Texas 2023 88th Regular

Texas House Bill HB1181 Senate Committee Report / Bill

Filed 05/17/2023

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                    By: Shaheen, Collier, Schatzline H.B. No. 1181
 (Senate Sponsor - Paxton)
 (In the Senate - Received from the House May 10, 2023;
 May 11, 2023, read first time and referred to Committee on State
 Affairs; May 17, 2023, reported adversely, with favorable
 Committee Substitute by the following vote:  Yeas 11, Nays 0;
 May 17, 2023, sent to printer.)
Click here to see the committee vote
 COMMITTEE SUBSTITUTE FOR H.B. No. 1181 By:  Hughes


 COMMITTEE VOTE
 YeaNayAbsentPNV
 HughesX
 PaxtonX
 BettencourtX
 BirdwellX
 LaMantiaX
 MenéndezX
 MiddletonX
 ParkerX
 PerryX
 SchwertnerX
 ZaffiriniX
 A BILL TO BE ENTITLED
 AN ACT
 relating to access to sexually explicit material on the Internet or
 electronic devices; providing civil penalties.
 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. ELECTRONIC DEVICE FILTERS
 SUBCHAPTER A. ELECTRONIC DEVICE FILTER REQUIREMENTS
 Sec. 121.001.  DEFINITIONS. In this chapter:
 (1)  "Activate" means the process of powering on an
 electronic device and associating the device with a new user
 account.
 (2)  "Electronic device" means a device with a screen
 that is capable of connecting to a cellular network or the Internet.
 (3)  "Explicit material" means visual material that:
 (A)  the average person applying contemporary
 community standards would find, taking the material as a whole, is
 intended to appeal to a prurient interest;
 (B)  depicts, regardless of whether the depiction
 is actual, simulated, or animated, in a patently offensive way:
 (i)  sexual intercourse, bestiality,
 masturbation, sodomy, oral copulation, flagellation, or excretory
 functions or actions;
 (ii)  the striking, manipulating, or
 touching of a person's nipple, breast, buttock, anus, or genitals;
 (iii)  the use of devices, tools,
 instruments, structures, or other items in relation to the
 performance of any of the acts listed in Subparagraph (i) or (ii);
 or
 (iv)  sadomasochistic abuse or lewd
 exhibition of a person's genitals, anus, pubic hair, or nipple; and
 (C)  taken as a whole, lacks serious literary,
 artistic, political, religious, or scientific value.
 (4)  "Filter" means software installed on an electronic
 device that, at the time a user activates the device, meets or
 exceeds industry standards and employs the manufacturer's most
 advanced, market-ready technology for preventing the device from
 accessing, downloading, or displaying explicit material using:
 (A)  a mobile data network;
 (B)  an Internet network, including wireless
 Internet; or
 (C)  a software application owned and controlled
 by the device's manufacturer.
 (5)  "Manufacturer" means a person who:
 (A)  is engaged in the business of manufacturing
 electronic devices or holds a patent for an electronic device; and
 (B)  maintains a registered agent under Section
 5.201, Business Organizations Code.
 (6)  "Minor" means an individual younger than 18 years
 of age who:
 (A)  has never been married; and
 (B)  has not had the disabilities of minority
 removed for general purposes.
 (7)  "Simulated" has the meaning assigned by Section
 21.16, Penal Code.
 (8)  "Visual material" means any film, photograph,
 videotape, negative, or slide or any photographic reproduction that
 contains or incorporates any film, photograph, videotape,
 negative, or slide.
 Sec. 121.002.  APPLICABILITY.  This chapter does not apply
 to a telecommunications provider who activates an electronic device
 on behalf of a user.
 Sec. 121.003.  ELECTRONIC DEVICE FILTER REQUIRED.  (a)  A
 manufacturer shall ensure that an electronic device activated in
 this state will, on activation, automatically enable a filter and
 notify the user of the device when the filter prevents the device
 from accessing, downloading, or displaying explicit material.
