Texas 2023 - 88th Regular

Texas House Bill HB19 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	H.B. No. 19
2	2
3	3
4	4	AN ACT
5	5	relating to the creation of a specialty trial court to hear certain
6	6	cases; authorizing fees.
7	7	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	8	SECTION 1. Subtitle A, Title 2, Government Code, is amended
9	9	by adding Chapter 25A to read as follows:
10	10	CHAPTER 25A. BUSINESS COURT
11	11	Sec. 25A.001. DEFINITIONS. In this chapter:
12	12	(1) "Controlling person" means a person who directly
13	13	or indirectly controls a governing person, officer, or
14	14	organization.
15	15	(2) "Derivative proceeding" means a civil action
16	16	brought in the right of a domestic or foreign corporation, a
17	17	domestic or foreign limited liability company, or a domestic or
18	18	foreign limited partnership, to the extent provided by the Business
19	19	Organizations Code.
20	20	(3) "Governing documents" means the instruments,
21	21	documents, or agreements adopted under an organization's governing
22	22	law to govern the organization's formation and internal affairs.
23	23	The term includes:
24	24	(A) a certificate of formation, articles of
25	25	incorporation, and articles of organization;
26	26	(B) bylaws;
27	27	(C) a partnership agreement;
28	28	(D) a company agreement or operating agreement;
29	29	(E) a shareholder agreement;
30	30	(F) a voting agreement or voting trust agreement;
31	31	and
32	32	(G) an agreement among owners restricting the
33	33	transfer of ownership interests.
34	34	(4) "Governing law" means the law governing the
35	35	formation and internal affairs of an organization.
36	36	(5) "Governing person" means a person who is entitled,
37	37	alone or as part of a group, to manage and direct an organization's
38	38	affairs under the organization's governing documents and governing
39	39	law. The term includes:
40	40	(A) a member of the board of directors of a
41	41	corporation or other organization;
42	42	(B) a general partner of a general or limited
43	43	partnership;
44	44	(C) a manager of a limited liability company that
45	45	is managed by its managers;
46	46	(D) a member of a limited liability company that
47	47	is managed by its members;
48	48	(E) a trust manager of a real estate investment
49	49	trust; and
50	50	(F) a trustee of a business trust.
51	51	(6) "Governmental entity" means:
52	52	(A) this state; or
53	53	(B) a political subdivision of this state,
54	54	including a municipality, a county, or any kind of district.
55	55	(7) "Internal affairs" means:
56	56	(A) the rights, powers, and duties of an
57	57	organization's governing persons, officers, owners, and members;
58	58	and
59	59	(B) matters relating to the organization's
60	60	membership or ownership interests.
61	61	(8) "Managerial official" means a governing person or
62	62	officer.
63	63	(9) "Officer" means a person elected, appointed, or
64	64	designated as an officer of an organization by the organization's
65	65	governing persons or governing documents.
66	66	(10) "Organization" means a foreign or domestic entity
67	67	or association, regardless of whether the organization is for
68	68	profit or nonprofit. The term includes:
69	69	(A) a corporation;
70	70	(B) a limited partnership;
71	71	(C) a general partnership;
72	72	(D) a limited liability partnership;
73	73	(E) a limited liability company;
74	74	(F) a business trust;
75	75	(G) a real estate investment trust;
76	76	(H) a joint venture;
77	77	(I) a joint stock company;
78	78	(J) a cooperative;
79	79	(K) a bank;
80	80	(L) a credit union;
81	81	(M) a savings and loan association;
82	82	(N) an insurance company; and
83	83	(O) a series of a limited liability company or of
84	84	another entity.
85	85	(11) "Owner" means an owner of an organization. The
86	86	term includes:
87	87	(A) a shareholder or stockholder of a corporation
88	88	or other organization;
89	89	(B) a general or limited partner of a partnership
90	90	or an assignee of a partnership interest in a partnership;
91	91	(C) a member of, or an assignee of a membership
92	92	interest in, a limited liability company; and
93	93	(D) a member of a nonprofit organization.
94	94	(12) "Ownership interest" means an owner's interest in
95	95	an organization, including an owner's economic, voting, and
96	96	management rights.
97	97	(13) "Publicly traded company" means an entity whose
98	98	voting equity securities are listed on a national securities
99	99	exchange registered with the United States Securities and Exchange
100	100	Commission under Section 6, Securities Exchange Act of 1934 (15
101	101	U.S.C. Section 78f) and any entity that is majority owned or
102	102	controlled by such an entity.
