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        |  | A BILL TO BE ENTITLED | 
      
        |  | AN ACT | 
      
        |  | relating to restricting the use of covered information, including | 
      
        |  | student personally identifiable information, by an operator of a | 
      
        |  | website, online service, online application, or mobile application | 
      
        |  | for a school purpose. | 
      
        |  | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
      
        |  | SECTION 1.  The heading to Chapter 32, Education Code, is | 
      
        |  | amended to read as follows: | 
      
        |  | CHAPTER 32. COMPUTERS, [ AND] COMPUTER-RELATED EQUIPMENT, AND | 
      
        |  | STUDENT INFORMATION PROTECTION | 
      
        |  | SECTION 2.  Chapter 32, Education Code, is amended by adding | 
      
        |  | Subchapter D to read as follows: | 
      
        |  | SUBCHAPTER D.  STUDENT INFORMATION | 
      
        |  | Sec. 32.151.  DEFINITIONS.  In this subchapter: | 
      
        |  | (1)  "Covered information" means personally | 
      
        |  | identifiable information or information that is linked to | 
      
        |  | personally identifiable information, in any media or format, that | 
      
        |  | is not publicly available and is: | 
      
        |  | (A)  created by or provided to an operator by a | 
      
        |  | student or the student's parent in the course of the student's or | 
      
        |  | parent's use of the operator's website, online service, online | 
      
        |  | application, or mobile application for a school purpose; | 
      
        |  | (B)  created by or provided to an operator by an | 
      
        |  | employee of a school district or school campus for a school purpose; | 
      
        |  | or | 
      
        |  | (C)  gathered by an operator through the operation | 
      
        |  | of the operator's website, online service, online application, or | 
      
        |  | mobile application for a school purpose and personally identifies a | 
      
        |  | student, including the student's educational record, electronic | 
      
        |  | mail, first and last name, home address, telephone number, | 
      
        |  | electronic mail address, information that allows physical or online | 
      
        |  | contact, discipline records, test results, special education data, | 
      
        |  | juvenile delinquency records, grades, evaluations, criminal | 
      
        |  | records, medical records, health records, social security number, | 
      
        |  | biometric information, disabilities, socioeconomic information, | 
      
        |  | food purchases, political affiliations, religious information, | 
      
        |  | text messages, student identifiers, search activity, photograph, | 
      
        |  | voice recordings, or geolocation information. | 
      
        |  | (2)  "Interactive computer service" has the meaning | 
      
        |  | assigned by 47 U.S.C. Section 230. | 
      
        |  | (3)  "Operator" means, to the extent operating in this | 
      
        |  | capacity, the operator of a website, online service, online | 
      
        |  | application, or mobile application who has actual knowledge that | 
      
        |  | the website, online service, online application, or mobile | 
      
        |  | application is used primarily for a school purpose and was designed | 
      
        |  | and marketed for a school purpose. | 
      
        |  | (4)  "Parent" includes a person standing in parental | 
      
        |  | relation. | 
      
        |  | (5)  "School purpose" means a purpose that is directed | 
      
        |  | by or customarily takes place at the direction of a school district, | 
      
        |  | school campus, or teacher or assists in the administration of | 
      
        |  | school activities, including instruction in the classroom or at | 
      
        |  | home, administrative activities, and collaboration between | 
      
        |  | students, school personnel, or parents, or is otherwise for the use | 
      
        |  | and benefit of the school. | 
      
        |  | (6)  "Targeted advertising" means presenting an | 
      
        |  | advertisement to a student in which the advertisement is selected | 
      
        |  | for the student based on information obtained or inferred over time | 
      
        |  | from the student's online behavior, usage of applications, or | 
      
        |  | covered information.  The term does not include advertising to a | 
      
        |  | student at an online location based on the student's visit to that | 
      
        |  | location at that time, or in response to the student's request for | 
      
        |  | information or feedback, without the retention of the student's | 
      
        |  | online activities or requests over time for the purpose of | 
      
        |  | targeting subsequent advertisements. | 
      
        |  | Sec. 32.152.  PROHIBITED USE OF COVERED INFORMATION.  (a)  An | 
      
        |  | operator may not knowingly: | 
      
        |  | (1)  engage in targeted advertising on any website, | 
      
        |  | online service, online application, or mobile application if the | 
      
