77R10187 LJR-F                           
         By Brimer, Dunnam                                     H.B. No. 1201
         Substitute the following for H.B. No. 1201:
         By Brimer                                         C.S.H.B. No. 1201
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the Uniform Electronic Transactions Act and electronic
 1-3     records.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Title 4, Business & Commerce Code, is amended by
 1-6     adding Chapter 43 to read as follows:
 1-7              CHAPTER 43.  UNIFORM ELECTRONIC TRANSACTIONS ACT
 1-8           Sec. 43.001.  SHORT TITLE.  This chapter may be cited as the
 1-9     Uniform Electronic Transactions Act.
1-10           Sec. 43.002.  DEFINITIONS.  In this chapter:
1-11                 (1)  "Agreement" means the bargain of the parties in
1-12     fact, as found in their language or inferred from other
1-13     circumstances and from rules, regulations, and procedures given the
1-14     effect of agreements under laws otherwise applicable to a
1-15     particular transaction.
1-16                 (2)  "Automated transaction" means a transaction
1-17     conducted or performed, in whole or in part, by electronic means or
1-18     electronic records, in which the acts or records of one or both
1-19     parties are not reviewed by an individual in the ordinary course in
1-20     forming a contract, performing under an existing contract, or
1-21     fulfilling an obligation required by the transaction.
1-22                 (3)  "Computer program" means a set of statements or
1-23     instructions to be used directly or indirectly in an information
1-24     processing system in order to bring about a certain result.
 2-1                 (4)  "Contract" means the total legal obligation
 2-2     resulting from the parties' agreement as affected by this chapter
 2-3     and other applicable law.
 2-4                 (5)  "Electronic" means relating to technology having
 2-5     electrical, digital, magnetic, wireless, optical, electromagnetic,
 2-6     or similar capabilities.
 2-7                 (6)  "Electronic agent" means a computer program or an
 2-8     electronic or other automated means used independently to initiate
 2-9     an action or respond to electronic records or performances in whole
2-10     or in part, without review or action by an individual.
2-11                 (7)  "Electronic record" means a record created,
2-12     generated, sent, communicated, received, or stored by electronic
2-13     means.
2-14                 (8)  "Electronic signature" means an electronic sound,
2-15     symbol, or process attached to or logically associated with a
2-16     record and executed or adopted by a person with the intent to sign
2-17     the record.
2-18                 (9)  "Governmental agency" means an executive,
2-19     legislative, or judicial agency, department, board, commission,
2-20     authority, institution, or instrumentality of the federal
2-21     government or of a state or of a county, municipality, or other
2-22     political subdivision of a state.
2-23                 (10)  "Information" means data, text, images, sounds,
2-24     codes, computer programs, software, databases, or the like.
2-25                 (11)  "Information processing system" means an
2-26     electronic system for creating, generating, sending, receiving,
2-27     storing, displaying, or processing information.
 3-1                 (12)  "Record" means information that is inscribed on a
 3-2     tangible medium or that is stored in an electronic or other medium
 3-3     and is retrievable in perceivable form.
 3-4                 (13)  "Security procedure"  means a procedure employed
 3-5     for the purpose of verifying that an electronic signature, record,
 3-6     or performance is that of a specific person or for detecting
 3-7     changes or errors in the information in an electronic record.  The
 3-8     term includes a procedure that requires the use of algorithms or
 3-9     other codes, identifying words or numbers, encryption, or callback
3-10     or other acknowledgment procedures.
3-11                 (14)  "State" means a state of the United States, the
3-12     District of Columbia, Puerto Rico, the United States Virgin
3-13     Islands, or any territory or insular possession subject to the
3-14     jurisdiction of the United States.  The term includes an Indian
3-15     tribe or band, or Alaskan native village, which is recognized by
3-16     federal law or formally acknowledged by a state.
3-17                 (15)  "Transaction" means an action or set of actions
3-18     occurring between two or more persons relating to the conduct of
3-19     business, commercial, or governmental affairs.
3-20           Sec. 43.003.  SCOPE. (a)  Except as otherwise provided in
3-21     Subsection (b), this chapter applies to electronic records and
3-22     electronic signatures relating to a transaction.
3-23           (b)  This chapter does not apply to a transaction to the
3-24     extent it is governed by:
3-25                 (1)  a law governing the creation and execution of
3-26     wills, codicils, or testamentary trusts; or
3-27                 (2)  the Uniform Commercial Code, other than Sections
 4-1     1.107 and 1.206, and Chapters 2 and 2A.
