5 | 2 | | |
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6 | 3 | | |
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7 | 4 | | A BILL TO BE ENTITLED |
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8 | 5 | | AN ACT |
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9 | 6 | | relating to the creation of the business court and the court of |
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10 | 7 | | business appeals to hear certain cases; authorizing fees. |
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11 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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12 | 9 | | SECTION 1. Subtitle A, Title 2, Government Code, is amended |
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13 | 10 | | by adding Chapter 24A to read as follows: |
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14 | 11 | | CHAPTER 24A. BUSINESS COURT AND COURT OF BUSINESS APPEALS |
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15 | 12 | | SUBCHAPTER A. GENERAL PROVISIONS |
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16 | 13 | | Sec. 24A.001. DEFINITIONS. In this chapter: |
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18 | 18 | | documents, or agreements adopted under an organization's governing |
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19 | 19 | | law to govern the organization's formation and internal affairs. |
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20 | 20 | | The term includes: |
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21 | 21 | | (A) a certificate of formation, articles of |
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22 | 22 | | incorporation, and articles of organization; |
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23 | 23 | | (B) bylaws; |
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24 | 24 | | (C) a partnership agreement; |
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25 | 25 | | (D) a company agreement or operating agreement; |
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26 | 26 | | (E) a shareholder agreement; |
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27 | 27 | | (F) a voting agreement or voting trust agreement; |
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28 | 28 | | and |
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29 | 29 | | (G) an agreement among owners restricting the |
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30 | 30 | | transfer of ownership interests. |
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34 | 34 | | alone or as part of a group, to manage and direct an organization's |
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35 | 35 | | affairs under the organization's governing documents and governing |
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36 | 36 | | law. The term includes: |
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37 | 37 | | (A) a member of the board of directors of a |
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38 | 38 | | corporation or other organization; |
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39 | 39 | | (B) a general partner of a general or limited |
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40 | 40 | | partnership; |
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41 | 41 | | (C) a manager of a limited liability company that |
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42 | 42 | | is managed by its managers; |
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43 | 43 | | (D) a member of a limited liability company that |
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44 | 44 | | is managed by its members; |
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45 | 45 | | (E) a trust manager of a real estate investment |
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46 | 46 | | trust; and |
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47 | 47 | | (F) a trustee of a business trust. |
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92 | 96 | | SUBCHAPTER B. BUSINESS COURT |
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93 | 97 | | Sec. 24A.051. JURISDICTION. (a) The business court has |
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94 | 98 | | civil jurisdiction concurrent with district courts in: |
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95 | 99 | | (1) a derivative action on behalf of an organization; |
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96 | 100 | | and |
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97 | 101 | | (2) an action in which the amount in controversy |
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98 | 102 | | exceeds $10 million, excluding interest, statutory damages, |
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99 | 103 | | exemplary damages, penalties, attorney's fees, and costs, that |
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100 | 104 | | arises against, between, or among organizations, governing |
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101 | 105 | | authorities, governing persons, members, or owners, relating to a |
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102 | 106 | | contract transaction for business, commercial, investment, |
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103 | 107 | | agricultural, or similar purposes. |
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104 | 108 | | (b) The business court has statewide jurisdiction of an |
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105 | 109 | | action described in Subsection (a) and all matters arising out of or |
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106 | 110 | | related to an action described in Subsection (a). |
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107 | 111 | | (c) The business court may grant any relief available in a |
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108 | 112 | | district court. |
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109 | 113 | | (d) Notwithstanding Subsections (a) and (b), the business |
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110 | 114 | | court: |
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120 | 124 | | proceed in the business court. |
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121 | 125 | | (e) If a claim is severed as provided by Subsection (d)(2), |
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122 | 126 | | the business court has discretion to stay or abate its own |
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123 | 127 | | proceedings pending resolution of the severed claim. |
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124 | 128 | | Sec. 24A.052. INITIAL FILING; REMOVAL AND REMAND; TRANSFER. |
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125 | 129 | | (a) An action in the jurisdiction of the business court may be |
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126 | 130 | | filed in the business court. If the business court does not have |
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127 | 131 | | subject matter jurisdiction of the action, or part of the action, |
