 
            APPLICATION.  (a)  If the owner of an app store that operates in this  | 
         
         
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			 | 
            state has a mechanism for displaying a rating or other content  | 
         
         
            | 
                
			 | 
            notice, the owner 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 | 
         
         
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			 | 
                         (2)  the specific content or other elements that led to  | 
         
         
            | 
                
			 | 
            the rating assigned under Section 121.052. | 
         
         
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                   (b)  The information displayed under this section must be  | 
         
         
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			 | 
            clear, accurate, and conspicuous. | 
         
         
            | 
                
			 | 
                   Sec. 121.024.  INFORMATION FOR SOFTWARE APPLICATION  | 
         
         
            | 
                
			 | 
            DEVELOPERS.  The owner of an app store that operates in this state  | 
         
         
            | 
                
			 | 
            shall, using a commercially available method, allow the developer  | 
         
         
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			 | 
            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.  PROTECTION OF PERSONAL DATA.  The owner of an  | 
         
         
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			 | 
            app store that operates in this state shall protect the personal  | 
         
         
            | 
                
			 | 
            data of users by: | 
         
         
            | 
                
			 | 
                         (1)  limiting the collection and processing of personal  | 
         
         
            | 
                
			 | 
            data to the minimum amount necessary for: | 
         
         
            | 
                
			 | 
                               (A)  verifying the age of an individual; | 
         
         
            | 
                
			 | 
                               (B)  obtaining consent under Section 121.022; and | 
         
         
            | 
                
			 | 
                               (C)  maintaining compliance records; and | 
         
         
            | 
                
			 | 
                         (2)  transmitting personal data using  | 
         
         
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			 | 
            industry-standard encryption protocols that ensure data integrity  | 
         
         
            | 
                
			 | 
            and confidentiality. | 
         
         
            | 
                
			 | 
                   Sec. 121.026.  VIOLATION.  The owner of an app store that  | 
         
         
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			 | 
            operates in this state violates this subchapter if the owner: | 
         
         
            | 
                
			 | 
                         (1)  enforces a contract or a provision of a terms of  | 
         
         
            | 
                
			 | 
            service agreement against a minor that the minor entered into or  | 
         
         
            | 
                
			 | 
            agreed to without consent under Section 121.022; | 
         
         
            | 
                
			 | 
                         (2)  knowingly misrepresents information disclosed  | 
         
         
            | 
                
			 | 
            under Section 121.022(f)(1); | 
         
         
            | 
                
			 | 
                         (3)  obtains a blanket consent to authorize multiple  | 
         
         
            | 
                
			 | 
            downloads or purchases; or | 
         
         
            | 
                
			 | 
                         (4)  shares or discloses personal data obtained for  | 
         
         
            | 
                
			 | 
            purposes of Section 121.021, except as required by Section 121.024  | 
         
         
            | 
                
			 | 
            or other law. | 
         
         
            | 
                
			 | 
                   Sec. 121.027.  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 block, detect, or  | 
         
         
            | 
                
			 | 
            prevent the distribution of: | 
         
         
            | 
                
			 | 
                               (A)  obscene material, as that term is defined by  | 
         
         
            | 
                
			 | 
            Section 43.21, Penal Code; or | 
         
         
            | 
                
			 | 
                               (B)  other material that may be harmful to minors; | 
         
         
            | 
                
			 | 
                         (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; | 
         
         
            | 
                
			 | 
                         (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; | 
         
         
            | 
                
			 | 
                         (4)  block or filter spam; | 
         
         
            | 
                
			 | 
                         (5)  prevent criminal activity; or | 
         
         
            | 
                
			 | 
                         (6)  protect the security of an app store or software  | 
         
         
            | 
                
			 | 
            application. | 
         
         
            | 
                
			 | 
            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.  (a)  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 significant change to the  | 
         
         
            | 
                
			 | 
            terms of service or privacy policy of the software application. | 
         
         
            | 
                
			 | 
                   (b)  For purposes of this section, a change is significant if  | 
         
         
            | 
                
			 | 
            it: | 
         
         
            | 
                
			 | 
                         (1)  changes the type or category of personal data  | 
         
         
            | 
                
			 | 
            collected, stored, or shared by the developer; | 
         
         
            | 
                
			 | 
                         (2)  affects or changes the rating assigned to the  | 
         
         
            | 
                
			 | 
            software application under Section 121.052 or the content or  | 
         
         
            | 
                
			 | 
            elements that led to that rating; | 
         
         
            | 
                
			 | 
                         (3)  adds new monetization features to the software  | 
         
         
            | 
                
			 | 
            application, including: | 
         
         
            | 
                
			 | 
                               (A)  new opportunities to make a purchase in or  | 
         
         
            | 
                
			 | 
            using the software application; or | 
         
         
            | 
                
			 | 
                               (B)  new advertisements in the software  | 
         
         
            | 
                
			 | 
            application; or | 
         
         
            | 
                
			 | 
                         (4)  materially changes the functionality or user  | 
         
         
            | 
                
			 | 
            experience of the software application. | 
         
         
            | 
                
			 | 
                   Sec. 121.054.  AGE VERIFICATION.  (a)  The developer of a  | 
         
         
            | 
                
			 | 
            software application shall create and implement a system to use  | 
         