103	103	(14) "Qualified transaction" means a transaction,
104	104	other than a transaction involving a loan or an advance of money or
105	105	credit by a bank, credit union, or savings and loan institution,
106	106	under which a party:
107	107	(A) pays or receives, or is obligated to pay or is
108	108	entitled to receive, consideration with an aggregate value of at
109	109	least $10 million; or
110	110	(B) lends, advances, borrows, receives, is
111	111	obligated to lend or advance, or is entitled to borrow or receive
112	112	money or credit with an aggregate value of at least $10 million.
113	113	Sec. 25A.002. CREATION. The business court is a statutory
114	114	court created under Section 1, Article V, Texas Constitution.
115	115	Sec. 25A.003. BUSINESS COURT JUDICIAL DISTRICT; DIVISIONS.
116	116	(a) The judicial district of the business court is composed of all
117	117	counties in this state.
118	118	(b) The business court is composed of divisions as provided
119	119	by this section.
120	120	(c) The First Business Court Division is composed of the
121	121	counties composing the First Administrative Judicial Region under
122	122	Section 74.042(b).
123	123	(d) The Second Business Court Division is composed of the
124	124	counties composing the Second Administrative Judicial Region under
125	125	Section 74.042(c), subject to funding through legislative
126	126	appropriations. The division is abolished September 1, 2026, unless
127	127	reauthorized by the legislature and funded through additional
128	128	legislative appropriations.
129	129	(e) The Third Business Court Division is composed of the
130	130	counties composing the Third Administrative Judicial Region under
131	131	Section 74.042(d).
132	132	(f) The Fourth Business Court Division is composed of the
133	133	counties composing the Fourth Administrative Judicial Region under
134	134	Section 74.042(e).
135	135	(g) The Fifth Business Court Division is composed of the
136	136	counties composing the Fifth Administrative Judicial Region under
137	137	Section 74.042(f), subject to funding through legislative
138	138	appropriations. The division is abolished on September 1, 2026,
139	139	unless reauthorized by the legislature and funded through
140	140	additional legislative appropriations.
141	141	(h) The Sixth Business Court Division is composed of the
142	142	counties composing the Sixth Administrative Judicial Region under
143	143	Section 74.042(g), subject to funding through legislative
144	144	appropriations. The division is abolished on September 1, 2026,
145	145	unless reauthorized by the legislature and funded through
146	146	additional legislative appropriations.
147	147	(i) The Seventh Business Court Division is composed of the
148	148	counties composing the Seventh Administrative Judicial Region
149	149	under Section 74.042(h), subject to funding through legislative
150	150	appropriations. The division is abolished on September 1, 2026,
151	151	unless reauthorized by the legislature and funded through
152	152	additional legislative appropriations.
153	153	(j) The Eighth Business Court Division is composed of the
154	154	counties composing the Eighth Administrative Judicial Region under
155	155	Section 74.042(i).
156	156	(k) The Ninth Business Court Division is composed of the
157	157	counties composing the Ninth Administrative Judicial Region under
158	158	Section 74.042(j), subject to funding through legislative
159	159	appropriations. The division is abolished on September 1, 2026,
160	160	unless reauthorized by the legislature and funded through
161	161	additional legislative appropriations.
162	162	(l) The Tenth Business Court Division is composed of the
163	163	counties composing the Tenth Administrative Judicial Region under
164	164	Section 74.042(k), subject to funding through legislative
165	165	appropriations. The division is abolished on September 1, 2026,
166	166	unless reauthorized by the legislature and funded through
167	167	additional legislative appropriations.
168	168	(m) The Eleventh Business Court Division is composed of the
169	169	counties composing the Eleventh Administrative Judicial Region
170	170	under Section 74.042(l).
171	171	(n) This subsection and Subsections (d), (g), (h), (i), (k),
172	172	and (l) expire September 1, 2026.
173	173	Sec. 25A.004. JURISDICTION AND POWERS. (a) Subject to
174	174	Subsections (b), (c), (d), (e), and (f), the business court has the
175	175	powers provided to district courts by Chapter 24, including the
176	176	power to:
177	177	(1) issue writs of injunction, mandamus,
178	178	sequestration, attachment, garnishment, and supersedeas; and
179	179	(2) grant any relief that may be granted by a district
180	180	court.
