Relating to the business court.

89(R) HB 40 - Enrolled version - Bill Text

H.B. No. 40

AN ACT

relating to the business court.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 11.101(e), Civil Practice and Remedies

Code, is amended to read as follows:

(e) A prefiling order entered under Subsection (a) by a

district
court, a
[
or
] statutory county court
, or the business

court
applies to each court in this state.

SECTION 2. Section 15.003(c), Civil Practice and Remedies

Code, is amended to read as follows:

(c) An interlocutory appeal permitted by Subsection (b)

must be taken to the court of appeals district in which the trial

court is located under the procedures established for interlocutory

appeals
, except that an interlocutory appeal from the business

court must be taken to the Fifteenth Court of Appeals
. The appeal

may be taken by a party that is affected by the trial court's

determination under Subsection (a). The court of appeals shall:

(1) determine whether the trial court's order is

proper based on an independent determination from the record and

not under either an abuse of discretion or substantial evidence

standard; and

(2) render judgment not later than the 120th day after

the date the appeal is perfected.

SECTION 3. Section 19.003(a), Civil Practice and Remedies

Code, is amended to read as follows:

(a) To supply a record that has been lost, destroyed, or

removed:

(1) a person interested in an instrument or in a

judgment, order, or decree of the district court may file an

application with the district clerk of the county in which the

record was lost or destroyed or from which the record was removed;

[
or
]

(2) a person interested in a judgment, order, or

decree of a county court may file an application with the clerk of

the court to which the record belonged
; or

(3)

a person interested in a judgment, order, or

decree of the business court may file an application with the clerk

of the business court
.

SECTION 4. Section 20.001(a), Civil Practice and Remedies

Code, is amended to read as follows:

(a) A deposition on written questions of a witness who is

alleged to reside or to be in this state may be taken by:

(1) a clerk of a district court;

(2) a judge or clerk of a county court; [
or
]

(3)
a judge or clerk of the business court; or

(4)
a notary public of this state.

SECTION 5. Section 30.014(a), Civil Practice and Remedies

Code, is amended to read as follows:

(a) In a civil action, including a probate or guardianship

proceeding, filed in a district court,
a
county court,
a
statutory

county court,
a
[
or
] statutory probate court
, or the business

court
, each party or the party's attorney shall include in its

initial pleading:

(1) the last three numbers of the party's driver's

license number, if the party has been issued a driver's license; and

(2) the last three numbers of the party's social

security number, if the party has been issued a social security

number.

SECTION 6. Section 30.015(a), Civil Practice and Remedies

Code, is amended to read as follows:

(a) In a civil action filed in a district court,
a
county

court,
a
statutory county court,
a
[
or
] statutory probate court
, or

the business court
, each party or the party's attorney must provide

the clerk of the court with written notice of the party's name and

current residence or business address.

SECTION 7. Section 30.016(a), Civil Practice and Remedies

Code, is amended to read as follows:

(a) In this section, "tertiary recusal motion" means a third

or subsequent motion for recusal or disqualification filed against

a district court
,
[
or
] statutory county court
, or business court

judge by the same party in a case.

SECTION 8. Sections 30.017(a) and (c), Civil Practice and

Remedies Code, are amended to read as follows:

(a) A claim against a district court, statutory probate

court, [
or
] statutory county court
, or business court
judge that is

added to a case pending in the court to which the judge was elected

or appointed:

(1) must be made under oath;

(2) may not be based solely on the rulings in the

pending case but must plead specific facts supporting each element

of the claim in addition to the rulings in the pending case; and

(3) is automatically severed from the case.

(c) The presiding judge of the administrative region
,
[
or
]

the presiding judge of the statutory probate courts
, or the

administrative presiding judge of the business court
shall assign

the severed claim to a different judge. The judge shall dismiss the

claim if the claim does not satisfy the requirements of Subsection

(a)(1) or (2).

SECTION 9. Section 51.014(a), Civil Practice and Remedies

Code, is amended to read as follows:

(a) A person may appeal from an interlocutory order of a

district court,
a
county court at law,
a
statutory probate court,
a

[
or
] county court
, or the business court
that:

(1) appoints a receiver or trustee;

(2) overrules a motion to vacate an order that

appoints a receiver or trustee;

(3) certifies or refuses to certify a class in a suit

brought under Rule 42 of the Texas Rules of Civil Procedure;

(4) grants or refuses a temporary injunction or grants

or overrules a motion to dissolve a temporary injunction as

provided by Chapter 65;

(5) denies a motion for summary judgment that is based

on an assertion of immunity by an individual who is an officer or

employee of the state or a political subdivision of the state;

(6) denies a motion for summary judgment that is based

in whole or in part upon a claim against or defense by a member of

the electronic or print media, acting in such capacity, or a person

whose communication appears in or is published by the electronic or

print media, arising under the free speech or free press clause of

the First Amendment to the United States Constitution, or Article

I, Section 8, of the Texas Constitution, or Chapter 73;

(7) grants or denies the special appearance of a

defendant under Rule 120a, Texas Rules of Civil Procedure, except

in a suit brought under the Family Code;

(8) grants or denies a plea to the jurisdiction by a

governmental unit as that term is defined in Section 101.001;

(9) denies all or part of the relief sought by a motion

under Section 74.351(b), except that an appeal may not be taken from

an order granting an extension under Section 74.351;

(10) grants relief sought by a motion under Section

74.351(l);

(11) denies a motion to dismiss filed under Section

90.007;

(12) denies a motion to dismiss filed under Section

27.003;

(13) denies a motion for summary judgment filed by an

electric utility regarding liability in a suit subject to Section

75.0022;

(14) denies a motion filed by a municipality with a

population of 500,000 or more in an action filed under Section

54.012(6) or 214.0012, Local Government Code;

(15) makes a preliminary determination on a claim

under Section 74.353;

(16) overrules an objection filed under Section

148.003(d) or denies all or part of the relief sought by a motion

under Section 148.003(f); or

(17) grants or denies a motion for summary judgment

filed by a contractor based on Section 97.002.

SECTION 10. Section 51.016, Civil Practice and Remedies

Code, is amended to read as follows:

Sec. 51.016. APPEAL ARISING UNDER FEDERAL ARBITRATION ACT.

In a matter subject to the Federal Arbitration Act (9 U.S.C. Section

1 et seq.), a person may take an appeal or writ of error to the court

of appeals from the judgment or interlocutory order of a district

court,
a
county court at law,
a
[
or
] county court
, or the business

court
under the same circumstances that an appeal from a federal

district court's order or decision would be permitted by 9 U.S.C.

