ABC Texas Testimony on HB 2960.
Testimony of Ana Grace Husted Director of Advocacy & Outreach, Associated Builders and Contractors of Texas, before the Texas State House of Representatives Committee on Judiciary and Civil Jurisprudence
Chairman Leach and members of the committee:
My name is Ana Grace Husted, and I serve as the Director of Advocacy and Outreach for the Associated Builders and Contractors of Texas. On behalf of our 1,600 member companies and the thousands of merit shop contractors they represent, I am here today to testify in strong support of the committee substitute House Bill 2960 by Representative Hayes.
HB 2960 addresses a critical fairness issue in construction contracting: out-of-state venue and arbitration clauses that force Texas contractors into courtrooms and proceedings far from where the work actually took place. These clauses are often buried in subcontracts and presented as non-negotiable, which can be especially unfair to small and mid-sized contractors who simply don’t have the leverage—or the legal budget—to push back.
This bill ensures that when a construction project happens in Texas, any legal dispute tied to it must be resolved here in Texas, under Texas law, and in the county where the project is located. That’s just common sense. Local contractors shouldn't be forced to defend themselves in Delaware, New York, or California just because the owner inserted language into a contract to draw the case into their jurisdiction.
HB 2960 does not limit private parties from negotiating fair terms—but it makes clear that any clause requiring out-of-state litigation or arbitration is void as against public policy, not just “voidable” after the fact. This change brings needed certainty and aligns our law with what’s already expected in other areas of Texas contract law.
For ABC members, this is about protecting the local businesses that build our schools, roads, hospitals, and infrastructure. These contractors should be able to focus on delivering quality work—not spending tens of thousands of dollars fighting to move lawsuits back to Texas.
I want to thank Representative Hayes for his leadership on this issue, and I respectfully urge the committee to support HB 2960 to protect Texas contractors from being dragged into out-of-state legal battles over in-state work.
Thank you for your time and consideration.