181	181	(b) Subject to Subsection (c), the business court has civil
182	182	jurisdiction concurrent with district courts in the following
183	183	actions in which the amount in controversy exceeds $5 million,
184	184	excluding interest, statutory damages, exemplary damages,
185	185	penalties, attorney's fees, and court costs:
186	186	(1) a derivative proceeding;
187	187	(2) an action regarding the governance, governing
188	188	documents, or internal affairs of an organization;
189	189	(3) an action in which a claim under a state or federal
190	190	securities or trade regulation law is asserted against:
191	191	(A) an organization;
192	192	(B) a controlling person or managerial official
193	193	of an organization for an act or omission by the organization or by
194	194	the person in the person's capacity as a controlling person or
195	195	managerial official;
196	196	(C) an underwriter of securities issued by the
197	197	organization; or
198	198	(D) the auditor of an organization;
199	199	(4) an action by an organization, or an owner of an
200	200	organization, if the action:
201	201	(A) is brought against an owner, controlling
202	202	person, or managerial official of the organization; and
203	203	(B) alleges an act or omission by the person in
204	204	the person's capacity as an owner, controlling person, or
205	205	managerial official of the organization;
206	206	(5) an action alleging that an owner, controlling
207	207	person, or managerial official breached a duty owed to an
208	208	organization or an owner of an organization by reason of the
209	209	person's status as an owner, controlling person, or managerial
210	210	official, including the breach of a duty of loyalty or good faith;
211	211	(6) an action seeking to hold an owner or governing
212	212	person of an organization liable for an obligation of the
213	213	organization, other than on account of a written contract signed by
214	214	the person to be held liable in a capacity other than as an owner or
215	215	governing person; and
216	216	(7) an action arising out of the Business
217	217	Organizations Code.
218	218	(c) The business court has civil jurisdiction concurrent
219	219	with district courts in an action described by Subsection (b)
220	220	regardless of the amount in controversy if a party to the action is
221	221	a publicly traded company.
222	222	(d) The business court has civil jurisdiction concurrent
223	223	with district courts in the following actions in which the amount in
224	224	controversy exceeds $10 million, excluding interest, statutory
225	225	damages, exemplary damages, penalties, attorney's fees, and court
226	226	costs:
227	227	(1) an action arising out of a qualified transaction;
228	228	(2) an action that arises out of a contract or
229	229	commercial transaction in which the parties to the contract or
230	230	transaction agreed in the contract or a subsequent agreement that
231	231	the business court has jurisdiction of the action, except an action
232	232	that arises out of an insurance contract; and
233	233	(3) subject to Subsection (g), an action that arises
234	234	out of a violation of the Finance Code or Business & Commerce Code
235	235	by an organization or an officer or governing person acting on
236	236	behalf of an organization other than a bank, credit union, or
237	237	savings and loan association.
238	238	(e) The business court has civil jurisdiction concurrent
239	239	with district courts in an action seeking injunctive relief or a
240	240	declaratory judgment under Chapter 37, Civil Practice and Remedies
241	241	Code, involving a dispute based on a claim within the court's
242	242	jurisdiction under Subsection (b), (c), or (d).
243	243	(f) Except as provided by Subsection (h), the business court
244	244	has supplemental jurisdiction over any other claim related to a
245	245	case or controversy within the court's jurisdiction that forms part
246	246	of the same case or controversy. A claim within the business
247	247	court's supplemental jurisdiction may proceed in the business court
248	248	only on the agreement of all parties to the claim and a judge of the
249	249	division of the court before which the action is pending. If the
250	250	parties involved in a claim within the business court's
251	251	supplemental jurisdiction do not agree on the claim proceeding in
252	252	the business court, the claim may proceed in a court of original
253	253	jurisdiction concurrently with any related claims proceeding in the
254	254	business court.
255	255	(g) Unless the claim falls within the business court's
256	256	supplemental jurisdiction, the business court does not have
257	257	jurisdiction of:
258	258	(1) a civil action:
259	259	(A) brought by or against a governmental entity;
260	260	or
261	261	(B) to foreclose on a lien on real or personal
262	262	property;
263	263	(2) a claim arising out of:
264	264	(A) Subchapter E, Chapter 15, and Chapter 17,
265	265	Business & Commerce Code;
266	266	(B) the Estates Code;
267	267	(C) the Family Code;
268	268	(D) the Insurance Code; or
269	269	(E) Chapter 53 and Title 9, Property Code;
270	270	(3) a claim arising out of the production or sale of a
271	271	farm product, as that term is defined by Section 9.102, Business &
272	272	Commerce Code;
273	273	(4) a claim related to a consumer transaction, as that
274	274	term is defined by Section 601.001, Business & Commerce Code, to
275	275	which a consumer in this state is a party, arising out of a
276	276	violation of federal or state law; or
277	277	(5) a claim related to the duties and obligations
278	278	under an insurance policy.