Section 16.

SECTION 11. Section 61.021, Civil Practice and Remedies

Code, is amended to read as follows:

Sec. 61.021. WHO MAY ISSUE. The judge or clerk of a

district
court, a
[
or
] county court
, or the business court
or a

justice of the peace may issue a writ of original attachment

returnable to
the
[
his
] court
of issuance
.

SECTION 12. Section 63.002, Civil Practice and Remedies

Code, is amended to read as follows:

Sec. 63.002. WHO MAY ISSUE. The clerk of a district
court,

a
[
or
] county court
, or the business court
or a justice of the peace

may issue a writ of garnishment returnable to
the clerk's
[
his
]

court.

SECTION 13. Section 64.091(b), Civil Practice and Remedies

Code, is amended to read as follows:

(b) In the following actions, a district court
or the

business court
may appoint a receiver for the mineral interest or

leasehold interest under a mineral lease owned by a nonresident or

absent defendant:

(1) an action that is brought by a person claiming or

owning an undivided mineral interest in land in this state or an

undivided leasehold interest under a mineral lease of land in this

state and that has one or more defendants who have, claim, or own an

undivided mineral interest in the same property; or

(2) an action that is brought by a person claiming or

owning an undivided leasehold interest under a mineral lease of

land in this state and that has one or more defendants who have,

claim, or own an undivided leasehold interest under a mineral lease

of the same property.

SECTION 14. Sections 64.092(a) and (c), Civil Practice and

Remedies Code, are amended to read as follows:

(a) On the application of a person who has a vested,

contingent, or possible interest in land or an estate subject to a

contingent future interest, a district court
or the business court

division
of the county in which all or part of the land is located

may appoint a receiver for the land or estate, pending the

occurrence of the contingency and the vesting of the future

interest, if:

(1) the land or estate is susceptible to drainage of

oil, gas, or other minerals;

(2) lease of the land for oil, gas, or mineral

development and the safe and proper investment of the proceeds will

inure to the benefit and advantage of the persons entitled to the

proceeds; or

(3) lease of the land for the production of oil, gas,

or other minerals is necessary for the conservation, preservation,

or protection of the land or estate or of a present, contingent, or

future interest in the land or estate.

(c) On the application of a person who has a vested,

contingent, or possible interest in land or an estate that is under

an oil, gas, or mineral lease and is subject to a contingent future

interest, a district court
or the business court division
of the

county in which all or part of the land is located may appoint a

receiver for the contingent future interests, pending the

occurrence of the contingency and the vesting of the future

interest, if:

(1) the lease fails to provide for pooling or contains

pooling provisions that are ineffective as to the contingent future

interest covered by the lease; and

(2) the pooling of the contingent future interest:

(A) is necessary to protect correlative rights;

(B) is necessary to prevent the physical or

economic waste of oil, gas, or other minerals;

(C) will inure to the benefit and advantage of

the persons entitled to the future interest; or

(D) is necessary for the conservation,

preservation, or protection of the land or estate or of a present,

contingent, or future interest in the land or estate.

SECTION 15. Section 64.093(a), Civil Practice and Remedies

Code, is amended to read as follows:

(a) A district court
or the business court
may appoint a

receiver for the royalty interest owned by a nonresident or absent

defendant in an action that:

(1) is brought by a person claiming or owning an

undivided mineral interest in land in this state or an undivided

leasehold interest under a mineral lease of land in the state; and

(2) has one or more defendants who have, claim, or own

an undivided royalty interest in that property.

SECTION 16. Section 65.022, Civil Practice and Remedies

Code, is amended by adding Subsection (e) to read as follows:

(e)

A business court judge may grant a writ returnable to

another business court judge if that judge cannot be reached by the

ordinary and available means of travel and communication in

sufficient time to implement the purpose sought for the writ. In

seeking a writ under this subsection, the applicant or attorney for

the applicant shall attach to the application an affidavit that

fully states the facts of the inaccessibility and the efforts made

to reach and communicate with the other business court judge. The

business court judge to whom the application is made shall refuse to

hear the application unless the judge determines the applicant made

fair and reasonable efforts to reach and communicate with the other

business court judge. The injunction may be dissolved on a showing

the applicant did not first make reasonable efforts to procure a

hearing on the application before the other business court judge.

SECTION 17. Section 65.023(a), Civil Practice and Remedies

Code, is amended to read as follows:

(a) Except as provided by Subsection (b), a writ of

injunction against a party who is a resident of this state shall be

tried in a district or county court in the county in which the party

is domiciled
, or in the business court division of the county in

which the party is domiciled
. If the writ is granted against more

than one party, it may be tried in the proper court of
a
[
the
] county

in which
an enjoined party
[
either party
] is domiciled.

SECTION 18. Section 65.045(c), Civil Practice and Remedies

Code, is amended to read as follows:

(c) The
business court,
district courts
,
and statutory

county courts [
in a county
] may not adopt local rules in conflict

with this subchapter.

SECTION 19. Section 151.001, Civil Practice and Remedies

Code, is amended to read as follows:

Sec. 151.001. REFERRAL BY AGREEMENT. On agreement of the

parties, in civil or family law matters pending in a district court,

a
statutory probate court,
a
[
or
] statutory county court,
or the

business court,
the judge in whose court the case is pending may

order referral of the case as provided by this chapter and shall

stay proceedings in the judge's court pending the outcome of the

trial. Any or all of the issues in the cases, whether an issue of

fact or law, may be referred.

SECTION 20. Section 151.003, Civil Practice and Remedies

Code, is amended to read as follows:

Sec. 151.003. QUALIFICATIONS OF JUDGE. The special judge

must be a retired or former district court, statutory county court,

statutory probate court,
business court,
or appellate court judge

who:

(1) has served as a judge for at least four years in a

district court,
a
statutory county court,
a
statutory probate

court,
the business court, an
[
or
] appellate court
, or a

combination of the preceding courts
;

(2) has developed substantial experience in the

judge's area of specialty;

(3) has not been removed from office or resigned while

under investigation for discipline or removal; and

(4) annually demonstrates completion in the past

calendar year of at least five days of continuing legal education in

courses approved by the state bar or the supreme court.

SECTION 21. Section 151.011, Civil Practice and Remedies

Code, is amended to read as follows:

Sec. 151.011. SPECIAL JUDGE'S VERDICT. The special judge's

verdict must comply with the requirements for a verdict by the

referring
court
, including any applicable requirements for the

issuance of a written opinion
. The verdict stands as a verdict of

the referring judge's court. Unless otherwise specified in an

order of referral, the special judge shall submit the verdict not

later than the 60th day after the day the trial adjourns.