 (b)  An electronic device must:
 (1)  allow the user of the device or a minor user's
 parent or guardian to circumvent the filter required under
 Subsection (a) by entering a password or access code; and
 (2)  reasonably prevent a user of the device from
 circumventing, modifying, removing, or uninstalling the filter
 without entering a password or access code.
 Sec. 121.004.  VIOLATION. (a) A manufacturer violates this
 chapter if the manufacturer releases into the market an electronic
 device that, when activated in this state, does not automatically
 enable a filter under Section 121.003 because the device lacks the
 necessary software or is defective.
 (b)  Notwithstanding Subsection (a), a manufacturer does not
 violate this chapter if the manufacturer makes a good faith effort
 to provide an electronic device that automatically enables a filter
 under Section 121.003.
 SUBCHAPTER B. ENFORCEMENT
 Sec. 121.051.  CIVIL PENALTY; INJUNCTION. (a) A
 manufacturer who knowingly violates Section 121.004(a) is liable to
 this state for a civil penalty in an amount not to exceed the lesser
 of:
 (1)  $10,000 for each violation; or
 (2)  $50 million.
 (b)  A manufacturer who negligently violates Section
 121.004(a) is liable to this state for a civil penalty in an amount
 not to exceed the lesser of:
 (1)  $1,000 for each violation; or
 (2)  $5 million.
 (c)  The attorney general may bring an action in the name of
 the state to obtain an injunction preventing further violations of
 this chapter by a manufacturer or to recover a civil penalty under
 this section. The prevailing party shall recover reasonable and
 necessary attorney's fees and costs incurred in an action brought
 under this section.
 (d)  The action may be brought in a district court in:
 (1)  Travis County; or
 (2)  the county in which the defendant's principal
 place of business is located.
 (e)  The attorney general shall deposit a civil penalty
 collected under this section in the state treasury to the credit of
 the general revenue fund.
 SECTION 2.  Title 6, Civil Practice and Remedies Code, is
 amended by adding Chapter 129B to read as follows:
 CHAPTER 129B.  LIABILITY FOR ALLOWING MINORS TO ACCESS PORNOGRAPHIC
 MATERIAL
 Sec. 129B.001.  DEFINITIONS. In this chapter:
 (1)  "Commercial entity" includes a corporation,
 limited liability company, partnership, limited partnership, sole
 proprietorship, or other legally recognized business entity.
 (2)  "Distribute" means to issue, sell, give, provide,
 deliver, transfer, transmute, circulate, or disseminate by any
 means.
 (3)  "Minor" means an individual younger than 18 years
 of age.
 (4)  "News-gathering organization" includes:
 (A)  an employee of a newspaper, news publication,
 or news source, printed or on an online or mobile platform, of
 current news and public interest, who is acting within the course
 and scope of that employment and can provide documentation of that
 employment with the newspaper, news publication, or news source;
 and
 (B)  an employee of a radio broadcast station,
 television broadcast station, cable television operator, or wire
 service who is acting within the course and scope of that employment
 and can provide documentation of that employment.
 (5)  "Publish" means to communicate or make information
 available to another person or entity on a publicly available
 Internet website.
 (6)  "Sexual material harmful to minors" includes any
 material that:
 (A)  the average person applying contemporary
 community standards would find, taking the material as a whole and
 with respect to minors, is designed to appeal to or pander to the
 prurient interest;
 (B)  in a manner patently offensive with respect
 to minors, exploits, is devoted to, or principally consists of
 descriptions of actual, simulated, or animated displays or
 depictions of:
 (i)  a person's pubic hair, anus, or genitals
 or the nipple of the female breast;
 (ii)  touching, caressing, or fondling of
 nipples, breasts, buttocks, anuses, or genitals; or
 (iii)  sexual intercourse, masturbation,
 sodomy, bestiality, oral copulation, flagellation, excretory
 functions, exhibitions, or any other sexual act; and
 (C)  taken as a whole, lacks serious literary,
 artistic, political, or scientific value for minors.
