85R2958 CLG-F     By: Workman H.B. No. 1844       A BILL TO BE ENTITLED   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 Chapter 272, Business & Commerce   Code, is amended to read as follows:   CHAPTER 272. LAW APPLICABLE TO CERTAIN CONSTRUCTION CONTRACTS [FOR   CONSTRUCTION OR REPAIR OF REAL PROPERTY IMPROVEMENTS]          SECTION 2.  Chapter 272, Business & Commerce Code, is   amended by adding Section 272.0001 and amending Sections 272.001   and 272.002 to read as follows:          Sec. 272.0001.  DEFINITION. In this chapter, "construction   contract" means a contract, subcontract, or agreement entered into   or made by an owner, architect, engineer, contractor, construction   manager, subcontractor, supplier, or material or equipment lessor   for the design, construction, alteration, renovation, remodeling,   repair, or maintenance of, or for the furnishing of material or   equipment for, a building, structure, appurtenance, or other   improvement to or on public or private real property, including   moving, demolition, and excavation connected with the real   property.  The term includes an agreement to which an architect,   engineer, or contractor and an owner's lender are parties regarding   an assignment of the construction contract or other modifications   thereto.          Sec. 272.001.  VOIDABLE CONTRACT PROVISION. (a) This   section applies only to a construction contract concerning [that is   principally for the construction or repair of an improvement to]   real property located in this state.          (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 voidable by a [the] party obligated by the contract or   agreement to perform the work that is the subject of the   construction contract [or repair].          Sec. 272.002.  INAPPLICABILITY OF CHAPTER [CONTRACT   PRINCIPALLY FOR CONSTRUCTION OR REPAIR OF REAL PROPERTY   IMPROVEMENTS]. This chapter does not apply to a construction [(a)   For purposes of this chapter, a contract is principally for the   construction or repair of an improvement to real property located   in this state if the contract obligates a party, as the party's   principal obligation under the contract, to provide labor or labor   and materials as a general contractor or subcontractor for the   construction or repair of an improvement to real property located   in this state.          [(b)     For purposes of this chapter, a contract is not   principally for the construction or repair of an improvement to   real property located in this state if the] contract that:                (1)  is a partnership agreement or other agreement   governing an entity or trust;                (2)  provides for a loan or other extension of credit   and the party promising to perform the work that is the subject of   the construction contract [construct or repair the improvement] is   doing so as part of the party's agreements with the lender or other   person who extends credit; or                (3)  is for the management of real property or   improvements and the obligation to perform the work that is the   subject of the construction contract [construct or repair the   improvement] is part of that management.          [(c)     Subsections (a) and (b) do not provide an exclusive   list of the situations in which a contract is or is not principally   for the construction or repair of an improvement to real property   located in this state.]          SECTION 3.  The changes in law made by this Act apply only to   a contract, or an agreement collateral to or affecting a contract,   entered into on or after the effective date of this Act. A   contract, or an agreement collateral to or affecting a contract,   entered into before the effective date of this Act is governed by   the law as it existed immediately before the effective date of this   Act, and that law is continued in effect for that purpose.          SECTION 4.  This Act takes effect September 1, 2017.