        |  | target of the advertising is based on any information, including | 
      
        |  | covered information and persistent unique identifiers, that the | 
      
        |  | operator has acquired through the use of the operator's website, | 
      
        |  | online service, online application, or mobile application for a | 
      
        |  | school purpose; | 
      
        |  | (2)  use information, including persistent unique | 
      
        |  | identifiers, created or gathered by the operator's website, online | 
      
        |  | service, online application, or mobile application, to create a | 
      
        |  | profile about a student unless the profile is created for a school | 
      
        |  | purpose; or | 
      
        |  | (3)  except as provided by Subsection (c), sell or rent | 
      
        |  | any student's covered information. | 
      
        |  | (b)  For purposes of Subsection (a)(2), the  collection and | 
      
        |  | retention of account information by an operator that remains under | 
      
        |  | the control of the student, the student's parent, or the campus or | 
      
        |  | district is not an attempt to create a profile by the operator. | 
      
        |  | (c)  Subsection (a)(3) does not apply to: | 
      
        |  | (1)  the purchase, merger, or any other type of | 
      
        |  | acquisition of an operator by another entity, if the operator or | 
      
        |  | successor entity complies with this subchapter regarding | 
      
        |  | previously acquired student information; or | 
      
        |  | (2)  a national assessment provider if the provider | 
      
        |  | secures the express written consent of the student if the student is | 
      
        |  | 18 years of age or older or the student's parent if the student is 17 | 
      
        |  | years of age or younger, given in response to clear and conspicuous | 
      
        |  | notice, if the information is used solely to provide access to | 
      
        |  | employment, educational scholarships, financial aid, or | 
      
        |  | postsecondary educational opportunities. | 
      
        |  | Sec. 32.153.  ALLOWED DISCLOSURE OF COVERED INFORMATION. | 
      
        |  | (a)  An operator may use or disclose covered information if the | 
      
        |  | disclosure is: | 
      
        |  | (1)  to further a school purpose of the website, online | 
      
        |  | service, online application, or mobile application and the | 
      
        |  | recipient of the covered information disclosed under this | 
      
        |  | subsection does not further disclose the information unless the | 
      
        |  | disclosure is to allow or improve operability and functionality of | 
      
        |  | the operator's website, online service, online application, or | 
      
        |  | mobile application; | 
      
        |  | (2)  to ensure legal and regulatory compliance; | 
      
        |  | (3)  to protect against liability; | 
      
        |  | (4)  to respond to or participate in the judicial | 
      
        |  | process; | 
      
        |  | (5)  to protect: | 
      
        |  | (A)  the safety or integrity of users of the | 
      
        |  | website, online service, online application, or mobile | 
      
        |  | application; or | 
      
        |  | (B)  the security of the website, online service, | 
      
        |  | online application, or mobile application; | 
      
        |  | (6)  for a school, education, or employment purpose | 
      
        |  | requested by the student or the student's parent and the | 
      
        |  | information is not used or disclosed for any other purpose; | 
      
        |  | (7)  to use the covered information for: | 
      
        |  | (A)  a legitimate research purpose; or | 
      
        |  | (B)  a school purpose or postsecondary | 
      
        |  | educational purpose; or | 
      
        |  | (8)  requested by the agency or the school district for | 
      
        |  | a school purpose. | 
      
        |  | (b)  An operator may disclose covered information if a | 
      
        |  | provision of federal or state law requires the operator to disclose | 
      
        |  | the information.  The operator must comply with the requirements of | 
      
        |  | federal and state law to protect the information being disclosed. | 
      
        |  | (c)  An operator may disclose covered information to a third | 
      
        |  | party if the operator has contracted with the third party to provide | 
      
        |  | a service for a school purpose for or on behalf of the operator.  The | 
      
        |  | contract must prohibit the third party from using any covered | 
      
        |  | information for any purpose other than providing the contracted | 
      
        |  | service.  The operator must require the third party to implement and | 
      
        |  | maintain reasonable procedures and practices designed to prevent | 
      
        |  | disclosure of covered information. | 
      
        |  | (d)  Nothing in this subchapter prohibits the operator's use | 
      
        |  | of covered information for maintaining, developing, supporting, | 
      
        |  | improving, or diagnosing the operator's website, online service, | 
      
