Texas House Bill HB3576

Texas 2013 - 83rd Regular

Caption

Relating to the application of the law of this state to certain Internet contracts.

Impact

If enacted, the bill would amend the Texas Business and Commerce Code to clarify the conditions under which a contract would be governed by Texas law. A significant aspect of the bill stipulates that any party located in Texas, along with agreed notice by out-of-state parties, can establish Texas law as applicable to the contract. This change is designed to offer greater accessibility and protection for businesses and consumers engaging in online transactions, ensuring that they are compliant with Texas regulations even when dealing with clients or vendors located elsewhere.

Summary

House Bill 3576 aims to establish clear guidelines regarding the application of Texas law to certain internet contracts. The main intention of the bill is to provide a safe harbor for both commercial and consumer transactions conducted over the internet, enabling residents in Texas to utilize state laws as the governing rules for contracts. This measure facilitates Texas businesses by allowing them to engage in transactions with clients outside the state while maintaining the protections afforded by Texas laws.

Contention

While the bill primarily focuses on establishing clear regulatory frameworks for internet contracts, potential concerns may arise around how it could affect interstate commerce. Critics might argue that the stipulations for notifying out-of-state parties could introduce complications or confusion regarding jurisdiction, particularly in contract disputes. Therefore, as applicable laws change, stakeholders, including businesses and consumers, may need to reevaluate existing contracts to ensure they conform to the new regulations set forth by this legislation.