279	279	(h) The business court does not have jurisdiction of the
280	280	following claims regardless of whether the claim is otherwise
281	281	within the court's supplemental jurisdiction under Subsection (f):
282	282	(1) a claim arising under Chapter 74, Civil Practice
283	283	and Remedies Code;
284	284	(2) a claim in which a party seeks recovery of monetary
285	285	damages for bodily injury or death; or
286	286	(3) a claim of legal malpractice.
287	287	Sec. 25A.005. JUDICIAL AUTHORITY. A business court judge
288	288	has all powers, duties, immunities, and privileges of a district
289	289	judge.
290	290	Sec. 25A.006. INITIAL FILING; REMOVAL AND REMAND. (a) An
291	291	action within the jurisdiction of the business court may be filed in
292	292	the business court. The party filing the action must plead facts to
293	293	establish venue in a county in a division of the business court, and
294	294	the business court shall assign the action to that division. Venue
295	295	may be established as provided by law or, if a written contract
296	296	specifies a county as venue for the action, as provided by the
297	297	contract.
298	298	(b) If the business court does not have jurisdiction of the
299	299	action, the court shall, at the option of the party filing the
300	300	action:
301	301	(1) transfer the action to a district court or county
302	302	court at law in a county of proper venue; or
303	303	(2) dismiss the action without prejudice to the
304	304	party's rights.
305	305	(c) If, after an action is assigned to a division of the
306	306	business court, the court determines that the division's geographic
307	307	territory does not include a county of proper venue for the action,
308	308	the court shall:
309	309	(1) if an operating division of the court includes a
310	310	county of proper venue, transfer the action to that division; or
311	311	(2) if there is not an operating division of the court
312	312	that includes a county of proper venue, at the option of the party
313	313	filing the action, transfer the action to a district court or county
314	314	court at law in a county of proper venue.
315	315	(d) A party to an action filed in a district court or county
316	316	court at law that is within the jurisdiction of the business court
317	317	may remove the action to the business court. If the business court
318	318	does not have jurisdiction of the action, the business court shall
319	319	remand the action to the court in which the action was originally
320	320	filed.
321	321	(e) A party to an action filed in a district court or county
322	322	court at law in a county of proper venue that is not within an
323	323	operating division of the business court or the judge of the court
324	324	in which the action is filed may not remove or transfer the action
325	325	to the business court.
326	326	(f) A party may file an agreed notice of removal at any time
327	327	during the pendency of the action. If all parties to the action
328	328	have not agreed to remove the action, the notice of removal must be
329	329	filed:
330	330	(1) not later than the 30th day after the date the
331	331	party requesting removal of the action discovered, or reasonably
332	332	should have discovered, facts establishing the business court's
333	333	jurisdiction over the action; or
334	334	(2) if an application for temporary injunction is
335	335	pending on the date the party requesting removal of the action
336	336	discovered, or reasonably should have discovered, facts
337	337	establishing the business court's jurisdiction over the action, not
338	338	later than the 30th day after the date the application is granted,
339	339	denied, or denied as a matter of law.
340	340	(g) The notice of removal must be filed with the business
341	341	court and the court in which the action was originally filed. On
342	342	receipt of the notice, the clerk of the court in which the action
343	343	was originally filed shall immediately transfer the action to the
344	344	business court in accordance with rules adopted by the supreme
345	345	court, and the business court clerk shall assign the action to the
346	346	appropriate division of the business court.
347	347	(h) The filing of an action or a notice of removal in the
348	348	business court is subject to Section 10.001, Civil Practice and
349	349	Remedies Code.
350	350	(i) Removal of a case to the business court is not subject to
351	351	the statutes or rules governing the due order of pleading.
352	352	(j) Removal of a case does not waive a defect in venue or
353	353	constitute an appearance to determine personal jurisdiction.
354	354	(k) The judge of a court in which an action is filed may
355	355	request the presiding judge for the court's administrative region
356	356	to transfer the action to the business court if the action is within
357	357	the business court's jurisdiction. The judge shall notify all
358	358	parties of the transfer request and request a hearing on the
359	359	transfer request. After a hearing on the request, the presiding
360	360	judge may transfer the action to the business court if the presiding
361	361	judge finds the transfer will facilitate the fair and efficient
362	362	administration of justice. The business court clerk shall assign
363	363	an action transferred under this subsection to the appropriate
364	364	division of the business court.
365	365	(l) The business court judge on establishment of
366	366	jurisdiction and venue over an action shall by order declare the
367	367	county in which any jury trial for the action will be held as
368	368	determined under Section 25A.015.
