89R16720 AMF-D     By: Hughes S.B. No. 2883       A BILL TO BE ENTITLED   AN ACT   relating to the business court.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Sections 25A.003(d), (g), (h), (i), (k), (l),   and (n), 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), subject to funding through legislative   appropriations. The division is abolished September 1, 2028 [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, 2028   [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, 2028   [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, 2028   [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, 2028   [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, 2028   [2026], unless reauthorized by the legislature and funded through   additional legislative appropriations.          (n)  This subsection and Subsections (d), (g), (h), (i), (k),   and (l) expire September 1, 2028 [2026].          SECTION 2.  Sections 25A.004(b) and (d), Government Code,   are amended to read as follows:          (b)  Subject to Subsection (c), the business court has civil   jurisdiction concurrent with district courts in the following   actions in which the amount in controversy exceeds $4.5 [$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 $9.5 [$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 that arises out of a 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 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.          SECTION 3.  Section 25A.008(a), Government Code, is amended   to read as follows:          (a)  A business court judge must:                (1)  be at least 35 years of age;                (2)  be a United States citizen;                (3)  have been a resident of a county within the   division of the business court to which the judge is appointed for   at least four [five] years before appointment; and                (4)  be a licensed attorney in this state who has 10 or   more years of experience in:                      (A)  practicing complex civil business   litigation;                      (B)  practicing business transaction law;                      (C)  serving as a judge of a court in this state   with civil jurisdiction; or                      (D)  any combination of experience described by   Paragraphs (A)-(C).          SECTION 4.  Section 25A.0171(e), Government Code, is amended   to read as follows:          (e)  Not later than December 15 [1] of each year, the Office   of Court Administration of the Texas Judicial System shall submit   to the legislature a report on the number and types of cases heard   by the business court in the preceding year.          SECTION 5.  Section 659.012(d), Government Code, is amended   to read as follows:          (d)  Notwithstanding any other provision in this section or   other law:                (1)[,] in a county with more than five district courts,   a district judge who serves as a local administrative district   judge under Section 74.091 is entitled to an annual base salary from   the state in the amount equal to $5,000 more than the maximum salary   from the state to which the judge is otherwise entitled under   Subsection (a) or (b); and                 (2)  a business court judge who serves as   administrative presiding judge under Section 25A.009 is entitled to   an annual base salary from the state in the amount equal to $1 more   than the maximum salary from the state to which the judge is   otherwise entitled under Subsection (a) or (b).          SECTION 6.  Section 25A.007(b), Government Code, is   repealed.          SECTION 7.  This Act takes effect September 1, 2025.