Texas 2025 - 89th Regular

Texas House Bill HB40 Compare Versions

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1	1		By: Landgraf H.B. No. 40
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4	6		A BILL TO BE ENTITLED
5	7		AN ACT
6	8		relating to the Business Court.
7	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	10		SECTION 1. Section 25A.001, Government Code, is amended by
9	11		amending Subsection (14) and adding Subsection (15) to read as
10	12		follows:
11	13		(14) "Qualified transaction" means a transaction or
12	14		series of related transactions, other than a transaction involving
13	15		a loan or an advance of money or credit by a bank, credit union, or
14	16		savings and loan institution, under which one or more parties[a
15	17		party]:
16	18		(A) pays or receives, or is obligated to pay or is
17	19		entitled to receive, consideration with an aggregate value of at
18	20		least $5 [$10] million; or
19	21		(B) lends, advances, borrows, receives, is
20	22		obligated to lend or advance, or is entitled to borrow or receive
21	23		money or credit with an aggregate value of at least $5 [$10]
22	24		million.
23	25		(15) "Fundamental business transaction" means a
24	26		merger, interest exchange, conversion, or sale of all or
25	27		substantially all of an entity's assets.
26	28		SECTION 2. Section 25A.003, Government Code, is amended by
27	29		amending Subsections (d), (g), (h), (i), (k), (l), and (m) to read
28	30		as follows:
29	31		(d) The Second Business Court Division is composed of the
30	32		counties composing the Second Administrative Judicial Region under
31	33		Section 74.042(c), excluding Montgomery County, subject to funding
32	34		through legislative appropriations. [The division is abolished
33	35		September 1, 2026, unless reauthorized by the legislature and
34	36		funded through additional legislative appropriations.]
35	37		(g) The Fifth Business Court Division is composed of the
36	38		counties composing the Fifth Administrative Judicial Region under
37	39		Section 74.042(f), subject to funding through legislative
38	40		appropriations. [The division is abolished on September 1, 2026,
39	41		unless reauthorized by the legislature and funded through
40	42		additional legislative appropriations.]
41	43		(h) The Sixth Business Court Division is composed of the
42	44		counties composing the Sixth Administrative Judicial Region under
43	45		Section 74.042(g), subject to funding through legislative
44	46		appropriations. [The division is abolished on September 1, 2026,
45	47		unless reauthorized by the legislature and funded through
46	48		additional legislative appropriations.]
47	49		(i) The Seventh Business Court Division is composed of the
48	50		counties composing the Seventh Administrative Judicial Region
49	51		under Section 74.042(h), subject to funding through legislative
50	52		appropriations. [The division is abolished on September 1, 2026,
51	53		unless reauthorized by the legislature and funded through
52	54		additional legislative appropriations.]
53	55		(k) The Ninth Business Court Division is composed of the
54	56		counties composing the Ninth Administrative Judicial Region under
55	57		Section 74.042(j), subject to funding through legislative
56	58		appropriations. [The division is abolished on September 1, 2026,
57	59		unless reauthorized by the legislature and funded through
58	60		additional legislative appropriations.]
59	61		(l) The Tenth Business Court Division is composed of the
60	62		counties composing the Tenth Administrative Judicial Region under
61	63		Section 74.042(k), subject to funding through legislative
62	64		appropriations. [The division is abolished on September 1, 2026,
63	65		unless reauthorized by the legislature and funded through
64	66		additional legislative appropriations.]
65	67		(m) The Eleventh Business Court Division is composed of the
66	68		counties composing the Eleventh Administrative Judicial Region
67	69		under Section 74.042(l) and Montgomery County.
68	70		SECTION 3. Section 25A.004, Government Code, is amended by
69	71		amending Subsections (b), (d), (e), (f), (g) and (h) and adding
70	72		Subsections (i), (j), (k) and (l) to read as follows:
71	73		(b) Subject to Subsection (c), the business court has civil
72	74		jurisdiction concurrent with district courts in the following
73	75		actions in which the amount in controversy exceeds $5 million,
74	76		excluding interest, statutory damages, exemplary damages,
75	77		penalties, attorney's fees, and court costs:
76	78		(1) a derivative proceeding;
77	79		(2) an action regarding the governance, governing
78	80		documents, or internal affairs of an organization;
79	81		(3) an action in which a claim under a state or federal
80	82		securities or trade regulation law is asserted against:
81	83		(A) an organization;
82	84		(B) a controlling person or managerial official
83	85		of an organization for an act or omission by the organization or by
84	86		the person in the person's capacity as a controlling person or
85	87		managerial official;
86	88		(C) an underwriter of securities issued by the
87	89		organization; or
88	90		(D) the auditor of an organization;
89	91		(4) an action by an organization, or an owner of an
90	92		organization, if the action:
91	93		(A) is brought against an owner, controlling
92	94		person, or managerial official of the organization; and
93	95		(B) alleges an act or omission by the person in
94	96		the person's capacity as an owner, controlling person, or
95	97		managerial official of the organization;
96	98		(5) an action alleging that an owner, controlling
97	99		person, or managerial official breached a duty owed to an
98	100		organization or an owner of an organization by reason of the
99	101		person's status as an owner, controlling person, or managerial
100	102		official, including the breach of a duty of loyalty or good faith;
101	103		(6) an action seeking to hold an owner or governing
102	104		person of an organization liable for an obligation of the
103	105		organization, other than on account of a written contract signed by
104	106		the person to be held liable in a capacity other than as an owner or
105	107		governing person; [and]
106	108		(7) an action arising out of the Business
107	109		Organizations Code, including an action over which a district court
108	110		is given jurisdiction, original or exclusive, by the Business
109	111		Organizations Code;
110	112		(8) an action arising out of:
111	113		(A) an insurance contract or other arrangement to
112	114		indemnify or hold harmless an organization or its current or former
113	115		controlling persons, managerial officials, employees and agents,
114	116		or to advance expenses to such persons, against losses arising from
115	117		their service in these positions or their alleged wrongful or
116	118		negligent actions; or
117	119		(B) a reinsurance contract relating to an
118	120		insurance contract or other arrangement described in subparagraph
119	121		(A); and
120	122		(9) an action arising out of a fundamental business
121	123		transaction, including:
122	124		(A) an action arising out of an insurance
123	125		contract or other arrangement providing insurance or indemnity to
124	126		parties to a fundamental business transaction against agreed
125	127		payment obligations, losses, or expenses; and
126	128		(B) an action to enforce an agreement not to
127	129		compete related to a fundamental business transaction if the action
128	130		is against an organization that is party to the transaction or a
129	131		controlling person or managerial official of the organization;
130	132		(d) The business court has civil jurisdiction concurrent
131	133		with district courts in the following actions in which the amount in
132	134		controversy exceeds $5 [$10] million, excluding interest,
133	135		statutory damages, exemplary damages, penalties, attorney's fees,
134	136		and court costs:
135	137		(1) an action arising out of a qualified transaction;
136	138		(2) an action arising [that arises] out of a business,
137	139		commercial, or investment contract or [commercial] transaction in
138	140		which the parties to the contract or transaction agreed in the
139	141		contract or a subsequent agreement that the business court has
140	142		jurisdiction of the action, except an action that arises out of an
141	143		insurance contract; [and]
142	144		(3) subject to Subsection (g), an action arising [that
143	145		arises] out of a violation of the Finance Code or Business &
144	146		Commerce Code by an organization or an officer or governing person
145	147		acting on behalf of an organization other than a bank, credit union,
146	148		or savings and loan association;
147	149		(4) an action to enforce an arbitration agreement,
148	150		appoint an arbitrator, or review an arbitral award or other
149	151		judicial actions authorized by the agreement, Chapters 171 or 172,
150	152		Civil Practice and Remedies Code, or the Federal Arbitration Act (9
151	153		U.S.C. Sections 1-16), if a claim included in the controversy in
152	154		arbitration, including the amount in controversy, is described in
153	155		Subsections (b), (c), or (d), and without regard to whether the
154	156		specific action pursued in the business court involves an amount in
155	157		excess of $5 million;
156	158		(5) an action arising from or relating to the
157	159		ownership, use, licensing, lease, installation, or performance of
158	160		intellectual property, including:
159	161		(A) computer software, software applications,
160	162		information technology and systems, data and data security,
161	163		pharmaceuticals, biotechnology products, and bioscience
162	164		technologies; and
163	165		(B) trade secrets as defined in Section
164	166		134A.002(6), Civil Practice and Remedies Code;
165	167		(6) an action arising under Chapter 134A, Civil
166	168		Practice and Remedies Code; and
167	169		(7) an action arising out of malpractice or
168	170		professional misconduct by an attorney, certified public
169	171		accountant, or other licensed professional where the client of the
170	172		professional is an organization, including claims by, against and
171	173		among insurers and reinsurers providing professional liability
172	174		insurance covering claims against the professionals or
173	175		organizations employing them.
