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TX HB2960

Bill

Status

Passed

6/20/2025

Primary Sponsor

Richard Hayes

Click for details

Origin

House of Representatives

89th Legislature Regular Session

AI Summary

  • Contract provisions in construction agreements that require disputes to be governed by another state's law, litigated in another state's courts, or arbitrated in another state are declared void as against public policy, rather than merely voidable

  • When a venue provision is voided under this law, legal actions must be brought in Texas in the county where the property subject to the litigation is located, unless parties agree to a different venue after the dispute arises

  • Amends Section 272.001 of the Business & Commerce Code and Section 15.020(d) of the Civil Practice and Remedies Code to change terminology from "voidable" to "void"

  • Applies only to construction contracts entered into or renewed on or after September 1, 2025

  • Passed unanimously in both the House (148-0 on April 29, 2025) and Senate (31-0 on May 19, 2025)

Legislative Description

Relating to choice of law and venue for certain construction contracts.

Business & Commerce

Last Action

Effective on 9/1/25

6/20/2025

Committee Referrals

State Affairs5/5/2025
Judiciary & Civil Jurisprudence3/20/2025

Full Bill Text

No bill text available