H.B. No. 2960 amends the Business & Commerce Code and the Civil Practice and Remedies Code to establish that certain provisions in construction contracts are void rather than voidable. Specifically, it states that if a construction contract includes a provision that subjects the contract to the laws or courts of another state, that provision is void as against public policy. Additionally, the bill clarifies that if a venue provision is deemed void under this section, any legal action must be brought in Texas, specifically in the county where the property in question is located, unless the parties agree to a different venue after a dispute arises.

The bill also modifies existing language regarding venue agreements, changing the terminology from "voidable" to "void" in relation to agreements that are unconscionable or that violate the new provisions established in Chapter 272. The changes apply only to contracts entered into or renewed after the bill's effective date, which will be immediate if it receives a two-thirds majority vote in both houses, or otherwise will take effect on September 1, 2025.

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)