174	176		(e) In actions within its jurisdiction, the business court
175	177		has authority to grant injunctive and other equitable relief,
176	178		declaratory judgments, and other relief that may be granted by a
177	179		district court. The business court also has civil jurisdiction
178	180		concurrent with district courts in an action seeking only
179	181		injunctive or other equitable relief or a declaratory judgment
180	182		under Chapter 37, Civil Practice and Remedies Code, involving a
181	183		dispute that is described in [based on a claim within the court's
182	184		jurisdiction under] Subsection (b) without regard to the amount in
183	185		controversy.
184	186		(f) Except as provided by Subsection (h), in any action in
185	187		which the business court has original jurisdiction pursuant to
186	188		Subsection (b), (c), (d), or (e), it shall have supplemental
187	189		jurisdiction over any other claim not described in these
188	190		subsections that is so related to a claim included in the action
189	191		that is [case or controversy] within the court's jurisdiction that
190	192		it [within the court's jurisdiction that] forms part of the same
191	193		case or controversy. The court's supplemental jurisdiction
192	194		includes claims that require the joinder or intervention of
193	195		additional parties. [A claim within the business court's
194	196		supplemental jurisdiction may proceed in the business court only on
195	197		the agreement of all parties to the claim and a judge of the
196	198		division of the court before which the action is pending]. If [the
197	199		parties involved in] a claim within the business court's
198	200		supplemental jurisdiction does not proceed [do not agree on the
199	201		claim proceeding] in the business court, the claim may proceed in a
200	202		court of original jurisdiction concurrently with any related claims
201	203		proceeding in the business court.
202	204		(g) Unless the claim falls within the business court's
203	205		supplemental jurisdiction, the business court does not have
204	206		jurisdiction of:
205	207		(1) a claim made in a civil action:
206	208		(A) brought by or against a governmental entity;
207	209		or
208	210		(B) seeking to foreclose on a lien on real or
209	211		personal property owned by an individual at the time the action was
210	212		filed;
211	213		(2) a claim arising out of:
212	214		(A) Subchapter E, Chapter 15, [and Chapter 17,]
213	215		Business & Commerce Code, other than a claim described in
214	216		Subparagraph (b)(9)(B);
215	217		(B) the Estates Code;
216	218		(C) the Family Code;
217	219		(D) Chapter 17, Business & Commerce Code [the
218	220		Insurance Code]; or
219	221		(E) Chapter 53 and Title 9, Property Code;
220	222		(3) a claim arising out of the production or sale of a
221	223		farm product, as that term is defined by Section 9.102, Business &
222	224		Commerce Code;
223	225		[(4) a claim related to a consumer transaction, as
224	226		that term is defined by Section 601.001, Business & Commerce Code,
225	227		to which a consumer in this state is a party, arising out of a
226	228		violation of federal or state law;] or
227	229		[(5)](4) a claim related to the duties and obligations
228	230		under an insurance policy.
229	231		(h) The business court does not have jurisdiction of the
230	232		following claims regardless of whether the claim is otherwise
231	233		within the court's supplemental jurisdiction under Subsection (f):
232	234		(1) a claim arising under Chapter 74, Civil Practice
233	235		and Remedies Code;
234	236		(2) a claim in which a party seeks recovery of monetary
235	237		damages for bodily injury or death; or
236	238		(3) a claim of legal malpractice other than a claim
237	239		described in Section 25A.004(d)(7).
238	240		(i) If two or more persons originally and properly join in
239	241		one action, the action for jurisdictional purposes is treated as if
240	242		one party is suing for the aggregate amount of all their claims
241	243		added together for purposes of the amount in controversy
242	244		requirements set forth in Subsections (b), (d), and (e). This
243	245		section does not prevent jurisdiction from attaching on any other
244	246		ground.
245	247		(j) The business court has civil jurisdiction concurrent
246	248		with district courts in an action transferred to the business court
247	249		by the judicial panel on multidistrict litigation pursuant to
248	250		Subchapter H, Chapter 74, without regard to the amount in
249	251		controversy in any single action or whether the county from which
250	252		the action is transferred to the business court is within an active
251	253		business court division, so long as the business court otherwise
252	254		has jurisdiction to hear the action under Subsection 25A.004.
253	255		(k) The supreme court shall adopt rules of civil and
254	256		judicial procedure providing for the prompt determination of
255	257		business court jurisdiction, efficiently and with substantial
256	258		finality, in the early stages of a proceeding, which rules are to
257	259		reflect due consideration of:
258	260		(1) the business court's purpose of efficiently
259	261		addressing complex business litigation in a manner comparable to,
260	262		if not more effectively than, the business and commercial courts
261	263		operating in other states;
262	264		(2) the many commonalities of law and procedure
263	265		existing between the business court and district courts as trial
264	266		courts functioning under the Texas Constitution and within the
265	267		Judicial Branch of the State of Texas;
266	268		(3) the limited potential for the movement of an
267	269		action between the district courts and the business court in order
268	270		to increase judicial efficiency to raise issues of fundamental
269	271		fairness or the preservation of constitutionally or statutorily
270	272		protected rights of the parties; and
271	273		(4) the changing needs of business litigants and their
272	274		counsel for guidance in their usage of the business court and the
273	275		Fifteenth Court of Appeals over time as those courts develop a body
274	276		of precedent and practice that is currently not available.
275	277		(l) The rules of civil and judicial procedure adopted
276	278		pursuant to Subsection (k) may utilize judicial determinations
277	279		based upon pleadings or summary proceedings, establish
278	280		appropriately differing standards of proof, establish limited time
279	281		periods during which issues or rights must be asserted or be deemed
280	282		agreed to or waived, establish review of business court actions by a
281	283		another judge or panel of judges, including regional presiding
282	284		judges and the administrative presiding judge of the business
283	285		court, allow, require or prohibit interlocutory appeals or provide
284	286		for accelerated appeals. The foregoing list is not exclusive.
285	287		SECTION 4. Chapter 25A, Government Code, is amended by
286	288		adding the Sections 25A.0041 and 25A.0042 to read as follows:
287	289		Sec. 25A.0041. ASSIGNMENT OF JUDGE OR TRANSFER OF CASE ON
288	290		RECUSAL. If a business court judge determines on the judge's own
289	291		motion that the judge should not sit in a case pending in the
290	292		judge's court because the judge is disqualified or otherwise should
291	293		recuse himself or herself, the judge shall enter a recusal order,
292	294		request the presiding judge of the business court to assign another
293	295		judge of the business court to sit, and take no further action
294	296		except for good cause stated in the order in which the action is
295	297		taken. A change of venue is not necessary because of the
296	298		disqualification of a business court judge.
297	299		Sec. 25A.0042. EXPENSES OF BUSINESS COURT JUDGE. (a) A
298	300		business court judge engaged in the discharge of official duties in
299	301		a location other than the county of the judge's chambers is entitled
300	302		to traveling and other necessary expenses, as provided by Chapter
301	303		660.
302	304		(b) A business court judge is entitled to receive from the
303	305		state the actual and necessary postage, telephone and
304	306		telecommunications expenses incurred in the discharge of official
305	307		duties.
306	308		(c) The official duties of business court judges include:
307	309		(1) making educational presentations regarding the
308	310		business court to legal and business groups; and
309	311		(2) attending educational meetings in Texas and other
310	312		states of the United States relating to business law, business
311	313		litigation, and the function of the business court.
312	314		SECTION 5. Section 25A.006(a), Government Code, is amended
313	315		to read as follows:
314	316		(a) An action within the jurisdiction of the business court
315	317		may be filed in the business court. The party filing the action
316	318		must plead facts to establish venue in a county in a division of the
317	319		business court, and the business court shall assign the action to
318	320		that division. Venue may be established as provided by law, as
319	321		provided in each party's governing documents or, if a written
320	322		contract specifies a county as venue for the action, as provided by
321	323		the contract.
322	324		SECTION 6. Section 25A.007(a), Government Code, is amended
323	325		to read as follows:
324	326		Sec. 25A.007. APPEALS. (a) Notwithstanding any other law
325	327		and except [as provided by Subsection (b) and] in instances when the
326	328		supreme court has concurrent or exclusive jurisdiction, the
327	329		Fifteenth Court of Appeals has exclusive jurisdiction over an
328	330		appeal from an order or judgment of the business court or an
329	331		original proceeding related to an action or order of the business
330	332		court. Any statute or rule of this state requiring that an appeal
331	333		from an order or judgement of the business court be appealed to any
332	334		court of appeals other than the Fifteenth Court of Appeals, and any
333	335		statute later enacted that does not expressly reference this
334	336		section, shall not be given effect and all such appeals from the
335	337		business court shall be heard by the Fifteenth Court of Appeals.