 4-2           (c)  This chapter applies to an electronic record or
 4-3     electronic signature otherwise excluded from the application of
 4-4     this chapter under Subsection (b) when used for a transaction
 4-5     subject to a law other than those specified in Subsection (b).
 4-6           (d)  A transaction subject to this chapter is also subject to
 4-7     other applicable substantive law.
 4-8           Sec. 43.004.  PROSPECTIVE APPLICATION.  This chapter applies
 4-9     to any electronic record or electronic signature created,
4-10     generated, sent, communicated, received, or stored on or after
4-11     January 1, 2002.
4-12           Sec. 43.005.  USE OF ELECTRONIC RECORDS AND ELECTRONIC
4-13     SIGNATURES; VARIATION BY AGREEMENT. (a)  This chapter does not
4-14     require a record or signature to be created, generated, sent,
4-15     communicated, received, stored, or otherwise processed or used by
4-16     electronic means or in electronic form.
4-17           (b)  This chapter applies only to transactions between
4-18     parties each of which has agreed to conduct transactions by
4-19     electronic means. Whether the parties agree to conduct a
4-20     transaction by electronic means is determined from the context and
4-21     surrounding circumstances, including the parties' conduct.
4-22           (c)  A party that agrees to conduct a transaction by
4-23     electronic means may refuse to conduct other transactions by
4-24     electronic means.  The right granted by this subsection may not be
4-25     waived by agreement.
4-26           (d)  Except as otherwise provided in this chapter, the effect
4-27     of any of its provisions may be varied by agreement.  The presence
 5-1     in certain provisions of this chapter of the words "unless
 5-2     otherwise agreed," or words of similar import, does not imply that
 5-3     the effect of other provisions may not be varied by agreement.
 5-4           (e)  Whether an electronic record or electronic signature has
 5-5     legal consequences is determined by this chapter and other
 5-6     applicable law.
 5-7           Sec. 43.006.  CONSTRUCTION AND APPLICATION.  This chapter
 5-8     must be construed and applied:
 5-9                 (1)  to facilitate electronic transactions consistent
5-10     with other applicable law;
5-11                 (2)  to be consistent with reasonable practices
5-12     concerning electronic transactions and with the continued expansion
5-13     of those practices; and
5-14                 (3)  to effectuate its general purpose to make uniform
5-15     the law with respect to the subject of this chapter among states
5-16     enacting it.
5-17           Sec. 43.007.  LEGAL RECOGNITION OF ELECTRONIC RECORDS,
5-18     ELECTRONIC SIGNATURES, AND ELECTRONIC CONTRACTS.  (a)  A record or
5-19     signature may not be denied legal effect or enforceability solely
5-20     because it is in electronic form.
5-21           (b)  A contract may not be denied legal effect or
5-22     enforceability solely because an electronic record was used in its
5-23     formation.
5-24           (c)  If a law requires a record to be in writing, an
5-25     electronic record satisfies the law.
5-26           (d)  If a law requires a signature, an electronic signature
5-27     satisfies the law.
 6-1           Sec. 43.008.  PROVISION OF INFORMATION IN WRITING;
 6-2     PRESENTATION OF RECORDS. (a)  If parties have agreed to conduct a
 6-3     transaction by electronic means and a law requires a person to
 6-4     provide, send, or deliver information in writing to another person,
 6-5     the requirement is satisfied if the information is provided, sent,
 6-6     or delivered, as the case may be, in an electronic record capable
 6-7     of retention by the recipient at the time of receipt.  An
 6-8     electronic record is not capable of retention by the recipient if
 6-9     the sender or its information processing system inhibits the
6-10     ability of the recipient to print or store the electronic record.
6-11           (b)  If a law other than this chapter requires a record (i)
6-12     to be posted or displayed in a certain manner, (ii) to be sent,
6-13     communicated, or transmitted by a specified method, or (iii) to
6-14     contain information that is formatted in a certain manner, the
6-15     following rules apply:
6-16                 (1)  the record must be posted or displayed in the
6-17     manner specified in the other law;
6-18                 (2)  except as otherwise provided in Subsection (d)(2),
6-19     the record must be sent, communicated, or transmitted by the method
6-20     specified in the other law; and
6-21                 (3)  the record must contain the information formatted
6-22     in the manner specified in the other law.
6-23           (c)  If a sender inhibits the ability of a recipient to store
6-24     or print an electronic record, the electronic record is not
6-25     enforceable against the recipient.
