The text as introduced · 11,663 words
By: Landgraf
H.B. No. 40
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. Section 25A.001, Government Code, is amended by
amending Subsection (14) and adding Subsection (15) 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 one or more parties [ 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.
(15) "Fundamental business transaction" means a
merger, interest exchange, conversion, or sale of all or
substantially all of an entity's assets.
SECTION 2. Section 25A.003, Government Code, is amended by
amending Subsections (d), (g), (h), (i), (k), (l), and (m) 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 3. Section 25A.004, Government Code, is amended by
amending Subsections (b), (d), (e), (f), (g) and (h) and adding
Subsections (i), (j), (k) and (l) 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 $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 , 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;
(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 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.
(e) 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. The business court also has civil jurisdiction
concurrent with district courts in an action seeking only
injunctive or other equitable relief or a declaratory judgment
under Chapter 37, Civil Practice and Remedies Code, involving a
dispute that is described in [ based on a claim within the court's
jurisdiction under] Subsection (b) without regard to the amount in
controversy .
(f) Except as provided by Subsection (h), in any action in
which the business court has original jurisdiction pursuant to
Subsection (b), (c), (d), or (e), it shall have supplemental
jurisdiction over any other claim not described in these
subsections that is so related to a claim included in the action
that is [ case or controversy ] within the court's jurisdiction that
it [ within the court's jurisdiction that] forms part of the same
case or controversy. The court's supplemental jurisdiction
includes claims that require the joinder or intervention of
additional parties. [ 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 does not proceed [ 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 made 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 owned by an individual at the time the action was
filed ;
(2) a claim arising out of:
(A) Subchapter E, Chapter 15, [ and Chapter 17, ]
Business & Commerce Code , other than a claim described in
Subparagraph (b)(9)(B) ;
(B) the Estates Code;
(C) the Family Code;
(D) Chapter 17, Business & Commerce Code [ 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;
[ (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) ](4) 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 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 multidistrict litigation pursuant to
Subchapter H, Chapter 74, without regard to the amount in
controversy in any single action or whether the county from which
the action is transferred to the business court is within an active
business court division, so long as the business court otherwise
has jurisdiction to hear the action under Subsection 25A.004.
(k) The supreme court shall adopt rules of civil and
judicial procedure providing for the prompt determination of
business court jurisdiction, efficiently and with substantial
finality, in the early stages of a proceeding, which rules are to
reflect due consideration of:
(1) the business court's purpose of efficiently
addressing complex business litigation in a manner comparable to,
if not more effectively than, the business and commercial courts
operating in other states;
(2) the many 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 the State of Texas;
(3) the limited potential for the movement of an
action between the district courts and the business court in order
to increase judicial efficiency to raise issues of fundamental
fairness or the preservation of constitutionally or statutorily
protected rights of the parties; and
(4) the changing needs of business litigants and their
counsel for guidance in their usage of the business court and the
Fifteenth Court of Appeals over time as those courts develop a body
of precedent and practice that is currently not available .
(l) The rules of civil and judicial procedure adopted
pursuant to Subsection (k) may utilize judicial determinations
based upon pleadings or summary proceedings, establish
appropriately differing standards of proof, establish limited time
periods during which issues or rights must be asserted or be deemed
agreed to or waived, establish review of business court actions by a
another judge or panel of judges, including regional presiding
judges and the administrative presiding judge of the business
court, allow, require or prohibit interlocutory appeals or provide
for accelerated appeals. The foregoing list is not exclusive.
SECTION 4. Chapter 25A, Government Code, is amended by
adding the Sections 25A.0041 and 25A.0042 to read as follows:
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.
SECTION 5. Section 25A.006(a), Government Code, is 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 law , as
provided in each party's governing documents or, if a written
contract specifies a county as venue for the action, as provided by
the contract.
SECTION 6. Section 25A.007(a), Government Code, is amended
to read as follows:
Sec. 25A.007. APPEALS. (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. 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.