 (7)  "Transactional data" means a sequence of
 information that documents an exchange, agreement, or transfer
 between an individual, commercial entity, or third party used for
 the purpose of satisfying a request or event. The term includes
 records from mortgage, education, and employment entities.
 Sec. 129B.002.  PUBLICATION OF MATERIAL HARMFUL TO MINORS.
 (a)  A commercial entity that knowingly and intentionally publishes
 or distributes material on an Internet website, including a social
 media platform, more than one-third of which is sexual material
 harmful to minors, shall use reasonable age verification methods as
 described by Section 129B.003 to verify that an individual
 attempting to access the material is 18 years of age or older.
 (b)  A commercial entity that performs the age verification
 required by Subsection (a) or a third party that performs the age
 verification required by Subsection (a) may not retain any
 identifying information of the individual.
 Sec. 129B.003.  REASONABLE AGE VERIFICATION METHODS. (a)
 In this section, "digital identification" means information stored
 on a digital network that may be accessed by a commercial entity and
 that serves as proof of the identity of an individual.
 (b)  A commercial entity that knowingly and intentionally
 publishes or distributes material on an Internet website or a third
 party that performs age verification under this chapter shall
 require an individual to:
 (1)  provide digital identification; or
 (2)  comply with a commercial age verification system
 that verifies age using:
 (A)  government-issued identification; or
 (B)  a commercially reasonable method that relies
 on public or private transactional data to verify the age of an
 individual.
 Sec. 129B.004.  APPLICABILITY OF CHAPTER. (a)  This chapter
 does not apply to a bona fide news or public interest broadcast,
 website video, report, or event and may not be construed to affect
 the rights of a news-gathering organization.
 (b)  An Internet service provider, or its affiliates or
 subsidiaries, a search engine, or a cloud service provider may not
 be held to have violated this chapter solely for providing access or
 connection to or from a website or other information or content on
 the Internet or on a facility, system, or network not under that
 provider's control, including transmission, downloading,
 intermediate storage, access software, or other services to the
 extent the provider or search engine is not responsible for the
 creation of the content that constitutes sexual material harmful to
 minors.
 Sec. 129B.005.  CIVIL PENALTY; INJUNCTION. (a) If the
 attorney general believes that an entity is knowingly violating or
 has knowingly violated this chapter and the action is in the public
 interest, the attorney general may bring an action in a Travis
 County district court or the district court in the county in which
 the principal place of business of the entity is located in this
 state to enjoin the violation, recover a civil penalty described by
 Subsection (b), and obtain other relief the court considers
 appropriate.
 (b)  A civil penalty imposed under this section may be in an
 amount equal to not more than the total, if applicable, of:
 (1)  $10,000 per day that the entity operates an
 Internet website in violation of the age verification requirements
 of this chapter;
 (2)  $10,000 per instance when the entity retains
 identifying information in violation of Section 129B.002(b); and
 (3)  if, because of the entity's violation of the age
 verification requirements of this chapter, one or more minors
 accesses sexual material harmful to minors, an additional amount of
 not more than $250,000.
 (c)  The amount of a civil penalty under this section shall
 be based on:
 (1)  the seriousness of the violation, including the
 nature, circumstances, extent, and gravity of the violation;
 (2)  the history of previous violations;
 (3)  the amount necessary to deter a future violation;
 (4)  the economic effect of a penalty on the entity on
 whom the penalty will be imposed;
 (5)  the entity's knowledge that the act constituted a
 violation of this chapter; and
 (6)  any other matter that justice may require.
 SECTION 3.  Not later than January 1, 2024, each
 manufacturer shall implement a software update to automatically
 enable an electronic device filter on an electronic device
 activated in this state as required by Chapter 121, Business &
 Commerce Code, as added by this Act.
 SECTION 4.  (a)  Except as provided by Subsection (b) of this
 section, this Act takes effect September 1, 2023.
 (b)  Chapter 121, Business & Commerce Code, as added by this
 Act, takes effect January 1, 2024.
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