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128 | 132 | | the court shall dismiss without prejudice to refiling the whole or |
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129 | 133 | | part of the action. A claim that is dismissed under this subsection |
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130 | 134 | | may be refiled in a court with jurisdiction by the party who filed |
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131 | 135 | | the claim in the business court not later than the 30th day after |
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132 | 136 | | the date the claim was dismissed by the business court, |
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133 | 137 | | notwithstanding the expiration of a period of limitation provided |
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134 | 138 | | by statute. |
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135 | 139 | | (b) A party to an action filed in a district court or county |
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136 | 140 | | court at law that is in the subject matter jurisdiction of the |
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137 | 141 | | business court may remove the action to the business court by filing |
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138 | 142 | | a notice of removal with the business court and the court in which |
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139 | 143 | | the action was originally filed. If the business court does not |
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140 | 144 | | have jurisdiction of the action or part of the action, the business |
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141 | 145 | | court shall remand the action, or the part in which the business |
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142 | 146 | | court does not have jurisdiction, to the court from which the action |
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143 | 147 | | was removed. A party may appeal an interlocutory order of the |
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144 | 148 | | business court that grants or refuses a remand under this |
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145 | 149 | | subsection to the court of business appeals. |
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146 | 150 | | (c) Removal of a case to the business court is not subject to |
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147 | 151 | | the statutes or rules governing the due order of pleading. |
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148 | 152 | | (d) Removal of a case does not waive a defect in venue or |
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149 | 153 | | constitute an appearance to determine personal jurisdiction. |
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150 | 154 | | (e) Any claim in which the business court does not have |
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151 | 155 | | jurisdiction as provided by Section 24A.051(d) must be transferred |
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152 | 156 | | to a district court in a county in which the claim could have been |
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153 | 157 | | originally filed. If the claim could have been filed in more than |
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154 | 158 | | one county, the party bringing the claim may elect the county to |
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155 | 159 | | which the claim is transferred. |
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156 | 160 | | (f) A cause of action filed in the business court shall be |
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157 | 161 | | assigned to the docket of a judge on a rotating basis. |
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158 | 162 | | (g) The supreme court shall promulgate rules of civil |
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159 | 163 | | procedure providing for the timely and efficient removal and remand |
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160 | 164 | | of cases to and from the business court. |
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206 | | - | Sec. 24A.058. JUDICIAL AUTHORITY. A judge of the business |
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207 | | - | court has all powers, duties, immunities, and privileges of a |
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208 | | - | district judge. |
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209 | | - | Sec. 24A.059. JUDGE'S SALARY. (a) A judge of the business |
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210 | | - | court shall be paid a total annual salary from the state that is the |
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211 | | - | sum of: |
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| 210 | + | Sec. 24A.058. JUDICIAL AUTHORITY. A business court judge |
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| 211 | + | has all powers, duties, immunities, and privileges of a district |
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| 212 | + | judge. |
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| 213 | + | Sec. 24A.059. JUDGE'S SALARY. (a) A business court judge |
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| 214 | + | shall be paid a total annual salary from the state that is the sum |
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| 215 | + | of: |
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219 | | - | A judge of the business court may be removed from office in the same |
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220 | | - | manner and for the same reasons as a district judge. |
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221 | | - | (b) A judge of the business court is disqualified or shall |
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222 | | - | recuse himself or herself in a particular case for the same reasons |
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223 | | - | as a district judge. Disqualification or recusal of a judge of the |
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224 | | - | business court shall be governed by the same procedure as |
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225 | | - | disqualification or recusal of a district judge. |
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226 | | - | Sec. 24A.061. PRIVATE PRACTICE OF LAW. A judge of the |
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227 | | - | business court shall diligently discharge the duties of the office |
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228 | | - | on a full-time basis and may not engage in the private practice of |
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229 | | - | law. |
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| 223 | + | A business court judge may be removed from office in the same manner |
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| 224 | + | and for the same reasons as a district judge. |
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| 225 | + | (b) A business court judge is disqualified or shall recuse |
