| |
| |
|
|
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. |