SB 632 — Business courts; creating business court divisions in certain judicial districts; providing for appointment of business court judges; specifying authority and jurisdiction of business court. Effective date.

establishing procedures for notice of removal;

stating applicability of Oklahoma Pleading Code;

establishing requirements for jury trials in business court;

establishing time limitation for disposition of non-jury trials;

authorizing extension upon agreement of parties;

requiring Supreme Court to promulgate rules for electronic filing;

establishing filing fees;

providing for codification;

and providing an effective date.

SUBJECT:

Business courts BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:

The Oklahoma Legislature finds that, due to the complex nature of litigation involving highly technical commercial issues, there is a need for a court specialized courts in Oklahoma’s most populated counties Oklahoma with specific jurisdiction over actions involving such commercial business issues.

ENGR.C.

The Supreme Court shall promulgate rules for the establishment and jurisdiction of the Each business court divisions division created shall be categorized and named numerically.

The ENR.

632 Page 12 C.Supreme Court shall promulgate rules for the implementation and administration of the business courts to the extent required by Article VII of the Oklahoma Constitution.

TheAdditional Supremerules Courtand procedures shall promulgatebe rulespromulgated forby the establishmentjudges and jurisdiction of the Each business court divisionsdivisions. division created shall be categorized and named numerically.

Business Court Division I shall be located in Oklahoma County and quartered in Oklahoma CityCity; at the Court of Civil Appeals.

Business Court Division II shall be located in Tulsa County and quartered in TulsaTulsa. at the Court of Civil Appeals.

Both business court divisions shall be quartered in a location as determined by the Chief Justice of the Supreme Court in consultation with any state officials or private parties needed to secure appropriate court and office space.

Proper venue for the respective divisions shall be set forth in Section 7 of this act.

and ENGR.4.

S.A business court judge shall receive an annual salary equal to that of an associate justice of the Supreme Court.

B.

NO.

632 Page 2 4.

A business court judge shall receive an annual salary equal to that of a United States district court judge.

Unless and until the Supreme Court or the Presiding Judge presiding judge of the judicial administrative districtENR. provides otherwise, and excluding any business courts established pursuant to Section 91.7 of this title, the District Court district court shall hold court in the county seat of every county in the district, in any city where a Superior Court superior court held sessions and at such other places within the district as the district and associate district judges shall prescribe.

B.

If a governing board of the Court Fund court fund receives a request from a municipality that court be held within that municipality and the board determines that sufficient reasons exist for establishing a court and that sufficient funds and space for a court are made available by the municipality, the board may establish a court, presided over by a special judge, in that municipality.

The request to hold court in a municipality shall be included in the budget submitted by the governing board of the Court Fund court fund to the Chief Justice of the Supreme Court and approved by the Chief Justice.

ENGR.

632 Page 3 SECTIONdistrict 4.provides otherwise, and excluding any business courts established pursuant to Section 91.7 of this title, the District Court district court shall hold court in the county seat of every county in the district, in any city where a Superior Court superior court held sessions and at such other places within the district as the district and associate district judges shall prescribe.

B.

If a governing board of the Court Fund court fund receives a request from a municipality that court be held within that municipality and the board determines that sufficient reasons exist for establishing a court and that sufficient funds and space for a court are made available by the municipality, the board may establish a court, presided over by a special judge, in that municipality.

The request to hold court in a municipality shall be included in the budget submitted by the governing board of the Court Fund court fund to the Chief Justice of the Supreme Court and approved by the Chief Justice.

SECTION 4.

The Chief Justice of the Supreme Court shall approve by administrative directive the number and assignments of secretary-bailiffs in all counties of the state.

Each secretary-secretary-bailiff bailiff shall be paid a salary pursuant to the salary schedule established by the annual appropriation for the district courts and in accordance with the job description for the position to which appointed.

In everyeach countybusiness ofcourt division, the statebusiness eachcourt district judge andmay eachappoint associatea districtlaw judge,clerk, includingwho businessshall courtbe judgesan attorney licensed or eligible to become licensed to practice law in countiesthis withstate, ato businessserve courtat division,the maywill byof orderthe appointappointing additionaljudge necessarywith courtan personnelannual subjectsalary to thebe approvalset ofby the Chief Justice.

