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Texas Legislature· HB 2960Effective on 9/1/25

Relating to choice of law and venue for certain construction contracts, the official text

Shown verbatim: the complete text as captured from the official page posted by the Texas Legislature, fetched 2026-08-29. Where this bill amends existing law, language marked for deletion in the official page appears here in brackets. This is the enrolled version. The official bill page.
H.B. No. 2960

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.

______________________________
______________________________

President of the Senate
Speaker of the House

I certify that H.B. No. 2960 was passed by the House on April

29, 2025, by the following vote: Yeas 148, Nays 0, 1 present, not

voting.

______________________________

Chief Clerk of the House

I certify that H.B. No. 2960 was passed by the Senate on May

19, 2025, by the following vote: Yeas 31, Nays 0.

______________________________

Secretary of the Senate

APPROVED: _____________________

Date

_____________________

Governor
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