369	369	Sec. 25A.007. APPEALS. (a) Notwithstanding any other law
370	370	and except as provided by Subsection (b) and in instances when the
371	371	supreme court has concurrent or exclusive jurisdiction, the
372	372	Fifteenth Court of Appeals has exclusive jurisdiction over an
373	373	appeal from an order or judgment of the business court or an
374	374	original proceeding related to an action or order of the business
375	375	court.
376	376	(b) If the Fifteenth Court of Appeals is not created, an
377	377	appeal from an order or judgment of the business court or an
378	378	original proceeding related to an action or order of the business
379	379	court shall be filed in the court of appeals with appellate
380	380	jurisdiction of civil cases for the county declared in an order
381	381	under Section 25A.006(l).
382	382	(c) The procedure governing an appeal or original
383	383	proceeding from the business court is the same as the procedure for
384	384	an appeal or original proceeding from a district court.
385	385	Sec. 25A.008. QUALIFICATIONS OF JUDGE. (a) A business
386	386	court judge must:
387	387	(1) be at least 35 years of age;
388	388	(2) be a United States citizen;
389	389	(3) have been a resident of a county within the
390	390	division of the business court to which the judge is appointed for
391	391	at least five years before appointment; and
392	392	(4) be a licensed attorney in this state who has 10 or
393	393	more years of experience in:
394	394	(A) practicing complex civil business
395	395	litigation;
396	396	(B) practicing business transaction law;
397	397	(C) serving as a judge of a court in this state
398	398	with civil jurisdiction; or
399	399	(D) any combination of experience described by
400	400	Paragraphs (A)-(C).
401	401	(b) A business court judge may not have had the judge's
402	402	license to practice law revoked, suspended, or subject to a
403	403	probated suspension.
404	404	Sec. 25A.009. APPOINTMENT OF JUDGES; TERM; PRESIDING JUDGE;
405	405	EXCHANGE OF BENCHES. (a) The governor, with the advice and consent
406	406	of the senate, shall appoint:
407	407	(1) two judges to each of the First, Third, Fourth,
408	408	Eighth, and Eleventh Divisions of the business court; and
409	409	(2) one judge to each of the Second, Fifth, Sixth,
410	410	Seventh, Ninth, and Tenth Divisions of the business court.
411	411	(b) A business court judge shall serve for a term of two
412	412	years, beginning on September 1 of every even-numbered year.
413	413	(c) A business court judge may be reappointed.
414	414	(d) Not later than the seventh day after the first day of a
415	415	term, the business court judges by majority vote shall select a
416	416	judge of the court to serve as administrative presiding judge for
417	417	the duration of the term. If a vacancy occurs in the position of
418	418	administrative presiding judge, the remaining business court
419	419	judges shall select a judge of the court to serve as administrative
420	420	presiding judge for the remainder of the unexpired term as soon as
421	421	practicable.
422	422	(e) A business court judge shall take the constitutional
423	423	oath of office required of appointed officers of this state and file
424	424	the oath with the secretary of state.
425	425	(f) To promote the orderly and efficient administration of
426	426	justice, the business court judges may exchange benches and sit and
427	427	act for each other in any matter pending before the court.
428	428	Sec. 25A.010. VACANCY. If a vacancy occurs in an office of
429	429	a business court judge, the governor, with the advice and consent of
430	430	the senate, shall appoint, in the same manner as the original
431	431	appointment, another person to serve for the remainder of the
432	432	unexpired term.
433	433	Sec. 25A.011. JUDGE'S SALARY. The salary of a business
434	434	court judge is the amount provided by Section 659.012 and shall be
435	435	paid in equal monthly installments.
436	436	Sec. 25A.012. REMOVAL; DISQUALIFICATION AND RECUSAL. (a)
437	437	A business court judge may be removed from office in the same manner
438	438	and for the same reasons as a district judge.
439	439	(b) A business court judge is disqualified and subject to
440	440	mandatory recusal for the same reasons a district judge is subject
441	441	to disqualification or recusal in a pending case. Disqualification
442	442	or recusal of a business court judge shall be governed by the same
443	443	procedure as disqualification or recusal of a district judge.
444	444	Sec. 25A.013. PRIVATE PRACTICE OF LAW. A business court
445	445	judge shall diligently discharge the duties of the office on a
446	446	full-time basis and may not engage in the private practice of law.
