All Roll Calls
Yes: 413 • No: 167
TexasHB 4089th Legislature Regular SessionHouseWALLET
Relating to the business court.
Sponsored By: Bryan Hughes (Republican), Marc LaHood, Brooks Landgraf, Jeff Leach, Morgan Meyer, Mike Schofield
Signed by Governor
MONTGOMERY COUNTYBusiness & Commerce--GeneralCourts--AdministrationCourts--AppellateCourts--DistrictCourts--GeneralCourts--JudgesGovernorInsurance--GeneralLawyersINTELLECTUAL PROPERTYMEDIATION, DISPUTE RESOLUTION, & ARBITRATIONSUPREME COURT
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Bill Overview
Analyzed Economic Effects
16 provisions identified: 12 benefits, 1 costs, 3 mixed.
Consumers keep protections against specialized court
The business court cannot hear claims tied to legally defined consumer transactions involving a Texas consumer and federal or state law violations. This ban also covers claims related to another business court case. The lien-foreclosure exclusion now applies only to property an individual owns when the case is filed. Property not owned by an individual is no longer covered by that specific exclusion.
Business court divisions stay open longer
The Second, Fifth, Sixth, Seventh, Ninth, and Tenth Business Court Divisions no longer face abolition on September 1, 2026. Their continued operation still depends on legislative funding. Montgomery County moves from the Second to the Eleventh Business Court Division.
Business court offers more arbitration help
The business court can enforce arbitration agreements, appoint arbitrators, and review awards when the arbitration includes a listed business claim. Authorized requests before, during, or after arbitration must establish venue within a business court division. For specified international arbitration matters, the arbitration location must be in the division’s county. The court can address failed appointment procedures, arbitrator challenges, and termination disputes; consolidation requires an application and every other party’s consent. These arbitration chapters do not independently add jurisdiction beyond the court’s existing authority.
Business court parties gain dispute options
Alternative dispute resolution rules now include the Texas business court. When parties agree, a judge can refer some or all factual or legal issues in a covered pending matter for trial. The referral rule covers civil or family matters already pending there under the referenced law. The business court can pause its proceedings while the referred trial is pending.
Business judges face stronger conduct safeguards
Existing financial-conflict restrictions now cover business court judges. A covered judge cannot hold a significant interest in a business owning, managing, or operating a facility covered by that restriction. Chapter 39 of the Texas Government Code also applies to people elected to or holding business court judge office.
Business judges gain service and training flexibility
Retired or former business court judges can qualify as special judges with at least four years of service in eligible courts. They need substantial specialty experience and cannot have been removed or resigned while under a discipline or removal investigation. They must show at least five days of approved legal education completed in the past calendar year, each year. Serving business court judges are exempt from Chapter 22 training unrelated to their court’s jurisdiction. Training relevant to that jurisdiction remains required.
Business judges receive added state pay
Beginning September 1, 2025, added state salary brings business judges’ state base pay to district judges’ maximum combined state-and-county base pay. The administrative presiding judge gets an additional amount under the local administrative district judge formula, counting all business court judges. Appointed judges can start paid state work up to 30 days before their terms begin. The state reimburses actual, necessary official postage, phone, and telecommunications costs. Official travel outside the county where a judge keeps chambers receives reimbursement under state travel rules.
Clearer locations for business court cases
Business court venue can follow applicable law or a written contract naming a county. An organization’s governing documents can also set venue for specified internal business claims. The filing party must explain why venue belongs in a county within a business court division. Injunctions against Texas residents can be heard in the business court division serving their home county, alongside district or county court options. With multiple parties, a proper court in a county where an affected party lives can hear the injunction.
Covered business appeals get decision deadline
Covered appeals of business court decisions before a case ends go to the Fifteenth Court of Appeals. The appealing party must be affected by the trial court’s determination. The appeals court reviews the record independently rather than deferring under abuse-of-discretion or substantial-evidence standards. It must issue judgment within 120 days after the appeal is formally completed for filing.
