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AN ACT
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relating to choice of law and venue for certain construction |
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contracts. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The heading to Section 272.001, Business & |
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Commerce Code, is amended to read as follows: |
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Sec. 272.001. CERTAIN [VOIDABLE] CONTRACT PROVISIONS VOID |
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[PROVISION]. |
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SECTION 2. Section 272.001, Business & Commerce Code, is |
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amended by amending Subsection (b) and adding Subsection (c) to |
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read as follows: |
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(b) If a construction contract or an agreement collateral to |
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or affecting the construction contract contains a provision making |
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the contract or agreement or any conflict arising under the |
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contract or agreement subject to another state's law, litigation in |
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the courts of another state, or arbitration in another state, that |
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provision is void as against public policy [voidable by a party |
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obligated by the contract or agreement to perform the work that is |
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the subject of the construction contract]. |
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(c) To the extent that a venue provision in a contract is |
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void under Subsection (b), unless the parties stipulate to another |
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venue after the dispute arises, an action arising out of the |
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contract shall be brought only in this state in the county in which |
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the property that is the subject of the litigation is located. |
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SECTION 3. Section 15.020(d), Civil Practice and Remedies |
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Code, is amended to read as follows: |
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(d) This section does not apply to an action if: |
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(1) the agreement described by this section was |
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unconscionable at the time that it was made; |
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(2) the agreement regarding venue is void [voidable] |
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under Chapter 272, Business & Commerce Code; or |
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(3) venue is established under a statute of this state |
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other than this title. |
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SECTION 4. The changes in law made by this Act apply only to |
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a contract that is entered into or renewed on or after the effective |
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date of this Act. |
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SECTION 5. This Act takes effect September 1, 2025. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 2960 was passed by the House on April |
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29, 2025, by the following vote: Yeas 148, Nays 0, 1 present, not |
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voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 2960 was passed by the Senate on May |
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19, 2025, by the following vote: Yeas 31, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: _____________________ |
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Date |
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_____________________ |
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Governor |