         
            | 
                
			 | 
            information received under Section 121.024 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 received from the owner of an app store under Section  | 
         
         
            | 
                
			 | 
            121.024 to perform the verification required by this section. | 
         
         
            | 
                
			 | 
                   Sec. 121.055.  USE OF PERSONAL DATA.  (a) The developer of a  | 
         
         
            | 
                
			 | 
            software application may use personal data provided to the  | 
         
         
            | 
                
			 | 
            developer under Section 121.024 only to: | 
         
         
            | 
                
			 | 
                         (1)  enforce restrictions and protections on the  | 
         
         
            | 
                
			 | 
            software application related to age; | 
         
         
            | 
                
			 | 
                         (2)  ensure compliance with applicable laws and  | 
         
         
            | 
                
			 | 
            regulations; and | 
         
         
            | 
                
			 | 
                         (3)  implement safety-related features and default  | 
         
         
            | 
                
			 | 
            settings. | 
         
         
            | 
                
			 | 
                   (b)  The developer of a software application shall delete  | 
         
         
            | 
                
			 | 
            personal data provided by the owner of an app store under Section  | 
         
         
            | 
                
			 | 
            121.024 on completion of the verification required by Section  | 
         
         
            | 
                
			 | 
            121.054. | 
         
         
            | 
                
			 | 
                   Sec. 121.056.  VIOLATION.  (a)  Except as provided by this  | 
         
         
            | 
                
			 | 
            section, the developer of a software application violates this  | 
         
         
            | 
                
			 | 
            subchapter if the developer: | 
         
         
            | 
                
			 | 
                         (1)  enforces a contract or a provision of a terms of  | 
         
         
            | 
                
			 | 
            service agreement against a minor that the minor entered into or  | 
         
         
            | 
                
			 | 
            agreed to without consent under Section 121.054; | 
         
         
            | 
                
			 | 
                         (2)  knowingly misrepresents an age rating or reason  | 
         
         
            | 
                
			 | 
            for that rating under Section 121.052; or | 
         
         
            | 
                
			 | 
                         (3)  shares or discloses the personal data of a user  | 
         
         
            | 
                
			 | 
            that was acquired under this subchapter. | 
         
         
            | 
                
			 | 
                   (b)  The developer of a software application is not liable  | 
         
         
            | 
                
			 | 
            for a violation of Section 121.052 if the software developer: | 
         
         
            | 
                
			 | 
                         (1)  uses widely adopted industry standards to  | 
         
         
            | 
                
			 | 
            determine the rating and specific content required by this section;  | 
         
         
            | 
                
			 | 
            and | 
         
         
            | 
                
			 | 
                         (2)  applies those standards consistently and in good  | 
         
         
            | 
                
			 | 
            faith. | 
         
         
            | 
                
			 | 
                   (c)  The developer of a software application is not liable  | 
         
         
            | 
                
			 | 
            for a violation of Section 121.054 if the software developer: | 
         
         
            | 
                
			 | 
                         (1)  relied in good faith on age category and consent  | 
         
         
            | 
                
			 | 
            information received from the owner of an app store; and | 
         
         
            | 
                
			 | 
                         (2)  otherwise complied with the requirements of this  | 
         
         
            | 
                
			 | 
            section. | 
         
         
            | 
                
			 | 
            SUBCHAPTER D.  ENFORCEMENT | 
         
         
            | 
                
			 | 
                   Sec. 121.101.  CIVIL ACTION; LIABILITY. (a) The parent or  | 
         
         
            | 
                
			 | 
            guardian of a minor may bring an action against the owner of an app  | 
         
         
            | 
                
			 | 
            store or the developer of a software application for a violation of  | 
         
         
            | 
                
			 | 
            this chapter. | 
         
         
            | 
                
			 | 
                   (b)  Notwithstanding Sections 41.003 and 41.004, Civil  | 
         
         
            | 
                
			 | 
            Practice and Remedies Code, a parent or guardian who prevails in an  | 
         
         
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			 | 
            action under this section is entitled to receive: | 
         
         
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                         (1)  injunctive relief; | 
         
         
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                         (2)  actual damages; | 
         
         
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                         (3)  punitive damages; | 
         
         
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                         (4)  reasonable attorney's fees; | 
         
         
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                         (5)  court costs; and | 
         
         
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                         (6)  any other relief the court considers appropriate. | 
         
         
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                   (c)  A violation of this chapter constitutes an injury in  | 
         
         
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            fact to a minor. | 
         
         
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                   Sec. 121.102.  DECEPTIVE TRADE PRACTICE.  A violation of  | 
         
         
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            this chapter is a false, misleading, or deceptive act or practice as  | 
         
         
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            defined by Section 17.46(b). In addition to any remedy under this  | 
         
         
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            chapter, a remedy under Subchapter E, Chapter 17, is also available  | 
         
         
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            for a violation of this chapter. | 
         
         
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                   Sec. 121.103.  CUMULATIVE REMEDIES.  The actions and  | 
         
         
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            remedies provided by this chapter are not exclusive and are in  | 
         
         
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            addition to any other action or remedy provided by law. | 
         
         
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                   SECTION 2.  This Act takes effect January 1, 2026. | 
         
         
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             | 
         
         
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            * * * * * |