Texas 2023 88th Regular

Texas House Bill HB18 Senate Amendments Printing / Analysis

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                    H.B. No. 18


 AN ACT
 relating to the protection of minors from harmful, deceptive, or
 unfair trade practices in connection with the use of certain
 digital services and electronic devices, including the use and
 transfer of electronic devices to students by a public school.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 ARTICLE 1. SHORT TITLE
 SECTION 1.01.  This Act may be cited as the Securing Children
 Online through Parental Empowerment (SCOPE) Act.
 ARTICLE 2. USE OF DIGITAL SERVICES BY MINORS
 SECTION 2.01.  Subtitle A, Title 11, Business & Commerce
 Code, is amended by adding Chapter 509 to read as follows:
 CHAPTER 509. USE OF DIGITAL SERVICES BY MINORS
 SUBCHAPTER A. GENERAL PROVISIONS
 Sec. 509.001.  DEFINITIONS.  In this chapter:
 (1)  "Digital service" means a website, an application,
 a program, or software that collects or processes personal
 identifying information with Internet connectivity.
 (2)  "Digital service provider" means a person who:
 (A)  owns or operates a digital service;
 (B)  determines the purpose of collecting and
 processing the personal identifying information of users of the
 digital service; and
 (C)  determines the means used to collect and
 process the personal identifying information of users of the
 digital service.
 (3)  "Harmful material" has the meaning assigned by
 Section 43.24, Penal Code.
 (4)  "Known minor" means a person that a digital
 service provider knows to be a minor.
 (5)  "Minor" means a child who is younger than 18 years
 of age who has not had the disabilities of minority removed for
 general purposes.
 (6)  "Personal identifying information" means any
 information, including sensitive information, that is linked or
 reasonably linkable to an identified or identifiable individual.
 The term includes pseudonymous information when the information is
 used by a controller or processor in conjunction with additional
 information that reasonably links the information to an identified
 or identifiable individual. The term does not include deidentified
 information or publicly available information.
 (7)  "Verified parent" means the parent or guardian of
 a known minor whose identity and relationship to the minor have been
 verified by a digital service provider under Section 509.101.
 Sec. 509.002.  APPLICABILITY.  (a) Except to the extent that
 Section 509.057 applies to any digital service provider, this
 chapter applies only to a digital service provider who provides a
 digital service that:
 (1)  connects users in a manner that allows users to
 socially interact with other users on the digital service;
 (2)  allows a user to create a public or semi-public
 profile for purposes of signing into and using the digital service;
 and
 (3)  allows a user to create or post content that can be
 viewed by other users of the digital service, including sharing
 content on:
 (A)  a message board;
 (B)  a chat room; or
 (C)  a landing page, video channel, or main feed
 that presents to a user content created and posted by other users.
 (b)  This chapter does not apply to:
 (1)  a state agency or a political subdivision of this
 state;
 (2)  a financial institution or data subject to Title
 V, Gramm-Leach-Bliley Act (15 U.S.C. Section 6801 et seq.);
 (3)  a covered entity or business associate governed by
 the privacy, security, and breach notification rules issued by the
 United States Department of Health and Human Services, 45 C.F.R.
 Parts 160 and 164, established under the Health Insurance
 Portability and Accountability Act of 1996 (42 U.S.C. Section 1320d
 et seq.), and the Health Information Technology for Economic and
 Clinical Health Act (Division A, Title XIII, and Division B, Title
 IV, Pub. L. No. 111-5);
 (4)  a small business as defined by the United States
 Small Business Administration on September 1, 2024;
 (5)  an institution of higher education;
 (6)  a digital service provider who processes or
 maintains user data in connection with the employment, promotion,
 reassignment, or retention of the user as an employee or
 independent contractor, to the extent that the user's data is
 processed or maintained for that purpose;
 (7)  an operator or provider regulated by Subchapter D,
 Chapter 32, Education Code, that primarily provides education
 services to students or educational institutions;
 (8)  a person subject to the Family Educational Rights
 and Privacy Act of 1974 (20 U.S.C. Section 1232g) that:
 (A)  operates a digital service; and
 (B)  primarily provides education services to
 students or educational institutions;
 (9)  a digital service provider's provision of a
 digital service that facilitates e-mail or direct messaging
 services, if the digital service facilitates only those services;
 or
 (10)  a digital service provider's provision of a
 digital service that:
 (A)  primarily functions to provide a user with
 access to news, sports, commerce, or content primarily generated or
 selected by the digital service provider; and
 (B)  allows chat, comment, or other interactive
 functionality that is incidental to the digital service.
