Texas 2017 - 85th Regular

Texas Senate Bill SB807 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	85R26241 CLG-F
2		-	By: Creighton S.B. No. 807
3		-	(Workman)
4		-	Substitute the following for S.B. No. 807: No.
	1	+	S.B. No. 807
5	2
6	3
7		-	A BILL TO BE ENTITLED
8	4		AN ACT
9	5		relating to choice of law and venue for certain construction
10	6		contracts.
11	7		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	8		SECTION 1. The heading to Chapter 272, Business & Commerce
13	9		Code, is amended to read as follows:
14	10		CHAPTER 272. LAW APPLICABLE TO CERTAIN CONSTRUCTION CONTRACTS [FOR
15	11		CONSTRUCTION OR REPAIR OF REAL PROPERTY IMPROVEMENTS]
16	12		SECTION 2. Chapter 272, Business & Commerce Code, is
17	13		amended by adding Section 272.0001 and amending Sections 272.001
18	14		and 272.002 to read as follows:
19	15		Sec. 272.0001. DEFINITION. In this chapter, "construction
20	16		contract" means a contract, subcontract, or agreement entered into
21	17		or made by an owner, architect, engineer, contractor, construction
22	18		manager, subcontractor, supplier, or material or equipment lessor
23	19		for the design, construction, alteration, renovation, remodeling,
24	20		or repair of, or for the furnishing of material or equipment for, a
25	21		building, structure, appurtenance, or other improvement to or on
26	22		public or private real property, including moving, demolition, and
27	23		excavation connected with the real property. The term includes an
28	24		agreement to which an architect, engineer, or contractor and an
29	25		owner's lender are parties regarding an assignment of the
30	26		construction contract or other modifications thereto.
31	27		Sec. 272.001. VOIDABLE CONTRACT PROVISION. (a) This
32	28		section applies only to a construction contract concerning [that is
33	29		principally for the construction or repair of an improvement to]
34	30		real property located in this state.
35	31		(b) If a construction contract or an agreement collateral to
36	32		or affecting the construction contract contains a provision making
37	33		the contract or agreement or any conflict arising under the
38	34		contract or agreement subject to another state's law, litigation in
39	35		the courts of another state, or arbitration in another state, that
40	36		provision is voidable by a [the] party obligated by the contract or
41	37		agreement to perform the work that is the subject of the
42	38		construction contract [or repair].
43	39		Sec. 272.002. INAPPLICABILITY OF CHAPTER [CONTRACT
44	40		PRINCIPALLY FOR CONSTRUCTION OR REPAIR OF REAL PROPERTY
45		-	IMPROVEMENTS]. This chapter does not apply to a construction ~~[(a)~~
46		-	For purposes of this chapter, a contract is principally for ~~the~~
47		-	construction or repair of an improvement to real property ~~located~~
48		-	in this state if the contract obligates a party, as the ~~party's~~
49		-	principal obligation under the contract, to provide labor ~~or labor~~
50		-	and materials as a general contractor or subcontractor for ~~the~~
51		-	construction or repair of an improvement to real property ~~located~~
52		-	in this state.
	41	+	IMPROVEMENTS]. This chapter does not apply to a construction
	42	+	[(a) For purposes of this chapter, a contract is principally for
	43	+	the construction or repair of an improvement to real property
	44	+	located in this state if the contract obligates a party, as the
	45	+	party's principal obligation under the contract, to provide labor
	46	+	or labor and materials as a general contractor or subcontractor for
	47	+	the construction or repair of an improvement to real property
	48	+	located in this state.
53	49		[(b) For purposes of this chapter, a contract is not
54	50		principally for the construction or repair of an improvement to
55	51		real property located in this state if the] contract that:
56	52		(1) is a partnership agreement or other agreement
57	53		governing an entity or trust;
58	54		(2) provides for a loan or other extension of credit
59	55		and the party promising to perform the work that is the subject of
60	56		the construction contract [construct or repair the improvement] is
61	57		doing so as part of the party's agreements with the lender or other
62	58		person who extends credit; or
63	59		(3) is for the management of real property or
64	60		improvements and the obligation to perform the work that is the
65	61		subject of the construction contract [construct or repair the
66	62		improvement] is part of that management.
67	63		[(c) Subsections (a) and (b) do not provide an exclusive
68	64		list of the situations in which a contract is or is not principally
69	65		for the construction or repair of an improvement to real property
70	66		located in this state.]
71	67		SECTION 3. The changes in law made by this Act apply only to
72	68		a contract, or an agreement collateral to or affecting a contract,
73	69		entered into on or after the effective date of this Act. A
74	70		contract, or an agreement collateral to or affecting a contract,
75	71		entered into before the effective date of this Act is governed by
76	72		the law as it existed immediately before the effective date of this
77	73		Act, and that law is continued in effect for that purpose.
78	74		SECTION 4. This Act takes effect September 1, 2017.
	75	+	______________________________ ______________________________
	76	+	President of the Senate Speaker of the House
	77	+	I hereby certify that S.B. No. 807 passed the Senate on
	78	+	May 4, 2017, by the following vote: Yeas 29, Nays 2; and that the
	79	+	Senate concurred in House amendment on May 27, 2017, by the
	80	+	following vote: Yeas 29, Nays 2.
	81	+	______________________________
	82	+	Secretary of the Senate
	83	+	I hereby certify that S.B. No. 807 passed the House, with
	84	+	amendment, on May 24, 2017, by the following vote: Yeas 135,
	85	+	Nays 8, two present not voting.
	86	+	______________________________
	87	+	Chief Clerk of the House
	88	+	Approved:
	89	+	______________________________
	90	+	Date
	91	+	______________________________
	92	+	Governor