SECTION 22. Section 151.012, Civil Practice and Remedies

Code, is amended to read as follows:

Sec. 151.012. NEW TRIAL. If the special judge does not

submit the verdict
and any applicable written opinion
within the

time period provided by Section 151.011, the court may grant a new

trial if:

(1) a party files a motion requesting the new trial;

(2) notice is given to all parties stating the time and

place that a hearing will be held on the motion; and

(3) the hearing is held.

SECTION 23. Section 151.013, Civil Practice and Remedies

Code, is amended to read as follows:

Sec. 151.013. RIGHT TO APPEAL. The right to appeal is

preserved. An appeal is from the order of the referring judge's

court as provided by
applicable law, including
the Texas Rules of

Civil Procedure and the Texas Rules of Appellate Procedure.

SECTION 24. Section 154.001(1), Civil Practice and Remedies

Code, is amended to read as follows:

(1) "Court" includes an appellate court,
a
district

court,
the business court, a
constitutional county court,
a

statutory county court,
a
family law court,
a
probate court,
a

municipal court, or
a
justice of the peace court.

SECTION 25. Section 171.002, Civil Practice and Remedies

Code, is amended by adding Subsection (d) to read as follows:

(d)

This chapter does not confer on the business court any

new or additional jurisdiction.

SECTION 26. Sections 171.086(a) and (b), Civil Practice and

Remedies Code, are amended to read as follows:

(a) Before arbitration proceedings begin, in support of

arbitration a party may file an application for a court order,

including an order to:

(1) invoke the jurisdiction of the court over the

adverse party and to effect that jurisdiction by service of process

on the party before arbitration proceedings begin;

(2) invoke the jurisdiction of the court over an

ancillary proceeding in rem, including by attachment, garnishment,

or sequestration, in the manner and subject to the conditions under

which the proceeding may be instituted and conducted ancillary to a

civil action in a district court
or the business court, as

applicable
;

(3) restrain or enjoin:

(A) the destruction of all or an essential part

of the subject matter of the controversy; or

(B) the destruction or alteration of books,

records, documents, or other evidence needed for the arbitration;

(4) obtain from the court in its discretion an order

for a deposition for discovery, perpetuation of testimony, or

evidence needed before the arbitration proceedings begin;

(5) appoint one or more arbitrators so that an

arbitration under the agreement to arbitrate may proceed; or

(6) obtain other relief, which the court can grant in

its discretion, needed to permit the arbitration to be conducted in

an orderly manner and to prevent improper interference or delay of

the arbitration.

(b) During the period an arbitration is pending before the

arbitrators or at or after the conclusion of the arbitration, a

party may file an application for a court order, including an order:

(1) that was referred to or that would serve a purpose

referred to in Subsection (a);

(2) to require compliance by an adverse party or any

witness with an order made under this chapter by the arbitrators

during the arbitration;

(3) to require the issuance and service under court

order, rather than under the arbitrators' order, of a subpoena,

notice, or other court process:

(A) in support of the arbitration; or

(B) in an ancillary proceeding in rem, including

by attachment, garnishment, or sequestration, in the manner of and

subject to the conditions under which the proceeding may be

conducted ancillary to a civil action in a district court
or the

business court, as applicable
;

(4) to require security for the satisfaction of a

court judgment that may be later entered under an award;

(5) to support the enforcement of a court order

entered under this chapter; or

(6) to obtain relief under Section 171.087, 171.088,

171.089, or 171.091.

SECTION 27. Section 171.093, Civil Practice and Remedies

Code, is amended to read as follows:

Sec. 171.093. HEARING; NOTICE. The court shall hear each

initial and subsequent application under this subchapter in the

manner and with the notice required by law or court rule for making

and hearing a motion filed in a pending civil action in a district

court
or the business court, as applicable
.

SECTION 28. Section 171.094(b), Civil Practice and Remedies

Code, is amended to read as follows:

(b) To the extent applicable, the process and service and

the return of service must be in the form and include the substance

required for process and service on a defendant in a civil action in

a district court
or the business court, as applicable
.

SECTION 29. Section 171.095(a), Civil Practice and Remedies

Code, is amended to read as follows:

(a) After an initial application has been made, notice to an

adverse party for each subsequent application shall be made in the

same manner as is required for a motion filed in a pending civil

action in a district court
or the business court, as applicable
.

This subsection applies only if:

(1) jurisdiction over the adverse party has been

established by service of process on the party or in rem for the

initial application; and

(2) the subsequent application relates to:

(A) the same arbitration or a prospective

arbitration under the same agreement to arbitrate; and

(B) the same controversy or controversies.

SECTION 30. Section 171.096, Civil Practice and Remedies

Code, is amended by amending Subsections (a), (b), and (c) and

adding Subsection (e) to read as follows:

(a) Except as otherwise provided by this section, a party

must file the initial application:

(1) in the county in which an adverse party resides or

has a place of business
or in the business court
; or

(2) if an adverse party does not have a residence or

place of business in this state, in any county
or in the business

court
.

(b) If the agreement to arbitrate provides that the hearing

before the arbitrators is to be held in a county in this state, a

party must file the initial application with the clerk of the court

of that county
or with the clerk of the business court
.

(c) If a hearing before the arbitrators has been held, a

party must file the initial application with the clerk of the court

of the county in which the hearing was held
or with the clerk of the

business court
.

(e)

An initial application filed in the business court must

plead facts to establish venue in a county in a division of the

business court as provided by Subsection (a)(1) or (2), (b), or (c),

as applicable.

SECTION 31. Sections 171.097(a) and (b), Civil Practice and

Remedies Code, are amended to read as follows:

(a) On application of a party adverse to the party who filed

the initial application, a court that has jurisdiction but that is

not a court
[
located in a county other than as
] described by Section

171.096 shall transfer the application to a court [
of a county
]

described by that section.

(b) The court shall transfer the application by an order

comparable to an order sustaining a plea of privilege to be sued in

a civil action in a district court
or a division of the business

court
of a county other than the county in which an action is filed.

SECTION 32. Section 171.098(b), Civil Practice and Remedies

Code, is amended to read as follows:

(b) The appeal shall be taken
to the applicable court of

appeals
in the manner and to the same extent as an appeal from an

order or judgment in a civil action.

SECTION 33. Section 172.001, Civil Practice and Remedies

Code, is amended by adding Subsection (e) to read as follows:

(e)

This chapter does not confer on the business court any

new or additional jurisdiction.

