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A BILL TO BE ENTITLED
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AN ACT
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relating to the creation of a specialty trial court to hear certain |
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cases; authorizing fees. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle A, Title 2, Government Code, is amended |
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by adding Chapter 25A to read as follows: |
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CHAPTER 25A. BUSINESS COURT |
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Sec. 25A.001. DEFINITIONS. In this chapter: |
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(1) "Controlling person" means a person who directly |
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or indirectly controls a governing person, officer, or |
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organization. |
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(2) "Derivative proceeding" means a civil action |
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brought in the right of a domestic or foreign corporation, a |
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domestic or foreign limited liability company, or a domestic or |
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foreign limited partnership, to the extent provided by the Business |
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Organizations Code. |
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(3) "Governing documents" means the instruments, |
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documents, or agreements adopted under an organization's governing |
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law to govern the organization's formation and internal affairs. |
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The term includes: |
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(A) a certificate of formation, articles of |
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incorporation, and articles of organization; |
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(B) bylaws; |
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(C) a partnership agreement; |
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(D) a company agreement or operating agreement; |
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(E) a shareholder agreement; |
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(F) a voting agreement or voting trust agreement; |
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and |
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(G) an agreement among owners restricting the |
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transfer of ownership interests. |
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(4) "Governing law" means the law governing the |
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formation and internal affairs of an organization. |
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(5) "Governing person" means a person who is entitled, |
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alone or as part of a group, to manage and direct an organization's |
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affairs under the organization's governing documents and governing |
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law. The term includes: |
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(A) a member of the board of directors of a |
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corporation or other organization; |
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(B) a general partner of a general or limited |
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partnership; |
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(C) a manager of a limited liability company that |
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is managed by its managers; |
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(D) a member of a limited liability company that |
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is managed by its members; |
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(E) a trust manager of a real estate investment |
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trust; and |
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(F) a trustee of a business trust. |
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(6) "Governmental entity" means: |
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(A) this state; or |
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(B) a political subdivision of this state, |
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including a municipality, a county, or any kind of district. |
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(7) "Internal affairs" means: |
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(A) the rights, powers, and duties of an |
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organization's governing persons, officers, owners, and members; |
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and |
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(B) matters relating to the organization's |
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membership or ownership interests. |
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(8) "Managerial official" means a governing person or |
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officer. |
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(9) "Officer" means a person elected, appointed, or |
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designated as an officer of an organization by the organization's |
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governing persons or governing documents. |
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(10) "Organization" means a foreign or domestic entity |
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or association, regardless of whether the organization is for |
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profit or nonprofit. The term includes: |
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(A) a corporation; |
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(B) a limited partnership; |
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(C) a general partnership; |
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(D) a limited liability partnership; |
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(E) a limited liability company; |
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(F) a business trust; |
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(G) a real estate investment trust; |
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(H) a joint venture; |
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(I) a joint stock company; |
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(J) a cooperative; |
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(K) a bank; |
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(L) a credit union; |
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(M) a savings and loan association; |
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(N) an insurance company; and |
