Texas 2023 - 88th Regular

Texas House Bill HB4412 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	88R10031 MLH-F
2	2	By: Slawson H.B. No. 4412
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to online agreements between certain minors and certain
8	8	digital service providers.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subtitle A, Title 11, Business & Commerce Code,
11	11	is amended by adding Chapter 509 to read as follows:
12	12	CHAPTER 509. ONLINE AGREEMENTS BETWEEN MINORS AND DIGITAL SERVICE
13	13	PROVIDERS
14	14	SUBCHAPTER A. GENERAL PROVISIONS
15	15	Sec. 509.001. DEFINITIONS. In this chapter:
16	16	(1) "Digital service" means a website, an application,
17	17	a program, or software that performs collection or processing
18	18	functions with Internet connectivity.
19	19	(2) "Digital service provider" means a person who owns
20	20	or operates a digital service.
21	21	(3) "Minor" means a child who is at least 13 years of
22	22	age but younger than 18 years of age.
23	23	(4) "Personal identifying information" means any
24	24	information linked or reasonably linked to a specific minor,
25	25	including:
26	26	(A) a name, account name, alias, or online
27	27	identifier;
28	28	(B) a home or other physical address;
29	29	(C) an Internet Protocol (IP) address or e-mail
30	30	address;
31	31	(D) a social security number;
32	32	(E) a telephone number;
33	33	(F) a driver's license number or state
34	34	identification card number;
35	35	(G) a passport number;
36	36	(H) physical characteristics or description;
37	37	(I) race, ethnicity, or national origin;
38	38	(J) religion or faith;
39	39	(K) sex, gender, or sexual orientation;
40	40	(L) family status;
41	41	(M) disability status;
42	42	(N) political affiliation;
43	43	(O) commercial information, including:
44	44	(i) records relating to personal property;
45	45	(ii) products or services the minor
46	46	purchased, obtained, or considered; or
47	47	(iii) other histories, interests, or
48	48	tendencies in consumption;
49	49	(P) biometric information;
50	50	(Q) device identifiers, online identifiers,
51	51	persistent identifiers, or digital fingerprinting information;
52	52	(R) Internet, browsing, or search history,
53	53	including any information relating to a minor's use of an Internet
54	54	website;
55	55	(S) geolocation information;
56	56	(T) audio, electronic, visual, thermal,
57	57	olfactory, or similar information, including facial recognition;
58	58	(U) educational information;
59	59	(V) health information;
60	60	(W) the contents of, attachments to, and parties
61	61	to text messages, e-mails, voicemails, audio conversations, and
62	62	video conversations;
63	63	(X) financial information, including:
64	64	(i) bank account numbers;
65	65	(ii) credit card numbers;
66	66	(iii) debit card numbers;
67	67	(iv) insurance policy numbers; or
68	68	(v) information related to the balance of
69	69	any financial accounts; or
70	70	(Y) any inferences drawn from personal
71	71	identifying information that might identify a minor's traits,
72	72	characteristics, or trends.
73	73	Sec. 509.002. APPLICABILITY. (a) This chapter applies to a
74	74	digital service provider that:
75	75	(1) collects or processes the personal identifying
76	76	information of minors; and
77	77	(2) either:
78	78	(A) targets minors; or
79	79	(B) knows or should know that the digital service
80	80	appeals to minors.
81	81	(b) For purposes of Subsection (a):
82	82	(1) a digital service targets or appeals to minors if:
83	83	(A) the digital service contains subject matter
84	84	that is tailored toward minors, including:
85	85	(i) animated characters;
86	86	(ii) instruction or activities intended for
87	87	minors;
88	88	(iii) music or audio popular among minors;
89	89	(iv) images containing:
90	90	(a) models who are minors; or
91	91	(b) celebrities who are minors or who
92	92	are popular among minors;
93	93	(v) colloquial use of language that is
94	94	common among minors; or
95	95	(vi) advertisements intended for minors; or
96	96	(B) empirical evidence obtained by the digital
97	97	service provider, an advertiser, the press, third-party
98	98	complaints, or another entity that conducts privacy and security
99	99	impact assessments demonstrates that:
100	100	(i) many users of the digital service are
101	101	minors; or
102	102	(ii) the intended audience for the digital
103	103	service is minors; and
104	104	(2) a digital service does not target or appeal to
105	105	minors by referring or linking to a digital service that targets or
106	106	appeals to minors.
107	107	SUBCHAPTER B. DIGITAL SERVICE PROVIDER DUTIES AND PROHIBITIONS
108	108	Sec. 509.051. PROHIBITION ON AGREEMENTS WITH CERTAIN
109	109	MINORS; EXEMPTIONS. (a) Except as provided by this section, a
110	110	digital service provider may not enter into an agreement with a
111	111	minor.
112	112	(b) For purposes of this section, an agreement includes:
113	113	(1) a terms of service agreement;
114	114	(2) a user agreement; and
115	115	(3) the creation of an account for a digital service.
116	116	(c) A digital service provider may enter into an agreement
117	117	with a minor if the minor's parent or guardian consents in a manner
118	118	that:
119	119	(1) is specific, informed, and unambiguous;
120	120	(2) takes into account:
121	121	(A) the minor's age; and
122	122	(B) the minor's developmental and cognitive
123	123	needs and capabilities;
124	124	(3) is for only a single specific agreement;
125	125	(4) occurs in the absence of any financial or other
126	126	incentive;
127	127	(5) occurs before the agreement is entered into;
128	128	(6) occurs in a time, place, and manner that the
129	129	minor's parent or guardian would expect the consent to be sought;
130	130	and
131	131	(7) is not deceptive or coercive.
132	132	SUBCHAPTER C. ENFORCEMENT
133	133	Sec. 509.101. CIVIL ACTION; LIABILITY. (a) A minor's parent
134	134	or guardian may bring an action against a digital service provider
135	135	for a violation of this chapter.
136	136	(b) Notwithstanding Sections 41.003 and 41.004, Civil
137	137	Practice and Remedies Code, a parent or guardian who prevails in an
138	138	action under this section is entitled to receive:
139	139	(1) injunctive relief;
140	140	(2) actual damages;
141	141	(3) punitive damages;
142	142	(4) reasonable attorney's fees;
143	143	(5) court costs; and
144	144	(6) any other relief the court deems appropriate.
145	145	(c) A violation of this chapter constitutes an injury in
146	146	fact to the minor.
147	147	Sec. 509.102. DECEPTIVE TRADE PRACTICE. A violation of
148	148	this chapter is a false, misleading, or deceptive act or practice as
149	149	defined by Section 17.46(b). In addition to any remedy under this
150	150	chapter, a remedy under Subchapter E, Chapter 17, is also available
151	151	for a violation of this chapter.
152	152	SECTION 2. This Act takes effect September 1, 2024.