AIn part-timeENR. bailiff shall be paid out of the court fund of the county where appointed at the rate set ENGR.

632 Page 4 byevery administrativecounty directiveof forthe state each hourdistrict thatjudge suchand personeach actuallyassociate attendsdistrict thejudge, including business court andjudges performsin services,counties orwith a probusiness ratacourt fractiondivision, thereofmay forby lessorder thanappoint anadditional hournecessary court personnel subject to the approval of service.the Chief Justice.

A part-time bailiff shall be paid out of the court fund of the county where appointed at the rate set by administrative directive for each hour that such person actually attends the court and performs services, or a pro rata fraction thereof for less than an hour of service.

The cost of the operation of the office of a district judge of a multi-county ENGR.judicial district, including the purchase of equipment and supplies, may be apportioned among the counties of that judicial district, or appropriate division of that district, based upon the percentage of revenue collected by the courts of the district.

E.

The Administrative Director of the Courts shall develop and promulgate job descriptions, salary schedules and time-keeping forms for part-time bailiff personnel.

The Chief Justice of the Oklahoma Supreme Court, through the Office of the Administrative Director of ENR.

632 Page 5 judicial district, including the purchaseCourts, ofshall equipmentpromulgate andrules supplies,for may be apportioned among the countiescompensation offor thatovertime judicialfor district,all orsecretary-bailiff appropriateand divisionpart-time ofbailiff thatpersonnel district,employed. based upon the percentage of revenue collected by the courts of the district.

E.

The Administrative Director of the Courts shall develop and promulgate job descriptions, salary schedules and time-keeping forms for part-time bailiff personnel.

The Chief Justice of the Oklahoma Supreme Court, through the Office of the Administrative Director of the Courts, shall promulgate rules for the compensation for overtime for all secretary-bailiff and part-time bailiff personnel employed.

Counties shall be allowed to provide additional support personnel to ENGR.the judges sitting in such counties to the extent that funding is available.

S.

B.

NO.

632 Page 6 the judges sitting in such counties to the extent that funding is available.

Each business court shall consist of one business court judge to be appointed by the Governor.Governor with the advice and consent of the Senate.

If the Legislature is not in regular session when an appointment is made, the appointee shall assume the office on an interim basis until the Senate takes final action to either confirm or reject the appointee.

The Governor shall choose an appointee for any vacancy from a list of three candidates provided by the Speaker of the House of Representatives.

If the Governor rejects all three ENR.

S.

B.

NO.

632 Page 6 candidates, the Governor may request a subsequent list of candidates from the Speaker.

The Speaker shall provide such subsequent list to the Governor within forty (40) days of the request.

If such subsequent list is not provided, the Governor may appoint any person who meets the qualifications set forth in paragraph 2 of this subsection.

ATo be eligible for appointment, a business court judge shall havebe: the following qualifications:

a United States citizen, and c.

(1) practicing complex civil business litigation, (2) practicing business transaction law, ENGR.(3) serving as a judge or clerk of a court with civil jurisdiction, or (4) any combination of experience totaling ten (10) years as described by divisions 1 through 3 of this subparagraph.

S.

NO.

632 Page 7 (3) serving as a judge of a court in this state with civil jurisdiction, and hearing a substantial number of civil cases, or (4) any combination of experience totaling ten (10) years as described by divisions 1 through 3 of this subparagraph.

B.

BeginningA onbusiness thecourt effectivejudge dateshall serve a term of thiseight act,(8) ayears, businessexcept courtas judgeotherwise shallprovided serveby forthis asubsection, termbeginning ofSeptember six1, (6)2025, years.and may be reappointed.

AThe first business court judge appointed to Business Court Division II shall serve a term of four (4) years beginning September 1, 2025, and may be reappointed.

A business court judge shall serve the full term to which he or she was appointed and shall continue to serve until a replacement is appointed and assumes office.

If a vacancy occurs in anthe office of a business court judge,judge thedue Governor shall appoint, in the same manner as the original appointment, another person to servedeath, forincapacity, theresignation, remainderor ofimpeachment, the unexpiredGovernor term.ENR.

S.

B.

NO.

