Texas 2025 - 89th Regular

Texas Senate Bill SB2883 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R16720 AMF-D
2	2	By: Hughes S.B. No. 2883
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the business court.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Sections 25A.003(d), (g), (h), (i), (k), (l),
12	12	and (n), Government Code, are amended to read as follows:
13	13	(d) The Second Business Court Division is composed of the
14	14	counties composing the Second Administrative Judicial Region under
15	15	Section 74.042(c), subject to funding through legislative
16	16	appropriations. The division is abolished September 1, 2028 [2026],
17	17	unless reauthorized by the legislature and funded through
18	18	additional legislative appropriations.
19	19	(g) The Fifth Business Court Division is composed of the
20	20	counties composing the Fifth Administrative Judicial Region under
21	21	Section 74.042(f), subject to funding through legislative
22	22	appropriations. The division is abolished on September 1, 2028
23	23	[2026], unless reauthorized by the legislature and funded through
24	24	additional legislative appropriations.
25	25	(h) The Sixth Business Court Division is composed of the
26	26	counties composing the Sixth Administrative Judicial Region under
27	27	Section 74.042(g), subject to funding through legislative
28	28	appropriations. The division is abolished on September 1, 2028
29	29	[2026], unless reauthorized by the legislature and funded through
30	30	additional legislative appropriations.
31	31	(i) The Seventh Business Court Division is composed of the
32	32	counties composing the Seventh Administrative Judicial Region
33	33	under Section 74.042(h), subject to funding through legislative
34	34	appropriations. The division is abolished on September 1, 2028
35	35	[2026], unless reauthorized by the legislature and funded through
36	36	additional legislative appropriations.
37	37	(k) The Ninth Business Court Division is composed of the
38	38	counties composing the Ninth Administrative Judicial Region under
39	39	Section 74.042(j), subject to funding through legislative
40	40	appropriations. The division is abolished on September 1, 2028
41	41	[2026], unless reauthorized by the legislature and funded through
42	42	additional legislative appropriations.
43	43	(l) The Tenth Business Court Division is composed of the
44	44	counties composing the Tenth Administrative Judicial Region under
45	45	Section 74.042(k), subject to funding through legislative
46	46	appropriations. The division is abolished on September 1, 2028
47	47	[2026], unless reauthorized by the legislature and funded through
48	48	additional legislative appropriations.
49	49	(n) This subsection and Subsections (d), (g), (h), (i), (k),
50	50	and (l) expire September 1, 2028 [2026].
51	51	SECTION 2. Sections 25A.004(b) and (d), Government Code,
52	52	are amended to read as follows:
53	53	(b) Subject to Subsection (c), the business court has civil
54	54	jurisdiction concurrent with district courts in the following
55	55	actions in which the amount in controversy exceeds $4.5 [$5]
56	56	million, excluding interest, statutory damages, exemplary damages,
57	57	penalties, attorney's fees, and court costs:
58	58	(1) a derivative proceeding;
59	59	(2) an action regarding the governance, governing
60	60	documents, or internal affairs of an organization;
61	61	(3) an action in which a claim under a state or federal
62	62	securities or trade regulation law is asserted against:
63	63	(A) an organization;
64	64	(B) a controlling person or managerial official
65	65	of an organization for an act or omission by the organization or by
66	66	the person in the person's capacity as a controlling person or
67	67	managerial official;
68	68	(C) an underwriter of securities issued by the
69	69	organization; or
70	70	(D) the auditor of an organization;
71	71	(4) an action by an organization, or an owner of an
72	72	organization, if the action:
73	73	(A) is brought against an owner, controlling
74	74	person, or managerial official of the organization; and
75	75	(B) alleges an act or omission by the person in
76	76	the person's capacity as an owner, controlling person, or
77	77	managerial official of the organization;
78	78	(5) an action alleging that an owner, controlling
79	79	person, or managerial official breached a duty owed to an
80	80	organization or an owner of an organization by reason of the
81	81	person's status as an owner, controlling person, or managerial
82	82	official, including the breach of a duty of loyalty or good faith;
83	83	(6) an action seeking to hold an owner or governing
84	84	person of an organization liable for an obligation of the
85	85	organization, other than on account of a written contract signed by
86	86	the person to be held liable in a capacity other than as an owner or
87	87	governing person; and
88	88	(7) an action arising out of the Business
89	89	Organizations Code.
90	90	(d) The business court has civil jurisdiction concurrent
91	91	with district courts in the following actions in which the amount in
92	92	controversy exceeds $9.5 [$10] million, excluding interest,
93	93	statutory damages, exemplary damages, penalties, attorney's fees,
94	94	and court costs:
95	95	(1) an action arising out of a qualified transaction;
96	96	(2) an action that arises out of a contract or
97	97	commercial transaction in which the parties to the contract or
98	98	transaction agreed in the contract or a subsequent agreement that
99	99	the business court has jurisdiction of the action, except an action
100	100	that arises out of an insurance contract; and
101	101	(3) subject to Subsection (g), an action that arises
102	102	out of a violation of the Finance Code or Business & Commerce Code
103	103	by an organization or an officer or governing person acting on
104	104	behalf of an organization other than a bank, credit union, or
105	105	savings and loan association.
106	106	SECTION 3. Section 25A.008(a), Government Code, is amended
107	107	to read as follows:
108	108	(a) A business court judge must:
109	109	(1) be at least 35 years of age;
110	110	(2) be a United States citizen;
111	111	(3) have been a resident of a county within the
112	112	division of the business court to which the judge is appointed for
113	113	at least four [five] years before appointment; and
114	114	(4) be a licensed attorney in this state who has 10 or
115	115	more years of experience in:
116	116	(A) practicing complex civil business
117	117	litigation;
118	118	(B) practicing business transaction law;
119	119	(C) serving as a judge of a court in this state
120	120	with civil jurisdiction; or
121	121	(D) any combination of experience described by
122	122	Paragraphs (A)-(C).
123	123	SECTION 4. Section 25A.0171(e), Government Code, is amended
124	124	to read as follows:
125	125	(e) Not later than December 15 [1] of each year, the Office
126	126	of Court Administration of the Texas Judicial System shall submit
127	127	to the legislature a report on the number and types of cases heard
128	128	by the business court in the preceding year.
129	129	SECTION 5. Section 659.012(d), Government Code, is amended
130	130	to read as follows:
131	131	(d) Notwithstanding any other provision in this section or
132	132	other law:
133	133	(1)[,] in a county with more than five district courts,
134	134	a district judge who serves as a local administrative district
135	135	judge under Section 74.091 is entitled to an annual base salary from
136	136	the state in the amount equal to $5,000 more than the maximum salary
137	137	from the state to which the judge is otherwise entitled under
138	138	Subsection (a) or (b); and
139	139	(2) a business court judge who serves as
140	140	administrative presiding judge under Section 25A.009 is entitled to
141	141	an annual base salary from the state in the amount equal to $1 more
142	142	than the maximum salary from the state to which the judge is
143	143	otherwise entitled under Subsection (a) or (b).
144	144	SECTION 6. Section 25A.007(b), Government Code, is
145	145	repealed.
146	146	SECTION 7. This Act takes effect September 1, 2025.