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(O) a series of a limited liability company or of |
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another entity. |
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(11) "Owner" means an owner of an organization. The |
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term includes: |
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(A) a shareholder or stockholder of a corporation |
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or other organization; |
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(B) a general or limited partner of a partnership |
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or an assignee of a partnership interest in a partnership; |
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(C) a member of, or an assignee of a membership |
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interest in, a limited liability company; and |
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(D) a member of a nonprofit organization. |
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(12) "Ownership interest" means an owner's interest in |
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an organization, including an owner's economic, voting, and |
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management rights. |
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(13) "Qualified transaction" means a transaction, |
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other than a transaction involving a loan or an advance of money or |
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credit by a bank, credit union, or savings and loan institution, |
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under which a party: |
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(A) pays or receives, or is obligated to pay or is |
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entitled to receive, consideration with an aggregate value of at |
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least $10 million; or |
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(B) lends, advances, borrows, receives, is |
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obligated to lend or advance, or is entitled to borrow or receive |
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money or credit with an aggregate value of at least $10 million. |
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Sec. 25A.002. CREATION. The business court is a statutory |
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court created under Section 1, Article V, Texas Constitution. |
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Sec. 25A.003. BUSINESS COURT JUDICIAL DISTRICT; DIVISIONS. |
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(a) The judicial district of the business court is composed of all |
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counties in this state. |
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(b) The business court is composed of divisions as provided |
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by this section. |
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(c) The First Business Court Division is composed of the |
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counties composing the First Administrative Judicial Region under |
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Section 74.042(b). |
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(d) The Second Business Court Division is composed of the |
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counties composing the Second Administrative Judicial Region under |
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Section 74.042(c), subject to funding through legislative |
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appropriations. The division is abolished September 1, 2026, unless |
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reauthorized by the legislature and funded through additional |
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legislative appropriations. |
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(e) The Third Business Court Division is composed of the |
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counties composing the Third Administrative Judicial Region under |
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Section 74.042(d). |
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(f) The Fourth Business Court Division is composed of the |
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counties composing the Fourth Administrative Judicial Region under |
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Section 74.042(e). |
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(g) The Fifth Business Court Division is composed of the |
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counties composing the Fifth Administrative Judicial Region under |
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Section 74.042(f), subject to funding through legislative |
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appropriations. The division is abolished on September 1, 2026, |
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unless reauthorized by the legislature and funded through |
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additional legislative appropriations. |
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(h) The Sixth Business Court Division is composed of the |
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counties composing the Sixth Administrative Judicial Region under |
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Section 74.042(g), subject to funding through legislative |
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appropriations. The division is abolished on September 1, 2026, |
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unless reauthorized by the legislature and funded through |
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additional legislative appropriations. |
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(i) The Seventh Business Court Division is composed of the |
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counties composing the Seventh Administrative Judicial Region |
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under Section 74.042(h), subject to funding through legislative |
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appropriations. The division is abolished on September 1, 2026, |
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unless reauthorized by the legislature and funded through |
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additional legislative appropriations. |
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(j) The Eighth Business Court Division is composed of the |
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counties composing the Eighth Administrative Judicial Region under |
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Section 74.042(i). |
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(k) The Ninth Business Court Division is composed of the |
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counties composing the Ninth Administrative Judicial Region under |
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Section 74.042(j), subject to funding through legislative |