336	338		SECTION 7. Section 25A.009, Government Code, is amended by
337	339		amending Subsections (a) and (d), and adding Subsection (a-1), to
338	340		read as follows:
339	341		(a) The governor, with the advice and consent of the senate,
340	342		shall appoint:
341	343		(1) two judges to each of the First, Third, Fourth,
342	344		Eighth, and Eleventh Divisions of the business court; and
343	345		(2) one judge to each of the Second, Fifth, Sixth,
344	346		Seventh, Ninth, and Tenth Divisions of the business court, and one
345	347		additional judge to each of the First and Eleventh Divisions of the
346	348		business court, if the legislature makes a specific appropriation
347	349		of money for that purpose.
348	350		(a-1) Newly appointed judges of the business court may
349	351		commence employment by the State of Texas and begin receiving their
350	352		compensation for service as judges of the business court up to 30
351	353		days prior to their first day on the bench to allow time for
352	354		training, organization of staff and chambers and study of business
353	355		court precedent, procedure and pending case filings.
354	356		(d) Not later than September 15 of every even-numbered year
355	357		[the seventh day after the first day of a term], the business court
356	358		judges by majority vote shall select a judge of the court to serve
357	359		as administrative presiding judge and a judge serving a different
358	360		division of the business court to serve as administrative presiding
359	361		judge pro tempore, each to serve until September 15 of the next
360	362		even-numbered year [for the duration of the term]. If a vacancy
361	363		occurs in the position of administrative presiding judge, the
362	364		administrative presiding judge pro tempore is to serve as
363	365		administrative presiding judge, and the remaining business court
364	366		judges by majority vote shall select a judge of the court to serve
365	367		as successor administrative presiding judge pro tempore, for the
366	368		remainder of the unexpired term as soon as practicable. The
367	369		administrative presiding judge pro tempore is to act as
368	370		administrative presiding judge in any matter as delegated by the
369	371		administrative presiding judge or when the administrative
370	372		presiding judge is unable to serve or take action.
371	373		(d-1) Notwithstanding the salary limitations set forth in
372	374		Subsection 659.012(a), in addition to the salary a business court
373	375		judge is entitled to under Section 659.012, the administrative
374	376		presiding judge of the business court is entitled to compensation
375	377		from the state in an amount equal to the maximum amount of
376	378		additional compensation paid by the state under Section 659.012(d)
377	379		to a local administrative district judge responsible for a number
378	380		of courts equal to the number of business court judges.
379	381		SECTION 8. Section 25A.014, Government Code, is amended by
380	382		amending Subsection (a) and adding Subsection (c) to read as
381	383		follows:
382	384		Sec. 25A.014. VISITING JUDGE. (a) A retired or former
383	385		judge or justice, or an active district court judge, who has the
384	386		qualifications prescribed by Section 25A.008 may be assigned as a
385	387		visiting judge of a division of the business court by the chief
386	388		justice of the supreme court. A visiting judge of a division of the
387	389		business court is subject to objection, disqualification, or
388	390		recusal under Chapter 74, in the same manner as a retired or former
389	391		judge or justice, or an active district court judge, is subject to
390	392		objection, disqualification, or recusal if appointed as a visiting
391	393		district judge.
392	394		(c) The chief justice of the supreme court may assign an
393	395		active judge of the business court to serve as a visiting judge of a
394	396		district court or constitutional county or statutory county court
395	397		located in the division served by the judge of the business court.
396	398		The judge of the business court serving as a visiting judge is
397	399		subject to objection, disqualification, or recusal under Chapter
398	400		74, in the same manner as an active judge or justice, or an active
399	401		district court judge, is subject to objection, disqualification, or
400	402		recusal if appointed as a visiting judge.
401	403		SECTION 9. Section 25A.017, Government Code, is amended by
402	404		amending Subsections (c), (d), and (h) and adding Subsection (i) to
403	405		read as follows:
404	406		(c) Each business court judge shall maintain chambers in the
405	407		county the judge selects within the geographic boundaries of the
406	408		division to which the judge is appointed that is the most populous
407	409		county located in the division, or in a county located in the
408	410		division that is adjacent to that county, in facilities provided by
409	411		this state. The chief justice may approve the location of a
410	412		business court judge's chambers in another county within the
411	413		business court division served by the judge. For purposes of this
412	414		section, the Office of Court Administration of the Texas Judicial
413	415		System may contract for the use of facilities with a county, or any
414	416		other unit of state or local government.
415	417		(d) Subject to Section 25A.015, a business court judge may
416	418		hold court at any courtroom within the geographic boundaries of the
417	419		division to which the judge is appointed as the court determines
418	420		necessary or convenient for a particular civil action. A [To the
419	421		extent practicable, a] county [using existing courtrooms and
420	422		facilities] shall accommodate the business court in the conduct of
421	423		the court's hearings and other proceedings in courtrooms and
422	424		facilities equivalent to those provided to district courts. A
423	425		county may seek reimbursement from the state in an amount equal to
424	426		the market rate in the county calculated by the Texas Facilities
425	427		Commission for this purpose. Counties in planning and implementing
426	428		additions and improvements to their courtrooms and facilities shall
427	429		include the reasonably anticipated requirements of the business
428	430		court.
429	431		(h) In a county in which a division of the business court
430	432		sits or a judge of the business court maintains chambers, the
431	433		business court or Office of Court Administration of the Texas
432	434		Judicial System may require the sheriff, the sheriff's deputy, or
433	435		other licensed peace officer employed by the state, county or other
434	436		governmental authority, to [shall in person or by deputy] attend
435	437		the business court and provide security for its judges [as required
436	438		by the court]. The [sheriff or the deputy is] officers providing
437	439		such services are entitled to reimbursement from this state for the
438	440		cost of attending the business court and providing security for its
439	441		judges.
440	442		(i) The business court or Office of Court Administration of
441	443		the Texas Judicial System may require the Department of Public
442	444		Safety to provide security services to the business court and its
443	445		judges.
444	446		SECTION 10. Subsection 25A.0171(e), Government Code, is
445	447		amended to read as follows:
446	448		(e) Not later than December 1 of each year, the Office of
447	449		Court Administration of the Texas Judicial System shall submit to
448	450		the legislature a report on the [number and types of cases heard by]
449	451		case activity of the business court in the preceding year,
450	452		including:
451	453		(1) the caseloads of each of the judges of the business
452	454		court in the preceding year;
453	455		(2) the extent to which judges have been assigned to
454	456		hear cases in other divisions in order to equalize caseloads;
455	457		(3) projections of the expected caseloads of the
456	458		business court judges during the succeeding two-year period; and
457	459		(4) recommendations regarding action by any of the
458	460		legislature, the governor, the chief justice or the business court
459	461		to ensure that the business court can meet existing and projected
460	462		demand for its services during that two-year period.
461	463		SECTION 11. Chapter 25A, Government Code, is amended by
462	464		adding Section 25A.0210 to read as follows:
463	465		Sec. 25A.0210. ACTIONS COMMENCED ON OR BEFORE SEPTEMBER 1,
464	466		2024. Notwithstanding Section 8, Chapter 380 (H.B. 19), Acts of the
465	467		88th Legislature, Regular Session, 2023, civil actions commenced
466	468		prior to September 1, 2024, that are within the jurisdiction of the
467	469		business court as described in Section 25A.004 may be transferred
468	470		to and heard by the business court on motion of a party and
469	471		permission of the business court pursuant to rules of civil and
470	472		judicial procedure to be adopted by the supreme court, which rules
471	473		reflect due consideration of:
472	474		(1) priority for complex civil actions of longer
473	475		duration that have proven difficult for a district court to resolve
474	476		because of the other demands of its caseload;
475	477		(2) the capacity of the business court to accept such
476	478		actions without impairing its efficiency and effectiveness in
477	479		resolving actions commenced on or after September 1, 2024; and
478	480		(3) facilitation of the fair and efficient
479	481		administration of justice.
480	482		SECTION 12. Section 659.012, Government Code, is amended by
481	483		adding a new Subsection (g) to read as follows:
482	484		(g) In addition to the state salary provided under
483	485		Subsection (a) or (b), a judge of a division of the business court
484	486		is entitled to additional compensation from the state equal to the
485	487		maximum amount a district judge may be paid as supplemental
486	488		compensation by a county (including compensation for any
487	489		extrajudicial services performed on behalf of the county) under
488	490		Section 659.012.
489	491		SECTION 13. The following sections of the Government Code
490	492		are repealed:
491	493		(1) 25A.003(n);
492	494		(2) 25A.007(b);
493	495		(3) 25A.009(b); and
494	496		(4) 25A.014(b).
