Relating to the business court.
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HB 40 — Relating to the business court.
Last action — Effective on 9/1/25
No card. One bill, free forever — alerts when it moves.
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✓Introduced
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✓In Committee
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✓Passed House
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✓Passed Senate
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5To Executive
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6Enacted
This bill has been sent to the executive. Introduced March 14, 2025. It awaits signature.
Signed by Governor Greg Abbott (Republican) on June 20, 2025.
Next likely step: the executive signs it into law or issues a veto.
Prognosis
Where this bill stands today.
Odds of enactment
HighHow often bills like it became law.
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To Executive
Current position in the legislative process.
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5 sponsors
1 primary, 4 co-sponsors signed on.
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Cleared a recorded vote
Passed 3 recorded votes so far.
Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.
Summary
Relating to the business court.
Bill Text
We don't have the full text on file for this bill yet.
Read HB 40 on the official Texas source →Compared against the Texas statutes as published AI-generated reading aid — verify against the official bill.
This bill amends 30 section(s) of the Texas statutes: Section 25, Government Code, Section 659.012, Government Code, Section 21.010(a), Government Code, Section 22.110, Government Code, Section 37.001(a), Government Code, Section 39.001, Government Code.
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Section 25, Government Code
a party $10 $10→ or series of related transactions one or more parties $5 $5 (15) "Fundamental business transaction" means a merger, interest exchange, conversion, or sale of all or substantially all of an entity's assets.amended
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Section 25, Government Code
The division is abolished September 1, 2026, unless reauthorized by the legislature and funded through additional legislative appropriations. The division is abolished on September 1, 2026, unless reauthorized by the legislature and funded through additional legislative appropriations. The division is abolished on September 1, 2026, unless reauthorized by the legislature and funded through additional legislative appropriations. The division is abolished on September 1, 2026, unless reauthorized by the legislature and funded through additional legislative appropriations. The division is abolished on September 1, 2026, unless reauthorized by the legislature and funded through additional legislative appropriations. The division is abolished on September 1, 2026, unless reauthorized by the legislature and funded through additional legislative appropriations.→ excluding Montgomery County, and Montgomery Countyamended
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Section 25, Government Code
and $10 that arises commercial and that arises based on a claim within the court's jurisdiction under] case or controversy within the court's jurisdiction that] 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 the parties involved in do not agree on the claim proceeding and Chapter 17, the Insurance Code] (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; (5)→ , including an action over which a district court is given jurisdiction, original or exclusive, by the Business Organizations Code (8) an action arising out of: (A) an insurance contract or other arrangement to indemnify or hold harmless an organization or its current or former controlling persons, managerial officials, employees and agents, or to advance expenses to such persons, against losses arising from their service in these positions or their alleged wrongful or negligent actions; or (B) a reinsurance contract relating to an insurance contract or other arrangement described in subparagraph (A); and (9) an action arising out of a fundamental business transaction, including: (A) an action arising out of an insurance contract or other arrangement providing insurance or indemnity to parties to a fundamental business transaction against agreed payment obligations, losses, or expenses; and (B) an action to enforce an agreement not to compete related to a fundamental business transaction if the action is against an organization that is party to the transaction or a controlling person or managerial official of the organization; $5 arising business, commercial, or investment arising ; (4) an action to enforce an arbitration agreement, appoint an arbitrator, or review an arbitral award or other judicial actions authorized by the agreement, Chapters 171 or 172, Civil Practice and Remedies Code, or the Federal Arbitration Act (9 U.S.C. Sections 1-16), if a claim included in the controversy in arbitration, including the amount in controversy, is described in Subsections (b), (c), or (d), and without regard to whether the specific action pursued in the business court involves an amount in excess of $5 million; (5) an action arising from 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) trade secrets as defined in Section 134A.002(6), Civil Practice and Remedies Code; (6) an action arising under Chapter 134A, Civil Practice and Remedies Code; and (7) an action arising out of malpractice or professional misconduct by an attorney, certified public accountant, or other licensed professional where the client of the professional is an organization, including