The text as introduced · 368 words
By: Hayes
H.B. No. 2960
A BILL TO BE ENTITLED
AN ACT
relating to void provisions contained in 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(b), Business & Commerce Code, is
amended 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 this section, 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. Subsection 15.020(d) of the 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 [ voidable ] void
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 immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2025.
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