SECTION 34. Sections 172.054(a), (b), and (d), Civil

Practice and Remedies Code, are amended to read as follows:

(a) On request of a party, the district court
or division of

the business court
of the county in which the place of arbitration

is located shall appoint each arbitrator if:

(1) an agreement is not made under Section 172.053(a)

in an arbitration with a sole arbitrator and the parties fail to

agree on the arbitrator; or

(2) the appointment procedure in Section 172.053(b)

applies and:

(A) a party fails to appoint an arbitrator not

later than the 30th day after the date of receipt of a request to do

so from the other party; or

(B) the two appointed arbitrators fail to agree

on the third arbitrator not later than the 30th day after the date

of their appointment.

(b) On request of a party, the district court
or division of

the business court
of the county in which the place of arbitration

is located may take necessary measures if under an appointment

procedure agreed to by each party:

(1) a party fails to act as required under that

procedure;

(2) the parties or two appointed arbitrators fail to

reach an agreement expected of them under that procedure; or

(3) a third party, including an institution, fails to

perform a function assigned to the party under that procedure.

(d) A decision of the [
district
] court under this section is

final and not subject to appeal.

SECTION 35. Section 172.055, Civil Practice and Remedies

Code, is amended to read as follows:

Sec. 172.055. FACTORS CONSIDERED. In appointing an

arbitrator, the [
district
] court shall consider:

(1) each qualification required of the arbitrator by

the arbitration agreement;

(2) any consideration making more likely the

appointment of an independent and impartial arbitrator; and

(3) in the case of a sole or third arbitrator, the

advisability of appointing an arbitrator of a nationality other

than that of any party.

SECTION 36. Section 172.060(a), Civil Practice and Remedies

Code, is amended to read as follows:

(a) If a challenge under Sections 172.059(b) and (c) is

unsuccessful, the challenging party, not later than the 30th day

after the date the party receives notice of the decision rejecting

the challenge, may request the district court
or the division of the

business court
of the county in which the place of arbitration is

located to decide the challenge.

SECTION 37. Section 172.061(b), Civil Practice and Remedies

Code, is amended to read as follows:

(b) If there is a controversy concerning the termination of

the arbitrator's mandate under Subsection (a), a party may request

the district court
or the division of the business court
of the

county in which the place of arbitration is located to decide the

termination. The decision of the court is not subject to appeal.

SECTION 38. Section 172.082(f), Civil Practice and Remedies

Code, is amended to read as follows:

(f) If the arbitration tribunal rules as a preliminary

question that it has jurisdiction, a party waives objection to the

ruling unless the party, not later than the 30th day after the date

the party receives notice of that ruling, requests the district

court
or division of the business court
of the county in which the

place of arbitration is located to decide the matter. The decision

of the court is not subject to appeal.

SECTION 39. Section 172.172, Civil Practice and Remedies

Code, is amended to read as follows:

Sec. 172.172. ASSISTANCE IN TAKING EVIDENCE. The

arbitration tribunal or a party with the approval of the tribunal

may request assistance from a district court
or the business court

in taking evidence, and the court may provide the assistance

according to its rules on taking evidence. The tribunal or a party

shall select the [
district
] court in the manner provided by Section

171.096.

SECTION 40. Sections 172.173(a) and (b), Civil Practice and

Remedies Code, are amended to read as follows:

(a) If the parties to two or more arbitration agreements

agree, in the respective arbitration agreements or otherwise, to

consolidate the arbitrations arising out of the agreements, a

district court
or the business court
, on application by a party with

the consent of each other party to the agreements, may:

(1) order the arbitrations consolidated on terms the

court considers just and necessary;

(2) if all the parties cannot agree on a tribunal for

the consolidated arbitration, appoint an arbitration tribunal as

provided by Section 172.055; and

(3) if all the parties cannot agree on any other matter

necessary to conduct the consolidated arbitration, make any other

order the court considers necessary.

(b) The arbitration tribunal or the party shall select the

[
district
] court in the manner provided by Section 171.096.

SECTION 41. Section 172.175(a), Civil Practice and Remedies

Code, is amended to read as follows:

(a) A party to an arbitration agreement may request an

interim measure of protection from a district court
or the business

court
before or during an arbitration.
The party shall select the

court in the manner described by Section 171.096.

SECTION 42. Section 21.010(a), Government Code, is amended

to read as follows:

(a) A justice or judge, as applicable, of the supreme court,

the court of criminal appeals, a court of appeals, a district court,

the business court,
a county court, a county court at law, or a

statutory probate court may not, on the date the person takes office

as a justice or judge or while serving as a justice or judge, have a

significant interest in a business entity that owns, manages, or

operates:

(1) a community residential facility described by

Section 508.119;

(2) a correctional or rehabilitation facility subject

to Chapter 244, Local Government Code; or

(3) any other facility intended to accomplish a

purpose or provide a service described by Section 508.119(a) to a

person convicted of a misdemeanor or felony or found to have engaged

in delinquent conduct who is housed in the facility:

(A) while serving a sentence of confinement

following conviction of an offense or an adjudication of delinquent

conduct; or

(B) as a condition of community supervision,

probation, parole, or mandatory supervision.

SECTION 43. Section 25A.001(14), Government Code, is

amended to read as follows:

(14) "Qualified transaction" means a transaction,
or

series of related transactions
other than a transaction involving a

loan or an advance of money or credit by a bank, credit union, or

savings and loan institution, under which a party:

(A) pays or receives, or is obligated to pay or is

entitled to receive, consideration with an aggregate value of at

least
$5
[
$10
] million; or

(B) lends, advances, borrows, receives, is

obligated to lend or advance, or is entitled to borrow or receive

money or credit with an aggregate value of at least
$5
[
$10
]

million.

