89R16720 AMF-D
By: Hughes S.B. No. 2883
A BILL TO BE ENTITLED
AN ACT
relating to the business court.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 25A.003(d), (g), (h), (i), (k), (l),
and (n), Government Code, are amended to read as follows:
(d) The Second Business Court Division is composed of the
counties composing the Second Administrative Judicial Region under
Section 74.042(c), subject to funding through legislative
appropriations. The division is abolished September 1, 2028 [2026],
unless reauthorized by the legislature and funded through
additional legislative appropriations.
(g) The Fifth Business Court Division is composed of the
counties composing the Fifth Administrative Judicial Region under
Section 74.042(f), subject to funding through legislative
appropriations. The division is abolished on September 1, 2028
[2026], unless reauthorized by the legislature and funded through
additional legislative appropriations.
(h) The Sixth Business Court Division is composed of the
counties composing the Sixth Administrative Judicial Region under
Section 74.042(g), subject to funding through legislative
appropriations. The division is abolished on September 1, 2028
[2026], unless reauthorized by the legislature and funded through
additional legislative appropriations.
(i) The Seventh Business Court Division is composed of the
counties composing the Seventh Administrative Judicial Region
under Section 74.042(h), subject to funding through legislative
appropriations. The division is abolished on September 1, 2028
[2026], unless reauthorized by the legislature and funded through
additional legislative appropriations.
(k) The Ninth Business Court Division is composed of the
counties composing the Ninth Administrative Judicial Region under
Section 74.042(j), subject to funding through legislative
appropriations. The division is abolished on September 1, 2028
[2026], unless reauthorized by the legislature and funded through
additional legislative appropriations.
(l) The Tenth Business Court Division is composed of the
counties composing the Tenth Administrative Judicial Region under
Section 74.042(k), subject to funding through legislative
appropriations. The division is abolished on September 1, 2028
[2026], unless reauthorized by the legislature and funded through
additional legislative appropriations.
(n) This subsection and Subsections (d), (g), (h), (i), (k),
and (l) expire September 1, 2028 [2026].
SECTION 2. Sections 25A.004(b) and (d), Government Code,
are amended to read as follows:
(b) Subject to Subsection (c), the business court has civil
jurisdiction concurrent with district courts in the following
actions in which the amount in controversy exceeds $4.5 [$5]
million, excluding interest, statutory damages, exemplary damages,
penalties, attorney's fees, and court costs:
(1) a derivative proceeding;
(2) an action regarding the governance, governing
documents, or internal affairs of an organization;
(3) an action in which a claim under a state or federal
securities or trade regulation law is asserted against:
(A) an organization;
(B) a controlling person or managerial official
of an organization for an act or omission by the organization or by
the person in the person's capacity as a controlling person or
managerial official;
(C) an underwriter of securities issued by the
organization; or
(D) the auditor of an organization;
(4) an action by an organization, or an owner of an
organization, if the action:
(A) is brought against an owner, controlling
person, or managerial official of the organization; and
(B) alleges an act or omission by the person in
the person's capacity as an owner, controlling person, or
managerial official of the organization;
(5) an action alleging that an owner, controlling
person, or managerial official breached a duty owed to an
organization or an owner of an organization by reason of the
person's status as an owner, controlling person, or managerial
official, including the breach of a duty of loyalty or good faith;
(6) an action seeking to hold an owner or governing
person of an organization liable for an obligation of the
organization, other than on account of a written contract signed by
the person to be held liable in a capacity other than as an owner or
governing person; and
(7) an action arising out of the Business
Organizations Code.
(d) The business court has civil jurisdiction concurrent
with district courts in the following actions in which the amount in
controversy exceeds $9.5 [$10] million, excluding interest,
statutory damages, exemplary damages, penalties, attorney's fees,
and court costs:
(1) an action arising out of a qualified transaction;
(2) an action that arises out of a contract or
commercial transaction in which the parties to the contract or
transaction agreed in the contract or a subsequent agreement that
the business court has jurisdiction of the action, except an action
that arises out of an insurance contract; and
(3) subject to Subsection (g), an action that arises
out of a violation of the Finance Code or Business & Commerce Code
by an organization or an officer or governing person acting on
behalf of an organization other than a bank, credit union, or
savings and loan association.
SECTION 3. Section 25A.008(a), Government Code, is amended
to read as follows:
(a) A business court judge must:
(1) be at least 35 years of age;
(2) be a United States citizen;
(3) have been a resident of a county within the
division of the business court to which the judge is appointed for
at least four [five] years before appointment; and
(4) be a licensed attorney in this state who has 10 or
more years of experience in:
(A) practicing complex civil business
litigation;
(B) practicing business transaction law;
(C) serving as a judge of a court in this state
with civil jurisdiction; or
(D) any combination of experience described by
Paragraphs (A)-(C).
SECTION 4. Section 25A.0171(e), Government Code, is amended
to read as follows:
(e) Not later than December 15 [1] of each year, the Office
of Court Administration of the Texas Judicial System shall submit
to the legislature a report on the number and types of cases heard
by the business court in the preceding year.
SECTION 5. Section 659.012(d), Government Code, is amended
to read as follows:
(d) Notwithstanding any other provision in this section or
other law:
(1)[,] in a county with more than five district courts,
a district judge who serves as a local administrative district
judge under Section 74.091 is entitled to an annual base salary from
the state in the amount equal to $5,000 more than the maximum salary
from the state to which the judge is otherwise entitled under
Subsection (a) or (b); and
(2) a business court judge who serves as
administrative presiding judge under Section 25A.009 is entitled to
an annual base salary from the state in the amount equal to $1 more
than the maximum salary from the state to which the judge is
otherwise entitled under Subsection (a) or (b).
SECTION 6. Section 25A.007(b), Government Code, is
repealed.
SECTION 7. This Act takes effect September 1, 2025.