89R15221 PRL-D
By: Hayes, et al. H.B. No. 2960
Substitute the following for H.B. No. 2960:
By: Schofield C.S.H.B. No. 2960
A BILL TO BE ENTITLED
AN ACT
relating to choice of law and venue for certain construction
contracts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Section 272.001, Business &
Commerce Code, is amended to read as follows:
Sec. 272.001. CERTAIN [VOIDABLE] CONTRACT PROVISIONS VOID
[PROVISION].
SECTION 2. Section 272.001, Business & Commerce Code, is
amended by amending Subsection (b) and adding Subsection (c) to
read as follows:
(b) If a construction contract or an agreement collateral to
or affecting the construction contract contains a provision making
the contract or agreement or any conflict arising under the
contract or agreement subject to another state's law, litigation in
the courts of another state, or arbitration in another state, that
provision is void as against public policy [voidable by a party
obligated by the contract or agreement to perform the work that is
the subject of the construction contract].
(c) To the extent that a venue provision in a contract is
void under Subsection (b), unless the parties stipulate to another
venue after the dispute arises, an action arising out of the
contract shall be brought only in this state in the county in which
the property that is the subject of the litigation is located.
SECTION 3. Section 15.020(d), Civil Practice and Remedies
Code, is amended to read as follows:
(d) This section does not apply to an action if:
(1) the agreement described by this section was
unconscionable at the time that it was made;
(2) the agreement regarding venue is void [voidable]
under Chapter 272, Business & Commerce Code; or
(3) venue is established under a statute of this state
other than this title.
SECTION 4. The changes in law made by this Act apply only to
a contract that is entered into or renewed on or after the effective
date of this Act.
SECTION 5. This Act takes effect September 1, 2025.