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.