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| 226 | + | himself or herself in a particular case for the same reasons as a |
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| 227 | + | district judge. Disqualification or recusal of a business court |
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| 228 | + | judge shall be governed by the same procedure as disqualification |
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| 229 | + | or recusal of a district judge. |
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| 230 | + | Sec. 24A.061. PRIVATE PRACTICE OF LAW. A business court |
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| 231 | + | judge shall diligently discharge the duties of the office on a |
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| 232 | + | full-time basis and may not engage in the private practice of law. |
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239 | 242 | | (c) Before accepting an assignment as a visiting judge of |
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240 | 243 | | the business court, a retired or former judge or justice shall take |
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241 | 244 | | the constitutional oath of office required of appointed officers of |
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242 | 245 | | this state and file the oath with the supreme court. |
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243 | 246 | | Sec. 24A.063. JURY PRACTICE AND PROCEDURE. (a) A party in |
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244 | 247 | | an action pending in the business court has the right to a trial by |
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245 | 248 | | jury when required by the constitution. |
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246 | 249 | | (b) A jury trial shall be held in a county in which venue |
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247 | 250 | | would be found under Section 15.002, Civil Practice and Remedies |
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248 | 251 | | Code. |
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249 | 252 | | (c) Subject to Subsection (b), a jury trial in a case |
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250 | 253 | | removed to the business court shall be held in the county in which |
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251 | 254 | | the action was originally filed. |
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252 | 255 | | (d) Subject to Subsection (b), a jury trial in a case filed |
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253 | 256 | | initially in the business court shall be held in any county in which |
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254 | 257 | | it could have been filed under Section 15.002, Civil Practice and |
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255 | 258 | | Remedies Code, as chosen by the plaintiff. |
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278 | 281 | | provided by the state. |
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279 | 282 | | (c) Subject to Section 24A.063, the business court, or any |
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280 | 283 | | judge of the business court, may hold court at any location in the |
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281 | 284 | | state, as the court determines is necessary or convenient for a |
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282 | 285 | | particular civil action. |
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283 | 286 | | (d) The business court shall use the most advanced |
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284 | 287 | | technology feasible when necessary and appropriate to facilitate |
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285 | 288 | | expeditious proceedings in matters brought before the court. As |
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286 | 289 | | determined by the business court, counsel and parties may appear |
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287 | 290 | | before the business court by means of Internet-based or other |
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288 | 291 | | technological devices rather than in person. |
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289 | 292 | | (e) In a county in which the business court sits, the |
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290 | 293 | | sheriff shall in person or by deputy attend the business court as |
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291 | 294 | | required by the court. The sheriff or deputy is entitled to be |
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292 | 295 | | reimbursed by the state for the cost of attending court. |
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293 | 296 | | (f) Subject to any limitations provided by the General |
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294 | 297 | | Appropriations Act, the business court may appoint personnel |
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295 | 298 | | necessary for the operation of the court, including: |
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296 | 299 | | (1) the clerk of the court; |
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297 | 300 | | (2) staff attorneys for the court; |
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300 | 302 | | (4) court coordinators; and |
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301 | 303 | | (5) administrative assistants. |
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302 | 304 | | (g) The court officials shall perform the duties and |
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303 | 305 | | responsibilities of their offices and are entitled to the |
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304 | 306 | | compensation, fees, and allowances prescribed by law for the |
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305 | 307 | | offices. |
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306 | 308 | | Sec. 24A.065. FEES. The business court shall provide rates |
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307 | 309 | | for fees associated with filings and actions in the business court. |
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308 | 310 | | The fees shall be set at a sufficient amount to cover the costs of |
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309 | 311 | | administering the provisions of this chapter, taking into account |
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310 | 312 | | fee waivers in the interest of justice. |
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311 | 313 | | Sec. 24A.066. SEAL. The seal of the business court is the |
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312 | 314 | | same as that provided by law for a district court except that the |
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313 | 315 | | seal must contain the name "The Business Court of Texas." |
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314 | 316 | | SUBCHAPTER C. COURT OF BUSINESS APPEALS |
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315 | | - | Sec. 24A.101. JURISDICTION; APPEAL. (a) The Court of |