 (c)  Unless an Internet service provider, Internet service
 provider's affiliate or subsidiary, search engine, or cloud service
 provider is responsible for the creation of harmful material or
 other content described by Section 509.053(a), the Internet service
 provider, Internet service provider's affiliate or subsidiary,
 search engine, or cloud service provider is not considered to be a
 digital service provider or to offer a digital service if the
 Internet service provider or provider's affiliate or subsidiary,
 search engine, or cloud service provider solely provides access or
 connection, including through transmission, download, intermediate
 storage, access software, or other service, to an Internet website
 or to other information or content:
 (1)  on the Internet; or
 (2)  on a facility, system, or network not under the
 control of the Internet service provider, provider's affiliate or
 subsidiary, search engine, or cloud service provider.
 SUBCHAPTER B. DIGITAL SERVICE PROVIDER DUTIES AND PROHIBITIONS
 Sec. 509.051.  DIGITAL SERVICE PROVIDER DUTY TO REGISTER AGE
 OF USER.  (a) A digital service provider may not enter into an
 agreement with a person to create an account with a digital service
 unless the person has registered the person's age with the digital
 service provider.
 (b)  A person who registers the person's age as younger than
 18 years of age is considered to be a known minor to the digital
 service provider until after the person's 18th birthday.
 (c)  A digital service provider may not allow a person who
 registers the person's age to alter the person's registered age,
 unless the alteration process involves a commercially reasonable
 review process.
 (d)  A minor is considered to be a known minor to a digital
 service provider if:
 (1)  the minor registers the minor's age under Section
 509.051 as younger than 18 years of age; or
 (2)  the minor's parent or guardian, including a
 verified parent:
 (A)  notifies a digital service provider that the
 minor is younger than 18 years of age;
 (B)  successfully disputes the registered age of
 the minor; or
 (C)  performs another function of a parent or
 guardian under this chapter.
 (e)  If a minor is a known minor, or if the minor's parent or
 guardian, including a verified parent, takes an action under
 Subsection (a), a digital service provider:
 (1)  is considered to have actual knowledge that the
 minor is younger than 18 years of age; and
 (2)  shall treat the minor as a known minor under this
 chapter.
 Sec. 509.052.  DIGITAL SERVICE PROVIDER DUTIES RELATING TO
 AGREEMENT WITH MINOR.  Unless a verified parent provides otherwise
 under Section 509.102, a digital service provider that enters into
 an agreement with a known minor for access to a digital service:
 (1)  shall:
 (A)  limit collection of the known minor's
 personal identifying information to information reasonably
 necessary to provide the digital service; and
 (B)  limit use of the known minor's personal
 identifying information to the purpose for which the information
 was collected; and
 (2)  may not:
 (A)  allow the known minor to make purchases or
 engage in other financial transactions through the digital service;
 (B)  share, disclose, or sell the known minor's
 personal identifying information;
 (C)  use the digital service to collect the known
 minor's precise geolocation data; or
 (D)  use the digital service to display targeted
 advertising to the known minor.
 Sec. 509.053.  DIGITAL SERVICE PROVIDER DUTY TO PREVENT HARM
 TO KNOWN MINORS.  (a) In relation to a known minor's use of a digital
 service, a digital service provider shall develop and implement a
 strategy to prevent the known minor's exposure to harmful material
 and other content that promotes, glorifies, or facilitates:
 (1)  suicide, self-harm, or eating disorders;
 (2)  substance abuse;
 (3)  stalking, bullying, or harassment; or
 (4)  grooming, trafficking, child pornography, or
 other sexual exploitation or abuse.
 (b)  A strategy developed under Subsection (a):
 (1)  must include:
 (A)  creating and maintaining a comprehensive
 list of harmful material or other content described by Subsection
 (a) to block from display to a known minor;
 (B)  using filtering technology and other
 protocols to enforce the blocking of material or content on the list
 under Paragraph (A);
 (C)  using hash-sharing technology and other
 protocols to identify recurring harmful material or other content
 described by Subsection (a);
 (D)  creating and maintaining a database of
 keywords used for filter evasion, such as identifiable
 misspellings, hash-tags, or identifiable homoglyphs;
 (E)  performing standard human-performed
 monitoring reviews to ensure efficacy of filtering technology;
 (F)  making available to users a comprehensive
 description of the categories of harmful material or other content
 described by Subsection (a) that will be filtered; and
 (G)  except as provided by Section 509.058, making
 available the digital service provider's algorithm code to
 independent security researchers; and
 (2)  may include:
 (A)  engaging a third party to rigorously review
 the digital service provider's content filtering technology;
 (B)  participating in industry-specific
 partnerships to share best practices in preventing access to
 harmful material or other content described by Subsection (a); or
 (C)  conducting periodic independent audits to
 ensure:
 (i)  continued compliance with the digital
 service provider's strategy; and
 (ii)  efficacy of filtering technology and
 protocols used by the digital service provider.
