1-1     By:  Elkins (Senate Sponsor - Ellis)                  H.B. No. 2653
 1-2           (In the Senate - Received from the House April 19, 1999;
 1-3     April 20, 1999, read first time and referred to Committee on
 1-4     Jurisprudence; May 13, 1999, reported favorably by the following
 1-5     vote:  Yeas 3, Nays 0; May 13, 1999, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to the law that applies to a contract made over the
 1-9     Internet.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1.  Subchapter D, Chapter 35, Business & Commerce
1-12     Code, is amended by adding Section 35.531 to read as follows:
1-13           Sec. 35.531.  LAW APPLICABLE TO CONTRACT MADE OVER INTERNET.
1-14     (a)  In this section, "Internet" means the largest nonproprietary
1-15     nonprofit cooperative public computer network, popularly known as
1-16     the Internet.
1-17           (b)  Subject to Subsection (e), this section applies only to
1-18     a contract made solely over the Internet between a person located
1-19     in this state and a person located outside this state who does not
1-20     maintain an office or agent in this state for doing business in
1-21     this state.
1-22           (c)  A contract to which this section applies is governed by
1-23     the law of this state unless each party to the contract who is
1-24     located in this state:
1-25                 (1)  is given notice that the law of the state in which
1-26     another party to the contract is located applies to the contract;
1-27     and
1-28                 (2)  agrees to the application of that state's law.
1-29           (d)  A person asserting that the law of another state applies
1-30     to a contract has the burden of proving that notice was given and
1-31     agreement was obtained as provided by Subsection (c).
1-32           (e)  Sections 1.105 and 35.53 do not apply to a contract to
1-33     which this section applies.  This section does not apply to a
1-34     contract to which Section 35.51 applies.
1-35           SECTION 2.  Section 35.531, Business & Commerce Code, as
1-36     added by this Act, applies only to a contract made on or after the
1-37     effective date of this Act.
1-38           SECTION 3.  This Act takes effect September 1, 1999.
1-39           SECTION 4.  The importance of this legislation and the
1-40     crowded condition of the calendars in both houses create an
1-41     emergency and an imperative public necessity that the
1-42     constitutional rule requiring bills to be read on three several
1-43     days in each house be suspended, and this rule is hereby suspended.
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