6-26           (d)  The requirements of this section may not be varied by
6-27     agreement, but:
 7-1                 (1)  to the extent a law other than this chapter
 7-2     requires information to be provided, sent, or delivered in writing
 7-3     but permits that requirement to be varied by agreement, the
 7-4     requirement under Subsection (a) that the information be in the
 7-5     form of an electronic record capable of retention may also be
 7-6     varied by agreement; and
 7-7                 (2)  a requirement under a law other than this chapter
 7-8     to send, communicate, or transmit a record by first-class mail, may
 7-9     be varied by agreement to the extent permitted by the other law.
7-10           Sec. 43.009.  ATTRIBUTION AND EFFECT OF ELECTRONIC RECORD AND
7-11     ELECTRONIC SIGNATURE. (a)  An electronic record or electronic
7-12     signature is attributable to a person if it was the act of the
7-13     person.  The act of the person may be shown in any manner,
7-14     including a showing of the efficacy of any security procedure
7-15     applied to determine the person to which the electronic record or
7-16     electronic signature was attributable.
7-17           (b)  The effect of an electronic record or electronic
7-18     signature attributed to a person under Subsection (a) is determined
7-19     from the context and surrounding circumstances at the time of its
7-20     creation, execution, or adoption, including the parties' agreement,
7-21     if any, and otherwise as provided by law.
7-22           Sec. 43.010.  EFFECT OF CHANGE OR ERROR. (a)  If a change or
7-23     error in an electronic record occurs in a transmission between
7-24     parties to a transaction, the rules provided by this section apply.
7-25           (b)  If the parties have agreed to use a security procedure
7-26     to detect changes or errors and one party has conformed to the
7-27     procedure, but the other party has not, and the nonconforming party
 8-1     would have detected the change or error had that party also
 8-2     conformed, the conforming party may avoid the effect of the changed
 8-3     or erroneous electronic record.
 8-4           (c)  In an automated transaction involving an individual, the
 8-5     individual may avoid the effect of an electronic record that
 8-6     resulted from an error made by the individual in dealing with the
 8-7     electronic agent of another person if the electronic agent did not
 8-8     provide an opportunity for the prevention or correction of the
 8-9     error and, at the time the individual learns  of the error, the
8-10     individual:
8-11                 (1)  promptly notifies the other person of the error
8-12     and that the individual did not intend to be bound by  the
8-13     electronic record received by the other person;
8-14                 (2)  takes reasonable steps, including steps that
8-15     conform to the other person's reasonable instructions, to return to
8-16     the other person or, if instructed by the other person, to destroy
8-17     the consideration received, if any, as a result of the erroneous
8-18     electronic record; and
8-19                 (3)  has not used or received any benefit or value from
8-20     the consideration, if any, received from the other person.
8-21           (d)  If neither Subsection (b) nor Subsection (c) applies,
8-22     the change or error has the effect provided by other law, including
8-23     the law of mistake, and the parties' contract, if any.
8-24           (e)  Subsections (c) and (d) may not be varied by agreement.
8-25           Sec. 43.011.  NOTARIZATION AND ACKNOWLEDGMENT.  If a law
8-26     requires a signature or record to be notarized, acknowledged,
8-27     verified, or made under oath, the requirement is satisfied if the
 9-1     electronic signature of the person authorized to perform those
 9-2     acts, together with all other information required to be included
 9-3     by other applicable law, is attached to or logically associated
 9-4     with the signature or record.
 9-5           Sec. 43.012.  RETENTION OF ELECTRONIC RECORDS; ORIGINALS. (a)
 9-6     If a law requires that a record be retained, the requirement is
 9-7     satisfied by retaining an electronic record of the information in
 9-8     the record which:
 9-9                 (1)  accurately reflects the information set forth in
9-10     the record after it was first generated in its final form as an
9-11     electronic record or otherwise; and
9-12                 (2)  remains accessible for later reference.
9-13           (b)  A requirement to retain a record in accordance with
9-14     Subsection (a)  does not apply to any information the sole purpose
9-15     of which is to enable the record to be sent, communicated, or
9-16     received.
9-17           (c)  A person may satisfy Subsection (a) by using the
9-18     services of another person if the requirements of that subsection
9-19     are satisfied.
9-20           (d)  If a law requires a record to be presented or retained
9-21     in its original form, or provides consequences if the record is not
9-22     presented or retained in its original form, that law is satisfied
9-23     by an electronic record retained in accordance with Subsection (a).