 Sec. 509.054.  DIGITAL SERVICE PROVIDER DUTY TO CREATE
 PARENTAL TOOLS.  (a) A digital service provider shall create and
 provide to a verified parent parental tools to allow the verified
 parent to supervise the verified parent's known minor's use of a
 digital service.
 (b)  Parental tools under this section must allow a verified
 parent to:
 (1)  control the known minor's privacy and account
 settings;
 (2)  alter the duties of a digital service provider
 under Section 509.052 with regard to the verified parent's known
 minor;
 (3)  if the verified parent alters the duty of a digital
 service provider under Section 509.052(2)(A), restrict the ability
 of the verified parent's known minor to make purchases or engage in
 financial transactions; and
 (4)  monitor and limit the amount of time the verified
 parent's known minor spends using the digital service.
 Sec. 509.055.  DIGITAL SERVICE PROVIDER DUTIES REGARDING
 ADVERTISING AND MARKETING.  A digital service provider shall make a
 commercially reasonable effort to prevent advertisers on the
 digital service provider's digital service from targeting a known
 minor with advertisements that facilitate, promote, or offer a
 product, service, or activity that is unlawful for a minor in this
 state to use or engage in.
 Sec. 509.056.  USE OF ALGORITHMS.  A digital service
 provider that uses algorithms to automate the suggestion,
 promotion, or ranking of information to known minors on the digital
 service shall:
 (1)  make a commercially reasonable effort to ensure
 that the algorithm does not interfere with the digital service
 provider's duties under Section 509.053; and
 (2)  disclose in the digital service provider's terms
 of service, privacy policy, or similar document, in a clear and
 accessible manner, an overview of:
 (A)  the manner in which the digital service uses
 algorithms to provide information or content;
 (B)  the manner in which algorithms promote, rank,
 or filter information or content; and
 (C)  the personal identifying information used as
 inputs to provide information or content.
 Sec. 509.057.  DIGITAL SERVICE PROVIDER DUTY AS TO HARMFUL
 MATERIAL.  (a) A digital service provider as defined by Section
 509.001 that knowingly publishes or distributes material, more than
 one-third of which is harmful material or obscene as defined by
 Section 43.21, Penal Code, must use a commercially reasonable age
 verification method to verify that any person seeking to access
 content on or through the provider's digital service is 18 years of
 age or older.
 (b)  If a person seeking to access content on or through the
 digital service of a provider for which age verification is
 required under this section is not 18 years of age or older, the
 digital service provider may not enter into an agreement with the
 person for access to the digital service.
 Sec. 509.058.  PROTECTION OF TRADE SECRETS.  Nothing in this
 subchapter may be construed to require a digital service provider
 to disclose a trade secret.
 Sec. 509.059.  USE OF KNOWN MINOR'S PERSONAL IDENTIFYING
 INFORMATION FOR CERTAIN PURPOSES. Nothing in this subchapter may be
 construed to prevent a digital service provider from collecting,
 processing, or sharing a known minor's personal identifying
 information in a manner necessary to:
 (1)  comply with a civil, criminal, or regulatory
 inquiry, investigation, subpoena, or summons by a governmental
 entity;
 (2)  comply with a law enforcement investigation;
 (3)  detect, block, or prevent the distribution of
 unlawful, obscene, or other harmful material to a known minor;
 (4)  block or filter spam;
 (5)  prevent criminal activity; or
 (6)  protect the security of a digital service.
 SUBCHAPTER C. VERIFIED PARENTS
 Sec. 509.101.  VERIFICATION OF PARENT OR GUARDIAN.  (a) A
 digital service provider shall verify, using a commercially
 reasonable method and for each person seeking to perform an action
 on a digital service as a minor's parent or guardian:
 (1)  the person's identity; and
 (2)  the relationship of the person to the known minor.
 (b)  A digital service provider shall provide a process by
 which a person who has been verified under Subsection (a) as the
 parent or guardian of a known minor may participate in the digital
 service as the known minor's verified parent as provided by this
 chapter.
