By Elkins                                             H.B. No. 2653
         76R4282 DWS-F                           
                                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)  In this section, "Internet" means the largest nonproprietary
 1-9     nonprofit cooperative public computer network, popularly known as
1-10     the Internet.
1-11           (b)  Subject to Subsection (e), this section applies only to
1-12     a contract made solely over  the Internet between  a person located
1-13     in this state and a person located outside this state who does not
1-14     maintain an office or agent in this state for doing business in
1-15     this state.
1-16           (c)  A contract to which this section applies is governed by
1-17     the law of this state unless each party to the contract who is
1-18     located in this state:
1-19                 (1)  is given notice that the law of the state in which
1-20     another party to the contract is located applies to the contract;
1-21     and
1-22                 (2)  agrees to the application of that state's law.
1-23           (d)  A person asserting that the law of another state applies
1-24     to a contract has the burden of proving that notice was given and
 2-1     agreement was obtained as provided by Subsection (c).
 2-2           (e)  Sections 1.105 and 35.53 do not apply to a contract to
 2-3     which this section applies.  This section does not apply to a
 2-4     contract to which Section 35.51 applies.
 2-5           SECTION 2.  Section 35.531, Business & Commerce Code, as
 2-6     added by this Act, applies only to a contract made on or after the
 2-7     effective date of this Act.
 2-8           SECTION 3.  This Act takes effect September 1, 1999.
 2-9           SECTION 4.  The importance of this legislation and the
2-10     crowded condition of the calendars in both houses create an
2-11     emergency and an imperative public necessity that the
2-12     constitutional rule requiring bills to be read on three several
2-13     days in each house be suspended, and this rule is hereby suspended.