447	447	Sec. 25A.014. VISITING JUDGE. (a) A retired or former
448	448	judge or justice who has the qualifications prescribed by Section
449	449	25A.008 may be assigned as a visiting judge of a division of the
450	450	business court by the chief justice of the supreme court. A
451	451	visiting judge of a division of the business court is subject to
452	452	objection, disqualification, or recusal in the same manner as a
453	453	retired or former judge or justice is subject to objection,
454	454	disqualification, or recusal if appointed as a visiting district
455	455	judge.
456	456	(b) Before accepting an assignment as a visiting judge of a
457	457	division of the business court, a retired or former judge or justice
458	458	shall take the constitutional oath of office required of appointed
459	459	officers of this state and file the oath with the secretary of
460	460	state.
461	461	Sec. 25A.015. JURY PRACTICE AND PROCEDURE; VENUE FOR JURY
462	462	TRIAL. (a) A party in an action pending in the business court has
463	463	the right to a trial by jury when required by the constitution.
464	464	(b) Subject to Subsection (d), a jury trial in a case filed
465	465	initially in the business court shall be held in any county in which
466	466	the case could have been filed under Section 15.002, Civil Practice
467	467	and Remedies Code, as chosen by the plaintiff.
468	468	(c) Subject to Subsections (b) and (d), a jury trial in a
469	469	case removed to the business court shall be held in the county in
470	470	which the action was originally filed.
471	471	(d) A jury trial for a case in which a written contract
472	472	specifies a county as venue for suits shall be held in that county.
473	473	(e) The parties and the business court judge may agree to
474	474	hold the jury trial in any other county. A party may not be required
475	475	to agree to hold the jury trial in a different county.
476	476	(f) The drawing of jury panels, selection of jurors, and
477	477	other jury-related practice and procedure in the business court
478	478	shall be the same as for the district court in the county in which
479	479	the trial is held.
480	480	(g) Practice, procedure, rules of evidence, issuance of
481	481	process and writs, and all other matters pertaining to the conduct
482	482	of trials, hearings, and other business in the business court are
483	483	governed by the laws and rules prescribed for district courts,
484	484	unless otherwise provided by this chapter.
485	485	Sec. 25A.016. WRITTEN OPINIONS. The supreme court shall
486	486	adopt rules for the issuance of written opinions by the business
487	487	court.
488	488	Sec. 25A.017. COURT LOCATION; STAFFING. (a) In this
489	489	section, "remote proceeding" means a proceeding before the business
490	490	court in which one or more of the participants, including a judge,
491	491	party, attorney, witness, court reporter, or other individual
492	492	attends the proceeding remotely through the use of technology.
493	493	(b) The administrative presiding judge of the business
494	494	court shall manage administrative and personnel matters on behalf
495	495	of the court. The administrative presiding judge of the business
496	496	court shall appoint a clerk, whose office shall be located in Travis
497	497	County in facilities provided by this state. The clerk shall:
498	498	(1) accept all filings in the business court; and
499	499	(2) fulfill the legal and administrative functions of
500	500	a district clerk.
501	501	(c) Each business court judge shall maintain chambers in the
502	502	county the judge selects within the geographic boundaries of the
503	503	division to which the judge is appointed in facilities provided by
504	504	this state. For purposes of this section, the Office of Court
505	505	Administration of the Texas Judicial System may contract for the
506	506	use of facilities with a county.
507	507	(d) Subject to Section 25A.015, a business court judge may
508	508	hold court at any courtroom within the geographic boundaries of the
509	509	division to which the judge is appointed as the court determines
510	510	necessary or convenient for a particular civil action. To the
511	511	extent practicable, a county using existing courtrooms and
512	512	facilities shall accommodate the business court in the conduct of
513	513	the court's hearings and other proceedings.
514	514	(e) The business court may conduct a proceeding other than a
515	515	jury trial as a remote proceeding to facilitate the resolution of a
516	516	matter before the court. The business court may not require a party
517	517	or attorney to remotely attend a court proceeding in which oral
518	518	testimony is heard, absent the agreement of the parties.
519	519	(f) The business court shall conduct a remote proceeding
520	520	from a courtroom or the facilities provided to a business court
521	521	judge by this state.
522	522	(g) The business court shall provide reasonable notice to
523	523	the public that a proceeding will be conducted remotely and an
524	524	opportunity for the public to observe the remote proceeding.
525	525	(h) In a county in which a division of the business court
526	526	sits, the sheriff shall in person or by deputy attend the business
527	527	court as required by the court. The sheriff or deputy is entitled
528	528	to reimbursement from this state for the cost of attending the
529	529	business court.
