HBA-MPA, BTC H.B. 173 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 173
By: Garcia
Business & Industry
3/17/1999
Introduced



BACKGROUND AND PURPOSE 

Recently, concern has been raised by city councils, schools, libraries, and
others regarding access to adult-oriented material on the Internet.
Inclusion of screening programs in all computers sold in the state of Texas
will allow parents, private parties, and institutions to control access to
the Internet. This software would be analogous to the federal "V-chip"
requirement for all television sets.  H.B. 173 requires businesses that
sell personal computers to provide software enabling the purchaser to
automatically control access to material on the Internet.  A business
failing to comply will be liable for civil penalty of $2,000 for each
violation. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 35.103, Business & Commerce Code, to incorporate
the established fine for each violation of Section 35.104.  Specifies that
the maximum aggregate penalty limit is applicable to failures to comply
with requirements of Section 35.102, Business & Commerce Code (Filing
Utility Security Instrument with Secretary of State; Perfection; Notice).
Provides that compliance with this subchapter rather than Section 35.102,
within 30 days of notice from the attorney general, will cure a violation
and nullify liability.  

SECTION 2.  Amends Subchapter I, Chapter 35, Business & Commerce Code, by
adding Section 35.104, as follows: 

Sec. 35.104.  SOFTWARE TO BE INCLUDED WITH SALE OF PERSONAL COMPUTER.
Requires computer salespersons to provide software with each personal
computer sold that enables the purchaser of a computer to automatically
block or screen indecent material on the Internet.  Specifies that the
software must be compatible with any operating system that is provided by a
computer salesperson to the purchaser at time of purchase.   Specifies that
software must be compatible with at least one operating system that may be
installed to operate on the computer if an operating system is not provided
by the seller to the purchaser. 

SECTION 3. Effective date:  September 1, 1999.  
Specifies that a civil penalty for violation of Section 35.104 may be
imposed only for a violation which occurs on or after January 1, 2000. 

SECTION 4.  Emergency clause.