632 Page 7 shall appoint a person to serve for the remainder of the unexpired term in the same manner as the original appointment.

InUpon therequest eventby that the docket of a business court judgejudge, exceedsthe reasonableChief capacity,Justice may appoint a district court judge mayto sit in designation temporarily as a business court judge to assist in caseload management.

ENGR.A.

S.In an action where damages are requested under subsection B or C of this section, the amount in controversy shall be at least Five Hundred Thousand Dollars ($500,000.00).

NO.

632 Page 8 A.

Arising under the Oklahoma General Corporation Act, Section 1001 et seq.

5.ENR.

S.

B.

NO.

632 Page 8 5.

ENGR.8.

S.

B.

NO.

632 Page 9 8.

B.C.

InA anbusiness actioncourt whereshall anyhave otherjurisdiction reliefto ishear requested,complex thecases. amount in controversy shall be at least:

ENGR.For purposes of this act, “complex case” means an action that requires exceptional judicial management to avoid placing ENR.

632 Page 109 1.unnecessary burdens on the court or the litigants, expedite the case, keep costs reasonable, and promote effective decision-making by the court, parties, and counsel.

Two Hundred Fifty Thousand Dollars ($250,000.00) for claims under subsection A of this section;

or 2.

Five Hundred Thousand Dollars ($500,000.00) for claims in complex cases as defined in subsection C of this section.

C.

The business court shall have jurisdiction to hear complex cases.

For purposes of this act, “complex case” means an action that requires exceptional judicial management to avoid placing unnecessary burdens on the court or the litigants and to expedite the case, keep costs reasonable, and promote effective decision- making by the court, the parties, and counsel.

ENGR.6.

S.

B.

NO.

632 Page 11 6.

An action is provisionallypresumptively a complex casecase, subject to rebuttal, if it involves one or more of the following types of claims:

ConstructionSecurities defect claims or investment losses involving manymore partiesthan ortwo structures;parties;

SecuritiesEnvironmental claims or investmenttoxic lossestort claims involving manymore than two parties;

EnvironmentalOwnership or toxiccontrol tortof claimsbusiness involvingclaims; many parties;

6.ENR.

ProductS. liability claims;

B.

NO.

632 Page 10 6.

Insurance coverage claims;

MassConstruction tortdefect claims;claims involving many parties or structures;

ClassProduct actions;liability claims;

or 9.

OwnershipMass ortort controlclaims. of business claims;

Nothing in this subsection shall be construed to include individual consumer claims or 10.transactions involving a retail customer of goods or services who uses or intends to use such goods or services primarily for personal, family, or household purposes;

Insuranceprovided, coveragehowever, this paragraph shall not be construed to preclude the court from exercising jurisdiction over mass actions or class actions involving such individual consumer claims.

ExceptA as provided by subsection D of this section, the business court shall have supplemental jurisdiction over any other claim related to a case or controversy within the court’s jurisdiction that forms part of the same case or controversy.

ENGR.F.

A business court shall not have authority to exercise jurisdiction over claims arising under federal or state law, as applicable, involving:

1.

The Oklahoma Consumer Protection Act, Section 751 et seq.

of Title 15 of the Oklahoma Statutes;

2.

Against a governmental entity or political subdivision under Title 19 of the Oklahoma Statutes or under The Governmental Tort Claims Act, Section 151 et seq.

of Title 51 of the Oklahoma Statutes;

3.

Guardianship matters under Title 30 of the Oklahoma Statutes;

4.

Probate matters under Title 58 of the Oklahoma Statutes;

ENR.

632 Page 1211 SECTION5. 7.

A deceptive trade practice as set forth in Section 53 of Title 78 of the Oklahoma Statutes, to the extent such matter is not a business dispute;

6.

Residential landlord and tenant;

7.

Personal injury and wrongful death;

8.

Domestic relations;

9.

Foreclosures;

10.

Individual consumer claims or transactions involving a retail customer of goods or services who uses or intends to use such goods or services primarily for personal, family, or household purposes;

provided, however, this paragraph shall not be construed to preclude the court from exercising jurisdiction over mass actions or class actions involving such individual consumer claims;

11.

Collections in matters involving a corporation or other entity subject to the farming and ranching statutes of this state or an individual farmer;

or 12.