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appropriations. The division is abolished on September 1, 2026, |
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unless reauthorized by the legislature and funded through |
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additional legislative appropriations. |
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(l) The Tenth Business Court Division is composed of the |
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counties composing the Tenth Administrative Judicial Region under |
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Section 74.042(k), subject to funding through legislative |
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appropriations. The division is abolished on September 1, 2026, |
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unless reauthorized by the legislature and funded through |
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additional legislative appropriations. |
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(m) The Eleventh Business Court Division is composed of the |
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counties composing the Eleventh Administrative Judicial Region |
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under Section 74.042(l). |
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(n) This subsection and Subsections (d), (g), (h), (i), (k), |
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and (l) expire September 1, 2026. |
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Sec. 25A.004. JURISDICTION AND POWERS. (a) Subject to |
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Subsections (b), (c), (d), and (e), the business court has the |
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powers provided to district courts by Chapter 24, including the |
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power to: |
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(1) issue writs of injunction, mandamus, |
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sequestration, attachment, garnishment, and supersedeas; and |
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(2) grant any relief that may be granted by a district |
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court. |
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(b) The business court has civil jurisdiction concurrent |
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with district courts in the following actions in which the amount in |
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controversy exceeds $5 million, excluding interest, statutory |
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damages, exemplary damages, penalties, attorney's fees, and court |
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costs: |
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(1) a derivative proceeding; |
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(2) an action regarding the governance, governing |
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documents, or internal affairs of an organization; |
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(3) an action in which a claim under a state or federal |
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securities or trade regulation law is asserted against: |
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(A) an organization; |
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(B) a controlling person or managerial official |
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of an organization for an act or omission by the organization or by |
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the person in the person's capacity as a controlling person or |
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managerial official; |
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(C) an underwriter of securities issued by the |
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organization; or |
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(D) the auditor of an organization; |
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(4) an action by an organization, or an owner of an |
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organization, if the action: |
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(A) is brought against an owner, controlling |
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person, or managerial official of the organization; and |
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(B) alleges an act or omission by the person in |
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the person's capacity as an owner, controlling person, or |
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managerial official of the organization; |
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(5) an action alleging that an owner, controlling |
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person, or managerial official breached a duty owed to an |
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organization or an owner of an organization by reason of the |
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person's status as an owner, controlling person, or managerial |
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official, including the breach of a duty of loyalty or good faith; |
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(6) an action seeking to hold an owner or governing |
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person of an organization liable for an obligation of the |
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organization, other than on account of a written contract signed by |
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the person to be held liable in a capacity other than as an owner or |
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governing person; and |
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(7) an action arising out of the Business |
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Organizations Code. |
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(c) The business court has civil jurisdiction concurrent |
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with district courts in the following actions in which the amount in |
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controversy exceeds $10 million, excluding interest, statutory |
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damages, exemplary damages, penalties, attorney's fees, and court |
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costs: |
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(1) an action arising out of a qualified transaction; |
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(2) an action that arises out of a contract or |
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commercial transaction in which the parties to the contract or |
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transaction agreed in the contract or a subsequent agreement that |
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the business court has jurisdiction of the action, except an action |
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that arises out of an insurance contract; and |
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(3) subject to Subsection (f), an action that arises |
