88R24392 MZM-F By: Schatzline, Leo-Wilson, et al. H.B. No. 3357 Substitute the following for H.B. No. 3357: By: Vasut C.S.H.B. No. 3357 A BILL TO BE ENTITLED AN ACT relating to civil liability for obscenity. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Title 4, Civil Practice and Remedies Code, is amended by adding Chapter 98C to read as follows: CHAPTER 98C. LIABILITY FOR OBSCENITY Sec. 98C.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) "Harmful material" has the meaning assigned by Section 43.24, Penal Code. (3) "Minor" has the meaning assigned by Section 43.24, Penal Code. (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) "Obscenity" means conduct that constitutes an offense under Subchapter B, Chapter 43, Penal Code. Sec. 98C.002. LIABILITY FOR OBSCENITY. A defendant is liable, as provided by this chapter, to a person harmed for damages arising from obscenity if the defendant: (1) engages in the obscenity; or (2) knowingly or intentionally benefits from participating in an entity that engages in the obscenity. Sec. 98C.003. COMMERCIAL ENTITY LIABILITY. A commercial entity is liable, as provided by this chapter, to a person harmed for damages arising from the distribution, transmission, or display of harmful material to a minor if, knowing the character and content of the material, the entity knowingly or intentionally benefits from participating in the distribution, transmission, or display of harmful material to a minor by facilitating, aiding, encouraging, or contributing to the distribution, transmission, or display in a manner that: (1) is readily accessible to minors; or (2) includes a minor's visual image, audio voice, or participation in any manner. Sec. 98C.004. SHAREHOLDER AND MEMBER LIABILITY. (a) This section applies to a legal entity governed by Title 2, 3, or 7, Business Organizations Code. (b) Notwithstanding any provision of the Business Organizations Code, a shareholder or member of a legal entity described by Subsection (a) that is liable under this chapter is jointly and severally liable with the entity to the person harmed by the obscenity if the person demonstrates that the shareholder or member caused the entity to be used for the purpose of engaging in obscenity and that the conduct was for the direct personal benefit of the shareholder or member. Sec. 98C.005. PROHIBITED DEFENSES. It is not a defense to liability under this chapter that the defendant: (1) has been acquitted or has not been prosecuted or convicted under Subchapter B, Chapter 43, Penal Code; (2) has been convicted of a different offense or a different type or class of offense for the conduct that is alleged to give rise to liability under this chapter; (3) claims ignorance or mistake of law; (4) has a belief that the requirements of this chapter are unconstitutional or were unconstitutional; (5) relies on any court decision that has been overruled on appeal or by a subsequent court, even if that court decision had not been overruled when the defendant engaged in the conduct that violates this chapter; or (6) relies on any state or federal court decision that is not binding on the court in which the action has been brought. Sec. 98C.006. DAMAGES. (a) A court shall award a claimant who prevails in an action under this chapter: (1) actual damages, including damages for mental anguish even if an injury other than mental anguish is not shown; (2) court costs; and (3) reasonable attorney's fees. (b) In addition to an award under Subsection (a), a claimant who prevails in an action under this chapter may recover exemplary damages. Sec. 98C.007. CAUSE OF ACTION CUMULATIVE. (a) The cause of action created by this chapter is cumulative of any other remedy provided by common law or statute. (b) Each occurrence of obscenity that harms a person, regardless of whether the occurrence is part of a pattern of conduct, gives rise to a separate claim for civil liability under this chapter. Sec. 98C.008. JOINT AND SEVERAL LIABILITY. A person who engages in conduct described by Section 98C.002 or 98C.003 and is found liable under this chapter or other law for any amount of damages arising from that conduct is jointly and severally liable with any other defendant for the entire amount of damages arising from that conduct. Sec. 98C.009. LIBERAL CONSTRUCTION AND APPLICATION. (a) This chapter shall be liberally construed and applied to promote its underlying purpose to protect persons from obscenity and provide adequate remedies to those who are harmed by obscenity. (b) This chapter may not be construed to: (1) wholly or partly repeal, either expressly or by implication, any statute or part of a statute that prohibits obscenity; (2) restrict a political subdivision from regulating or prohibiting obscenity in a manner that is at least as stringent as the laws of this state; or (3) legalize any conduct prohibited by this chapter or Subchapter B, Chapter 43, Penal Code. (c) 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. (d) 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 the obscenity or harmful material. SECTION 2. (a) Mindful of Leavitt v. Jane L., 518 U.S. 137 (1996), in which in the context of determining the severability of a state statute the United States Supreme Court held that an explicit statement of legislative intent is controlling, it is the intent of the legislature that every provision, section, subsection, sentence, clause, phrase, or word in this Act, and every application of the provisions in this Act, is severable from each other. (b) If any application of any statutory provision in this Act to any person, group of persons, or circumstances is found by a court to be invalid or unconstitutional, the remaining applications of that statutory provision to all other persons and circumstances shall be severed and may not be affected. All constitutionally valid applications of this Act shall be severed from any applications that a court finds to be unconstitutional or otherwise invalid, leaving the valid applications in force, because it is the legislature's intent and priority that the valid applications be allowed to stand alone. (c) Even if a reviewing court finds a substantial number of a statute's applications under this Act to be unconstitutional, judged in relation to this Act's plainly legitimate sweep, the applications that do not presently violate the United States Constitution or Texas Constitution shall be severed from the remaining applications and shall remain in force, and shall be treated as if the legislature had enacted a statute limited to the persons, groups of persons, or circumstances for which the statute's application does not violate the United States Constitution or Texas Constitution. (d) The legislature further declares that it would have enacted this Act, and each provision, section, subsection, sentence, clause, phrase, or word, and all constitutional applications of this Act, irrespective of the fact that any provision, section, subsection, sentence, clause, phrase, or word, or applications of this Act, were to be declared unconstitutional. (e) If any provision of this Act is found by any court to be unconstitutionally vague, the applications of that provision that do not present constitutional vagueness problems shall be severed and remain in force. (f) No court may decline to enforce the severability requirements of Subsections (a), (b), (c), (d), and (e) of this section on the ground that severance would rewrite the statute or involve the court in legislative or lawmaking activity. A court that declines to enforce or enjoins a state official from enforcing a statutory provision does not rewrite a statute, as the statute continues to contain the same words as before the court's decision. A judicial injunction or declaration of unconstitutionality: (1) is nothing more than an edict prohibiting enforcement that may subsequently be vacated by a later court if that court has a different understanding of the requirements of the United States Constitution or Texas Constitution; (2) is not a formal amendment of the language in a statute; and (3) no more rewrites a statute than a decision by the executive not to enforce a duly enacted statute in a limited and defined set of circumstances. (g) If any federal or state court declares unconstitutional or enjoins the enforcement of a provision in this Act and fails to enforce the severability requirements of Subsections (a), (b), (c), (d), (e), and (f) of this section, for any reason whatsoever, the attorney general shall: (1) adopt rules that enforce the requirements described by this Act to the maximum possible extent while avoiding the constitutional problems or other problems identified by the federal or state court; and (2) issue notice of those rules, not later than the 30th day after the date of the court ruling. (h) If the attorney general fails to adopt the rules and issue notice under Subsection (g) of this section, a person may petition for a writ of mandamus requiring the attorney general to adopt the rules and issue notice. SECTION 3. The change in law made by this Act applies only to a cause of action that accrues on or after the effective date of this Act. SECTION 4. This Act takes effect September 1, 2023.