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316 | | - | Business Appeals has exclusive jurisdiction over an appeal from an |
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317 | | - | order or judgment of the business court. |
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318 | | - | (b) An appeal from an order or judgment of the business |
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319 | | - | court is available in the same manner as an appeal from an order or |
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320 | | - | judgment of a district court. |
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321 | | - | (c) The procedure governing an appeal from an order or |
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322 | | - | judgment of a business court is the same as an appeal from an order |
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323 | | - | or judgment of a district court. |
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324 | | - | Sec. 24A.102. COURT OF BUSINESS APPEALS; COMPOSITION. (a) |
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325 | | - | The governor, with the advice and consent of the senate, shall |
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326 | | - | appoint seven justices to serve as the Court of Business Appeals. |
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| 317 | + | Sec. 24A.101. APPEAL; COURT OF BUSINESS APPEALS. An appeal |
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| 318 | + | from an order or judgment of the business court is available in the |
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| 319 | + | same manner as an appeal from an order or judgment of a district |
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| 320 | + | court. The procedure governing an appeal from an order or judgment |
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| 321 | + | of a business court is the same as an appeal from an order or |
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| 322 | + | judgment of a district court. An appeal from an order or judgment |
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| 323 | + | of the business court must be filed in the court of business |
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| 324 | + | appeals. |
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| 325 | + | Sec. 24A.102. COMPOSITION OF COURT. (a) The court of |
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| 326 | + | business appeals is composed of seven justices appointed by the |
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| 327 | + | governor with the advice and consent of the senate. |
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330 | | - | (c) A justice of the Court of Business Appeals may be |
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331 | | - | appointed to two or more consecutive terms. |
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332 | | - | Sec. 24A.103. CHIEF JUSTICE. The governor shall designate |
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333 | | - | one of the seven justices appointed under Section 24A.102 as the |
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334 | | - | chief justice of the Court of Business Appeals. |
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335 | | - | Sec. 24A.104. TERM OF OFFICE. A justice of the Court of |
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336 | | - | Business Appeals shall serve a two-year term. |
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337 | | - | Sec. 24A.105. VACANCY. If a vacancy occurs on the Court of |
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| 331 | + | (c) The governor shall designate one of the seven justices |
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| 332 | + | as the chief justice of the court of business appeals. |
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| 333 | + | (d) A justice of the court of business appeals may be |
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| 334 | + | reappointed by the governor. |
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| 335 | + | Sec. 24A.103. TERMS OF OFFICE. The justices of the court of |
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| 336 | + | business appeals shall serve two-year terms of office. |
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| 337 | + | Sec. 24A.104. VACANCY. If a vacancy occurs on the court of |
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367 | 367 | | appeals is the same as that provided by law for a court of appeals |
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368 | 368 | | except that the seal must contain the name "The Court of Business |
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369 | 369 | | Appeals of Texas." |
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370 | 370 | | SECTION 2. (a) As soon as practicable after the effective |
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371 | 371 | | date of this Act, the governor shall appoint judges to the business |
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372 | 372 | | court, as required by Section 24A.055, Government Code, as added by |
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373 | 373 | | this Act. |
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374 | 374 | | (b) As soon as practicable after the effective date of this |
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375 | 375 | | Act, the governor shall appoint justices to the court of business |
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376 | 376 | | appeals, as required by Section 24A.102, Government Code, as added |
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377 | 377 | | by this Act. |
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378 | 378 | | SECTION 3. The changes in law made by this Act apply to |
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379 | 379 | | civil actions commenced on or after January 1, 2022. |
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380 | 380 | | SECTION 4. (a) The Supreme Court of Texas has exclusive and |
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381 | 381 | | original jurisdiction over a challenge to the constitutionality of |
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382 | 382 | | this Act or any part of this Act and may issue injunctive or |
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383 | 383 | | declaratory relief in connection with the challenge. |
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384 | 384 | | (b) If the appointment of judges by the governor to the |
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385 | 385 | | business court under Section 24A.055, Government Code, as added by |
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386 | 386 | | this Act, is held by the Supreme Court of Texas as unconstitutional, |
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387 | 387 | | the business court shall be staffed by sitting or retired judges who |
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388 | 388 | | are appointed by the supreme court. |
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