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A BILL TO BE ENTITLED
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AN ACT
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relating to the business court. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 25A.003(d), (g), (h), (i), (k), (l), |
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and (n), Government Code, are amended to read as follows: |
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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, 2028 [2026], |
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unless reauthorized by the legislature and funded through |
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additional legislative appropriations. |
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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, 2028 |
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[2026], 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, 2028 |
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[2026], 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, 2028 |
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[2026], unless reauthorized by the legislature and funded through |
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additional legislative appropriations. |
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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, 2028 |
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[2026], 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, 2028 |
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[2026], unless reauthorized by the legislature and funded through |
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additional legislative appropriations. |
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(n) This subsection and Subsections (d), (g), (h), (i), (k), |
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and (l) expire September 1, 2028 [2026]. |
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SECTION 2. Sections 25A.004(b) and (d), Government Code, |
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are amended to read as follows: |
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(b) Subject to Subsection (c), the business court has civil |
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jurisdiction concurrent with district courts in the following |
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actions in which the amount in controversy exceeds $4.5 [$5] |
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million, excluding interest, statutory damages, exemplary damages, |
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penalties, attorney's fees, and court 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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(d) 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 $9.5 [$10] million, excluding interest, |
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statutory damages, exemplary damages, penalties, attorney's fees, |
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and court 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 (g), 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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SECTION 3. Section 25A.008(a), Government Code, is amended |
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to read as follows: |
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(a) A business court judge must: |
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(1) be at least 35 years of age; |
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(2) be a United States citizen; |
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(3) have been a resident of a county within the |
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division of the business court to which the judge is appointed for |
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at least four [five] years before appointment; and |
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(4) be a licensed attorney in this state who has 10 or |
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more years of experience in: |
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(A) practicing complex civil business |
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litigation; |
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(B) practicing business transaction law; |
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(C) serving as a judge of a court in this state |
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with civil jurisdiction; or |
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(D) any combination of experience described by |
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Paragraphs (A)-(C). |
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SECTION 4. Section 25A.0171(e), Government Code, is amended |
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to read as follows: |
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(e) Not later than December 15 [1] of each year, the Office |
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of Court Administration of the Texas Judicial System shall submit |
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to the legislature a report on the number and types of cases heard |
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by the business court in the preceding year. |
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SECTION 5. Section 659.012(d), Government Code, is amended |
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to read as follows: |
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(d) Notwithstanding any other provision in this section or |
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other law: |
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(1)[,] in a county with more than five district courts, |
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a district judge who serves as a local administrative district |
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judge under Section 74.091 is entitled to an annual base salary from |
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the state in the amount equal to $5,000 more than the maximum salary |
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from the state to which the judge is otherwise entitled under |
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Subsection (a) or (b); and |
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(2) a business court judge who serves as |
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administrative presiding judge under Section 25A.009 is entitled to |
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an annual base salary from the state in the amount equal to $1 more |
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than the maximum salary from the state to which the judge is |
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otherwise entitled under Subsection (a) or (b). |
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SECTION 6. Section 25A.007(b), Government Code, is |
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repealed. |
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SECTION 7. This Act takes effect September 1, 2025. |