9-24           (e)  If a law requires retention of a check, that requirement
9-25     is satisfied by retention of an electronic record of the
9-26     information on the front and back of the check in accordance with
9-27     Subsection (a).
 10-1          (f)  A record retained as an electronic record in accordance
 10-2    with Subsection (a) satisfies a law requiring a person to retain a
 10-3    record for evidentiary, audit, or like purposes, unless a law
 10-4    enacted after January 1, 2002, specifically prohibits the use of an
 10-5    electronic record for the specified purpose.
 10-6          (g)  This section does not preclude a governmental agency of
 10-7    this state from specifying additional requirements for the
 10-8    retention of a record subject to the agency's jurisdiction.
 10-9          Sec. 43.013.  ADMISSIBILITY IN EVIDENCE.  In a proceeding,
10-10    evidence of a record or signature may not be excluded solely
10-11    because it is in electronic form.
10-12          Sec. 43.014.  AUTOMATED TRANSACTION. (a)  In an automated
10-13    transaction, the rules provided by this section apply.
10-14          (b)  A contract may be formed by the interaction of
10-15    electronic agents of the parties, even if no individual was aware
10-16    of or reviewed the electronic agents' actions or the resulting
10-17    terms and agreements.
10-18          (c)  A contract may be formed by the interaction of an
10-19    electronic agent and an individual, acting on the individual's own
10-20    behalf or for another person, including by an interaction in which
10-21    the individual performs actions that the individual is free to
10-22    refuse to perform and which the individual knows or has reason to
10-23    know will cause the electronic agent to complete the transaction or
10-24    performance.
10-25          (d)  The terms of the contract are determined by the
10-26    substantive law applicable to it.
10-27          Sec. 43.015.  TIME AND PLACE OF SENDING AND RECEIPT. (a)
 11-1    Unless otherwise agreed between the sender and the recipient, an
 11-2    electronic record is sent when it:
 11-3                (1)  is addressed properly or otherwise directed
 11-4    properly to an information processing system that the recipient has
 11-5    designated or uses for the purpose of receiving electronic records
 11-6    or information of the type sent and from which the recipient is
 11-7    able to retrieve the electronic record;
 11-8                (2)  is in a form capable of being processed by that
 11-9    system; and
11-10                (3)  enters an information processing system outside
11-11    the control of the sender or of a person that sent the electronic
11-12    record on behalf of the sender or enters a region of the
11-13    information processing system designated or used by the recipient
11-14    which is under the control of the recipient.
11-15          (b)  Unless otherwise agreed between the sender and the
11-16    recipient, an electronic record is received when:
11-17                (1)  it enters an information processing system that
11-18    the recipient has designated or uses for the purpose of receiving
11-19    electronic records or information of the type sent and from which
11-20    the recipient is able to retrieve the electronic record; and
11-21                (2)  it is in a form capable of being processed by that
11-22    system.
11-23          (c)  Subsection (b) applies even if the place the information
11-24    processing system is located is different from the place the
11-25    electronic record is deemed to be received under Subsection (d).
11-26          (d)  Unless otherwise expressly provided in the electronic
11-27    record or agreed between the sender and the recipient, an
 12-1    electronic record is deemed to be sent from the sender's place of
 12-2    business and to be received at the recipient's place of business.
 12-3    For purposes of this subsection, the following rules apply:
 12-4                (1)  if the sender or the recipient has more than one
 12-5    place of business, the place of business of that person is the
 12-6    place having the closest relationship to the underlying
 12-7    transaction; and
 12-8                (2)  if the sender or the recipient does not have a
 12-9    place of business, the place of business is the sender's or the
12-10    recipient's residence, as the case may be.
12-11          (e)  An electronic record is received under Subsection (b)
12-12    even if no individual is aware of its receipt.
12-13          (f)  Receipt of an electronic acknowledgment from an
12-14    information processing system described in Subsection (b)
12-15    establishes that a record was received but, by itself, does not
12-16    establish that the content sent corresponds to the content
12-17    received.
12-18          (g)  If a person is aware that an electronic record
12-19    purportedly sent under Subsection (a), or purportedly received
12-20    under Subsection (b), was not actually sent or received, the legal
12-21    effect of the sending or receipt is determined by other applicable
12-22    law.  Except to the extent permitted by the other law, the
12-23    requirements of  this subsection may not be varied by agreement.