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out of a violation of the Finance Code or Business & Commerce Code |
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by an organization or an officer or governing person acting on |
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behalf of an organization other than a bank, credit union, or |
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savings and loan association. |
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(d) The business court has civil jurisdiction concurrent |
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with district courts in an action seeking injunctive relief or a |
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declaratory judgment under Chapter 37, Civil Practice and Remedies |
|
Code, involving a dispute based on a claim within the court's |
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jurisdiction under Subsection (b) or (c). |
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(e) Except as provided by Subsection (g), the business court |
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has supplemental jurisdiction over any other claim related to a |
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case or controversy within the court's jurisdiction that forms part |
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of the same case or controversy. A claim within the business |
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court's supplemental jurisdiction may proceed in the business court |
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only on the agreement of all parties to the claim and a judge of the |
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division of the court before which the action is pending. If the |
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parties involved in a claim within the business court's |
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supplemental jurisdiction do not agree on the claim proceeding in |
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the business court, the claim may proceed in a court of original |
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jurisdiction concurrently with any related claims proceeding in the |
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business court. |
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(f) Unless the claim falls within the business court's |
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supplemental jurisdiction, the business court does not have |
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jurisdiction of: |
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(1) a civil action: |
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(A) brought by or against a governmental entity; |
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or |
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(B) to foreclose on a lien on real or personal |
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property; |
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(2) a claim arising out of: |
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(A) Subchapter E, Chapter 15, and Chapter 17, |
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Business & Commerce Code; |
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(B) the Estates Code; |
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(C) the Family Code; |
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(D) the Insurance Code; or |
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(E) Chapter 53 and Title 9, Property Code; |
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(3) a claim arising out of the production or sale of a |
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farm product, as that term is defined by Section 9.102, Business & |
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Commerce Code; |
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(4) a claim related to the duties and obligations |
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under an insurance policy; or |
|
(5) a claim related to a consumer transaction, as that |
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term is defined by Section 601.001, Business & Commerce Code, to |
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which a consumer in this state is a party, arising out of a |
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violation of federal or state law. |
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(g) The business court does not have jurisdiction of the |
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following claims regardless of whether the claim is otherwise |
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within the court's supplemental jurisdiction under Subsection (e): |
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(1) a claim arising under Chapter 74, Civil Practice |
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and Remedies Code; |
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(2) a claim in which a party seeks recovery of monetary |
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damages for bodily injury or death; or |
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(3) a claim of legal malpractice. |
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Sec. 25A.005. JUDICIAL AUTHORITY. A business court judge |
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has all powers, duties, immunities, and privileges of a district |
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judge. |
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Sec. 25A.006. INITIAL FILING; REMOVAL AND REMAND. (a) An |
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action within the jurisdiction of the business court may be filed in |
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the business court. The party filing the action must plead facts to |
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establish venue in a county in a division of the business court, and |
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the business court shall assign the action to that division. Venue |
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may be established as provided by law or, if a written contract |
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specifies a county as venue for the action, as provided by the |
|
contract. |
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(b) If the business court does not have jurisdiction of the |
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action, the court shall, at the option of the party filing the |
|
action: |
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(1) transfer the action to a district court or county |
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court at law in a county of proper venue; or |
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(2) dismiss the action without prejudice to the |
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party's rights. |
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(c) If, after an action is assigned to a division of the |
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business court, the court determines that the division's geographic |