Cases that would generally be considered consumer transactions or human relation matters.

SECTION 7.

ExceptNotwithstanding asany providedother inprovision subsection B of thislaw, section,no actionsaction shall be broughteligible beforeto thebe filed, transferred, or removed to a business court asdivision follows:prior to January 1, 2026.

Except as provided in subsection F of Section 6 of this act, actions shall be brought before the business court as follows:

An action within the subject matter jurisdiction of the business court may be filed in the business court.

TheAn filingaction partythat shallarises pleadin factsa sufficientcounty tolocated establishwithin venuethe injurisdiction aof countythe inUnited aStates divisionDistrict ofCourt for the businessWestern court.District of Oklahoma shall be filed in Business Court Division I;

an action that arises in a county located within the jurisdiction of the United States District ENR.

S.

B.

NO.

632 Page 12 Court for the Northern District of Oklahoma or Eastern District of Oklahoma shall be filed in Business Court Division II.

If the business court determines that the venue is improper as to the action, the business court shall transfer the action to the court of proper venue.venue, but the business court judge shall continue to preside over the action.

ENGR.2.

S.

B.

NO.

632 Page 13 2.

A party to an action filed in a district court of proper venue that is not within an operating division of the business court, or the judge of the court in which the action is filed, shall not remove or transfer the action to the business court.

D.

orprovided, 2.however, in no event shall a party have less than the amount of time to respond to the action than to remove to the business court;

If an application for temporary injunction is pending on the date the party requesting removal of the action discovered, or reasonablyENR. should have discovered, facts establishing the business court’s jurisdiction over the action, not later than thirty (30) days after the date the application is granted, denied, or denied as a matter of law.

ENGR.

632 Page 1413 E.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 thirty (30) days after the date the application is granted, denied, or denied as a matter of law.

D.

F.E.

A.

A jury trial may be reserved by a party if claimed within a time period established by law.

A jury trial conducted by the business court judge shall be held in the county where the contract stipulates as proper venue, where the action was originally filed, if removed, or in any county of proper jurisdiction if originally filed in a business court.

B.

The twelve-month disposition schedule may be extended if both parties agree to a longer resolution period.period, or upon a finding by the business court of extraordinary cause for such an extension, which shall be appealable to the Supreme Court.

SuchAn an extension shall be agreedmemorialized upon in writing by all parties and approved by the court.

ThisNEW actLAW shallA becomenew effectivesection Julyof 1,law 2026.to be codified in the Oklahoma Statutes as Section 91.7f of Title 20, unless there is created a duplication in numbering, reads as follows:

ENGR.ENR.

632 Page 1514 PassedA. the Senate the 24th day of March, 2025.

3The PresidingSupreme OfficerCourt ofshall theprovide Senatefor 5electronic Passedfiling of documents in the Housebusiness courts of Representativesthis thestate ____and dayshall promulgate rules for the filing of __________,documents 2025.transmitted by electronic devices.

8B. Presiding Officer of the House of Representatives ENGR.

A fee of One Thousand Five Hundred Dollars ($1,500.00) shall be charged and collected by the court clerk at the time of filing any action in, or upon the filing of a motion for removal to, a business court division established pursuant to Section 91.7 of Title 20 of the Oklahoma Statutes.

Fees shall be charged and collected pursuant to the fee schedule established for district courts.

SECTION 10.

This act shall become effective September 1, 2025.

ENR.

S.

B.

NO.

632 Page 15 Passed the Senate the 28th day of May, 2025.

Presiding Officer of the Senate Passed the House of Representatives the 28th day of May, 2025.

Presiding Officer of the House of Representatives OFFICE OF THE GOVERNOR Received by the Office of the Governor this ____________________ day of ___________________, 20_______, at _______ o'clock _______ M.

By:

_________________________________ Approved by the Governor of the State of Oklahoma this _________ day of ___________________, 20_______, at _______ o'clock _______ M.

_________________________________ Governor of the State of Oklahoma OFFICE OF THE SECRETARY OF STATE Received by the Office of the Secretary of State this __________ day of __________________, 20 _______, at _______ o'clock _______ M.

By:

_________________________________ ENR.