495	497		SECTION 14. Section 21.010(a), Government Code, is amended
496	498		to read as follows:
497	499		(a) A justice or judge, as applicable, of the supreme court,
498	500		the court of criminal appeals, a court of appeals, a district court,
499	501		the business court, a county court, a county court at law, or a
500	502		statutory probate court may not, on the date the person takes office
501	503		as a justice or judge or while serving as a justice or judge, have a
502	504		significant interest in a business entity that owns, manages, or
503	505		operates:
504	506		(1) a community residential facility described by
505	507		Section 508.119;
506	508		(2) a correctional or rehabilitation facility subject
507	509		to Chapter 244, Local Government Code; or
508	510		(3) any other facility intended to accomplish a
509	511		purpose or provide a service described by Section 508.119(a) to a
510	512		person convicted of a misdemeanor or felony or found to have engaged
511	513		in delinquent conduct who is housed in the facility:
512	514		(A) while serving a sentence of confinement
513	515		following conviction of an offense or an adjudication of delinquent
514	516		conduct; or
515	517		(B) as a condition of community supervision,
516	518		probation, parole, or mandatory supervision.
517	519		SECTION 15. Section 22.110, Government Code, is amended by
518	520		adding subsection (b-1) to read as follows:
519	521		(b-1) Judges of the business court are exempt from
520	522		compliance with the judicial training and education requirements
521	523		set forth in Chapter 22, and rules issued thereunder, that are not
522	524		germane to the jurisdiction of the business court as set forth in
523	525		Subsections (b), (c), (d) and (e) of Section 25A.004, including,
524	526		without limitation, the training and education requirements of
525	527		Sections 22.012 and 22.110.
526	528		SECTION 16. Section 37.001(a), Government Code, is amended
527	529		to read as follows:
528	530		(a) This chapter applies to a court in this state created by
529	531		the Texas Constitution, by statute, or as authorized by statute
530	532		that is located in a county with a population of 25,000 or more,
531	533		except that this chapter does not apply to the business court.
532	534		SECTION 17. Section 39.001, Government Code, is amended to
533	535		read as follows:
534	536		Sec. 39.001. APPLICABILITY. This chapter applies to a
535	537		person elected to or holding any of the following judicial offices:
536	538		(1) chief justice or justice of the supreme court;
537	539		(2) presiding judge or judge of the court of criminal
538	540		appeals;
539	541		(3) chief justice or justice of a court of appeals;
540	542		(4) district judge, including a criminal district
541	543		judge; [and]
542	544		(5) business court judge; and
543	545		(6) judge of a statutory county court.
544	546		SECTION 18. Section 71.011, Government Code, is amended to
545	547		read as follows:
546	548		Sec. 71.011 NUMBER AND CLASSES OF MEMBERS. The Texas
547	549		Judicial Council is an agency of the state composed of [16] 17 ex
548	550		officio and six appointive members.
549	551		SECTION 19. Section 71.012, Government Code, is amended to
550	552		read as follows:
551	553		Sec. 71.012. EX OFFICIO MEMBERS. The ex officio members
552	554		are:
553	555		(1) the chief justice of the supreme court;
554	556		(2) the presiding judge of the court of criminal
555	557		appeals;
556	558		(3) two members of the senate, appointed by the
557	559		lieutenant governor;
558	560		(4) the chair of the House Judicial Affairs Committee;
559	561		(5) one member of the house of representatives,
560	562		appointed by the speaker of the house;
561	563		(6) two justices of the courts of appeals designated
562	564		by the chief justice of the supreme court;
563	565		(7) two district judges designated by the chief
564	566		justice of the supreme court;
565	567		(8) two judges of county courts, statutory county, or
566	568		statutory probate courts designated by the chief justice of the
567	569		supreme court;
568	570		(9) two justices of the peace designated by the chief
569	571		justice of the supreme court; [and]
570	572		(10) two municipal court judges designated by the
571	573		chief justice of the supreme court; and
572	574		(11) the administrative presiding judge of the
573	575		business court.
574	576		SECTION 20. Section 71.013, Government Code, is amended by
575	577		amending Subsection (b) and adding Subsection (g) to read as
576	578		follows:
577	579		(b) Except as provided by Subsections (a) and (g), all
578	580		members of the judiciary appointed to the council serve staggered
579	581		terms of four years with the term of one member from each judicial
580	582		group expiring on February 1 of each odd-numbered year.
581	583		(g) The administrative presiding judge of the business
582	584		court is an ex officio member of the council as long as he holds that
583	585		office.
584	586		SECTION 21. Section 74.003(b), Government Code, is amended
585	587		to read as follows:
586	588		(b) The chief justice of the supreme court may assign a
587	589		qualified former or retired justice or judge of the supreme court,
588	590		of the court of criminal appeals, or of a court of appeals to a court
589	591		of appeals for active service regardless of whether a vacancy
590	592		exists in the court to which the justice or judge is assigned. To be
591	593		eligible for assignment under this subsection, a former or retired
592	594		justice or judge must:
593	595		(1) have served as an active justice or judge for at
594	596		least 96 months in a district, statutory probate, statutory county,
595	597		or appellate court, or the business court, with at least 48 of those
596	598		months in an appellate court;
597	599		(2) not have been removed from office;
598	600		(3) certify under oath to the chief justice of the
599	601		supreme court, on a form prescribed by the chief justice, that:
600	602		(A) the justice or judge has never been publicly
601	603		reprimanded or censured by the State Commission on Judicial
602	604		Conduct; and
603	605		(B) the justice or judge:
604	606		(i) did not resign or retire from office
605	607		after the State Commission on Judicial Conduct notified the justice
606	608		or judge of the commencement of a full investigation into an
607	609		allegation or appearance of misconduct or disability of the justice
608	610		or judge as provided in Section 33.022 and before the final
609	611		disposition of that investigation; or
610	612		(ii) if the justice or judge did resign from
611	613		office under circumstances described by Subparagraph (i), the
612	614		justice or judge was not publicly reprimanded or censured as a
613	615		result of the investigation;
614	616		(4) annually demonstrate that the justice or judge has
615	617		completed in the past state fiscal year the educational
616	618		requirements for active appellate court justices or judges; and
617	619		(5) certify to the chief justice of the supreme court a
618	620		willingness not to appear and plead as an attorney in any court in
619	621		this state for a period of two years.
620	622		SECTION 22. Section 74.041(5), Government Code, is amended
621	623		to read as follows:
622	624		(5) "Former judge" means a person who has served as an
623	625		active judge in a district, statutory probate, statutory county, or
624	626		appellate court, or the business court, but who is not a retired
625	627		judge.
626	628		SECTION 23. Section 74.045(a), Government Code, is amended
627	629		to read as follows:
628	630		(a) A presiding judge must be at the time of appointment:
629	631		(1) a regularly elected or retired district judge;
630	632		(2) a serving or retired business court judge;
631	633		(3) a former judge with at least 12 years of service as
632	634		a district judge or business court judge; or
633	635		(4) a retired appellate judge with judicial experience
634	636		on a district court or the business court.
635	637		SECTION 24. Section 74.055(c), Government Code, is amended
636	638		to read as follows:
637	639		(c) To be eligible to be named on the list, a retired or
638	640		former judge must:
639	641		(1) have served as an active judge for at least 96
640	642		months in a district, statutory probate, statutory county, or
641	643		appellate court, or the business court;
642	644		(2) have developed substantial experience in the
643	645		judge's area of specialty;
644	646		(3) not have been removed from office;
645	647		(4) certify under oath to the presiding judge, on a
646	648		form prescribed by the state board of regional judges, that:
647	649		(A) the judge has never been publicly reprimanded
648	650		or censured by the State Commission on Judicial Conduct; and
649	651		(B) the judge:
650	652		(i) did not resign or retire from office
651	653		after the State Commission on Judicial Conduct notified the judge
652	654		of the commencement of a full investigation into an allegation or
653	655		appearance of misconduct or disability of the judge as provided in
654	656		Section 33.022 and before the final disposition of that
655	657		investigation; or
656	658		(ii) if the judge did resign from office
657	659		under circumstances described by Subparagraph (i), was not publicly
658	660		reprimanded or censured as a result of the investigation;
659	661		(5) annually demonstrate that the judge has completed
660	662		in the past state fiscal year the educational requirements for
661	663		active district, business, statutory probate, and statutory county
662	664		court judges; and
663	665		(6) certify to the presiding judge a willingness not
664	666		to appear and plead as an attorney in any court in this state for a
665	667		period of two years.
666	668		SECTION 25. Section 74.141, Government Code, is amended to
667	669		read as follows:
668	670		Sec. 74.141. DEFENSE OF JUDGES. The attorney general shall
669	671		defend a state district judge, a business court judge, a presiding
670	672		judge of an administrative region, the presiding judge of the
671	673		statutory probate courts, a visiting judge assigned to hear a
672	674		guardianship or probate matter by the presiding judge of the
673	675		statutory probate courts, or an active, retired, or former judge
674	676		assigned under this chapter in any action or suit in any court in
675	677		which the judge is a defendant because of the judge's office or
676	678		capacity as judge if the judge requests the attorney general's
677	679		assistance in the defense of the suit.