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territory does not include a county of proper venue for the action, |
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the court shall: |
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(1) if an operating division of the court includes a |
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county of proper venue, transfer the action to that division; or |
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(2) if there is not an operating division of the court |
|
that includes a county of proper venue, at the option of the party |
|
filing the action, transfer the action to a district court or county |
|
court at law in a county of proper venue. |
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(d) A party to an action filed in a district court or county |
|
court at law that is within the jurisdiction of the business court |
|
may remove the action to the business court. If the business court |
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does not have jurisdiction of the action, the business court shall |
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remand the action to the court in which the action was originally |
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filed. |
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(e) A party may not remove to a business court an action |
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filed in a district court or county court at law in a county of |
|
proper venue that is not within an operating division of the |
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business court. |
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(f) A party may file an agreed notice of removal at any time |
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during the pendency of the action. If all parties to the action |
|
have not agreed to remove the action, the notice of removal must be |
|
filed: |
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(1) not later than the 30th day after the date the |
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party requesting removal of the action discovered, or reasonably |
|
should have discovered, facts establishing the business court's |
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jurisdiction over the action; or |
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(2) if an application for temporary injunction is |
|
pending on the date the party requesting removal of the action |
|
discovered, or reasonably should have discovered, facts |
|
establishing the business court's jurisdiction over the action, not |
|
later than the 30th day after the date the application is granted, |
|
denied, or denied as a matter of law. |
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(g) The notice of removal must be filed with the business |
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court and the court in which the action was originally filed. On |
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receipt of the notice, the clerk of the court in which the action |
|
was originally filed shall immediately transfer the action to the |
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business court in accordance with rules adopted by the supreme |
|
court, and the business court clerk shall assign the action to the |
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appropriate division of the business court. |
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(h) The filing of an action or a notice of removal in the |
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business court is subject to Section 10.001, Civil Practice and |
|
Remedies Code. |
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(i) Removal of a case to the business court is not subject to |
|
the statutes or rules governing the due order of pleading. |
|
(j) Removal of a case does not waive a defect in venue or |
|
constitute an appearance to determine personal jurisdiction. |
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(k) The judge of a court in which an action is filed may |
|
request the presiding judge for the court's administrative region |
|
to transfer the action to the business court if the action is within |
|
the business court's jurisdiction. The judge shall notify all |
|
parties of the transfer request and request a hearing on the |
|
transfer request. After a hearing on the request, the presiding |
|
judge may transfer the action to the business court if the presiding |
|
judge finds the transfer will facilitate the fair and efficient |
|
administration of justice. The business court clerk shall assign |
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an action transferred under this subsection to the appropriate |
|
division of the business court. |
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(l) The business court judge on establishment of |
|
jurisdiction and venue over an action shall by order declare the |
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county in which any jury trial for the action will be held as |
|
determined under Section 25A.015. |
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Sec. 25A.007. APPEALS. (a) Notwithstanding any other law |
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and except as provided by Subsection (b) and in instances when the |
|
supreme court has concurrent or exclusive jurisdiction, the |
|
Fifteenth Court of Appeals has exclusive jurisdiction over an |
|
appeal from an order or judgment of the business court or an |
|
original proceeding related to an action or order of the business |
|
court. |
|
(b) If the Fifteenth Court of Appeals is not created, an |
|
appeal from an order or judgment of the business court or an |
|
original proceeding related to an action or order of the business |
|
court shall be filed in the court of appeals with appellate |
|
jurisdiction of civil cases for the county declared in an order |
|
under Section 25A.006(l). |
|
(c) The procedure governing an appeal or original |
|
proceeding from the business court is the same as the procedure for |
|
an appeal or original proceeding from a district court. |
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Sec. 25A.008. QUALIFICATIONS OF JUDGE. (a) A business |
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court judge must: |
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(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 five years before appointment; and |
|
(4) be a licensed attorney in this state who has 10 or |
|
more years of experience in: |
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(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). |
|
(b) A business court judge may not have had the judge's |
|
license to practice law revoked, suspended, or subject to a |
|
probated suspension. |
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Sec. 25A.009. APPOINTMENT OF JUDGES; TERM; PRESIDING JUDGE; |
|
EXCHANGE OF BENCHES. (a) The governor, with the advice and consent |
|
of the senate, shall appoint: |
|
(1) two judges to each of the First, Third, Fourth, and |
|
Eleventh Divisions of the business court; and |
|
(2) one judge to each of the Second, Fifth, Sixth, |
|
Seventh, Eighth, Ninth, and Tenth Divisions of the business court. |
|
(b) A business court judge shall serve for a term of two |
|