More business disputes reach specialized court
The qualified-transaction threshold falls from $10 million to at least $5 million, counting related transactions together. Loans or advances from banks, credit unions, and savings and loan institutions are excluded from that definition. Listed business cases, including specified intellectual property and trade secret disputes and cases otherwise reserved for district courts, require more than $5 million. The court adds all joined parties’ claims, excluding interest, statutory and exemplary damages, penalties, attorney fees, and court costs. The commercial or investment contract category requires the parties’ agreement to business court jurisdiction and excludes insurance contract cases.
Older lawsuits can enter business court
Civil cases started before September 1, 2024, can move to the business court when they fall within its jurisdiction. Transfer requires an agreed motion, business court permission, and compliance with Texas Supreme Court rules. Those rules must prioritize complex, long-running cases that district courts have struggled to resolve. They must also consider business court capacity and fair, efficient justice. This transfer option expires September 1, 2035.
Related business cases gain coordination options
The business court can hear a related claim from the same case when all parties to that claim and the judge agree. Without agreement, the related claim can proceed in its original court alongside the business court case. The multidistrict litigation panel can transfer cases sharing factual questions to the business court for shared pretrial work. The business court must have jurisdiction, and the transfer must help parties and witnesses and promote fair, efficient proceedings. This transfer authority does not move the cases there for trial.
Court filing restrictions now reach statewide
A prefiling order from a Texas district court, statutory county court, or business court applies in every Texas court. People subject to such orders face the filing restrictions statewide. The rule does not impose a general filing restriction on everyone.
Court users gain tools and disclosures
Interested people can ask the business court clerk to restore a judgment, order, or decree record that was lost, destroyed, or removed. A business court judge or clerk can take written-question testimony from a witness alleged to live or be in Texas. Each party or lawyer must include the last three digits of issued driver’s license and Social Security numbers in the initial pleading. They must also give the clerk written notice of the party’s name and current home or business address.
Counties provide court space with reimbursement
Counties must provide business court proceedings with facilities equivalent to those used by district courts. Texas reimburses counties at market rates calculated by the Texas Facilities Commission. Counties must consider future business court needs in facility improvements only where the court currently operates. The business court or Office of Court Administration can require government peace officers to provide judicial security where divisions sit or judges keep chambers. Texas reimburses the cost of those security services.
Emergency court orders get clearer safeguards
A business court judge can issue an emergency writ for another judge who cannot be reached in time. The applicant must provide a sworn statement explaining the problem and efforts to reach that judge. The issuing judge must find those efforts fair and reasonable. An injunction can be dissolved when reasonable efforts to obtain a hearing before the other judge were not made first. Business, district, and statutory county courts cannot adopt local rules that conflict with the injunction law.
Sponsors & Cosponsors
Sponsors
Bryan Hughes
Republican • Senate
Marc LaHood
House
Brooks Landgraf
House
Jeff Leach
House
Morgan Meyer
House
Mike Schofield
House
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
Senate vote • 6/1/2025
Record vote
Yes: 24 • No: 7
House vote • 6/1/2025
Record vote
Yes: 95 • No: 39
Senate vote • 5/28/2025
Record vote
Yes: 24 • No: 7
Senate vote • 5/28/2025
Record vote
Yes: 25 • No: 6
Senate vote • 5/28/2025
Record vote
Yes: 24 • No: 7
Senate vote • 5/28/2025
Record vote
Yes: 24 • No: 7
House vote • 5/13/2025
Record vote
Yes: 99 • No: 40
House vote • 5/12/2025
Record vote
Yes: 88 • No: 49
House vote • Unknown
Committee vote: Judiciary & Civil Jurisprudence
Yes: 6 • No: 5
Senate vote • Unknown
Committee vote: Jurisprudence
Yes: 4 • No: 0
Bill Text
Engrossed
Enrolled
House Committee Report
Introduced
Senate Committee Report
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