claims by, against and among insurers and reinsurers providing professional liability insurance covering claims against the professionals or organizations employing them. In actions within its jurisdiction, the business court has authority to grant injunctive and other equitable relief, declaratory judgments, and other relief that may be granted by a district court. also only or other equitable relief that is described in without regard to the amount in controversy in any action in which original jurisdiction pursuant to Subsection (b), (c), (d), or (e), it shall have not described in these subsections that is so claim included in the action that is it The court's supplemental jurisdiction includes claims that require the joinder or intervention of additional parties. does not proceed claim made in a seeking owned by an individual at the time the action was filed , other than a claim described in Subparagraph (b)(9)(B) Chapter 17, Business & Commerce Code other than a claim described in Section 25A.004(d)(7) (i) If two or more persons originally and properly join in one action, the action for jurisdictional purposes is treated as if one party is suing for the aggregate amount of all their claims added together for purposes of the amount in controversy requirements set forth in Subsections (b), (d), and (e). This section does not prevent jurisdiction from attaching on any other ground. (j) The business court has civil jurisdiction concurrent with district courts in an action transferred to the business court by the judicial panel on multiamended
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Sec. 25A.0041. ASSIGNMENT OF JUDGE OR TRANSFER OF CASE ON RECUSAL. If a business court judge determines on the judge's own motion that the judge should not sit in a case pending in the judge's court because the judge is disqualified or otherwise should recuse himself or herself, the judge shall enter a recusal order, request the presiding judge of the business court to assign another judge of the business court to sit, and take no further action except for good cause stated in the order in which the action is taken. A change of venue is not necessary because of the disqualification of a business court judge. Sec. 25A.0042. EXPENSES OF BUSINESS COURT JUDGE. (a) A business court judge engaged in the discharge of official duties in a location other than the county of the judge's chambers is entitled to traveling and other necessary expenses, as provided by Chapter 660. (b) A business court judge is entitled to receive from the state the actual and necessary postage, telephone and telecommunications expenses incurred in the discharge of official duties. (c) The official duties of business court judges include: (1) making educational presentations regarding the business court to legal and business groups; and (2) attending educational meetings in Texas and other states of the United States relating to business law, business litigation, and the function of the business court.
amended
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Section 25, Government Code
, as provided in each party's governing documents
amended
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Section 25, Government Code
as provided by Subsection (b) and→ Any statute or rule of this state requiring that an appeal from an order or judgement of the business court be appealed to any court of appeals other than the Fifteenth Court of Appeals, and any statute later enacted that does not expressly reference this section, shall not be given effect and all such appeals from the business court shall be heard by the Fifteenth Court of Appeals.amended
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Section 25, Government Code
the seventh day after the first day of a term for the duration of the term→ , and one additional judge to each of the First and Eleventh Divisions of the business court, if the legislature makes a specific appropriation of money for that purpose (a-1) Newly appointed judges of the business court may commence employment by the State of Texas and begin receiving their compensation for service as judges of the business court up to 30 days prior to their first day on the bench to allow time for training, organization of staff and chambers and study of business court precedent, procedure and pending case filings. September 15 of every even-numbered and a judge serving a different division of the business court to serve as administrative presiding judge pro tempore, each to serve until September 15 of the next even-numbered year the administrative presiding judge pro tempore is to serve as administrative presiding judge, and by majority vote successor pro tempore, The administrative presiding judge pro tempore is to act as administrative presiding judge in any matter as delegated by the administrative presiding judge or when the administrative presiding judge is unable to serve or take action. (d-1) Notwithstanding the salary limitations set forth in Subsection 659.012(a), in addition to the salary a business court judge is entitled to under Section 659.012, the administrative presiding judge of the business court is entitled to compensation from the state in an amount equal to the maximum amount of additional compensation paid by the state under Section 659.012(d) to a local administrative district judge responsible for a number of courts equal to the number of business court judges.amended
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Section 25, Government Code
, or an active district court judge, under Chapter 74, , or an active district court 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 or constitutional county or 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.
