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Kim Reynolds
governor
Office of the Governor Chris Cournoyer
LT GOVERNOR
June 01, 2026
The Honorable Paul Pate
Secretary of State of Iowa
State Capitol
Des Moines, Iowa 50319
Dear Mr. Secretary,
I hereby transmit:
Senate File 639, an Act creating a specialty business court, and including effective date
provisions.
The above Senate File is hereby approved on this date.
Kim Reynold's )
Governor of Iow*r
cc: Secretary of the Senate
Clerk of the House
STATE CAPITOL DES MOINES, IOWA 50319 515.281.5211 WWW.GOVERNOR.IOWA.GOV
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Senate File 639
AN ACT
CREATING A SPECIALTY BUSINESS COURT, AND INCLUDING EFFECTIVE
DATE PROVISIONS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1. NEW SECTION . 602.6801 Establishment of business
court.
The supreme court shall establish and maintain a business
court as authorized by the general assembly in this part.
Sec. 2. NEW SECTION . 602.6802 Purpose.
The purpose of the business court is to expeditiously
resolve complex commercial and business litigation through the
court system.
Sec. 3. NEW SECTION . 602.6803 Jurisdiction.
1. The business court shall have jurisdiction, concurrent
with the district court, over cases where compensatory damages
totaling two hundred thousand dollars or more are alleged,
and cases that involve claims seeking primarily injunctive or
declaratory relief, that meet at least one of the following
conditions :
Senate File 639, p. 2
a. Arise from technology licensing agreements, including
software and biotechnology licensing agreements, or any
agreement involving the licensing of any intellectual property
right, including patent rights.
b. Relate to the internal affairs of business entities,
including corporations created under chapter 490 or 504,
limited liability companies created under chapter 489, general
partnerships created under chapter 486A, limited partnerships
created under chapter 488, sole proprietorships, professional
associations, real estate investment trusts, and joint
ventures, including the rights or obligations between or
among business participants, or the liability or indemnity of
business participants, officers, directors, managers, trustees,
or partners, among themselves or to the business entity.
c. Involve claims of breach of contract, fraud,
misrepresentation, or statutory violations between businesses
arising out of business transactions or relationships.
d. Is a shareholder derivative action or commercial class
action.
e, Arise from commercial bank transactions.
f. Relate to trade secrets, or noncompete, nonsolicitation,
or confidentiality agreements.
g. Involve commercial real property disputes other than
residential landlord-tenant disputes and foreclosures.
h. Is a trade secret, antitrust, or securities-related
action.
i. Involve business tort claims between or among two or
more business entities or individuals as to their business or
investment activities relating to contracts, transactions, or
relationships between or among them.
2. The business court shall not have jurisdiction over any
of the following:
a. A civil action brought by or against a governmental
entity, unless the governmental entity invokes or consents to
the jurisdiction of the business court.
b. Any claim in which a party seeks recovery of monetary
damages for personal injury or death or any claim arising
under section 714.16, chapter 633, or chapter 633A, unless all
parties and a judge of the business court agree that the claim
Senate File 639, p. 3
may proceed in the business court.
c. Actions arising out of professional negligence unless the
underlying claim alleges negligence in a transaction within the
jurisdiction of the business court under this section.
Sec. 4. NEW SECTION . 602.6804 Initial filing — removal and
remand — transfer and dismissal.
1. An action authorized in section 602.6803 may be filed
in the business court. If the business court does not have
subject matter jurisdiction over the action, or part of the
action, the court shall, at the option of the party filing the
action, do one of the following:
a. Transfer the action or part of the action to an
appropriate district court.
b. Dismiss the action or part of the action without
prejudice to the parties' rights.
c. Retain jurisdiction of the action not subject to
the jurisdiction of the business court if the court has
jurisdiction of a portion of the action.
2. A party to an action filed in a district court that is
within the subject matter jurisdiction of the business court
may file a motion to transfer the action to the business court
in the district court where the action was initially filed.
The motion to transfer shall be assigned to a business court
judge to determine if the business court has subject matter
jurisdiction. If the business court does not have jurisdiction
of the action or part of the action, the action or part of
the action shall remain in the district court where it was
initially filed.
3. Removal of an action to the business court is not subject
to rule of civil procedure 1.441.
Sec. 5. NEW SECTION . 602.6805 Appeals.
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.
Sec. 6. NEW SECTION . 602.6806 Composition of business
court.
1. The business court shall consist of two judges.
2. a. On the effective date of this Act, the supreme
court shall determine from among the judges then serving in
Senate File 639, p. 4
the existing business specialty court two judges to serve
exclusively as full-time judges of the business court.
b. If fewer than two judges from the existing business
specialty court seek appointment to serve as full-time judges
of the business court, the remaining vacancy or vacancies shall
be nominated and appointed as provided in chapter 46.
3. After the initial appointments under subsection 2, any
vacancy on the business court shall be nominated and appointed
as provided in chapter 46.
