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2017 Legislative Update IV from 85th Regular Session of the Texas Legislature – Miscellaneous Bills

Published on Tuesday, August 01, 2017 in Client and Friends Memo, Texas Legislation

This legislative update summarizes additional bills from the 2017 Legislative Session that we consider of interest to our clients. The effective dates of these bills are noted in the applicable bill summary. Previous to this legislative update, we issued Legislative Update I, summarizing proposed constitutional amendments and their enabling legislation, Legislative Update II, summarizing three bills that substantially affect durable powers of attorney, and Legislative Update III, summarizing bills relating to real property. Legislative Updates I, II and III are found on the Articles page of the firm’s website www.bmandg.com.  

1. CHOICE OF LAW AND VENUE FOR CERTAIN CONSTRUCTION
CONTRACTS (SB 807) 

Since April 1, 2009, Chapter 272, Business & Commerce Code, has provided protection for a general contractor and a subcontractor under a contract that is “principally for the construction or repair of an improvement to real property located in this state,” by giving the contractor or subcontractor the ability to void a provision in the contract “making the contract or any conflict arising under the contract subject to another state’s law, litigation in the courts of another state, or arbitration in another state,” if the contract obligates the general contractor or subcontractor, as the general contractor’s or subcontractor’s principal obligation under the contract, to provide labor and/or labor and materials  for said construction or repair. 

Effective September 1, 2017, Senate Bill 807 (SB 807) broadens the scope of Chapter 272 to include all project participants, including architects, engineers, suppliers, and equipment rental companies, by adding Section 272.0001 and amending Sections 272.001 and 272.002.

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