SB2420 - Relating to the regulation of platforms for the sale and distribution of software applications for mobile devices.

      S.B. No. 2420         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.     SHORT TITLE.   This chapter may be cited as the   App Store Accountability Act.           Sec. 121.002.  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 use a commercially   reasonable method of verification to verify the individual's age   category under 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 who belongs to an age category that is not   "adult,"   the owner shall require that the minor's account be   affiliated with a parent account belonging to the minor's parent or   guardian.           (b)     For an account to be affiliated with a minor's account   as a parent account, the owner of an app store must use a   commercially reasonable method to verify that the account belongs   to an individual who:                 (1)     the owner of the app store has verified belongs to   the age category of "adult"   under Section 121.021; and                 (2)     has legal authority to make a decision on behalf of   the minor with whose account the individual is seeking affiliation.           (c)     A parent account may be affiliated with multiple minors'     accounts.           (d)     Except as provided by this section, the owner of an app   store must obtain consent from the minor's parent or guardian   through the parent account affiliated with the minor's account   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.           (e)  The owner of an app store must:                 (1)     obtain consent for each individual download or   purchase sought by the minor; and                 (2)     notify the developer of each applicable software   application if a minor's parent or guardian revokes consent through   a parent account.           (f)     To obtain consent from a minor's parent or guardian   under Subsection (d), 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).           (g)     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.           (h)     The owner of an app store is not required to obtain   consent from a minor's parent or guardian for:                 (1)  the download of a software application that:                       (A)     provides a user with direct access to   emergency services, including:                             (i)  9-1-1 emergency services;                             (ii)  a crisis hotline; or                             (iii)     an emergency assistance service that   is legally available to a minor;                       (B)  limits data collection to information:                             (i)     collected in compliance with the   Children's Online Privacy Protection Act of 1998 (15 U.S.C. Section   6501 et seq.); and                             (ii)     necessary for the provision of   emergency services;                       (C)     allows a user to access and use the software   application without requiring the user to create an account with   the software application; and                       (D)  is operated by or in partnership with:                             (i)  a governmental entity;                             (ii)  a nonprofit organization; or                             (iii)     an authorized emergency service   provider; or                 (2)     the purchase or download of a software application   that is operated by or in partnership with a nonprofit organization   that:                       (A)     develops, sponsors, or administers a   standardized test used for purposes of admission to or class   placement in a postsecondary educational institution or a program   within a postsecondary educational institution; and                       (B)     is subject to Subchapter D, Chapter 32,   Education Code.           Sec.   121.023.     DISPLAY OF AGE RATING FOR SOFTWARE   APPLICATION. (a)   If the owner of an app store that operates in this   state has a mechanism for displaying an age rating or other content   notice, the owner shall:                 (1)     make available to users an explanation of the   mechanism; and                 (2)     display for each software application available   for download and purchase on the app store the age rating and other   content notice.           (b)     If the owner of an app store that operates in this state   does not have a mechanism for displaying an age rating or other   content notice, the owner shall display for each software   application available for download and purchase on the app store:                 (1)     the rating under Section 121.0 [Text truncated for display. Full text available on LegiScan.]