amended
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Section 25, Government Code
To the extent practicable, a using existing courtrooms and facilities shall in person or by deputy as required by the court sheriff or the deputy is→ that is the most populous county located in the division, or in a county located in the division that is adjacent to that county The chief justice may approve the location of a business court judge's chambers in another county within the business court division served by the judge , or any other unit of state or local government A in courtrooms and facilities equivalent to those provided to district courts A county may seek reimbursement from the state in an amount equal to the market rate in the county calculated by the Texas Facilities Commission for this purpose. Counties in planning and implementing additions and improvements to their courtrooms and facilities shall include the reasonably anticipated requirements of the business court. or a judge of the business court maintains chambers, the business court or Office of Court Administration of the Texas Judicial System may require or other licensed peace officer employed by the state, county or other governmental authority, to and provide security for its judges officers providing such services are and providing security for its judges (i) The business court or Office of Court Administration of the Texas Judicial System may require the Department of Public Safety to provide security services to the business court and its judges.amended
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number and types of cases heard by→ case activity of including: (1) the caseloads of each of the judges of the business court in the preceding year; (2) the extent to which judges have been assigned to hear cases in other divisions in order to equalize caseloads; (3) projections of the expected caseloads of the business court judges during the succeeding two-year period; and (4) recommendations regarding action by any of the legislature, the governor, the chief justice or the business court to ensure that the business court can meet existing and projected demand for its services during that two-year periodamended
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Section 25, Government Code
Sec. 25A.0210. ACTIONS COMMENCED ON OR BEFORE SEPTEMBER 1, 2024. Notwithstanding Section 8, Chapter 380 (H.B. 19), Acts of the 88th Legislature, Regular Session, 2023, civil actions commenced prior to September 1, 2024, that are within the jurisdiction of the business court as described in Section 25A.004 may be transferred to and heard by the business court on motion of a party and permission of the business court pursuant to rules of civil and judicial procedure to be adopted by the supreme court, which rules reflect due consideration of: priority for complex civil actions of longer duration that have proven difficult for a district court to resolve because of the other demands of its caseload; the capacity of the business court to accept such actions without impairing its efficiency and effectiveness in resolving actions commenced on or after September 1, 2024; and facilitation of the fair and efficient administration of justice.
added
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Section 659.012, Government Code
(g) In addition to the state salary provided under Subsection (a) or (b), a judge of a division of the business court is entitled to additional compensation from the state equal to the maximum amount a district judge may be paid as supplemental compensation by a county (including compensation for any extrajudicial services performed on behalf of the county) under Section 659.012.
amended
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Section 21.010(a), Government Code
the business court,
amended
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Section 22.110, Government Code
(b-1) Judges of the business court are exempt from compliance with the judicial training and education requirements set forth in Chapter 22, and rules issued thereunder, that are not germane to the jurisdiction of the business court as set forth in Subsections (b), (c), (d) and (e) of Section 25A.004, including, without limitation, the training and education requirements of Sections 22.012 and 22.110.
amended
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Section 37.001(a), Government Code
, except that this chapter does not apply to the business court
amended
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Section 39.001, Government Code
and→ business court judge; and (6)amended
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Section 71.011, Government Code
16→ 17amended
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Section 71.012, Government Code
and→ and (11) the administrative presiding judge of the business courtamended
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Section 71.013, Government Code
and (g) (g) The administrative presiding judge of the business court is an ex officio member of the council as long as he holds that office.
amended
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Section 74.003(b), Government Code
or the business court,
amended
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Section 74.041(5), Government Code
or the business court,
amended
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Section 74.045(a), Government Code
a serving or retired business court judge; (3) or business court judge (4)
amended
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Section 74.055(c), Government Code
, or the business court business,
amended
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Section 74.141, Government Code
a business court judge,
amended
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Section 74.162, Government Code
or→ or the business court or, if the business court has jurisdiction to hear the action under Subsection 25A.004(b), (d), (f) or (g), without regard to the amount in controversy in any single action and without regard to whether the county from which an action is transferred to the business court is within an active business court division, to the business court,amended
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Section 411.171(4-b), Government Code
the business court,
amended
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Section 11.101(e)
or by the business court
amended
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Section 15.003(c)
, except that an interlocutory appeal from the business court must be taken to the Fifteenth Court of Appeals
amended
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Section 19.003(a)
or→ ; 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 courtamended
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Section 20.001(a)
or→ a judge or clerk of the business court; or (4)amended
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Section 30.014(a)
, or the business court
amended
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Section 30.015(a)
, or the business court
amended
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Section 30.016(a)
or→ , , or business courtamended
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Section 30.017(a), Remedies Code
or→ business court, , or the administrative presiding judge of the business courtamended
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Section 51.014(a)
or the business court,
amended
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Section 51.016, Remedies Code
, or the business court,
amended
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Section 61.021, Remedies Code
court, the business court, a ,
amended
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Section 62.021, Remedies Code
court, business court,
amended
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Section 63.002, Remedies Code
court, the business court, a ,
amended
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Section 64.091(b)
or the business court
amended
Action History
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Effective on 9/1/25
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Signed by the Governor
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Sent to the Governor
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Signed in the Senate
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Signed in the House
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Reported enrolled
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Senate adopts conf. comm. report-reported
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Record vote
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Senate adopts conference committee report
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Senate adopts resolution to go outside bounds
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House adopts conf. comm. report-reported
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Statement(s) of vote recorded in Journal
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Record vote
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House adopts conference committee report
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House adopts resolution to go outside bounds
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Conf. Comm. Report distributed
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Conference committee report filed
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Senate appoints conferees-reported
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Senate grants request for conf comm-reported
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Senate appoints conferees
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Senate grants request for conference comm.