4. In addition to the judges appointed or designated under
this section, the supreme court may assign as visiting judges
of the business court district court judges and senior judges.
Sec. 7. NEW SECTION . 602.6807 Business court judge assigned
to facilitate settlement conference.
The state court administrator or the administrator's
designee shall assign one business court judge or visiting
judge to preside over every action filed or transferred to the
business court and a second business court judge or visiting
judge to serve as a settlement conference judge.
Sec. 8. NEW SECTION . 602.6808 Salary — conditions of
office.
1. A judge of the business court shall receive the annual
salary set for a district judge under section 602.1501.
2. A judge of the business court shall be subject to
retention election under chapter 46.
3. A judge of the business court shall be subject to
disqualification under section 602.1606.
4. A judge of the business court shall be subject to the
authority of the supreme court and the commission on judicial
qualifications under article 2.
5. A judge of the business court shall be subject to
impeachment under section 602.2201.
6. A judge of the business court shall be subject to the
Iowa code of judicial conduct.
7. A judge of the business court may be assigned to the
civil docket of a district court when the business court
caseload permits, as determined by the supreme court.
Sec. 9. NEW SECTION . 602.6809 Jury practice and procedure.
1. A jury trial of the business court shall be held in a
Senate File 639, p. 5
county in which venue is proper under the Iowa rules of civil
procedure.
2. Subject to subsection 1, a jury trial in an action
removed to the business court shall be held in the county in
which the action was originally filed.
3. Subject to subsection 1, a jury trial in an action filed
initially in the business court shall be held in any county, as
chosen by the plaintiff, in which the action could have been
filed under the Iowa rules of civil procedure.
4. The parties and the judge of the business court may agree
to hold the jury trial in any other county. However, a party
shall not be required to agree to hold the jury trial in a
different county.
5. The drawing of jury panels, selection of jurors, and
other jury practice and procedure in the business court shall
follow the standards for juries provided in chapter 607A.
6. 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 under this part.
Sec. 10. NEW SECTION . 602.6810 Written opinions.
To facilitate the establishment of a coherent body of law, a
judge of the business court shall issue a written opinion when
deciding issues of law by order or judgment, unless any of the
following apply:
1. The court has a well-developed body of law on the issue.
2. The court is applying the precedent on the issue.
3. Another opinion on the issue will not significantly
contribute to the development of the law.
Sec. 11. NEW SECTION . 602.6811 Business court staff.
The state court administrator or the administrator's
designee may appoint personnel necessary for the operation of
the business court.
sec. 12. NEW SECTION . 602.6812 Seal.
The seal of the business court is the same as that provided
by law for a district court except the seal must contain the
phrase "The Business Court of Iowa".
Sec. 13. NEW SECTION . 602.6813 Rules.
Senate File 639, p. 6
Subject to the provisions of this part, the supreme court
shall promulgate rules for the jurisdiction and operation of
the business court as the supreme court determines necessary,
including rules providing for any of the following:
1. The timely and efficient transfer and remand of cases to
and from the business court.
2. The assignment of cases to judges of the business court.
Sec. 14. NEW SECTION . 602.6814 Transition provision.
This part applies to civil actions described under section
602.6803 filed on or after the effective date of this Act.
If an action described under section 602.6803 was pending in
a district court before the effective date of this Act, the
parties may agree to have the civil action transferred or
removed to the business court in accordance with this part.
Sec. 15. REPORT. On or before January 1, 2029, the judicial
branch shall submit a report to the general assembly on the
performance of the business court established under section
602.6801, as enacted in this Act. The report must include but
is not limited to all of the following:
1. The average number of days from filing to final
disposition of business court cases.
2. A side-by-side comparison of the number of days from
filing to final disposition of business court cases with the
number of days from filing to final disposition of comparable
commercial civil litigation on the district court docket.
3. The total number of cases filed in, transferred away
from, dismissed from, or retained on the business court docket
as provided in section 602.6804, as enacted in this Act.
4. A detailed accounting of all personnel costs, including
judicial salaries, clerk support, and administrative overhead
of the business court.
5. An estimate of the cost savings, if any, of district
courts due to the operations of the business court.
6. The total amount of court fees collected for cases in the
business court.
7. The percentage of time, if any, that business court
judges spend on non-business-court civil litigation cases in
district court.
8. Anonymized survey data from legal counsel and other
Senate File 639, p. 7
litigants regarding the perceived expertise, fairness,
efficiency, and predictability of the business court.
9. The number and outcome of appeals of business court
decisions compared to the general reversal rate for civil
litigation case decisions.
Sec. 16. EFFECTIVE DATE. This
1, 2026.
-
President of the Senate
AMY SIN0BAIR
Act takes effect September
PAT GRASSLEY
Speaker of tl/e House
I hereby certify that this bill originated in the Senate and
is known as Senate File 639, Ninety-first General Assembly.
App rove 2026
W. CHARLES SMITHSON
SeyretarT^pf the Senate
KIM REYNOLDS |
Governor