SECTION 7. Section 25A.009, Government Code, is amended by
amending Subsections (a) and (d), and adding Subsection (a-1), to
read as follows:
(a) The governor, with the advice and consent of the senate,
shall appoint:
(1) two judges to each of the First, Third, Fourth,
Eighth, and Eleventh Divisions of the business court; and
(2) one judge to each of the Second, Fifth, Sixth,
Seventh, Ninth, and Tenth Divisions of the business court , 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.
(d) Not later than September 15 of every 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 business court to serve as administrative presiding
judge pro tempore, each to serve until September 15 of the next
even-numbered year [ for the duration of the term ]. If a vacancy
occurs in the position of administrative presiding judge, the
administrative presiding judge pro tempore is to 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. 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.
SECTION 8. Section 25A.014, Government Code, is amended by
amending Subsection (a) and adding Subsection (c) to read as
follows:
Sec. 25A.014. VISITING JUDGE. (a) A retired or former
judge or justice , or an active district court judge, 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 , or an active district court judge, 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 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.
SECTION 9. Section 25A.017, Government Code, is amended by
amending Subsections (c), (d), and (h) and adding Subsection (i) to
read as follows:
(c) Each business court judge shall maintain chambers in the
county the judge selects within the geographic boundaries of the
division to which the judge is appointed that is the most populous
county located in the division, or in a county located in the
division that is adjacent to that county , in facilities provided by
this state. 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 . For purposes of this
section, the Office of Court Administration of the Texas Judicial
System may contract for the use of facilities with a county , or any
other unit of state or local government .
(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 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.
(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, the sheriff's deputy, or
other licensed peace officer employed by the state, county or other
governmental authority, to [ shall in person or by deputy ] attend
the business court and provide security for its judges [ as required
by the court ]. The [ sheriff or the deputy is ] officers providing
such services are entitled to reimbursement from this state for the
cost of attending the business court 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.
SECTION 10. Subsection 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 [ number and types of cases heard by ]
case activity of the business court in the preceding year,
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 period .
SECTION 11. Chapter 25A, Government Code, is amended by
adding Section 25A.0210 to read as follows:
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:
(1) 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;
(2) 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
(3) facilitation of the fair and efficient
administration of justice.
SECTION 12. Section 659.012, Government Code, is amended by
adding a new Subsection (g) to read as follows:
(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.
SECTION 13. The following sections of the Government Code
are repealed:
(1) 25A.003(n);
(2) 25A.007(b);
(3) 25A.009(b); and
(4) 25A.014(b).
SECTION 14. 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 15. Section 22.110, Government Code, is amended by
adding subsection (b-1) to read as follows:
(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.
SECTION 16. Section 37.001(a), Government Code, is amended
to read as follows:
(a) This chapter applies to a court in this state 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 ,
except that this chapter does not apply to the business court .
SECTION 17. 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 18. 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 [ 16 ] 17 ex
officio and six appointive members.
SECTION 19. 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, 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 20. 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 (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 as long as he holds that
office.
SECTION 21. 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, statutory probate, statutory county,
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 22. 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, statutory probate, statutory county, or
appellate court, or the business court, but who is not a retired
judge.
SECTION 23. 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) a retired appellate judge with judicial experience
on a district court or the business court.
SECTION 24. 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, statutory probate, statutory county, 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 25. 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 26. 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, 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, 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 27. 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 28. Section 11.101(e), Civil Practice & Remedies
Code, is amended to read as follows:
(e) A prefiling order entered under Subsection (a) by a
district or statutory county court or by the business court applies
to each court in this state.
SECTION 29. Section 15.003(c), Civil Practice & 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 30. Section 19.003(a), Civil Practice & 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 31. Section 20.001(a), Civil Practice & 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 32. Section 30.014(a), Civil Practice & Remedies
Code, is amended to read as follows:
(a) In a civil action, including a probate or guardianship
proceeding, filed in a district court, county court, statutory
county court, or statutory probate court , or the business court ,
each party or the party's attorney shall include in its initial
pleading:
SECTION 33. Section 30.015(a), Civil Practice & Remedies
Code, is amended to read as follows:
(a) In a civil action filed in a district court, county
court, statutory county court, 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 34. Section 30.016(a), Civil Practice & 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 35. Section 30.017(a) and (c), Civil Practice &
Remedies Code, are amended to read as follows:
(a) A claim against a district court, business court,
statutory probate court, or statutory county 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 36. Section 51.014(a), Civil Practice & Remedies
Code, is amended to read as follows:
(a) A person may appeal from an interlocutory order of a
district court, county court at law, statutory probate court, 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 37. Section 51.016, Civil Practice & 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.
