Texas 2025 - 89th Regular

Texas House Bill HB2960 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	89R15221 PRL-D
2		-	By: Hayes, et al. H.B. No. 2960
3		-	Substitute the following for H.B. No. 2960:
4		-	By: Schofield C.S.H.B. No. 2960
	1	+	By: Hayes H.B. No. 2960
5	2
6	3
7	4
8	5
9	6		A BILL TO BE ENTITLED
10	7		AN ACT
11		-	relating to ~~choice of law and venue for~~ certain construction
	8	+	relating to void provisions contained in certain construction
12	9		contracts.
13	10		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	11		SECTION 1. The heading to Section 272.001, Business &
15	12		Commerce Code, is amended to read as follows:
16	13		Sec. 272.001. CERTAIN [VOIDABLE] CONTRACT PROVISIONS VOID
17	14		[PROVISION].
18		-	SECTION 2. Section 272.001, Business & Commerce Code, is
19		-	amended by amending Subsection (b) and adding Subsection (c) to
20		-	read as follows:
	15	+	SECTION 2. Section 272.001(b), Business & Commerce Code, is
	16	+	amended to read as follows:
21	17		(b) If a construction contract or an agreement collateral to
22	18		or affecting the construction contract contains a provision making
23	19		the contract or agreement or any conflict arising under the
24	20		contract or agreement subject to another state's law, litigation in
25	21		the courts of another state, or arbitration in another state, that
26	22		provision is void as against public policy [voidable by a party
27	23		obligated by the contract or agreement to perform the work that is
28	24		the subject of the construction contract].
29		-	(c) To the extent that a venue provision in a contract is
30		-	~~void~~ under ~~Subsection (b)~~, unless the parties stipulate to another
31		-	~~venue~~ after the dispute arises, an action arising out of the
32		-	~~contract~~ shall be brought only in this state in the county in which
33		-	~~the~~ property that is the subject of the litigation is located.
34		-	SECTION 3. ~~Section~~ 15.020(d), Civil Practice and ~~Remedies~~
35		-	Code, is amended to read as follows:
	25	+	c) To the extent that a venue provision in a contract is void
	26	+	under this section, unless the parties stipulate to another venue
	27	+	after the dispute arises, an action arising out of the contract
	28	+	shall be brought only in this state in the county in which the
	29	+	property that is the subject of the litigation is located.
	30	+	SECTION 3. Subsection 15.020(d) of the Civil Practice and
	31	+	Remedies Code is amended to read as follows:
36	32		(d) This section does not apply to an action if:
37	33		(1) the agreement described by this section was
38	34		unconscionable at the time that it was made;
39		-	(2) the agreement regarding venue is ~~void~~ [voidable]
	35	+	(2) the agreement regarding venue is [voidable] void
40	36		under Chapter 272, Business & Commerce Code; or
41	37		(3) venue is established under a statute of this state
42	38		other than this title.
43	39		SECTION 4. The changes in law made by this Act apply only to
44	40		a contract that is entered into or renewed on or after the effective
45	41		date of this Act.
46		-	SECTION 5. This Act takes effect September 1, 2025.
	42	+	SECTION 5. This Act takes effect immediately if it receives
	43	+	a vote of two-thirds of all the members elected to each house, as
	44	+	provided by Section 39, Article III, Texas Constitution. If this
	45	+	Act does not receive the vote necessary for immediate effect, this
	46	+	Act takes effect September 1, 2025.