years, beginning on September 1 of every even-numbered year. |
|
(c) A business court judge may be reappointed. |
|
(d) Not later than the seventh day after the first day of a |
|
term, the business court judges by majority vote shall select a |
|
judge of the court to serve as administrative presiding judge for |
|
the duration of the term. If a vacancy occurs in the position of |
|
administrative presiding judge, the remaining business court |
|
judges shall select a judge of the court to serve as administrative |
|
presiding judge for the remainder of the unexpired term as soon as |
|
practicable. |
|
(e) A business court judge shall take the constitutional |
|
oath of office required of appointed officers of this state and file |
|
the oath with the secretary of state. |
|
(f) To promote the orderly and efficient administration of |
|
justice, the business court judges may exchange benches and sit and |
|
act for each other in any matter pending before the court. |
|
Sec. 25A.010. VACANCY. If a vacancy occurs in an office of |
|
a business court judge, the governor, with the advice and consent of |
|
the senate, shall appoint, in the same manner as the original |
|
appointment, another person to serve for the remainder of the |
|
unexpired term. |
|
Sec. 25A.011. JUDGE'S SALARY. The salary of a business |
|
court judge is the amount provided by Section 659.012 and shall be |
|
paid in equal monthly installments. |
|
Sec. 25A.012. REMOVAL; DISQUALIFICATION AND RECUSAL. (a) |
|
A business court judge may be removed from office in the same manner |
|
and for the same reasons as a district judge. |
|
(b) A business court judge is disqualified and subject to |
|
mandatory recusal for the same reasons a district judge is subject |
|
to disqualification or recusal in a pending case. Disqualification |
|
or recusal of a business court judge shall be governed by the same |
|
procedure as disqualification or recusal of a district judge. |
|
Sec. 25A.013. PRIVATE PRACTICE OF LAW. A business court |
|
judge shall diligently discharge the duties of the office on a |
|
full-time basis and may not engage in the private practice of law. |
|
Sec. 25A.014. VISITING JUDGE. (a) A retired or former |
|
judge or justice who has the qualifications prescribed by Section |
|
25A.008 may be assigned as a visiting judge of a division of the |
|
business court by the chief justice of the supreme court. A |
|
visiting judge of a division of the business court is subject to |
|
objection, disqualification, or recusal in the same manner as a |
|
retired or former judge or justice is subject to objection, |
|
disqualification, or recusal if appointed as a visiting district |
|
judge. |
|
(b) Before accepting an assignment as a visiting judge of a |
|
division of the business court, a retired or former judge or justice |
|
shall take the constitutional oath of office required of appointed |
|
officers of this state and file the oath with the secretary of |
|
state. |
|
Sec. 25A.015. JURY PRACTICE AND PROCEDURE; VENUE FOR JURY |
|
TRIAL. (a) A party in an action pending in the business court has |
|
the right to a trial by jury when required by the constitution. |
|
(b) Subject to Subsection (d), a jury trial in a case filed |
|
initially in the business court shall be held in any county in which |
|
the case could have been filed under Section 15.002, Civil Practice |
|
and Remedies Code, as chosen by the plaintiff. |
|
(c) Subject to Subsections (b) and (d), a jury trial in a |
|
case removed to the business court shall be held in the county in |
|
which the action was originally filed. |
|
(d) A jury trial for a case in which a written contract |
|
specifies a county as venue for suits shall be held in that county. |
|
(e) The parties and the business court judge may agree to |
|
hold the jury trial in any other county. A party may not be required |
|
to agree to hold the jury trial in a different county. |
|
(f) The drawing of jury panels, selection of jurors, and |
|
other jury-related practice and procedure in the business court |
|
shall be the same as for the district court in the county in which |
|
the trial is held. |
|
(g) Practice, procedure, rules of evidence, issuance of |
|
process and writs, and all other matters pertaining to the conduct |
|
of trials, hearings, and other business in the business court are |
|
governed by the laws and rules prescribed for district courts, |
|
unless otherwise provided by this chapter. |
|
Sec. 25A.016. WRITTEN OPINIONS. The supreme court shall |
|
adopt rules for the issuance of written opinions by the business |
|
court. |
|
Sec. 25A.017. COURT LOCATION; STAFFING. (a) In this |
|
section, "remote proceeding" means a proceeding before the business |
|
court in which one or more of the participants, including a judge, |
|
party, attorney, witness, court reporter, juror, or other |
|
individual attends the proceeding remotely through the use of |
|
technology. |
|
(b) The administrative presiding judge of the business |
|
court shall manage administrative and personnel matters on behalf |
|
of the court. The administrative presiding judge of the business |
|
court shall appoint a clerk, whose office shall be located in Travis |
|
County in facilities provided by this state. The clerk shall: |
|
(1) accept all filings in the business court; and |
|
(2) fulfill the legal and administrative functions of |
|
a district clerk. |
|
(c) Each business court judge shall maintain chambers in the |
|
county the judge selects within the geographic boundaries of the |
|
division to which the judge is appointed in facilities provided by |
|
this state. For purposes of this section, the Office of Court |
|
Administration of the Texas Judicial System may contract for the |
|
use of facilities with a county. |
|
(d) Subject to Section 25A.015, a business court judge may |
|
hold court at any courtroom within the geographic boundaries of the |
|
division to which the judge is appointed as the court determines |
|
necessary or convenient for a particular civil action. To the |
|
extent practicable, a county using existing courtrooms and |
|
facilities shall accommodate the business court in the conduct of |
|
the court's hearings and other proceedings. |
|
(e) The business court may conduct a proceeding as a remote |
|
proceeding to facilitate the resolution of a matter before the |
|
court. The business court may not require: |
|
(1) a party or attorney to remotely attend a court |
|
proceeding in which oral testimony is heard, absent good cause or |
|
the agreement of the parties; or |
|
(2) an attorney, party, or juror to attend a jury trial |
|
remotely, absent agreement of the parties. |
|
(f) The business court shall conduct a remote proceeding |
|
from a courtroom or the facilities provided to a business court |
|
judge by this state. |
|
(g) The business court shall provide reasonable notice to |
|
the public that a proceeding will be conducted remotely and an |
|
opportunity for the public to observe the remote proceeding. |
|
(h) In a county in which a division of the business court |
|
sits, the sheriff shall in person or by deputy attend the business |
|
court as required by the court. The sheriff or deputy is entitled |
|
to reimbursement from this state for the cost of attending the |
|
business court. |
|
(i) The business court may appoint personnel necessary for |
|