Sections 1-16), 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, county court at law, 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 38. Section 61.021, Civil Practice & Remedies Code,
is amended to read as follows:
Sec. 61.021. WHO MAY ISSUE. The judge or clerk of a
district court, the business court, or a county court, or a justice
of the peace , may issue a writ of original attachment returnable to
his court.
SECTION 39. Section 62.021, Civil Practice & Remedies Code,
is amended to read as follows:
Sec. 62.021. WHO MAY ISSUE. A district court, business
court, or county court judge or a justice of the peace may issue
writs of sequestration returnable to his court.
SECTION 40. Section 63.002, Civil Practice & Remedies Code,
is amended to read as follows:
Sec. 63.002. WHO MAY ISSUE. The clerk of a district court,
the business court, or a county court, or a justice of the peace ,
may issue a writ of garnishment returnable to his court.
SECTION 41. Section 64.091(b), Civil Practice & 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 42. Section 64.092, Civil Practice & Remedies Code,
is amended by amending Subsections (a) and (c) 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 of the county in which
all or part of the land is located , or a business court judge of an
operating division of the business court 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:
(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 of the county in which all or part of the
land is located , or a business court judge of an operating division
of the business court 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:
SECTION 43. Section 64.093(a), Civil Practice & Remedies
Code, is amended to read as follows:
(a) A district court, or the business court if the land
subject to a mineral interest is located partially or entirely
within a county that is within an operating division of 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 44. Section 65.022, Civil Practice & 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 put into effect the purpose of the writ sought.
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 application is made shall refuse to
hear the application unless he determines that 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
that the applicant did not first make reasonable efforts to procure
a hearing on the application before the other business court judge.
SECTION 45. Subsection 65.023(a), Civil Practice & 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 case of the business court, the writ of
injunction shall be tried before a business court judge whose
division includes 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 [ the ] a county in which any enjoined party
[ either party ] is domiciled, or, in the case of the business court,
the writ of injunction shall be tried before a business court judge
whose division includes a county in which any enjoined party is
domiciled .
SECTION 46. Section 65.045(c), Civil Practice & Remedies
Code, is amended to read as follows:
(c) The district courts and statutory county courts in a
county may not adopt local rules in conflict with this subchapter.
The business court may not adopt local rules in conflict with this
subchapter.
SECTION 47. Section 151.001, Civil Practice & 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,
statutory probate court, or statutory county court, or in 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 48. Section 151.003, Civil Practice & 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, business court,
statutory county court, statutory probate court, or appellate court
judge who:
(1) has served as a judge for at least four years in a
district court, statutory county court, statutory probate court, or
appellate court , or the business court, or some combination of the
foregoing ;
(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 49. Section 151.011, Civil Practice & 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
court. The verdict stands as a verdict of the referring judge's
court. In the case of a trial referred from the business court, the
special judge must provide a written opinion under the
circumstances in which the business court judge would be required
to provide a written opinion. 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 50. Section 151.012, Civil Practice & Remedies
Code, is amended to read as follows:
Sec. 151.012. NEW TRIAL. If the special judge does not
submit the verdict , and an opinion, if required in the case of a
referral from the business court, 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 51. Section 151.013, Civil Practice & 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 and the Texas Rules of Civil
Procedure and the Texas Rules of Appellate Procedure.
SECTION 52. Subsection 154.001(1), Civil Practice &
Remedies Code, is amended to read as follows:
(1) "Court" includes an appellate court, district
court, the business court, constitutional county court, statutory
county court, family law court, probate court, municipal court, or
justice of the peace court.
SECTION 53. Section 171.001, Civil Practice & Remedies
Code, is amended by adding subsection (c) to read as follows:
(c) References to the business court in this chapter
presume, and the authority of the business court to take actions as
provided in this chapter requires, that a claim included in the
controversy arbitrated is within the jurisdiction of the business
court described in Subsections 25A.004(b), (c), or (d), Government
Code.