678	680		SECTION 26. Section 74.162, Government Code, is amended to
679	681		read as follows:
680	682		Sec. 74.162. TRANSFER OF CASES BY PANEL. Subject to Section
681	683		74.1625 and notwithstanding any other law, the judicial panel on
682	684		multidistrict litigation may transfer civil actions involving one
683	685		or more common questions of fact pending in the same or different
684	686		constitutional courts, county courts at law, probate courts,[or]
685	687		district courts or the business court to any district court or, if
686	688		the business court has jurisdiction to hear the action under
687	689		Subsection 25A.004(b), (d), (f) or (g), without regard to the
688	690		amount in controversy in any single action and without regard to
689	691		whether the county from which an action is transferred to the
690	692		business court is within an active business court division, to the
691	693		business court, for consolidated or coordinated pretrial
692	694		proceedings, including summary judgment or other dispositive
693	695		motions, but not for trial on the merits. A transfer may be made by
694	696		the judicial panel on multidistrict litigation on its determination
695	697		that the transfer will:
696	698		(1) be for the convenience of the parties and
697	699		witnesses; and
698	700		(2) promote the just and efficient conduct of the
699	701		actions.
700	702		SECTION 27. Section 411.171(4-b), Government Code, is
701	703		amended to read as follows:
702	704		(4-b) "State judge" means:
703	705		(A) the judge of an appellate court, a district
704	706		court, the business court, or a county court at law of this state;
705	707		(B) an associate judge appointed under Chapter
706	708		201, Family Code; or
707	709		(C) a justice of the peace.
708	710		SECTION 28. Section 11.101(e), Civil Practice & Remedies
709	711		Code, is amended to read as follows:
710	712		(e) A prefiling order entered under Subsection (a) by a
711	713		district or statutory county court or by the business court applies
712	714		to each court in this state.
713	715		SECTION 29. Section 15.003(c), Civil Practice & Remedies
714	716		Code, is amended to read as follows:
715	717		(c) An interlocutory appeal permitted by Subsection (b)
716	718		must be taken to the court of appeals district in which the trial
717	719		court is located under the procedures established for interlocutory
718	720		appeals, except that an interlocutory appeal from the business
719	721		court must be taken to the Fifteenth Court of Appeals. The appeal
720	722		may be taken by a party that is affected by the trial court's
721	723		determination under Subsection (a). The court of appeals shall:
722	724		(1) determine whether the trial court's order is
723	725		proper based on an independent determination from the record and
724	726		not under either an abuse of discretion or substantial evidence
725	727		standard; and
726	728		(2) render judgment not later than the 120th day after
727	729		the date the appeal is perfected.
728	730		SECTION 30. Section 19.003(a), Civil Practice & Remedies
729	731		Code, is amended to read as follows:
730	732		(a) To supply a record that has been lost, destroyed, or
731	733		removed:
732	734		(1) a person interested in an instrument or in a
733	735		judgment, order, or decree of the district court may file an
734	736		application with the district clerk of the county in which the
735	737		record was lost or destroyed or from which the record was removed;
736	738		[or]
737	739		(2) a person interested in a judgment, order, or
738	740		decree of a county court may file an application with the clerk of
739	741		the court to which the record belonged; or
740	742		(3) a person interested in a judgment, order, or
741	743		decree of the business court may file an application with the clerk
742	744		of the business court.
743	745		SECTION 31. Section 20.001(a), Civil Practice & Remedies
744	746		Code, is amended to read as follows:
745	747		(a) A deposition on written questions of a witness who is
746	748		alleged to reside or to be in this state may be taken by:
747	749		(1) a clerk of a district court;
748	750		(2) a judge or clerk of a county court; [or]
749	751		(3) a judge or clerk of the business court; or
750	752		(4) a notary public of this state.
751	753		SECTION 32. Section 30.014(a), Civil Practice & Remedies
752	754		Code, is amended to read as follows:
753	755		(a) In a civil action, including a probate or guardianship
754	756		proceeding, filed in a district court, county court, statutory
755	757		county court, or statutory probate court, or the business court,
756	758		each party or the party's attorney shall include in its initial
757	759		pleading:
758	760		SECTION 33. Section 30.015(a), Civil Practice & Remedies
759	761		Code, is amended to read as follows:
760	762		(a) In a civil action filed in a district court, county
761	763		court, statutory county court, or statutory probate court, or the
762	764		business court, each party or the party's attorney must provide the
763	765		clerk of the court with written notice of the party's name and
764	766		current residence or business address.
765	767		SECTION 34. Section 30.016(a), Civil Practice & Remedies
766	768		Code, is amended to read as follows:
767	769		(a) In this section, "tertiary recusal motion" means a third
768	770		or subsequent motion for recusal or disqualification filed against
769	771		a district court, [or] statutory county court, or business court
770	772		judge by the same party in a case.
771	773		SECTION 35. Section 30.017(a) and (c), Civil Practice &
772	774		Remedies Code, are amended to read as follows:
773	775		(a) A claim against a district court, business court,
774	776		statutory probate court, or statutory county court judge that is
775	777		added to a case pending in the court to which the judge was elected
776	778		or appointed:
777	779		(1) must be made under oath;
778	780		(2) may not be based solely on the rulings in the
779	781		pending case but must plead specific facts supporting each element
780	782		of the claim in addition to the rulings in the pending case; and
781	783		(3) is automatically severed from the case.
782	784		(c) The presiding judge of the administrative region,
783	785		[or]the presiding judge of the statutory probate courts, or the
784	786		administrative presiding judge of the business court shall assign
785	787		the severed claim to a different judge. The judge shall dismiss the
786	788		claim if the claim does not satisfy the requirements of Subsection
787	789		(a)(1) or (2).
788	790		SECTION 36. Section 51.014(a), Civil Practice & Remedies
789	791		Code, is amended to read as follows:
790	792		(a) A person may appeal from an interlocutory order of a
791	793		district court, county court at law, statutory probate court, or
792	794		county court, or the business court, that:
793	795		(1) appoints a receiver or trustee;
794	796		(2) overrules a motion to vacate an order that
795	797		appoints a receiver or trustee;
796	798		(3) certifies or refuses to certify a class in a suit
797	799		brought under Rule 42 of the Texas Rules of Civil Procedure;
798	800		(4) grants or refuses a temporary injunction or grants
799	801		or overrules a motion to dissolve a temporary injunction as
800	802		provided by Chapter 65;
801	803		(5) denies a motion for summary judgment that is based
802	804		on an assertion of immunity by an individual who is an officer or
803	805		employee of the state or a political subdivision of the state;
804	806		(6) denies a motion for summary judgment that is based
805	807		in whole or in part upon a claim against or defense by a member of
806	808		the electronic or print media, acting in such capacity, or a person
807	809		whose communication appears in or is published by the electronic or
808	810		print media, arising under the free speech or free press clause of
809	811		the First Amendment to the United States Constitution, or Article
810	812		I, Section 8, of the Texas Constitution, or Chapter 73;
811	813		(7) grants or denies the special appearance of a
812	814		defendant under Rule 120a, Texas Rules of Civil Procedure, except
813	815		in a suit brought under the Family Code;
814	816		(8) grants or denies a plea to the jurisdiction by a
815	817		governmental unit as that term is defined in Section 101.001;
816	818		(9) denies all or part of the relief sought by a motion
817	819		under Section 74.351(b), except that an appeal may not be taken from
818	820		an order granting an extension under Section 74.351;
819	821		(10) grants relief sought by a motion under Section
820	822		74.351(l);
821	823		(11) denies a motion to dismiss filed under Section
822	824		90.007;
823	825		(12) denies a motion to dismiss filed under Section
824	826		27.003;
825	827		(13) denies a motion for summary judgment filed by an
826	828		electric utility regarding liability in a suit subject to Section
827	829		75.0022;
828	830		(14) denies a motion filed by a municipality with a
829	831		population of 500,000 or more in an action filed under Section
830	832		54.012(6) or 214.0012, Local Government Code;
831	833		(15) makes a preliminary determination on a claim
832	834		under Section 74.353;
833	835		(16) overrules an objection filed under Section
834	836		148.003(d) or denies all or part of the relief sought by a motion
835	837		under Section 148.003(f); or
836	838		(17) grants or denies a motion for summary judgment
837	839		filed by a contractor based on Section 97.002.
838	840		SECTION 37. Section 51.016, Civil Practice & Remedies Code,
839	841		is amended to read as follows:
840	842		Sec. 51.016. APPEAL ARISING UNDER FEDERAL ARBITRATION ACT.
