BILL ANALYSIS

Senate Research Center	S.B. 2883
89R16720 AMF-D	By: Hughes
	Jurisprudence
	5/6/2025
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

The Texas Business Court (business court) was created by the 88th Legislature's enactment of H.B. 19 pursuant to its authority to establish statutory courts under Article V, Section 1 of the Texas Constitution. This made Texas the 31st state to establish a specialized court to address complex business litigation with greater efficiency and consistency. H.B. 19 is codified in Chapter 25A, Texas Government Code.

The business court's judicial district is established by Section 25A.003(a), Texas Government Code, as composed of all counties in the state, divided into eleven divisions corresponding to the state's administrative judicial districts. H.B. 19 provided for five divisions of the court to open on September 1, 2024, covering the state�s most populous counties, with activation of the other six divisions to be taken up by the 89th Texas Legislature in 2025. Governor Abbott appointed two judges to each of the initial five divisions in June 2024 and the business court began receiving cases on September 1, 2024.

Sections 1-41 and Section 57-71 amend the Texas Civil Practice and Remedies Code and the Texas Government Code to add references to the business court to statutory provisions that currently reference only state district courts or their judges.

The amendments to Chapter 25A appearing in bill sections 42-56, among other things:

• Clarify and confirm the business court's subject matter jurisdiction and fill jurisdictional gaps relative to the business courts of other states, including confirming the business court's jurisdiction in:
• Actions arising from or relating to the ownership or use of intellectual property;
• Actions arising under the Texas Uniform Trade Secrets Act;
• Actions arising out of arbitration agreements, the Federal Arbitration Act and arbitrations subject to Chapters 171 and 172, Texas Civil Practice and Remedies Code;
• Reduce the required amount in controversy for business court jurisdiction over disputes relating to qualified transactions and other business and commercial disputes from $10 million to $5 million;
• Activate the six divisions of the business court that the 88th Legislature deferred for action in 2025, authorizing the governor to appoint one judge for each division on or after January 1, 2026, producing a fully statewide business court;
• Expand the Eleventh Business Court Division to include Montgomery County;
• Authorize business court judges to make determinations of whether a claim is within the business court's supplemental jurisdiction;
• Direct the Supreme Court to adopt rules of civil and judicial procedure to support the prompt determination of business court jurisdiction;
• Authorize the governor to appoint an additional judge to each of the First and Eleventh Business Court Divisions on or after September 1, 2026;
• Provide further guidance on the selection and responsibilities of the administrative presiding judge of the business court and authorize related compensation comparable to local administrative judges of district courts;
• Include the business court in the state's multidistrict litigation program; and
• Authorize active district court judges having the requisite qualifications to serve as visiting judges of the business court, and authorize business court judges to serve as visiting judges of district courts.

The bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

As proposed, S.B. 2883 amends current law relating to the business court.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Sections 25A.003(d), (g), (h), (i), (k), (l), and (n), Government Code, as follows:

(d) Provides that the Second Business Court Division is abolished September 1, 2028, rather than September 1, 2026, unless reauthorized by the legislature and funded through additional legislative appropriations.

(g) Provides that the Fifth Business Court Division is abolished on September 1, 2028, rather than September 1, 2026, unless reauthorized by the legislature and funded through additional legislative appropriations.

(h) Provides that the Sixth Business Court Division is abolished on September 1, 2028, rather than September 1, 2026, unless reauthorized by the legislature and funded through additional legislative appropriations.

(i) Provides that the Seventh Business Court Division is abolished on September 1, 2028, rather than September 1, 2026, unless reauthorized by the legislature and funded through additional legislative appropriations.

(k) Provides that the Ninth Business Court Division is abolished on September 1, 2028, rather than September 1, 2026, unless reauthorized by the legislature and funded through additional legislative appropriations.

(l) Provides that the Tenth Business Court Division is abolished on September 1, 2028, rather than September 1, 2026, unless reauthorized by the legislature and funded through additional legislative appropriations.

(n) Makes a conforming change to this subsection.

SECTION 2. Amends Sections 25A.004(b) and (d), Government Code, as follows:

(b) Provides that, subject to Subsection (c) (relating to providing that the business court has civil jurisdiction concurrent with district courts in certain actions), the business court has civil jurisdiction concurrent with district courts in certain actions in which the amount in controversy exceeds $4.5 million, rather than $5 million, excluding interest, statutory damages, exemplary damages, penalties, attorney's fees, and court costs.

(d) Provides that the business court has civil jurisdiction concurrent with district courts in certain actions in which the amount in controversy exceeds $9.5 million, rather than $10 million, excluding interest, statutory damages, exemplary damages, penalties, attorney's fees, and court costs.

SECTION 3. Amends Section 25A.008(a), Government Code, to require a business court judge to meet certain criteria, including having been a resident of a county within the division of the business court to which the judge is appointed for at least four, rather than five, years before appointment.

SECTION 4. Amends Section 25A.0171(e), Government Code, to require the Office of Court Administration of the Texas Judicial System, not later than December 15, rather than December 1, of each year, to submit to the legislature a report on the number and types of causes heard by the business court in the preceding year.

SECTION 5. Amends Section 659.012(d), Government Code, as follows:

(d) Provides that, notwithstanding any other provision in Section 659.012 (Judicial Salaries) or other law, certain judges are entitled to certain annual base salaries, including that a business court judge who serves as administrative presiding judge under Section 25A.009 (Appointment of Judges; Term; Presiding Judge; Exchange of Benches) 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 certain subsections. Makes nonsubstantive changes.

SECTION 6. Repealer: Section 25A.007(b) (relating to requiring that 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 to be filed in the court of appeals with appellate jurisdiction of civil cases for the county declared in certain orders), Government Code.

SECTION 7. Effective date: September 1, 2025.