SECTION 44. Sections 25A.003(d), (g), (h), (i), (k), (l),

and (m), Government Code, are amended to read as follows:

(d) The Second Business Court Division is composed of the

counties composing the Second Administrative Judicial Region under

Section 74.042(c),
excluding Montgomery County,
subject to funding

through legislative appropriations. [
The division is abolished

September 1, 2026, unless reauthorized by the legislature and

funded through additional legislative appropriations.
]

(g) The Fifth Business Court Division is composed of the

counties composing the Fifth Administrative Judicial Region under

Section 74.042(f), subject to funding through legislative

appropriations. [
The division is abolished on September 1, 2026,

unless reauthorized by the legislature and funded through

additional legislative appropriations.
]

(h) The Sixth Business Court Division is composed of the

counties composing the Sixth Administrative Judicial Region under

Section 74.042(g), subject to funding through legislative

appropriations. [
The division is abolished on September 1, 2026,

unless reauthorized by the legislature and funded through

additional legislative appropriations.
]

(i) The Seventh Business Court Division is composed of the

counties composing the Seventh Administrative Judicial Region

under Section 74.042(h), subject to funding through legislative

appropriations. [
The division is abolished on September 1, 2026,

unless reauthorized by the legislature and funded through

additional legislative appropriations.
]

(k) The Ninth Business Court Division is composed of the

counties composing the Ninth Administrative Judicial Region under

Section 74.042(j), subject to funding through legislative

appropriations. [
The division is abolished on September 1, 2026,

unless reauthorized by the legislature and funded through

additional legislative appropriations.
]

(l) The Tenth Business Court Division is composed of the

counties composing the Tenth Administrative Judicial Region under

Section 74.042(k), subject to funding through legislative

appropriations. [
The division is abolished on September 1, 2026,

unless reauthorized by the legislature and funded through

additional legislative appropriations.
]

(m) The Eleventh Business Court Division is composed of the

counties composing the Eleventh Administrative Judicial Region

under Section 74.042(l)
and Montgomery County
.

SECTION 45. Section 25A.004, Government Code, is amended by

amending Subsections (a), (b), (d), (f), (g), and (h) and adding

Subsections (d-1) and (i) to read as follows:

(a) Subject to Subsections (b), (c), (d),
(d-1),
(e), and

(f), the business court has the powers provided to district courts

by Chapter 24, including the power to:

(1) issue writs of injunction, mandamus,

sequestration, attachment, garnishment, and supersedeas; and

(2) grant any relief that may be granted by a district

court.

(b) Subject to Subsection (c), the business court has civil

jurisdiction concurrent with district courts in the following

actions
, including actions in which a district court has exclusive

jurisdiction,
in which the amount in controversy exceeds $5

million, excluding interest, statutory damages, exemplary damages,

penalties, attorney's fees, and court costs:

(1) a derivative proceeding;

(2) an action regarding the governance, governing

documents, or internal affairs of an organization;

(3) an action in which a claim under a state or federal

securities or trade regulation law is asserted against:

(A) an organization;

(B) a controlling person or managerial official

of an organization for an act or omission by the organization or by

the person in the person's capacity as a controlling person or

managerial official;

(C) an underwriter of securities issued by the

organization; or

(D) the auditor of an organization;

(4) an action by an organization, or an owner of an

organization, if the action:

(A) is brought against an owner, controlling

person, or managerial official of the organization; and

(B) alleges an act or omission by the person in

the person's capacity as an owner, controlling person, or

managerial official of the organization;

(5) an action alleging that an owner, controlling

person, or managerial official breached a duty owed to an

organization or an owner of an organization by reason of the

person's status as an owner, controlling person, or managerial

official, including the breach of a duty of loyalty or good faith;

(6) an action seeking to hold an owner or governing

person of an organization liable for an obligation of the

organization, other than on account of a written contract signed by

the person to be held liable in a capacity other than as an owner or

governing person; and

(7) an action arising out of the Business

Organizations Code.

(d) The business court has civil jurisdiction concurrent

with district courts in the following actions in which the amount in

controversy exceeds
$5
[
$10
] million, excluding interest,

statutory damages, exemplary damages, penalties, attorney's fees,

and court costs:

(1) an action arising out of a qualified transaction;

(2) an action
arising
[
that arises
] out of a
business,

commercial, or investment
contract or [
commercial
] transaction in

which the parties to the contract or transaction agreed in the

contract or a subsequent agreement that the business court has

jurisdiction of the action, except an action that arises out of an

insurance contract; [
and
]

(3) subject to Subsection (g), an action
arising
[
that

arises
] out of a violation of the Finance Code or Business &

Commerce Code by an organization or an officer or governing person

acting on behalf of an organization other than a bank, credit union,

or savings and loan association
;

(4)

an action arising out of or relating to the

ownership, use, licensing, lease, installation, or performance of

intellectual property, including:

(A)

computer software, software applications,

information technology and systems, data and data security,

pharmaceuticals, biotechnology products, and bioscience

technologies; and

(B)

a

trade secret, as that term is defined in

Section 134A.002, Civil Practice and Remedies Code; and

(5)

an action arising out of Chapter 134A, Civil

Practice and Remedies Code
.

(d-1)

The business court has civil jurisdiction concurrent

with district courts in an action to enforce an arbitration

agreement, appoint an arbitrator, or review an arbitral award, or

in other judicial actions authorized by an arbitration agreement,

Chapter 171 or 172, Civil Practice and Remedies Code, or the Federal

Arbitration Act (9 U.S.C. Sections 1 through 16), if a claim

included in the controversy in arbitration is described by

Subsection (b) or (d).

(f) Except as provided by Subsection (h),
in an action in

which
the business court has
jurisdiction under Subsection (b),

(c), (d), or (e), the court has
supplemental jurisdiction over any

other claim
so
related to
the action
[
a case or controversy within

the court's jurisdiction
] that
the claim
forms part of the same case

or controversy. A claim within the business court's supplemental

jurisdiction may proceed in the business court only on the

agreement of all parties to the claim and a judge of the division of

the court before which the action is pending. If the parties

involved in a claim within the business court's supplemental

jurisdiction do not agree on the claim proceeding in the business

court, the claim may proceed in a court of original jurisdiction

concurrently with any related claims proceeding in the business

court.

(g) Unless the claim falls within the business court's

supplemental jurisdiction, the business court does not have

jurisdiction of:

(1) a
claim in a
civil action:

(A) brought by or against a governmental entity;

or

(B)
seeking
to foreclose on a lien on real or

personal property
an individual owns at the time the action is

filed
;

(2) a claim arising out of:

(A) Subchapter E, Chapter 15, and Chapter 17,

Business & Commerce Code;

(B) the Estates Code;

(C) the Family Code;

(D) the Insurance Code; or

(E) Chapter 53 and Title 9, Property Code;

(3) a claim arising out of the production or sale of a

farm product, as that term is defined by Section 9.102, Business &

Commerce Code;
or

(4) [
a claim related to a consumer transaction, as

that term is defined by Section 601.001, Business & Commerce Code,

to which a consumer in this state is a party, arising out of a

violation of federal or state law; or

[
(5)
] a claim related to the duties and obligations

under an insurance policy.

(h) The business court does not have jurisdiction of the

following claims regardless of whether the claim is otherwise

within the court's supplemental jurisdiction under Subsection (f):

(1) a claim arising under Chapter 74, Civil Practice

and Remedies Code;

(2) a claim in which a party seeks recovery of monetary

damages for bodily injury or death; [
or
]

(3) a claim of legal malpractice
; or

(4)

a claim related to a consumer transaction, as that

term is defined by Section 601.001, Business & Commerce Code, to

which a consumer in this state is a party, arising out of a

violation of federal or state law
.