841	843		In a matter subject to the Federal Arbitration Act (9 U.S.C.
842	844		Sections 1-16), a person may take an appeal or writ of error to the
843	845		court of appeals from the judgment or interlocutory order of a
844	846		district court, county court at law, or county court, or the
845	847		business court, under the same circumstances that an appeal from a
846	848		federal district court's order or decision would be permitted by 9
847	849		U.S.C. Section 16.
848	850		SECTION 38. Section 61.021, Civil Practice & Remedies Code,
849	851		is amended to read as follows:
850	852		Sec. 61.021. WHO MAY ISSUE. The judge or clerk of a
851	853		district court, the business court, or a county court, or a justice
852	854		of the peace, may issue a writ of original attachment returnable to
853	855		his court.
854	856		SECTION 39. Section 62.021, Civil Practice & Remedies Code,
855	857		is amended to read as follows:
856	858		Sec. 62.021. WHO MAY ISSUE. A district court, business
857	859		court, or county court judge or a justice of the peace may issue
858	860		writs of sequestration returnable to his court.
859	861		SECTION 40. Section 63.002, Civil Practice & Remedies Code,
860	862		is amended to read as follows:
861	863		Sec. 63.002. WHO MAY ISSUE. The clerk of a district court,
862	864		the business court, or a county court, or a justice of the peace,
863	865		may issue a writ of garnishment returnable to his court.
864	866		SECTION 41. Section 64.091(b), Civil Practice & Remedies
865	867		Code, is amended to read as follows:
866	868		(b) In the following actions, a district court or the
867	869		business court may appoint a receiver for the mineral interest or
868	870		leasehold interest under a mineral lease owned by a nonresident or
869	871		absent defendant:
870	872		(1) an action that is brought by a person claiming or
871	873		owning an undivided mineral interest in land in this state or an
872	874		undivided leasehold interest under a mineral lease of land in this
873	875		state and that has one or more defendants who have, claim, or own an
874	876		undivided mineral interest in the same property; or
875	877		(2) an action that is brought by a person claiming or
876	878		owning an undivided leasehold interest under a mineral lease of
877	879		land in this state and that has one or more defendants who have,
878	880		claim, or own an undivided leasehold interest under a mineral lease
879	881		of the same property.
880	882		SECTION 42. Section 64.092, Civil Practice & Remedies Code,
881	883		is amended by amending Subsections (a) and (c) to read as follows:
882	884		(a) On the application of a person who has a vested,
883	885		contingent, or possible interest in land or an estate subject to a
884	886		contingent future interest, a district court of the county in which
885	887		all or part of the land is located, or a business court judge of an
886	888		operating division of the business court in which all or part of the
887	889		land is located, may appoint a receiver for the land or estate,
888	890		pending the occurrence of the contingency and the vesting of the
889	891		future interest, if:
890	892		(c) On the application of a person who has a vested,
891	893		contingent, or possible interest in land or an estate that is under
892	894		an oil, gas, or mineral lease and is subject to a contingent future
893	895		interest, a district court of the county in which all or part of the
894	896		land is located, or a business court judge of an operating division
895	897		of the business court in which all or part of the land is located,
896	898		may appoint a receiver for the contingent future interests, pending
897	899		the occurrence of the contingency and the vesting of the future
898	900		interest, if:
899	901		SECTION 43. Section 64.093(a), Civil Practice & Remedies
900	902		Code, is amended to read as follows:
901	903		(a) A district court, or the business court if the land
902	904		subject to a mineral interest is located partially or entirely
903	905		within a county that is within an operating division of the business
904	906		court, may appoint a receiver for the royalty interest owned by a
905	907		nonresident or absent defendant in an action that:
906	908		(1) is brought by a person claiming or owning an
907	909		undivided mineral interest in land in this state or an undivided
908	910		leasehold interest under a mineral lease of land in the state; and
909	911		(2) has one or more defendants who have, claim, or own
910	912		an undivided royalty interest in that property.
911	913		SECTION 44. Section 65.022, Civil Practice & Remedies Code,
912	914		is amended by adding Subsection (e) to read as follows:
913	915		(e) A business court judge may grant a writ returnable to
914	916		another business court judge if that judge cannot be reached by the
915	917		ordinary and available means of travel and communication in
916	918		sufficient time to put into effect the purpose of the writ sought.
917	919		In seeking a writ under this subsection, the applicant or attorney
918	920		for the applicant shall attach to the application an affidavit that
919	921		fully states the facts of the inaccessibility and the efforts made
920	922		to reach and communicate with the other business court judge. The
921	923		business court judge to whom application is made shall refuse to
922	924		hear the application unless he determines that the applicant made
923	925		fair and reasonable efforts to reach and communicate with the other
924	926		business court judge. The injunction may be dissolved on a showing
925	927		that the applicant did not first make reasonable efforts to procure
926	928		a hearing on the application before the other business court judge.
927	929		SECTION 45. Subsection 65.023(a), Civil Practice & Remedies
928	930		Code, is amended to read as follows:
929	931		(a) Except as provided by Subsection (b), a writ of
930	932		injunction against a party who is a resident of this state shall be
931	933		tried in a district or county court in the county in which the party
932	934		is domiciled, or, in the case of the business court, the writ of
933	935		injunction shall be tried before a business court judge whose
934	936		division includes the county in which the party is domiciled. If
935	937		the writ is granted against more than one party, it may be tried in
936	938		the proper court of [the] a county in which any enjoined party
937	939		[either party] is domiciled, or, in the case of the business court,
938	940		the writ of injunction shall be tried before a business court judge
939	941		whose division includes a county in which any enjoined party is
940	942		domiciled.
941	943		SECTION 46. Section 65.045(c), Civil Practice & Remedies
942	944		Code, is amended to read as follows:
943	945		(c) The district courts and statutory county courts in a
944	946		county may not adopt local rules in conflict with this subchapter.
945	947		The business court may not adopt local rules in conflict with this
946	948		subchapter.
947	949		SECTION 47. Section 151.001, Civil Practice & Remedies
948	950		Code, is amended to read as follows:
949	951		Sec. 151.001. REFERRAL BY AGREEMENT. On agreement of the
950	952		parties, in civil or family law matters pending in a district court,
951	953		statutory probate court, or statutory county court, or in the
952	954		business court, the judge in whose court the case is pending may
953	955		order referral of the case as provided by this chapter and shall
954	956		stay proceedings in the judge's court pending the outcome of the
955	957		trial. Any or all of the issues in the cases, whether an issue of
956	958		fact or law, may be referred.
957	959		SECTION 48. Section 151.003, Civil Practice & Remedies
958	960		Code, is amended to read as follows:
959	961		Sec. 151.003. QUALIFICATIONS OF JUDGE. The special judge
960	962		must be a retired or former district court, business court,
961	963		statutory county court, statutory probate court, or appellate court
962	964		judge who:
963	965		(1) has served as a judge for at least four years in a
964	966		district court, statutory county court, statutory probate court, or
965	967		appellate court, or the business court, or some combination of the
966	968		foregoing;
967	969		(2) has developed substantial experience in the
968	970		judge's area of specialty;
969	971		(3) has not been removed from office or resigned while
970	972		under investigation for discipline or removal; and
971	973		(4) annually demonstrates completion in the past
972	974		calendar year of at least five days of continuing legal education in
973	975		courses approved by the state bar or the supreme court.
974	976		SECTION 49. Section 151.011, Civil Practice & Remedies
975	977		Code, is amended to read as follows:
976	978		Sec. 151.011. SPECIAL JUDGE'S VERDICT. The special judge's
977	979		verdict must comply with the requirements for a verdict by the
978	980		court. The verdict stands as a verdict of the referring judge's
979	981		court. In the case of a trial referred from the business court, the
980	982		special judge must provide a written opinion under the
981	983		circumstances in which the business court judge would be required
982	984		to provide a written opinion. Unless otherwise specified in an
983	985		order of referral, the special judge shall submit the verdict not
984	986		later than the 60th day after the day the trial adjourns.
985	987		SECTION 50. Section 151.012, Civil Practice & Remedies
986	988		Code, is amended to read as follows:
987	989		Sec. 151.012. NEW TRIAL. If the special judge does not
988	990		submit the verdict, and an opinion, if required in the case of a
989	991		referral from the business court, within the time period provided
990	992		by Section 151.011, the court may grant a new trial if:
991	993		(1) a party files a motion requesting the new trial;
992	994		(2) notice is given to all parties stating the time and
993	995		place that a hearing will be held on the motion; and
994	996		(3) the hearing is held.
995	997		SECTION 51. Section 151.013, Civil Practice & Remedies
996	998		Code, is amended to read as follows:
997	999		Sec. 151.013. RIGHT TO APPEAL. The right to appeal is
998	1000		preserved. An appeal is from the order of the referring judge's
999	1001		court as provided by applicable law and the Texas Rules of Civil
1000	1002		Procedure and the Texas Rules of Appellate Procedure.