12-24          Sec. 43.016.  TRANSFERABLE RECORDS. (a)  In this section,
12-25    "transferable record" means an electronic record that:
12-26                (1)  would be a note under Chapter 3,  or a document
12-27    under Chapter 7, if the electronic record were in writing; and
 13-1                (2)  the issuer of the electronic record expressly has
 13-2    agreed is a transferable record.
 13-3          (b)  A person has control of a transferable record if a
 13-4    system employed for evidencing the transfer of interests in the
 13-5    transferable record reliably establishes that person as the person
 13-6    to which the transferable record was issued or transferred.
 13-7          (c)  A system satisfies Subsection (b), and a person is
 13-8    deemed to have control of a transferable record, if the
 13-9    transferable record is created, stored, and assigned in such a
13-10    manner that:
13-11                (1)  a single authoritative copy of the transferable
13-12    record exists which is unique, identifiable, and, except as
13-13    otherwise provided in Subdivisions  (4), (5), and (6), unalterable;
13-14                (2)  the authoritative copy identifies the person
13-15    asserting control as:
13-16                      (A)  the person to which the transferable record
13-17    was issued; or
13-18                      (B)  if the authoritative copy indicates that the
13-19    transferable record has been transferred, the person to which the
13-20    transferable record was most recently transferred;
13-21                (3)  the authoritative copy is communicated to and
13-22    maintained by the person asserting control or its designated
13-23    custodian;
13-24                (4)  copies or revisions that add or change an
13-25    identified assignee of the authoritative copy can be made only with
13-26    the consent of the person asserting control;
13-27                (5)  each copy of the authoritative copy and any copy
 14-1    of a copy is readily identifiable as a copy that is not the
 14-2    authoritative copy; and
 14-3                (6)  any revision of the authoritative copy is readily
 14-4    identifiable as authorized or unauthorized.
 14-5          (d)  Except as otherwise agreed, a person having control of a
 14-6    transferable record is the holder, as defined in Section 1.201, of
 14-7    the transferable record and has the same rights and defenses as a
 14-8    holder of an equivalent record or writing under the Uniform
 14-9    Commercial Code, including, if the applicable statutory
14-10    requirements under Section 3.302(a), 7.501, or 9.330 are satisfied,
14-11    the rights and defenses of a holder in due course, a holder to
14-12    which a negotiable document of title has been duly negotiated, or a
14-13    purchaser, respectively.  Delivery, possession, and indorsement are
14-14    not required to obtain or exercise any of the rights under this
14-15    subsection.
14-16          (e)  Except as otherwise agreed, an obligor under a
14-17    transferable record has the same rights and defenses as an
14-18    equivalent obligor under equivalent records or writings under the
14-19    Uniform Commercial Code.
14-20          (f)  If requested by a person against which enforcement is
14-21    sought, the person seeking to enforce the transferable record shall
14-22    provide reasonable proof that the person is in control of the
14-23    transferable record.  Proof may include access to the authoritative
14-24    copy of the transferable record and related business records
14-25    sufficient to review the terms of the transferable record and to
14-26    establish the identity of the person having control of the
14-27    transferable record.
 15-1          Sec. 43.017.  ACCEPTANCE AND DISTRIBUTION OF ELECTRONIC
 15-2    RECORDS BY GOVERNMENTAL AGENCIES. (a)  Except as otherwise provided
 15-3    by Section 43.012(f), each state agency shall determine whether,
 15-4    and the extent to which, the agency will send and accept electronic
 15-5    records and electronic signatures to and from other persons and
 15-6    otherwise create, generate, communicate, store, process, use, and
 15-7    rely upon electronic records and electronic signatures.
 15-8          (b)  To the extent that a state agency uses electronic
 15-9    records and electronic signatures under Subsection (a), the
15-10    Department of Information Resources, giving due consideration to
15-11    security, may specify:
15-12                (1)  the manner and format in which the electronic
15-13    records must be created, generated, sent, communicated, received,
15-14    and stored and the systems established for those purposes;
15-15                (2)  if electronic records must be signed by electronic
15-16    means, the type of electronic signature required, the manner and
15-17    format in which the electronic signature must be affixed to the
15-18    electronic record, and the identity of, or criteria that must be
15-19    met by, any third party used by a person filing a document to
15-20    facilitate the process;
15-21                (3)  control processes and procedures as appropriate to
15-22    ensure adequate preservation, disposition, integrity, security,
15-23    confidentiality, and auditability of electronic records; and
15-24                (4)  any other required attributes for electronic
15-25    records which are specified for corresponding nonelectronic records
15-26    or reasonably necessary under the circumstances.