(i)

The amount in controversy for jurisdictional purposes

under Subsection (b) or (d) is the total amount of all joined

parties' claims.

SECTION 46. Chapter 25A, Government Code, is amended by

adding Section 25A.0041 to read as follows:

Sec.

25A.0041.

RULES RELATED TO JURISDICTIONAL

DETERMINATION. (a)

The supreme court by rule shall establish

procedures for the prompt, efficient, and final determination of

business court jurisdiction on the filing of an action in the

business court.

In adopting rules under this section, the supreme

court must consider:

(1)

the business court's purpose of efficiently

addressing complex business litigation in a manner comparable to or

more effective than the business and commercial courts operating in

other states;

(2)

the commonalities of law and procedure existing

between the business court and district courts as trial courts

functioning under the Texas Constitution and within the judicial

branch of this state;

(3)

the limited potential for the movement of an

action between a district court and the business court as it relates

to issues of fundamental fairness or the preservation of

constitutionally or statutorily protected rights of the parties;

and

(4)

the need for guidance on evolving usage of the

business court and the Fifteenth Court of Appeals over time by

business litigants and their counsel as the courts develop a body of

precedent and practice.

(b)

In adopting rules under this section, the supreme court

may:

(1)

provide for jurisdictional determinations based

on pleadings or summary proceedings;

(2) establish appropriate standards of proof;

(3)

establish limited periods during which issues or

rights must be asserted, considered agreed to, or waived;

(4)

establish procedures for the review of

jurisdictional determinations by the business court by another

judge or panel of judges, including a regional presiding judge or

the administrative presiding judge of the business court;

(5)

allow, require, or prohibit interlocutory

appeals;

(6) provide for accelerated appeals; or

(7)

provide for any other procedures necessary for the

prompt, efficient, and final determination of business court

jurisdiction.

SECTION 47. Sections 25A.006(a) and (f), Government Code,

are amended to read as follows:

(a) An action within the jurisdiction of the business court

may be filed in the business court. The party filing the action

must plead facts to establish venue in a county in a division of the

business court, and the business court shall assign the action to

that division. Venue may be established as provided by
:

(1)
law
;

(2)

a party's governing documents in an action

described by Section 25A.004(b)(2), (4), (5), or (7);
or

(3)
[
, if
] a written contract
, if the contract

specifies a county as venue for the action[
, as provided by the

contract
].

(f) A party may file an agreed notice of removal at any time

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:

(1) not later than the 30th day after the
later of:

(A)

the date the party requesting removal of the

action was served with process in accordance with rules adopted by

the supreme court; or

(B) 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; or

(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.

SECTION 48. Section 25A.007(a), Government Code, is amended

to read as follows:

(a) Notwithstanding any other law
,
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.

SECTION 49. Section 25A.009, Government Code, is amended by

adding Subsections (a-1) and (d-1) and amending Subsection (d) to

read as follows:

(a-1)

A judge appointed to the business court may begin

state employment and receive compensation for service as a judge

for not more than 30 days before the beginning of the judge's term

to allow time for training, organization of staff and chambers, and

study of business court precedent, procedure, and pending cases.

(d) Not later than
September 15 of each even-numbered year

[
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
and a judge serving a different

division of the court to serve as administrative presiding judge

pro tempore for a term of two years
[
for the duration of the term
].

If a vacancy occurs in the position of administrative presiding

judge,
the administrative presiding judge pro tempore shall serve

as administrative presiding judge and
the [
remaining
] business

court judges
by majority vote
shall select a judge of the court to

serve as
successor
administrative presiding judge
pro tempore
for

the remainder of the unexpired term as soon as practicable.

(d-1)

The administrative presiding judge pro tempore shall

act as administrative presiding judge in any matter in which the

administrative presiding judge:

(1)

has delegated the judge's official duties to the

administrative presiding judge pro tempore; or

(2) is unable to perform the judge's official duties.

SECTION 50. Chapter 25A, Government Code, is amended by

adding Section 25A.00111 to read as follows:

Sec.

25A.00111.

JUDGE'S EXPENSES; OFFICIAL DUTIES.

(a)

A

business court judge engaged in the discharge of official duties in

a location other than the county in which the judge maintains

chambers is entitled to travel expenses as provided by Chapter 660.

(b)

A business court judge is entitled to receive from this

state the actual and necessary postage, telephone, and

telecommunications expenses incurred in the discharge of the

judge's official duties.

(c) The official duties of a business court judge include:

(1)

presenting educational information regarding the

business court to legal and business groups; and

(2)

attending educational meetings in this state and

other states of the United States relating to business law,

business litigation, and the function of the business court.

SECTION 51. Section 25A.012, Government Code, is amended by

adding Subsections (c) and (d) to read as follows:

(c)

If a business court judge determines on the judge's own

motion the judge should not hear a case pending in the judge's court

because the judge is disqualified or subject to recusal, the judge

shall:

(1) enter a recusal order;

(2)

request the administrative presiding judge of the

business court to assign another judge of the business court to hear

the case; and

(3)

take no further action in the case except for good

cause as stated in the order in which the action is taken.

(d)

The administrative presiding judge is not required to

assign a case described by Subsection (c) to a different division of

the business court.

SECTION 52. Chapter 25A, Government Code, is amended by

adding Section 25A.0135 to read as follows:

Sec.

25A.0135.

EXEMPTION FROM CERTAIN JUDICIAL TRAINING

REQUIREMENTS.

A judge of the business court is exempt from the

judicial training requirements under Chapter 22 that are not

germane to the jurisdiction of the business court, including the

training requirements of Sections 22.012 and 22.110.

SECTION 53. Section 25A.014, Government Code, is amended by

amending Subsection (a) and adding Subsection (c) to read as

follows:

(a)
An active,
[
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
under Chapter 74
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.

(c)

The chief justice of the supreme court may assign an

active judge of the business court to serve as a visiting judge of a

district court, a constitutional county court, or a statutory

county court located in the division served by the judge of the

business court. The judge of the business court serving as a

visiting judge is subject to objection, disqualification, or

recusal under Chapter 74 in the same manner as an active judge or

justice or an active district court judge is subject to objection,

disqualification, or recusal if appointed as a visiting judge.

