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. 1-44 * * * * *