the operation of the court, including: |
|
(1) personnel to assist the clerk of the court; |
|
(2) staff attorneys for the court; |
|
(3) staff attorneys for each judge of the business |
|
court; |
|
(4) court coordinators; and |
|
(5) administrative assistants. |
|
(j) The court officials shall perform the duties and |
|
responsibilities of their offices and are entitled to the |
|
compensation, fees, and allowances prescribed by law for the |
|
offices. |
|
Sec. 25A.0171. REPORT. Not later than December 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. |
|
Sec. 25A.018. FEES. The supreme court shall set fees for |
|
filings and actions in the business court in amounts sufficient to |
|
cover the costs of administering this chapter, taking into account |
|
fee waivers necessary for the interest of justice. |
|
Sec. 25A.019. SEAL. The seal of the business court is the |
|
same as that provided by law for a district court except that the |
|
seal must contain the name "The Business Court of Texas." |
|
Sec. 25A.020. RULES. (a) The supreme court shall adopt |
|
rules of civil procedure as the court determines necessary, |
|
including rules providing for: |
|
(1) the timely and efficient removal and remand of |
|
cases to and from the business court; and |
|
(2) the assignment of cases to judges of the business |
|
court. |
|
(b) The business court may adopt rules of practice and |
|
procedure consistent with the Texas Rules of Civil Procedure and |
|
the Texas Rules of Evidence. |
|
SECTION 2. Sections 659.012(a) and (e), Government Code, |
|
are amended to read as follows: |
|
(a) Notwithstanding Section 659.011 and subject to |
|
Subsections (b) and (b-1): |
|
(1) a judge of a district court or a division of the |
|
business court is entitled to an annual base salary from the state |
|
as set by the General Appropriations Act in an amount equal to at |
|
least $140,000, except that the combined base salary of a district |
|
judge or judge of a division of the business court from all state |
|
and county sources, including compensation for any extrajudicial |
|
services performed on behalf of the county, may not exceed the |
|
amount that is $5,000 less than the maximum combined base salary |
|
from all state and county sources for a justice of a court of |
|
appeals other than a chief justice as determined under this |
|
subsection; |
|
(2) a justice of a court of appeals other than the |
|
chief justice is entitled to an annual base salary from the state in |
|
the amount equal to 110 percent of the state base salary of a |
|
district judge as set by the General Appropriations Act, except |
|
that the combined base salary of a justice of the court of appeals |
|
other than the chief justice from all state and county sources, |
|
including compensation for any extrajudicial services performed on |
|
behalf of the county, may not exceed the amount that is $5,000 less |
|
than the base salary for a justice of the supreme court as |
|
determined under this subsection; |
|
(3) a justice of the supreme court other than the chief |
|
justice or a judge of the court of criminal appeals other than the |
|
presiding judge is entitled to an annual base salary from the state |
|
in the amount equal to 120 percent of the state base salary of a |
|
district judge as set by the General Appropriations Act; and |
|
(4) the chief justice or presiding judge of an |
|
appellate court is entitled to an annual base salary from the state |
|
in the amount equal to $2,500 more than the state base salary |
|
provided for the other justices or judges of the court, except that |
|
the combined base salary of the chief justice of a court of appeals |
|
from all state and county sources may not exceed the amount equal to |
|
$2,500 less than the base salary for a justice of the supreme court |
|
as determined under this subsection. |
|
(e) For the purpose of salary payments by the state, the |
|
comptroller shall determine from sworn statements filed by the |
|
justices of the courts of appeals, [and] district judges, and |
|
business court judges that the required salary limitations provided |
|
by Subsection (a) are maintained. If the state base salary for a |
|
judge or justice prescribed by Subsection (a) combined with |
|
additional compensation from a county would exceed the limitations |
|
provided by Subsection (a), the comptroller shall reduce the salary |
|
payment made by the state by the amount of the excess. |
|
SECTION 3. Section 837.001(a), Government Code, is amended |
|
to read as follows: |
|
(a) Membership [Except as provided by Subsection (b), |
|
membership] in the retirement system is limited to persons who have |
|
never been eligible for membership in the Judicial Retirement |
|
System of Texas or the Judicial Retirement System of Texas Plan One |
|
and who at any time on or after the effective date of this Act are |
|
judges, justices, or commissioners of: |
|
(1) the supreme court; |
|
(2) the court of criminal appeals; |
|
(3) a court of appeals; |
|
(4) the business court; |
|
(5) a district court; or |
|
(6) [(5)] a commission to a court specified in this |
|
subsection. |
|
SECTION 4. (a) The Texas Supreme Court has exclusive and |
|
original jurisdiction over a challenge to the constitutionality of |
|
this Act or any part of this Act and may issue injunctive or |
|
declaratory relief in connection with the challenge. |
|
(b) If the appointment of judges by the governor to the |
|
divisions of the business court under Section 25A.009, Government |
|
Code, as added by this Act, is held by the Texas Supreme Court as |
|
unconstitutional, the business court shall be staffed by retired or |
|
former judges or justices who are appointed to the court as provided |
|
by Section 25A.014, Government Code, as added by this Act. |
|
SECTION 5. Except as otherwise provided by this Act, the |
|
business court is created September 1, 2024. |
|
SECTION 6. (a) As soon as practicable after the effective |
|
date of this Act, the governor shall appoint judges to the First, |
|
Third, Fourth, Eighth, and Eleventh Business Court Divisions as |
|
required by Section 25A.009, Government Code, as added by this Act. |
|
(b) On or before September 1, 2026, but not before July 1, |
|
2026, the governor shall appoint judges to the Second, Fifth, |
|
Sixth, Seventh, Ninth, and Tenth Business Court Divisions as |
|
required by Section 25A.009, Government Code, as added by this Act. |
|
SECTION 7. (a) Notwithstanding Chapter 25A, Government |
|
Code, as added by this Act, the business court is not created unless |
|
the legislature makes a specific appropriation of money for that |
|
purpose. For purposes of this subsection, a specific appropriation |
|
is an appropriation identifying the business court or an Act of the |
|
88th Legislature, Regular Session, 2023, relating to the creation |
|
of a specialty trial court to hear certain cases or of the business |
|
court. |
|
(b) Notwithstanding Section 25A.007(a), Government Code, as |
|
added by this Act, a court of appeals retains the jurisdiction the |
|
court had on August 31, 2024, if the business court is not created |
|
as a result of Subsection (a) of this section. |
|
SECTION 8. The changes in law made by this Act apply to |
|
civil actions commenced on or after September 1, 2024. |
|
SECTION 9. This Act takes effect September 1, 2023. |