 Sec. 509.102.  POWERS OF VERIFIED PARENT.  (a) A verified
 parent is entitled to alter the duties of a digital service provider
 under Section 509.052 with regard to the verified parent's known
 minor.
 (b)  A verified parent is entitled to supervise the verified
 parent's known minor's use of a digital service using tools provided
 by a digital service provider under Section 509.054.
 Sec. 509.103.  ACCESS TO KNOWN MINOR'S PERSONAL IDENTIFYING
 INFORMATION. (a) A known minor's verified parent may submit a
 request to a digital service provider to:
 (1)  review and download any personal identifying
 information associated with the minor in the possession of the
 digital service provider; and
 (2)  delete any personal identifying information
 associated with the minor collected or processed by the digital
 service provider.
 (b)  A digital service provider shall establish and make
 available on the digital service provider's digital service a
 method by which a known minor's parent or guardian may make a
 request for access under this section.
 Sec. 509.104.  MINOR IN CONSERVATORSHIP OF DEPARTMENT OF
 FAMILY AND PROTECTIVE SERVICES.  If a minor is in the
 conservatorship of the Department of Family and Protective
 Services, the department may designate the minor's caregiver or a
 member of the department's staff to perform the functions of the
 minor's parent or guardian under this chapter.
 SUBCHAPTER D. ENFORCEMENT
 Sec. 509.151.  DECEPTIVE TRADE PRACTICE; ENFORCEMENT BY
 ATTORNEY GENERAL. A violation of this chapter is a deceptive act or
 practice actionable under Subchapter E, Chapter 17, solely as an
 enforcement action by the consumer protection division of the
 attorney general's office.
 Sec. 509.152.  PRIVATE CAUSE OF ACTION.  (a) Except as
 provided by Subsection (b), this chapter may not be construed as
 providing a basis for, or being subject to, a private right of
 action for a violation of this chapter.
 (b)  If a digital service provider violates this chapter, the
 parent or guardian of a known minor affected by that violation may
 bring a cause of action seeking:
 (1)  a declaratory judgment under Chapter 37, Civil
 Practice and Remedies Code; or
 (2)  an injunction against the digital service
 provider.
 (c)  A court may not certify an action brought under this
 section as a class action.
 ARTICLE 3. USE AND TRANSFER OF ELECTRONIC DEVICES BY STUDENTS
 SECTION 3.01.  The heading to Subchapter C, Chapter 32,
 Education Code, is amended to read as follows:
 SUBCHAPTER C. TRANSFER OF DATA PROCESSING EQUIPMENT AND ELECTRONIC
 DEVICES TO STUDENTS
 SECTION 3.02.  Section 32.101, Education Code, is amended to
 read as follows:
 Sec. 32.101.  DEFINITIONS [DEFINITION]. In this subchapter:
 (1)  "Data [, "data] processing" has the meaning
 assigned by Section 2054.003, Government Code.
 (2)  "Electronic device" means a device that is capable
 of connecting to a cellular network or the Internet, including:
 (A)  a computer;
 (B)  a smartphone; or
 (C)  a tablet.
 (3)  "Internet filter" means a software application
 that is capable of preventing an electronic device from accessing
 certain websites or displaying certain online material.
 SECTION 3.03.  Subchapter C, Chapter 32, Education Code, is
 amended by adding Section 32.1021 to read as follows:
 Sec. 32.1021.  STANDARDS.  The agency shall adopt standards
 for permissible electronic devices and software applications used
 by a school district or open-enrollment charter school. In adopting
 the standards, the agency must:
 (1)  minimize data collection conducted on students
 through electronic devices and software applications;
 (2)  ensure direct and informed parental consent is
 required for a student's use of a software application, other than a
 software application necessary for the administration of:
 (A)  an assessment instrument under Subchapter B,
 Chapter 39; or
 (B)  an assessment relating to college, career, or
 military readiness for which student performance is considered in
 evaluating a school district's performance under Section 39.054;
 (3)  ensure software applications do not conduct mental
 health assessments or other assessments unrelated to educational
 curricula that are intended to collect information about students
 without direct and informed parental consent;
 (4)  ensure that parents are provided the resources
 necessary to understand cybersecurity risks and online safety
 regarding their child's use of electronic devices before the child
 uses an electronic device at the child's school;
 (5)  specify periods of time during which an electronic
 device transferred to a student must be deactivated in the interest
 of student safety;
 (6)  consider necessary adjustments by age level to the
 use of electronic devices in the classroom to foster development of
 students' abilities regarding spending school time and completing
 assignments without the use of an electronic device;
 (7)  consider appropriate restrictions on student
 access to social media websites or applications with an electronic
 device transferred to a student by a district or school;
 (8)  require a district or school, before using a
 social media application for an educational purpose, to determine
 that an alternative application that is more secure and provides
 the same educational functionality as the social media application
 is unavailable for that educational purpose;
 (9)  consider the required use of an Internet filter
 capable of notifying appropriate school administrators, who are
 then required to notify the student's parent, if a student accesses
 inappropriate or concerning content or words, including content
 related to:
 (A)  self-harm;
 (B)  suicide;
 (C)  violence to others; or
 (D)  illicit drugs;
 (10)  assign to the appropriate officer of a district
 or school the duty to receive complaints or concerns regarding
 student use of electronic devices, including cybersecurity and
 online safety concerns, from district or school staff, other
 students, or parents; and
 (11)  provide methods by which a district or school may
 ensure an operator, as that term is defined by Section 32.151, that
 contracts with the district or school to provide software
 applications complies with Subchapter D.