SECTION 54. Sections 25A.017(c), (d), and (h), Government

Code, are amended to read as follows:

(c) Each business court judge shall maintain chambers in the

county
with the largest population within the geographic boundaries

of the division to which the judge is appointed, or in a county

adjacent to that county and within the geographic boundaries of the

division, as
the judge selects
,
[
within the geographic boundaries

of the division to which the judge is appointed
] in facilities

provided by this state.
The chief justice of the supreme court may

approve the location of a business court judge's chambers in a

county other than a county described by this subsection that is

within the geographic boundaries of the division.
For purposes of

this section, the Office of Court Administration of the Texas

Judicial System may contract for the use of facilities with a
public

or private party
[
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.
A
[
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
in courtrooms and

facilities equivalent to those provided to district courts.

A

county is entitled to reimbursement from this state in an amount

equal to the market rate for those facilities in the county as

calculated by the Texas Facilities Commission for this purpose.

A

county shall consider the reasonably anticipated requirements of

the business court in the planning for and implementation of

additions and improvements to the county's courtrooms and

facilities only if the business court is currently operational in

that county
.

(h) In a county in which a division of the business court

sits
or a judge of the business court maintains chambers, the

business court or Office of Court Administration of the Texas

Judicial System may require
[
,
] the sheriff
, sheriff's deputy, or

other licensed peace officer employed by the state or local

governmental entity, including the Department of Public Safety, to

[
shall in person or by deputy
] attend the business court
and provide

security for the business court's judges
[
as required by the

court
]. The
officers providing such services are
[
sheriff or

deputy is
] entitled to reimbursement from this state for the cost of

attending the business court
and providing security for the

business court's judges
.

SECTION 55. Section 25A.0171(e), Government Code, is

amended to read as follows:

(e) 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
case activity of
[
number and types

of cases heard by
] the business court in the preceding year
that

includes:

(1)

a summary of the caseload of each business court

judge in the preceding year;

(2)

a summary of the extent to which business court

judges have been assigned to hear cases in other divisions to

equalize caseloads;

(3)

a projection of the expected caseloads of the

business court judges for the following two years; and

(4)

recommendations regarding action by the

legislature, the governor, the chief justice of the supreme court,

or the business court to ensure the business court meets existing

and projected demand for the business court's services in the

following two years
.

SECTION 56. Chapter 25A, Government Code, is amended by

adding Section 25A.021 to read as follows:

Sec.

25A.021.

ACTIONS COMMENCED BEFORE SEPTEMBER 1, 2024.

(a)

Notwithstanding Section 8, Chapter 380 (H.B. 19), Acts of the

88th Legislature, Regular Session, 2023, a civil action commenced

before September 1, 2024, that is within the jurisdiction of the

business court may be transferred to and heard by the business court

on an agreed motion of a party and permission of the business court

under rules adopted by the supreme court for the purpose.

When

adopting rules under this section, the supreme court shall:

(1)

prioritize complex civil actions of longer

duration that have proven difficult for a district court to resolve

because of the other demands on the district court's caseload;

(2)

consider the capacity of the business court to

accept the transfer of the action without impairing the business

court's efficiency and effectiveness in resolving actions

commenced on or after September 1, 2024; and

(3)

ensure the facilitation of the fair and efficient

administration of justice.

(b) This section expires September 1, 2035.

SECTION 57. Section 37.001(a), Government Code, is amended

to read as follows:

(a) This chapter applies to a court in this state
, other

than the business court,
created by the Texas Constitution, by

statute, or as authorized by statute that is located in a county

with a population of 25,000 or more.

SECTION 58. Section 39.001, Government Code, is amended to

read as follows:

Sec. 39.001. APPLICABILITY. This chapter applies to a

person elected to or holding any of the following judicial offices:

(1) chief justice or justice of the supreme court;

(2) presiding judge or judge of the court of criminal

appeals;

(3) chief justice or justice of a court of appeals;

(4) district judge, including a criminal district

judge; [
and
]

(5)
business court judge; and

(6)
judge of a statutory county court.

SECTION 59. Section 71.011, Government Code, is amended to

read as follows:

Sec. 71.011. NUMBER AND CLASSES OF MEMBERS. The Texas

Judicial Council is an agency of the state composed of
17
[
16
] ex

officio and six appointive members.

SECTION 60. Section 71.012, Government Code, is amended to

read as follows:

Sec. 71.012. EX OFFICIO MEMBERS. The ex officio members

are:

(1) the chief justice of the supreme court;

(2) the presiding judge of the court of criminal

appeals;

(3) two members of the senate, appointed by the

lieutenant governor;

(4) the chair of the House Judicial Affairs Committee;

(5) one member of the house of representatives,

appointed by the speaker of the house;

(6) two justices of the courts of appeals designated

by the chief justice of the supreme court;

(7) two district judges designated by the chief

justice of the supreme court;

(8) two judges of county courts, statutory county

courts
, or statutory probate courts designated by the chief justice

of the supreme court;

(9) two justices of the peace designated by the chief

justice of the supreme court; [
and
]

(10) two municipal court judges designated by the

chief justice of the supreme court
; and

(11)

the administrative presiding judge of the

business court
.

SECTION 61. Section 71.013, Government Code, is amended by

amending Subsection (b) and adding Subsection (g) to read as

follows:

(b) Except as provided by
Subsections
[
Subsection
] (a)
and

(g)
, all members of the judiciary appointed to the council serve

staggered terms of four years with the term of one member from each

judicial group expiring on February 1 of each odd-numbered year.

(g)

The administrative presiding judge of the business

court is an ex officio member of the council while the judge holds

the office of administrative presiding judge of the business court.

SECTION 62. Section 74.003(b), Government Code, is amended

to read as follows:

(b) The chief justice of the supreme court may assign a

qualified former or retired justice or judge of the supreme court,

of the court of criminal appeals, or of a court of appeals to a court

of appeals for active service regardless of whether a vacancy

exists in the court to which the justice or judge is assigned. To be

eligible for assignment under this subsection, a former or retired

justice or judge must:

(1) have served as an active justice or judge for at

least 96 months in a district
court
,
a
statutory probate
court
,
a

statutory county
court
,
an
[
or
] appellate court,
or the business

court,
with at least 48 of those months in an appellate court;

(2) not have been removed from office;

(3) certify under oath to the chief justice of the

supreme court, on a form prescribed by the chief justice, that:

(A) the justice or judge has never been publicly

reprimanded or censured by the State Commission on Judicial

Conduct; and

(B) the justice or judge:

(i) did not resign or retire from office

after the State Commission on Judicial Conduct notified the justice

or judge of the commencement of a full investigation into an

allegation or appearance of misconduct or disability of the justice

or judge as provided in Section 33.022 and before the final

disposition of that investigation; or

(ii) if the justice or judge did resign from

office under circumstances described by Subparagraph (i), the

justice or judge was not publicly reprimanded or censured as a

result of the investigation;

(4) annually demonstrate that the justice or judge has

completed in the past state fiscal year the educational

requirements for active appellate court justices or judges; and

(5) certify to the chief justice of the supreme court a

willingness not to appear and plead as an attorney in any court in

this state for a period of two years.

