By Elkins H.B. No. 306 75R354 DWS-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the law that applies to a contract made over the 1-3 Internet. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subchapter D, Chapter 35, Business & Commerce 1-6 Code, is amended by adding Section 35.531 to read as follows: 1-7 Sec. 35.531. LAW APPLICABLE TO CONTRACT MADE OVER INTERNET. 1-8 (a) Subject to Subsection (d), this section applies only to a 1-9 contract made solely over the Internet between a person located 1-10 in this state and a person located outside this state who does not 1-11 maintain an office or agent in this state for doing business in 1-12 this state. 1-13 (b) A contract to which this section applies is governed by 1-14 the law of this state unless each party to the contract who is 1-15 located in this state: 1-16 (1) is given notice that the law of the state in which 1-17 another party to the contract is located applies to the contract; 1-18 and 1-19 (2) agrees to the application of that state's law. 1-20 (c) A person asserting that the law of another state applies 1-21 to a contract has the burden of proving that notice was given and 1-22 agreement was obtained as provided by Subsection (b). 1-23 (d) Sections 1.105 and 35.53 do not apply to a contract to 2-1 which this section applies. This section does not apply to a 2-2 contract to which Section 35.51 applies. 2-3 (e) In this section, "Internet" means the largest 2-4 nonproprietary nonprofit cooperative public computer network, 2-5 popularly known as the Internet. 2-6 SECTION 2. Section 35.531, Business & Commerce Code, as 2-7 added by this Act, applies only to a contract made on or after the 2-8 effective date of this Act. 2-9 SECTION 3. This Act takes effect September 1, 1997. 2-10 SECTION 4. The importance of this legislation and the 2-11 crowded condition of the calendars in both houses create an 2-12 emergency and an imperative public necessity that the 2-13 constitutional rule requiring bills to be read on three several 2-14 days in each house be suspended, and this rule is hereby suspended.