 SECTION 3.04.  Section 32.104, Education Code, is amended to
 read as follows:
 Sec. 32.104.  REQUIREMENTS FOR TRANSFER.  Before
 transferring data processing equipment or an electronic device to a
 student, a school district or open-enrollment charter school must:
 (1)  adopt rules governing transfers under this
 subchapter, including provisions for technical assistance to the
 student by the district or school;
 (2)  determine that the transfer serves a public
 purpose and benefits the district or school; [and]
 (3)  remove from the equipment any offensive,
 confidential, or proprietary information, as determined by the
 district or school;
 (4)  adopt rules establishing programs promoting
 parents as partners in cybersecurity and online safety that involve
 parents in students' use of transferred equipment or electronic
 devices; and
 (5)  for the transfer of an electronic device to be used
 for an educational purpose, install an Internet filter that blocks
 and prohibits pornographic or obscene materials or applications,
 including from unsolicited pop-ups, installations, and downloads.
 ARTICLE 4. STUDY OF EFFECTS OF MEDIA ON MINORS
 SECTION 4.01.  (a) A joint committee of the legislature
 shall conduct a study on the effects of media on minors.
 (b)  The joint committee shall consist of:
 (1)  members of the house of representatives appointed
 by the speaker of the house of representatives; and
 (2)  members of the senate appointed by the lieutenant
 governor.
 (c)  In conducting the study, members of the joint committee
 shall confer with experts on the subject.
 (d)  The members of the joint committee shall examine:
 (1)  the health and developmental effects of media on
 minors; and
 (2)  the effects of exposure by a minor to various forms
 of media, including:
 (A)  social media platforms;
 (B)  software applications;
 (C)  Internet websites;
 (D)  television programming;
 (E)  motion pictures and film;
 (F)  artificial intelligence;
 (G)  mobile devices;
 (H)  computers;
 (I)  video games;
 (J)  virtual and augmented reality; and
 (K)  other media formats the joint committee
 considers necessary.
 ARTICLE 5. TRANSITION AND EFFECTIVE DATE
 SECTION 5.01.  If any provision of this Act or its
 application to any person or circumstance is held invalid, the
 invalidity does not affect other provisions or applications of this
 Act that can be given effect without the invalid provision or
 application, and to this end the provisions of this Act are declared
 to be severable.
 SECTION 5.02.  Article 3 of this Act applies beginning with
 the 2023-2024 school year.
 SECTION 5.03.  (a) Except as provided by Subsection (b) of
 this section, this Act takes effect September 1, 2024.
 (b)  Article 3 of this Act takes effect immediately if it
 receives a vote of two-thirds of all the members elected to each
 house, as provided by Section 39, Article III, Texas Constitution.
 If this Act does not receive the vote necessary for immediate
 effect, Article 3 of this Act takes effect September 1, 2023.
 ______________________________ ______________________________
 President of the Senate Speaker of the House
 I certify that H.B. No. 18 was passed by the House on April
 26, 2023, by the following vote:  Yeas 125, Nays 20, 1 present, not
 voting; and that the House concurred in Senate amendments to H.B.
 No. 18 on May 28, 2023, by the following vote:  Yeas 120, Nays 21, 2
 present, not voting.
 ______________________________
 Chief Clerk of the House
 I certify that H.B. No. 18 was passed by the Senate, with
 amendments, on May 23, 2023, by the following vote:  Yeas 31, Nays
 0.
 ______________________________
 Secretary of the Senate
 APPROVED: __________________
 Date
 __________________
 Governor