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.