HB4901 - Relating to the regulation of platforms for the sale and distribution of software applications for mobile devices.

  89R7917 MLH-F     By: Fairly H.B. No. 4901       A BILL TO BE ENTITLED   AN ACT   relating to the regulation of platforms for the sale and   distribution of software applications for mobile devices.          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 a child 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.   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 16 years of age is considered a "younger teenager";                 (3)     an individual who is at least 16 years of age but   younger than 18 years of age is considered an "older teenager"; and                 (4)     an individual who is at least 18 years of age is   considered an "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 shall require that the minor's   account be affiliated with the account of an individual determined   to be:                 (1)  at least 18 years of age; and                 (2)  the minor's parent or guardian.           (b)     The owner of an app store 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.           (c)     The owner of an app store must obtain consent for each   individual download or purchase sought by the minor.           (d)     To obtain consent from a minor's parent or guardian   under Subsection (b), 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;                       (C)     the specific content or other elements that   led to the rating assigned under Section 121.052;                       (D)     the nature of any collection, use, or   distribution of personal data that would occur because of the   software application or purchase; and                       (E)     any measures taken by the developer of the   software application or purchase to protect the personal data of   users;                 (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:                       (A)  by the parent or guardian; and                       (B)     through the account affiliated with a minor's   account under Subsection (a).           (e)     If a software developer provides the owner of an app   store with notice of a change under Section 121.053, the owner of   the app store shall:                 (1)     notify any individual who has given consent under   this section for a minor's use or purchase relating to a previous   version of the changed software application; and                 (2)     obtain consent from the individual for the minor's   continued use or purchase of the software application.           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, using a commercially available method, 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.     PROTECTION OF PERSONAL DATA. The owner of an   app store that operates in this state shall protect the personal   data of users by:                 (1)     limiting the collection and processing of personal   data to the minimum amount necessary for:                       (A)  verifying the age of an individual;                       (B)  obtaining consent under Section 121.022; and                       (C)  maintaining compliance records;                 (2)     transmitting personal data using   industry-standard encryption protocols that ensure data integrity   and confidentiality; and                 (3)     deleting personal data obtained for purposes of   Sections 121.021 and 121.022 once a user's age is verified and, if   applicable, consent has been obtained.           Sec.   121.026.     VIOLATION. The owner of an app store that   operates in this state violates this subchapter if the owner:                 (1)     enforces a contract or a provision of a terms of   service agreement against a minor that the minor entered into or   agreed to without consent under Section 121.022;                 (2)     knowingly misrepresents information disclosed   under Section 121.022(d)(1);                 (3)     obtains a blanket consent to authorize multiple   downloads or purchases; or                 (4)     shares or discloses personal data obtained for   purposes of Section 121.021, except as required by Section 121.024   or other law.           Sec.   121.027.     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 block, detect, or   prevent the distribution of:                       (A)     obscene material, as that term is defined by   Section 43.21, Penal Code; or                       (B)  other material that may be harmful to minors;                 (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;                 (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;                 (4)  block or filter spam;                 (5)  prevent criminal activity; or                 (6)     protect the security of an app store or software   a [Text truncated for display. 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