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House appoints conferees-reported
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House requests conference committee-reported
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House refuses to concur-reported
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House appoints conferees
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House requests conference committee
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House refuses to concur in Senate amendments
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Senate Amendments Analysis distributed
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Senate Amendments distributed
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Senate passage as amended reported
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Record vote
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Passed
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Read 3rd time
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Record vote
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Three day rule suspended
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Record vote
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Passed to 3rd reading as amended
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Vote recorded in Journal
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Amended
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Amendment(s) offered
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Vote recorded in Journal
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Amended
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Amendment(s) offered
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Read 2nd time
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Record vote
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Vote recorded in Journal
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Rules suspended-Regular order of business
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Placed on intent calendar
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Committee report printed and distributed
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Recommended for local & uncontested calendar
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Reported favorably as substituted
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Vote taken in committee
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Considered in public hearing
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Scheduled for public hearing on . . .
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Referred to Jurisprudence
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Read first time
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Received from the House
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Reported engrossed
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Statement(s) of vote recorded in Journal
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Record vote
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Passed
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Read 3rd time
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Statement(s) of vote recorded in Journal
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Record vote
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Passed to engrossment as amended
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Amended
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Amended
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Read 2nd time
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Placed on General State Calendar
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Considered in Calendars
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Committee report sent to Calendars
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Committee report distributed
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Comte report filed with Committee Coordinator
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Reported favorably as substituted
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Committee substitute considered in committee
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Considered in formal meeting
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Left pending in committee
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Testimony taken/registration(s) recorded in committee
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Committee substitute considered in committee
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Considered in public hearing
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Scheduled for public hearing on . . .
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Referred to Judiciary & Civil Jurisprudence
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Read first time
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Filed
Sponsors
- Brooks Landgraf · Primary
- Jeff Leach · Cosponsor
- Mike Schofield · Cosponsor
- Marc LaHood · Cosponsor
- Morgan Meyer · Cosponsor
Sponsorship breakdown
Export CSV (upgrade) →1 sponsors · 4 co-sponsors · 179 not signed on · 52 voted No
Sponsors (1)
Co-sponsors (4)
Not signed on (179)
179 members have not signed on to this bill.
Show all 179 →"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.
Votes
Roll call published as PDF — view source.
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 99 | 23 | 0 | 11 |
| Total | 99 | 23 | 0 | 11 |
| % of votes cast | 74% | 17% | 0% | 8% |
How each member voted (133)
Roll call published as PDF — view source.
Roll call published as PDF — view source.
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 95 | 39 | 0 | 16 |
| Total | 95 | 39 | 0 | 16 |
| % of votes cast | 63% | 26% | 0% | 11% |
How each member voted (150)
Roll call published as PDF — view source.
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 88 | 49 | 0 | 13 |
| Total | 88 | 49 | 0 | 13 |
| % of votes cast | 59% | 33% | 0% | 9% |
How each member voted (150)
Subjects
Frequently asked questions
- What does HB 40 do?
- Relating to the business court.
- Who sponsors HB 40?
- HB 40 is sponsored by Brooks Landgraf, Jeff Leach, Mike Schofield, Marc LaHood, and Morgan Meyer.
- What is the current status of HB 40?
- This bill has been sent to the executive. Introduced March 14, 2025. It awaits signature.
- Where can I track HB 40?
- Track HB 40 free on One Click Politics — get push/email alerts when it moves.
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