1001	1003		SECTION 52. Subsection 154.001(1), Civil Practice &
1002	1004		Remedies Code, is amended to read as follows:
1003	1005		(1) "Court" includes an appellate court, district
1004	1006		court, the business court, constitutional county court, statutory
1005	1007		county court, family law court, probate court, municipal court, or
1006	1008		justice of the peace court.
1007	1009		SECTION 53. Section 171.001, Civil Practice & Remedies
1008	1010		Code, is amended by adding subsection (c) to read as follows:
1009	1011		(c) References to the business court in this chapter
1010	1012		presume, and the authority of the business court to take actions as
1011	1013		provided in this chapter requires, that a claim included in the
1012	1014		controversy arbitrated is within the jurisdiction of the business
1013	1015		court described in Subsections 25A.004(b), (c), or (d), Government
1014	1016		Code.
1015	1017		SECTION 54. Section 171.086, Civil Practice & Remedies
1016	1018		Code, is amended by amending Subsections (a) and (b) to read as
1017	1019		follows:
1018	1020		(a) Before arbitration proceedings begin, in support of
1019	1021		arbitration a party may file an application for a court order,
1020	1022		including an order to:
1021	1023		(1) invoke the jurisdiction of the court over the
1022	1024		adverse party and to effect that jurisdiction by service of process
1023	1025		on the party before arbitration proceedings begin;
1024	1026		(2) invoke the jurisdiction of the court over an
1025	1027		ancillary proceeding in rem, including by attachment, garnishment,
1026	1028		or sequestration, in the manner and subject to the conditions under
1027	1029		which the proceeding may be instituted and conducted ancillary to a
1028	1030		civil action in a district court, or, if the order is sought from
1029	1031		the business court, in the manner and subject to the conditions
1030	1032		under which the proceeding may be instituted and conducted
1031	1033		ancillary to an action in the business court;
1032	1034		(3) restrain or enjoin:
1033	1035		(A) the destruction of all or an essential part
1034	1036		of the subject matter of the controversy; or
1035	1037		(B) the destruction or alteration of books,
1036	1038		records, documents, or other evidence needed for the arbitration;
1037	1039		(4) obtain from the court in its discretion an order
1038	1040		for a deposition for discovery, perpetuation of testimony, or
1039	1041		evidence needed before the arbitration proceedings begin;
1040	1042		(5) appoint one or more arbitrators so that an
1041	1043		arbitration under the agreement to arbitrate may proceed; or
1042	1044		(6) obtain other relief, which the court can grant in
1043	1045		its discretion, needed to permit the arbitration to be conducted in
1044	1046		an orderly manner and to prevent improper interference or delay of
1045	1047		the arbitration.
1046	1048		(b) During the period an arbitration is pending before the
1047	1049		arbitrators or at or after the conclusion of the arbitration, a
1048	1050		party may file an application for a court order, including an order:
1049	1051		(1) that was referred to or that would serve a purpose
1050	1052		referred to in Subsection (a);
1051	1053		(2) to require compliance by an adverse party or any
1052	1054		witness with an order made under this chapter by the arbitrators
1053	1055		during the arbitration;
1054	1056		(3) to require the issuance and service under court
1055	1057		order, rather than under the arbitrators' order, of a subpoena,
1056	1058		notice, or other court process:
1057	1059		(A) in support of the arbitration; or
1058	1060		(B) in an ancillary proceeding in rem, including
1059	1061		by attachment, garnishment, or sequestration, in the manner of and
1060	1062		subject to the conditions under which the proceeding may be
1061	1063		conducted ancillary to a civil action in a district court or, if the
1062	1064		order is sought from the business court, in the manner and subject
1063	1065		to the conditions under which the proceeding may be conducted
1064	1066		ancillary to an action in the business court;
1065	1067		(4) to require security for the satisfaction of a
1066	1068		court judgment that may be later entered under an award;
1067	1069		(5) to support the enforcement of a court order
1068	1070		entered under this chapter; or
1069	1071		(6) to obtain relief under Section 171.087, 171.088,
1070	1072		171.089, or 171.091.
1071	1073		SECTION 55. Section 171.093, Civil Practice & Remedies
1072	1074		Code, is amended to read as follows:
1073	1075		Sec. 171.093. HEARING; NOTICE. The court shall hear each
1074	1076		initial and subsequent application under this subchapter in the
1075	1077		manner and with the notice required by law or court rule for making
1076	1078		and hearing a motion filed in a pending civil action in a district
1077	1079		court, or, for an application to the business court, in the manner
1078	1080		and with the notice required by law or court rule for making and
1079	1081		hearing a motion filed in a pending civil action in a civil action
1080	1082		in the business court.
1081	1083		SECTION 56. Section 171.094(b), Civil Practice & Remedies
1082	1084		Code, is amended to read as follows:
1083	1085		(b) To the extent applicable, the process and service and
1084	1086		the return of service must be in the form and include the substance
1085	1087		required for process and service on a defendant in a civil action in
1086	1088		a district court, or, for an application to the business court, in
1087	1089		the form and including the substance required for process and
1088	1090		service on a defendant in an action in the business court.
1089	1091		SECTION 57. Section 171.095(a), Civil Practice & Remedies
1090	1092		Code, is amended to read as follows:
1091	1093		(a) After an initial application has been made, notice to an
1092	1094		adverse party for each subsequent application shall be made in the
1093	1095		same manner as is required for a motion filed in a pending civil
1094	1096		action in a district court, or, for an application to the business
1095	1097		court, in the same manner as is required for a motion filed in a
1096	1098		pending action in the business court. This subsection applies only
1097	1099		if:
1098	1100		(1) jurisdiction over the adverse party has been
1099	1101		established by service of process on the party or in rem for the
1100	1102		initial application; and
1101	1103		(2) the subsequent application relates to:
1102	1104		(A) the same arbitration or a prospective
1103	1105		arbitration under the same agreement to arbitrate; and
1104	1106		(B) the same controversy or controversies.
1105	1107		SECTION 58. Section 171.096, Civil Practice & Remedies
1106	1108		Code, is amended by amending Subsection (a), (b), and (c) to read as
1107	1109		follows:
1108	1110		(a) Except as otherwise provided by this section, a party
1109	1111		must file the initial application:
1110	1112		(1) in the county in which an adverse party resides or
1111	1113		has a place of business, or, in the case of a filing in the business
1112	1114		court, with the clerk of the business court, designating a county in
1113	1115		which an adverse party resides or has a place of business that is
1114	1116		within an operating division of the business court; or
1115	1117		(2) if an adverse party does not have a residence or
1116	1118		place of business in this state, in any county, or, in the case of a
1117	1119		filing in the business court, with the clerk of the business court,
1118	1120		designating any county that is within an operating division of the
1119	1121		business court.
1120	1122		(b) If the agreement to arbitrate provides that the hearing
1121	1123		before the arbitrators is to be held in a county in this state, a
1122	1124		party must file the initial application with the clerk of the court
1123	1125		of that county, or, in the case of a filing in the business court,
1124	1126		with the clerk of the business court, designating therein the
1125	1127		county named in the agreement to arbitrate that is within an
1126	1128		operating division of the business court.
1127	1129		(c) If a hearing before the arbitrators has been held, a
1128	1130		party must file the initial application with the clerk of the court
1129	1131		of the county in which the hearing was held, or, in the case of a
1130	1132		filing in the business court, with the clerk of the business court,
1131	1133		designating the county in which the hearing was held that is within
1132	1134		an operating division of the business court.
1133	1135		SECTION 59. Subsection 171.097, Civil Practice & Remedies
1134	1136		Code, is amended by amending Subsections (a) and (b) to read as
1135	1137		follows:
1136	1138		(a) On application of a party adverse to the party who filed
1137	1139		the initial application, a court that has jurisdiction but that is
1138	1140		located in a county, or if the initial application was filed in the
1139	1141		business court, a judge sitting in an operating division of the
1140	1142		business court, other than as described by Section 171.096 shall
1141	1143		transfer the application to a court of a county, or an operating
1142	1144		division of the business court containing such a county, described
1143	1145		by that section.
1144	1146		(b) The court shall transfer the application by an order
1145	1147		comparable to an order sustaining a plea of privilege to be sued in
1146	1148		a civil action in a district court of a county other than the county
1147	1149		in which an action is filed, or, in the case of a proceeding in the
1148	1150		business court, by an order comparable to an order sustaining a plea
1149	1151		of privilege to be sued in a civil action in a division of the
1150	1152		business court other than the division in which an action is filed.