15-27          (c)  Except as otherwise provided in Section 43.012(f), this
 16-1    chapter does not require a governmental agency of this state to use
 16-2    or permit the use of electronic records or electronic signatures.
 16-3          Sec. 43.018.  INTEROPERABILITY. The Department of Information
 16-4    Resources may encourage and promote consistency and
 16-5    interoperability with similar requirements adopted by other
 16-6    governmental agencies of this and other states and the federal
 16-7    government and nongovernmental persons interacting with
 16-8    governmental agencies of this state.  If appropriate, those
 16-9    standards may specify differing levels of standards from which
16-10    governmental agencies of this state may choose in implementing the
16-11    most appropriate standard for a particular application.
16-12          Sec. 43.019.  EXEMPTION TO PREEMPTION BY FEDERAL ELECTRONIC
16-13    SIGNATURES ACT. This chapter modifies, limits, or supersedes the
16-14    provisions of the Electronic Signatures in Global and National
16-15    Commerce Act (15 U.S.C. Section 7001 et seq.) as authorized by
16-16    Section 102 of that Act (15 U.S.C. Section 7002).
16-17          SECTION 2. Section 191.009(a), Local Government Code, is
16-18    amended to read as follows:
16-19          (a)  A county clerk may accept instruments by electronic
16-20    filing and record the instruments electronically if the filing or
16-21    recording complies with the rules adopted by the Texas State
16-22    Library and Archives Commission under Chapter 195.  Such an
16-23    instrument is an electronic record, as defined by Section 43.002,
16-24    Business & Commerce Code.
16-25          SECTION 3. Section 195.002, Local Government Code, is amended
16-26    by adding Subsection (e) to read as follows:
16-27          (e)  Notwithstanding Sections 43.017 and 43.018, Business &
 17-1    Commerce Code, a county clerk may accept any filed electronic
 17-2    record, as defined by Section 43.002, Business & Commerce Code, and
 17-3    may electronically record that record if the filing and recording
 17-4    of that record complies with rules adopted by the commission under
 17-5    this section.
 17-6          SECTION 4. Chapter 195, Local Government Code, is amended by
 17-7    adding Section 195.009 to read as follows:
 17-8          Sec. 195.009.  FILING. For purposes of this chapter, an
 17-9    instrument is filed with the county clerk when it is received by
17-10    the county clerk, unless the county clerk rejects the filing within
17-11    the time and manner provided by this chapter and rules adopted
17-12    under this chapter.
17-13          SECTION 5. Sections 2.108 and 2A.110, Business & Commerce
17-14    Code, are repealed.
17-15          SECTION 6. (a)  Notwithstanding Section 43.019, Business &
17-16    Commerce Code, as added by this Act, Chapter 43, Business &
17-17    Commerce Code, as added by this Act, does not modify, limit, or
17-18    supercede the provisions of Section 101(c) or Section 103(b),
17-19    Electronic Signatures in Global and National Commerce Act (15
17-20    U.S.C. Sections 7001 and 7003), as amended from time to time.
17-21          (b)  A regulatory agency of this state, with respect to
17-22    matters within its jurisdiction, by rule or order issued after
17-23    notice and an opportunity for public comment, may exempt without
17-24    condition a specified category or type of record from the
17-25    requirements relating to consent in Section 101(c), Electronic
17-26    Signatures in Global and National Commerce Act (15 U.S.C. Section
17-27    7001), if that exemption is necessary to eliminate a substantial
 18-1    burden on electronic commerce and will not increase the material
 18-2    risk of harm to consumers.
 18-3          (c)  If a regulatory agency of this state, with respect to
 18-4    matters within its jurisdiction, determines after notice and  an
 18-5    opportunity for public comment, and publishes a finding, that one
 18-6    or more of the exceptions contained in Section 103(b), Electronic
 18-7    Signatures in Global and National Commerce Act (15 U.S.C. Section
 18-8    7003), are no longer necessary for the protection of consumers and
 18-9    that eliminating those exceptions will not increase the material
18-10    risk of harm to consumers, the regulatory agency may extend the
18-11    application of Chapter 43, Business & Commerce Code, as added by
18-12    this Act, to the exceptions identified in that finding.
18-13          SECTION 7. Chapter 43, Business & Commerce Code, as added by
18-14    this Act, does not modify, limit, or supercede Chapter 15, Civil
18-15    Practice and Remedies Code, or Section 35.531, Business & Commerce
18-16    Code.
18-17          SECTION 8. This Act takes effect January 1, 2002.