89R13359 MLH-F
By: Shaheen H.B. No. 4294
A BILL TO BE ENTITLED
AN ACT
relating to the regulation of platforms for the sale and
distribution of software applications for mobile devices;
authorizing a civil penalty.
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. SOFTWARE APPLICATIONS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 121.001. DEFINITIONS. In this chapter:
(1) "Age category" means information collected by the
owner of an app store to designate a user based on the age
categories described by Section 121.021(b).
(2) "App store" means a publicly available Internet
website, software application, or other electronic service that
distributes software applications from the owner or developer of a
software application to the user of a mobile device.
(3) "Minor" means an individual who is younger than 18
years of age who has not had the disabilities of minority removed
for general purposes.
(4) "Mobile device" means a portable, wireless
electronic device, including a tablet or smartphone, capable of
transmitting, receiving, processing, and storing information
wirelessly that runs an operating system designed to manage
hardware resources and perform common services for software
applications on handheld electronic devices.
(5) "Personal data" means any information, including
sensitive data, that is linked or reasonably linkable to an
identified or identifiable individual. The term includes
pseudonymous data when the data is used by a person who processes or
determines the purpose and means of processing the data in
conjunction with additional information that reasonably links the
data to an identified or identifiable individual. The term does not
include deidentified data or publicly available information.
Sec. 121.002. RULES. The attorney general shall adopt
rules to implement this chapter.
SUBCHAPTER B. DUTIES OF APP STORES
Sec. 121.021. DUTY TO VERIFY AGE OF USER; AGE CATEGORIES.
(a) When an individual in this state creates an account with an app
store, the owner of the app store shall:
(1) request the individual's age;
(2) use a commercially reasonable method of
verification to verify the individual's age; and
(3) assign to the individual a designation described
by Subsection (b).
(b) The owner of an app store shall use the following age
categories for assigning a designation:
(1) an individual who is younger than 13 years of age
is considered a "child";
(2) an individual who is at least 13 years of age but
younger than 17 years of age is considered a "teenager";
(3) an individual who is 17 years of age is considered
an "older teenager";
(4) an individual who is at least 18 years of age but
younger than 21 years of age is considered an "adult"; and
(5) an individual who is at least 21 years of age is
considered a "legal adult."
Sec. 121.022. PARENTAL CONSENT REQUIRED. (a) If the owner
of the app store determines under Section 121.021 that an
individual is a minor, the owner must obtain consent from the
minor's parent or guardian before allowing the minor to:
(1) download a software application;
(2) purchase a software application; or
(3) make a purchase in or using a software
application.
(b) The owner of an app store must obtain consent for each
individual download or purchase sought by the minor.
(c) To obtain consent from a minor's parent or guardian
under Subsection (a), the owner of an app store may use any
reasonable means to:
(1) disclose to the parent or guardian:
(A) the specific software application or
purchase for which consent is sought;
(B) the rating under Section 121.052 assigned to
the software application or purchase; and
(C) the specific content or other elements that
led to the rating assigned under Section 121.052;
(2) give the parent or guardian a clear choice to give
or withhold consent for the download or purchase; and
(3) ensure that the consent is given by an individual
that the owner of the app store has verified is an adult who is the
parent or guardian of the minor.
Sec. 121.023. DISPLAY OF AGE RATING FOR SOFTWARE
APPLICATION. (a) The owner of an app store that operates in this
state 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
(2) the specific content or other elements that led to
the rating assigned under Section 121.052.
(b) The information displayed under this section must be
clear, accurate, and conspicuous.
Sec. 121.024. INFORMATION FOR SOFTWARE APPLICATION
DEVELOPERS. The owner of an app store that operates in this state
shall, consistent with the owner's data collection practices, allow
the developer 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. PARENT OVERSIGHT OF USAGE BY MINOR. The owner
of an app store that operates in this state, owns the operating
system of a mobile device, and provides parental controls to allow
users to enable certain content filters or limit software
application or mobile device usage shall take steps to make those
parental controls easy for a user to find and operate.
Sec. 121.026. 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:
(A) block, detect, or prevent the distribution
of:
(i) obscene material, as that term is
defined by Section 43.21, Penal Code; or
(ii) other material that may be harmful to
minors;
(B) block or filter spam;
(C) prevent criminal activity; or
(D) protect the security of an app store or
software application;
(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; or
(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.
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. 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 change to the terms of
service or privacy policy of the software application that:
(1) affects or changes the rating assigned to the
software application under Section 121.052 or the content or
elements that led to that rating; or
(2) materially changes the functionality or user
experience of the software application.
Sec. 121.054. TIME RESTRICTION. The developer of a
software application shall provide a readily available feature for
the parent or guardian of a minor to monitor and limit the amount of
time the minor spends using the application.
Sec. 121.055. AGE VERIFICATION. (a) The developer of a
software application shall create and implement a system 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 provided by the owner of an app store under Section
121.024 to perform the verification required by this section.
SUBCHAPTER D. ENFORCEMENT
Sec. 121.101. CIVIL PENALTY; INJUNCTION. (a) A person who
violates this chapter is liable to this state for a civil penalty in
an amount not to exceed:
(1) $10,000; or
(2) if the court finds that the person knowingly or
repeatedly violated this chapter, $20,000.
(b) The attorney general may bring an action to:
(1) collect the penalty under this section;
(2) seek an injunction against further violation of
this chapter;
(3) seek an order from the court for the person to
disgorge any money received in violation of this chapter; and
(4) recover attorney's fees and reasonable court
costs.
Sec. 121.102. PRIVATE CAUSE OF ACTION. (a) The parent or
guardian of a minor who is a victim of a violation of this chapter
may bring an action against the owner of the app store or the
developer of a software application, as applicable.
(b) A parent or guardian of a minor who prevails in an action
under this section is entitled to recover:
(1) actual damages;
(2) injunctive relief; and
(3) attorney's fees and reasonable court costs.
SECTION 2. (a) The attorney general shall adopt initial
rules to implement Chapter 121, Business & Commerce Code, as added
by this Act, not later than March 1, 2026.
(b) An action under Chapter 121, Business & Commerce Code,
as added by this Act, may not be brought before March 1, 2027.
SECTION 3. This Act takes effect September 1, 2025.