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Senate
File
639
-
Enrolled
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
Act
takes
effect
September
1,
2026.
______________________________
AMY
SINCLAIR
President
of
the
Senate
______________________________
PAT
GRASSLEY
Speaker
of
the
House
I
hereby
certify
that
this
bill
originated
in
the
Senate
and
is
known
as
Senate
File
639,
Ninety-first
General
Assembly.
______________________________
W.
CHARLES
SMITHSON
Secretary
of
the
Senate
Approved
_______________,
2026
______________________________
KIM
REYNOLDS
Governor