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A BILL TO BE ENTITLED
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AN ACT
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relating to void provisions contained in 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(b), Business & Commerce Code, is |
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amended to 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 void |
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under this section, unless the parties stipulate to another venue |
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after the dispute arises, an action arising out of the contract |
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shall be brought only in this state in the county in which the |
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property that is the subject of the litigation is located. |
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SECTION 3. Subsection 15.020(d) of the Civil Practice and |
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Remedies 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 [voidable] void |
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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 immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2025. |