        |  | online application, or mobile application. | 
      
        |  | Sec. 32.154.  ALLOWED USE OF COVERED INFORMATION.  This | 
      
        |  | subchapter does not prohibit an operator from: | 
      
        |  | (1)  using covered information: | 
      
        |  | (A)  to improve educational products if that | 
      
        |  | information is not associated with an identified student using the | 
      
        |  | operator's website, online service, online application, or mobile | 
      
        |  | application; and | 
      
        |  | (B)  that is not associated with an identified | 
      
        |  | student to demonstrate the effectiveness of the operator's products | 
      
        |  | or services and to market the operator's services; | 
      
        |  | (2)  sharing covered information that is not associated | 
      
        |  | with an identified student for the development and improvement of | 
      
        |  | educational websites, online services, online applications, or | 
      
        |  | mobile applications; | 
      
        |  | (3)  recommending to a student additional services or | 
      
        |  | content relating to an educational, learning, or employment | 
      
        |  | opportunity within a website, online service, online application, | 
      
        |  | or mobile application if the recommendation is not determined by | 
      
        |  | payment or other consideration from a third party; | 
      
        |  | (4)  responding to a student's request for information | 
      
        |  | or for feedback without the information or response being | 
      
        |  | determined by payment or other consideration from a third party; or | 
      
        |  | (5)  identifying for a student, with the express | 
      
        |  | affirmative consent of the student if the student is 18 years of age | 
      
        |  | or older or the student's parent if the student is 17 years of age or | 
      
        |  | younger, institutions of higher education or scholarship providers | 
      
        |  | that are seeking students who meet specific criteria, regardless of | 
      
        |  | whether the identified institution of higher education or | 
      
        |  | scholarship provider provides consideration to the operator. | 
      
        |  | Sec. 32.155.  PROTECTION OF COVERED INFORMATION.  An | 
      
        |  | operator must implement and maintain reasonable security | 
      
        |  | procedures and practices designed to protect any covered | 
      
        |  | information from unauthorized access, deletion, use, modification, | 
      
        |  | or disclosure. | 
      
        |  | Sec. 32.156.  DELETION OF COVERED INFORMATION.  If a school | 
      
        |  | district requests the deletion of a student's covered information | 
      
        |  | under the control of the school district and maintained by the | 
      
        |  | operator, the operator shall delete the information not later than | 
      
        |  | the 60th day after the date of the request, or as otherwise | 
      
        |  | specified in the contract or terms of service, unless the student or | 
      
        |  | the student's parent consents to the operator's maintenance of the | 
      
        |  | covered information. | 
      
        |  | Sec. 32.157.  APPLICABILITY.  This subchapter does not: | 
      
        |  | (1)  limit the authority of a law enforcement agency to | 
      
        |  | obtain any information from an operator as authorized by law or | 
      
        |  | under a court order; | 
      
        |  | (2)  limit the ability of an operator to use student | 
      
        |  | data, including covered information, for adaptive learning or | 
      
        |  | customized student learning purposes; | 
      
        |  | (3)  apply to general audience: | 
      
        |  | (A)  websites; | 
      
        |  | (B)  online services; | 
      
        |  | (C)  online applications; or | 
      
        |  | (D)  mobile applications; | 
      
        |  | (4)  limit service providers from providing Internet | 
      
        |  | connection to school districts or students and students' families; | 
      
        |  | (5)  prohibit an operator from marketing educational | 
      
        |  | products directly to a student's parent if the marketing is not a | 
      
        |  | result of the use of covered information obtained by the operator | 
      
        |  | through providing services to the school district; | 
      
        |  | (6)  impose a duty on a provider of an electronic store, | 
      
        |  | gateway, marketplace, or other means of purchasing or downloading | 
      
        |  | software or applications to review or enforce compliance with this | 
      
        |  | subchapter on those applications or software; | 
      
        |  | (7)  impose a duty on a provider of an interactive | 
      
        |  | computer service to review or enforce compliance with this | 
      
        |  | subchapter by third-party content providers; or | 
      
        |  | (8)  prohibit a student from downloading, exporting, | 
      
        |  | transferring, saving, or maintaining the student's data or | 
      
        |  | documents. | 
      
        |  | SECTION 3.  This Act takes effect September 1, 2017. |