1151	1153		SECTION 60. Section 171.098(b), Civil Practice & Remedies
1152	1154		Code, is amended to read as follows:
1153	1155		(b) The appeal shall be taken in the manner and to the same
1154	1156		extent as an appeal from an order or judgment in a civil action,
1155	1157		except that the appeal from an order or judgment of the business
1156	1158		court shall be taken to the Fifteenth Court of Appeals.
1157	1159		SECTION 61. Section 172.001, Civil Practice & Remedies
1158	1160		Code, is amended by adding Subsection (e) to read as follows:
1159	1161		(e) References to the business court in this chapter
1160	1162		presume, and the authority of the business court to take actions as
1161	1163		provided in this chapter requires, that a claim included in the
1162	1164		controversy arbitrated is within the jurisdiction of the business
1163	1165		court described in Subsections 25A.004(b), (c), or (d), Government
1164	1166		Code.
1165	1167		SECTION 62. Section 172.054, Civil Practice & Remedies
1166	1168		Code, is amended by amending Subsections (a), (b), and (d) to read
1167	1169		as follows:
1168	1170		(a) On request of a party, the district court of the county
1169	1171		in which the place of arbitration is located, or the business court
1170	1172		if the county in which the place of arbitration is located is within
1171	1173		an operating division of the business court, shall appoint each
1172	1174		arbitrator if:
1173	1175		(1) an agreement is not made under Section 172.053(a)
1174	1176		in an arbitration with a sole arbitrator and the parties fail to
1175	1177		agree on the arbitrator; or
1176	1178		(2) the appointment procedure in Section 172.053(b)
1177	1179		applies and:
1178	1180		(A) a party fails to appoint an arbitrator not
1179	1181		later than the 30th day after the date of receipt of a request to do
1180	1182		so from the other party; or
1181	1183		(B) the two appointed arbitrators fail to agree
1182	1184		on the third arbitrator not later than the 30th day after the date
1183	1185		of their appointment.
1184	1186		(b) On request of a party, the district court of the county
1185	1187		in which the place of arbitration is located, or the business court
1186	1188		if the county in which the place of arbitration is located is within
1187	1189		an operating division of the business court, may take necessary
1188	1190		measures if under an appointment procedure agreed to by each party:
1189	1191		(1) a party fails to act as required under that
1190	1192		procedure;
1191	1193		(2) the parties or two appointed arbitrators fail to
1192	1194		reach an agreement expected of them under that procedure; or
1193	1195		(3) a third party, including an institution, fails to
1194	1196		perform a function assigned to the party under that procedure.
1195	1197		(d) A decision of the [district]court under this section is
1196	1198		final and not subject to appeal.
1197	1199		SECTION 63. Section 172.055, Civil Practice & Remedies
1198	1200		Code, is amended to read as follows:
1199	1201		Sec. 172.055. FACTORS CONSIDERED. In appointing an
1200	1202		arbitrator, the [district] court shall consider:
1201	1203		(1) each qualification required of the arbitrator by
1202	1204		the arbitration agreement;
1203	1205		(2) any consideration making more likely the
1204	1206		appointment of an independent and impartial arbitrator; and
1205	1207		(3) in the case of a sole or third arbitrator, the
1206	1208		advisability of appointing an arbitrator of a nationality other
1207	1209		than that of any party.
1208	1210		SECTION 64. Subsection 172.060(a), Civil Practice &
1209	1211		Remedies Code, is amended to read as follows:
1210	1212		(a) If a challenge under Sections 172.059(b) and (c) is
1211	1213		unsuccessful, the challenging party, not later than the 30th day
1212	1214		after the date the party receives notice of the decision rejecting
1213	1215		the challenge, may request the district court of the county in which
1214	1216		the place of arbitration is located, or the business court if the
1215	1217		county in which the place of arbitration is located is within an
1216	1218		operating division of the business court, to decide the challenge.
1217	1219		SECTION 65. Subsection 172.061(b), Civil Practice &
1218	1220		Remedies Code, is amended to read as follows:
1219	1221		(b) If there is a controversy concerning the termination of
1220	1222		the arbitrator's mandate under Subsection (a), a party may request
1221	1223		the district court of the county in which the place of arbitration
1222	1224		is located, or the business court if the county in which the place
1223	1225		of arbitration is located is within an operating division of the
1224	1226		business court, to decide the termination. The decision of the
1225	1227		court is not subject to appeal.
1226	1228		SECTION 66. Subsection 172.082(f), Civil Practice &
1227	1229		Remedies Code, is amended to read as follows:
1228	1230		(f) If the arbitration tribunal rules as a preliminary
1229	1231		question that it has jurisdiction, a party waives objection to the
1230	1232		ruling unless the party, not later than the 30th day after the date
1231	1233		the party receives notice of that ruling, requests the district
1232	1234		court of the county in which the place of arbitration is located, or
1233	1235		the business court if the county in which the place of arbitration
1234	1236		is located is within an operating division of the business court, to
1235	1237		decide the matter. The decision of the court is not subject to
1236	1238		appeal.
1237	1239		SECTION 67. Section 172.172, Civil Practice and Remedies
1238	1240		Code, is amended to read as follows:
1239	1241		Sec. 172.172. ASSISTANCE IN TAKING EVIDENCE. The
1240	1242		arbitration tribunal or a party with the approval of the tribunal
1241	1243		may request assistance in taking evidence from a district court, or
1242	1244		the business court, if the county in which the place of arbitration
1243	1245		is located is within an operating division of the business court,
1244	1246		[in taking evidence,] and the court may provide the assistance
1245	1247		according to its rules on taking evidence. The tribunal or a party
1246	1248		shall select the [district] court in the manner provided by Section
1247	1249		171.096.
1248	1250		SECTION 68. Subsections 172.173 (a) and (b), Civil Practice
1249	1251		and Remedies Code, are amended to read as follows:
1250	1252		(a) If the parties to two or more arbitration agreements
1251	1253		agree, in the respective arbitration agreements or otherwise, to
1252	1254		consolidate the arbitrations arising out of the agreements, a
1253	1255		district court, or the business court if the place of arbitration is
1254	1256		located in a county within an active business court division, on
1255	1257		application by a party with the consent of each other party to the
1256	1258		agreements, may:
1257	1259		(1) order the arbitrations consolidated on terms the
1258	1260		court considers just and necessary;
1259	1261		(2) if all the parties cannot agree on a tribunal for
1260	1262		the consolidated arbitration, appoint an arbitration tribunal as
1261	1263		provided by Section 172.055; and
1262	1264		(3) if all the parties cannot agree on any other matter
1263	1265		necessary to conduct the consolidated arbitration, make any other
1264	1266		order the court considers necessary.
1265	1267		(b) The arbitration tribunal or the party shall select the
1266	1268		[district] court in the manner provided by Section 171.096.
1267	1269		SECTION 69. Subsection 172.175(a), Civil Practice &
1268	1270		Remedies Code, is amended to read as follows:
1269	1271		(a) A party to an arbitration agreement may request an
1270	1272		interim measure of protection from a district court, or from the
1271	1273		business court if the county in which the place of arbitration is
1272	1274		located is within an operating division of the business court,
1273	1275		before or during an arbitration.
1274	1276		SECTION 70. (a) Except as provided by Subsection (b), this
1275	1277		Act takes effect immediately if it receives a vote of two-thirds of
1276	1278		all the members elected to each house, as provided by Section 39,
1277	1279		Article III, Texas Constitution. If this Act does not receive the
1278	1280		vote necessary for immediate effect, this Act takes effect
1279	1281		September 1, 2025.
1280	1282		(b) Sections 8 and 14(3) of this Act take effect pursuant to
1281	1283		Subsection (a) only if the voters, in an election held on November
1282	1284		4, 2025, approve a constitutional amendment providing that judges
1283	1285		appointed to the business court may serve terms of office as
1284	1286		provided in Section 8 of this Act. If the voters do not approve such
1285	1287		a constitutional amendment, then Sections 8 and 14(3) do not take
1286	1288		effect and are null and void.
1287	1289		SECTION 71. With the exception of Section 12 of this Act,
1288	1290		the changes in law made by this Act apply to civil actions commenced
1289	1291		on or after September 1, 2024, including actions pending in the
1290	1292		business court on the effective date of this Act.
1291	1293		SECTION 72. Section 6(b), Chapter 380 (H.B. 19), Acts of the
1292	1294		88th Legislature, Regular Session, 2023, is amended to read as
1293	1295		follows:
1294	1296		(b) On or [before September 1, 2026, but not before July 1,
1295	1297		2026] after January 1, 2026, the governor shall appoint one
1296	1298		judge[s] to each of the Second, Fifth, Sixth, Seventh, Ninth, and
1297	1299		Tenth Business Court Divisions, and on or after September 1, 2026,
1298	1300		the governor shall appoint one additional judge to each of the First
1299	1301		and Eleventh Business Court Divisions, as required by Section
1300	1302		25A.009, Government Code [, as added by this Act].