SECTION 63. Section 74.041(5), Government Code, is amended

to read as follows:

(5) "Former judge" means a person who has served as an

active judge in a district
court
,
a
statutory probate
court
,
a

statutory county
court
,
an
[
or
] appellate court,
or the business

court,
but who is not a retired judge.

SECTION 64. Section 74.045(a), Government Code, is amended

to read as follows:

(a) A presiding judge must be at the time of appointment:

(1) a regularly elected or retired district judge;

(2)
a serving or retired business court judge;

(3)
a former judge with at least 12 years of service as

a district judge
or business court judge
; or

(4)
[
(3)
] a retired appellate judge with judicial

experience on a district court.

SECTION 65. Section 74.055(c), Government Code, is amended

to read as follows:

(c) To be eligible to be named on the list, a retired or

former judge must:

(1) have served as an active judge for at least 96

months in a district
court
,
a
statutory probate
court
,
a
statutory

county
court
,
an
[
or
] appellate court
, or the business court
;

(2) have developed substantial experience in the

judge's area of specialty;

(3) not have been removed from office;

(4) certify under oath to the presiding judge, on a

form prescribed by the state board of regional judges, that:

(A) the judge has never been publicly reprimanded

or censured by the State Commission on Judicial Conduct; and

(B) the judge:

(i) did not resign or retire from office

after the State Commission on Judicial Conduct notified the judge

of the commencement of a full investigation into an allegation or

appearance of misconduct or disability of the judge as provided in

Section 33.022 and before the final disposition of that

investigation; or

(ii) if the judge did resign from office

under circumstances described by Subparagraph (i), was not publicly

reprimanded or censured as a result of the investigation;

(5) annually demonstrate that the judge has completed

in the past state fiscal year the educational requirements for

active district,
business,
statutory probate, and statutory county

court judges; and

(6) certify to the presiding judge a willingness not

to appear and plead as an attorney in any court in this state for a

period of two years.

SECTION 66. Section 74.141, Government Code, is amended to

read as follows:

Sec. 74.141. DEFENSE OF JUDGES. The attorney general shall

defend a state district judge,
a business court judge,
a presiding

judge of an administrative region, the presiding judge of the

statutory probate courts, a visiting judge assigned to hear a

guardianship or probate matter by the presiding judge of the

statutory probate courts, or an active, retired, or former judge

assigned under this chapter in any action or suit in any court in

which the judge is a defendant because of the judge's office or

capacity as judge if the judge requests the attorney general's

assistance in the defense of the suit.

SECTION 67. Section 74.162, Government Code, is amended to

read as follows:

Sec. 74.162. TRANSFER OF CASES BY PANEL. Subject to Section

74.1625 and notwithstanding any other law, the judicial panel on

multidistrict litigation may transfer civil actions involving one

or more common questions of fact pending in the same or different

constitutional courts, county courts at law, probate courts, [
or
]

district courts
, or the business court
to any district court
or to

the business court if the business court has jurisdiction
for

consolidated or coordinated pretrial proceedings, including

summary judgment or other dispositive motions, but not for trial on

the merits. A transfer may be made by the judicial panel on

multidistrict litigation on its determination that the transfer

will:

(1) be for the convenience of the parties and

witnesses; and

(2) promote the just and efficient conduct of the

actions.

SECTION 68. Section 411.171(4-b), Government Code, is

amended to read as follows:

(4-b) "State judge" means:

(A) the judge of an appellate court, a district

court,
the business court,
or a county court at law of this state;

(B) an associate judge appointed under Chapter

201, Family Code; or

(C) a justice of the peace.

SECTION 69. Section 659.012, Government Code, is amended by

adding Subsections (a-1) and (d-1) to read as follows:

(a-1)

In addition to the annual base salary from the state

prescribed by Subsection (a), a judge of a division of the business

court is entitled to an additional annual salary from the state in

an amount equal to the difference between the judge's annual base

salary from the state and the maximum combined base salary from all

state and county sources paid to a district judge under Subsection

(a).

(d-1)

Notwithstanding any other provision of this section

or other law, a judge of a division of the business court who serves

as administrative presiding judge under Section 25A.009 is entitled

to an annual base salary from the state in the amount provided under

Subsection (a) or (b) and an additional annual amount equal to the

amount provided under Subsection (d) to a local administrative

district judge for a number of district courts equal to the total

number of business court judges.

SECTION 70. The following provisions of the Government Code

are repealed:

(1) Section 25A.003(n);

(2) Section 25A.007(b); and

(3) Section 25A.014(b).

SECTION 71. Section 6(b), Chapter 380 (H.B. 19), Acts of the

88th Legislature, Regular Session, 2023, is repealed.

SECTION 72. Except as provided by Section 25A.021,

Government Code, as added by this Act, the changes in law made by

this Act apply only to civil actions commenced on or after September

1, 2024.

SECTION 73. This Act takes effect immediately if it

receives a vote of two-thirds of all the members elected to each

house, as provided by Section 39, Article III, Texas Constitution.

If this Act does not receive the vote necessary for immediate

effect, this Act takes effect September 1, 2025.

______________________________

______________________________

President of the Senate

Speaker of the House

I certify that H.B. No. 40 was passed by the House on May 13,

2025, by the following vote: Yeas 99, Nays 40, 2 present, not

voting; that the House refused to concur in Senate amendments to

H.B. No. 40 on May 30, 2025, and requested the appointment of a

conference committee to consider the differences between the two

houses; and that the House adopted the conference committee report

on H.B. No. 40 on June 1, 2025, by the following vote: Yeas 95,

Nays 39, 2 present, not voting.

______________________________

Chief Clerk of the House

I certify that H.B. No. 40 was passed by the Senate, with

amendments, on May 28, 2025, by the following vote: Yeas 24, Nays

7; at the request of the House, the Senate appointed a conference

committee to consider the differences between the two houses; and

that the Senate adopted the conference committee report on H.B. No.

40 on June 1, 2025, by the following vote: Yeas 24, Nays 7.

______________________________

Secretary of the Senate

APPROVED: __________________

Date

__________________

Governor