H.B. No. 2960 amends the Business & Commerce Code and the Civil Practice and Remedies Code to establish new provisions regarding the choice of law and venue for certain construction contracts. The bill specifies that any provision in a construction contract that subjects the contract or any disputes arising from it to the laws or courts of another state is void as against public policy. Additionally, if a venue provision is deemed void under this new law, any legal action related to the contract must be brought in the state of Texas, specifically in the county where the property involved in the litigation is located.
The bill also updates the language in existing statutes, changing references from "voidable" to "void" in relation to certain agreements regarding venue. These changes will apply only to contracts entered into or renewed after the effective date of the Act, which is set for September 1, 2025. The bill was passed unanimously by both the House and Senate, indicating strong legislative support for these changes aimed at protecting the interests of parties involved in construction contracts within Texas.
Statutes affected: Introduced: Commerce Code 272.001, of the Civil Practice and Remedies Code 15.020 (of the Civil Practice and Remedies Code 15, Commerce Code 272)
House Committee Report: Commerce Code 272.001, Civil Practice and Remedies Code 15.020 (Civil Practice and Remedies Code 15, of the Civil Practice and Remedies Code 15, Commerce Code 272)
Engrossed: Commerce Code 272.001, Civil Practice and Remedies Code 15.020 (Civil Practice and Remedies Code 15, of the Civil Practice and Remedies Code 15, Commerce Code 272)
Senate Committee Report: Commerce Code 272.001, Civil Practice and Remedies Code 15.020 (Civil Practice and Remedies Code 15, of the Civil Practice and Remedies Code 15, Commerce Code 272)
Enrolled: Commerce Code 272.001, Civil Practice and Remedies Code 15.020 (Civil Practice and Remedies Code 15, of the Civil Practice and Remedies Code 15, Commerce Code 272)