530	530	(i) The business court may appoint personnel necessary for
531	531	the operation of the court, including:
532	532	(1) personnel to assist the clerk of the court;
533	533	(2) staff attorneys for the court;
534	534	(3) staff attorneys for each judge of the business
535	535	court;
536	536	(4) court coordinators; and
537	537	(5) administrative assistants.
538	538	(j) Subject to Subsection (k), the court officials shall
539	539	perform the duties and responsibilities of their offices and are
540	540	entitled to the compensation, fees, and allowances prescribed by
541	541	law for the offices.
542	542	(k) All personnel, including the business court clerk,
543	543	appointed under this section are employees of the Office of Court
544	544	Administration of the Texas Judicial System and are state employees
545	545	for all purposes, including accrual of leave time, insurance
546	546	benefits, retirement benefits, and travel regulations.
547	547	Sec. 25A.0171. ADMINISTRATIVE ATTACHMENT TO OFFICE OF COURT
548	548	ADMINISTRATION; REPORT. (a) The business court is
549	549	administratively attached to the Office of Court Administration of
550	550	the Texas Judicial System.
551	551	(b) The Office of Court Administration of the Texas Judicial
552	552	System shall provide administrative support to the business court
553	553	as necessary to enable the business court to carry out its duties
554	554	under this chapter.
555	555	(c) The Office of Court Administration of the Texas Judicial
556	556	System may employ personnel necessary to provide administrative
557	557	support to the business court under this chapter.
558	558	(d) Only the business court may exercise the duties of the
559	559	business court under this chapter. Except as otherwise provided by
560	560	this chapter, the Office of Court Administration of the Texas
561	561	Judicial System does not have any authority or responsibility
562	562	related to the duties of the business court under this chapter.
563	563	(e) Not later than December 1 of each year, the Office of
564	564	Court Administration of the Texas Judicial System shall submit to
565	565	the legislature a report on the number and types of cases heard by
566	566	the business court in the preceding year.
567	567	Sec. 25A.018. FEES. The supreme court shall set fees for
568	568	filings and actions in the business court in amounts sufficient to
569	569	cover the costs of administering this chapter, taking into account
570	570	fee waivers necessary for the interest of justice.
571	571	Sec. 25A.019. SEAL. The seal of the business court is the
572	572	same as that provided by law for a district court except that the
573	573	seal must contain the name "The Business Court of Texas."
574	574	Sec. 25A.020. RULES. (a) The supreme court shall adopt
575	575	rules of civil procedure as the court determines necessary,
576	576	including rules providing for:
577	577	(1) the timely and efficient removal and remand of
578	578	cases to and from the business court; and
579	579	(2) the assignment of cases to judges of the business
580	580	court.
581	581	(b) The business court may adopt rules of practice and
582	582	procedure consistent with the Texas Rules of Civil Procedure and
583	583	the Texas Rules of Evidence.
584	584	SECTION 2. Sections 659.012(a) and (e), Government Code,
585	585	are amended to read as follows:
586	586	(a) Notwithstanding Section 659.011 and subject to
587	587	Subsections (b) and (b-1):
588	588	(1) a judge of a district court or a division of the
589	589	business court is entitled to an annual base salary from the state
590	590	as set by the General Appropriations Act in an amount equal to at
591	591	least $140,000, except that the combined base salary of a district
592	592	judge or judge of a division of the business court from all state
593	593	and county sources, including compensation for any extrajudicial
594	594	services performed on behalf of the county, may not exceed the
595	595	amount that is $5,000 less than the maximum combined base salary
596	596	from all state and county sources for a justice of a court of
597	597	appeals other than a chief justice as determined under this
598	598	subsection;
599	599	(2) a justice of a court of appeals other than the
600	600	chief justice is entitled to an annual base salary from the state in
601	601	the amount equal to 110 percent of the state base salary of a
602	602	district judge as set by the General Appropriations Act, except
603	603	that the combined base salary of a justice of the court of appeals
604	604	other than the chief justice from all state and county sources,
605	605	including compensation for any extrajudicial services performed on
606	606	behalf of the county, may not exceed the amount that is $5,000 less
607	607	than the base salary for a justice of the supreme court as
608	608	determined under this subsection;
609	609	(3) a justice of the supreme court other than the chief
610	610	justice or a judge of the court of criminal appeals other than the
611	611	presiding judge is entitled to an annual base salary from the state
612	612	in the amount equal to 120 percent of the state base salary of a
613	613	district judge as set by the General Appropriations Act; and
614	614	(4) the chief justice or presiding judge of an
615	615	appellate court is entitled to an annual base salary from the state
616	616	in the amount equal to $2,500 more than the state base salary
617	617	provided for the other justices or judges of the court, except that
618	618	the combined base salary of the chief justice of a court of appeals
619	619	from all state and county sources may not exceed the amount equal to
620	620	$2,500 less than the base salary for a justice of the supreme court
621	621	as determined under this subsection.
622	622	(e) For the purpose of salary payments by the state, the
623	623	comptroller shall determine from sworn statements filed by the
624	624	justices of the courts of appeals, [and] district judges, and
625	625	business court judges that the required salary limitations provided
626	626	by Subsection (a) are maintained. If the state base salary for a
627	627	judge or justice prescribed by Subsection (a) combined with
628	628	additional compensation from a county would exceed the limitations
629	629	provided by Subsection (a), the comptroller shall reduce the salary
630	630	payment made by the state by the amount of the excess.
631	631	SECTION 3. Section 837.001(a), Government Code, is amended
632	632	to read as follows:
633	633	(a) Membership [Except as provided by Subsection (b),
634	634	membership] in the retirement system is limited to persons who have
635	635	never been eligible for membership in the Judicial Retirement
636	636	System of Texas or the Judicial Retirement System of Texas Plan One
637	637	and who at any time on or after the effective date of this Act are
638	638	judges, justices, or commissioners of:
639	639	(1) the supreme court;
640	640	(2) the court of criminal appeals;
641	641	(3) a court of appeals;
642	642	(4) the business court;
643	643	(5) a district court; or
644	644	(6) [(5)] a commission to a court specified in this
645	645	subsection.
646	646	SECTION 4. (a) The Texas Supreme Court has exclusive and
647	647	original jurisdiction over a challenge to the constitutionality of
648	648	this Act or any part of this Act and may issue injunctive or
649	649	declaratory relief in connection with the challenge.
650	650	(b) If the appointment of judges by the governor to the
651	651	divisions of the business court under Section 25A.009, Government
652	652	Code, as added by this Act, is held by the Texas Supreme Court as
653	653	unconstitutional, the business court shall be staffed by retired or
654	654	former judges or justices who are appointed to the court as provided
655	655	by Section 25A.014, Government Code, as added by this Act.
656	656	SECTION 5. Except as otherwise provided by this Act, the
657	657	business court is created September 1, 2024.
658	658	SECTION 6. (a) As soon as practicable after the effective
659	659	date of this Act, the governor shall appoint judges to the First,
660	660	Third, Fourth, Eighth, and Eleventh Business Court Divisions as
661	661	required by Section 25A.009, Government Code, as added by this Act.
662	662	(b) On or before September 1, 2026, but not before July 1,
663	663	2026, the governor shall appoint judges to the Second, Fifth,
664	664	Sixth, Seventh, Ninth, and Tenth Business Court Divisions as
665	665	required by Section 25A.009, Government Code, as added by this Act.
666	666	SECTION 7. (a) Notwithstanding Chapter 25A, Government
667	667	Code, as added by this Act, the business court is not created unless
668	668	the legislature makes a specific appropriation of money for that
669	669	purpose. For purposes of this subsection, a specific appropriation
670	670	is an appropriation identifying the business court or an Act of the
671	671	88th Legislature, Regular Session, 2023, relating to the creation
672	672	of a specialty trial court to hear certain cases or of the business
673	673	court.
674	674	(b) Notwithstanding Section 25A.007(a), Government Code, as
675	675	added by this Act, a court of appeals retains the jurisdiction the
676	676	court had on August 31, 2024, if the business court is not created
677	677	as a result of Subsection (a) of this section.
678	678	SECTION 8. The changes in law made by this Act apply to
679	679	civil actions commenced on or after September 1, 2024.
680	680	SECTION 9. This Act takes effect September 1, 2023.
681	681	______________________________ ______________________________
682	682	President of the Senate Speaker of the House
683	683	I certify that H.B. No. 19 was passed by the House on May 2,
684	684	2023, by the following vote: Yeas 90, Nays 51, 1 present, not
685	685	voting; and that the House concurred in Senate amendments to H.B.
686	686	No. 19 on May 25, 2023, by the following vote: Yeas 86, Nays 53, 1
687	687	present, not voting.
688	688	______________________________
689	689	Chief Clerk of the House
690	690	I certify that H.B. No. 19 was passed by the Senate, with
691	691	amendments, on May 12, 2023, by the following vote: Yeas 24, Nays
692	692	6.
693	693	______________________________
694	694	Secretary of the Senate
695	695	APPROVED: __________________
696	696	Date
697	697	__________________
698	698	Governor