SECTION 54. Section 171.086, Civil Practice & Remedies
Code, is amended by amending Subsections (a) and (b) 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, if the order is sought from
the business court, in the manner and subject to the conditions
under which the proceeding may be instituted and conducted
ancillary to an action in the business court ;
(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, if the
order is sought from the business court, in the manner and subject
to the conditions under which the proceeding may be conducted
ancillary to an action in the business court ;
(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 55. Section 171.093, Civil Practice & 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, for an application to the business court, 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 civil action
in the business court .
SECTION 56. Section 171.094(b), Civil Practice & 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, for an application to the business court, in
the form and including the substance required for process and
service on a defendant in an action in the business court .
SECTION 57. Section 171.095(a), Civil Practice & 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, for an application to the business
court, in the same manner as is required for a motion filed in a
pending action in the business court . 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 58. Section 171.096, Civil Practice & Remedies
Code, is amended by amending Subsection (a), (b), and (c) 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 case of a filing in the business
court, with the clerk of the business court, designating a county in
which an adverse party resides or has a place of business that is
within an operating division of 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 case of a
filing in the business court, with the clerk of the business court,
designating any county that is within an operating division of 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, in the case of a filing in the business court,
with the clerk of the business court, designating therein the
county named in the agreement to arbitrate that is within an
operating division 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, in the case of a
filing in the business court, with the clerk of the business court,
designating the county in which the hearing was held that is within
an operating division of the business court .
SECTION 59. Subsection 171.097, Civil Practice & Remedies
Code, is amended by amending Subsections (a) and (b) 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
located in a county , or if the initial application was filed in the
business court, a judge sitting in an operating division of the
business court, other than as described by Section 171.096 shall
transfer the application to a court of a county , or an operating
division of the business court containing such 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 of a county other than the county
in which an action is filed , or, in the case of a proceeding in the
business court, by an order comparable to an order sustaining a plea
of privilege to be sued in a civil action in a division of the
business court other than the division in which an action is filed .
SECTION 60. Section 171.098(b), Civil Practice & Remedies
Code, is amended to read as follows:
(b) The appeal shall be taken in the manner and to the same
extent as an appeal from an order or judgment in a civil action ,
except that the appeal from an order or judgment of the business
court shall be taken to the Fifteenth Court of Appeals .
SECTION 61. Section 172.001, Civil Practice & Remedies
Code, is amended by adding Subsection (e) to read as follows:
(e) References to the business court in this chapter
presume, and the authority of the business court to take actions as
provided in this chapter requires, that a claim included in the
controversy arbitrated is within the jurisdiction of the business
court described in Subsections 25A.004(b), (c), or (d), Government
Code.
SECTION 62. Section 172.054, Civil Practice & Remedies
Code, is amended by amending Subsections (a), (b), and (d) to read
as follows:
(a) On request of a party, the district court of the county
in which the place of arbitration is located , or the business court
if the county in which the place of arbitration is located is within
an operating division of the business court, 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 of the county
in which the place of arbitration is located , or the business court
if the county in which the place of arbitration is located is within
an operating division of the business court, 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 63. Section 172.055, Civil Practice & 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 64. Subsection 172.060(a), Civil Practice &
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 of the county in which
the place of arbitration is located , or the business court if the
county in which the place of arbitration is located is within an
operating division of the business court, to decide the challenge.
SECTION 65. Subsection 172.061(b), Civil Practice &
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 of the county in which the place of arbitration
is located , or the business court if the county in which the place
of arbitration is located is within an operating division of the
business court, to decide the termination. The decision of the
court is not subject to appeal.
SECTION 66. Subsection 172.082(f), Civil Practice &
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 of the county in which the place of arbitration is located , or
the business court if the county in which the place of arbitration
is located is within an operating division of the business court, to
decide the matter. The decision of the court is not subject to
appeal.
SECTION 67. 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 in taking evidence from a district court, or
the business court, if the county in which the place of arbitration
is located is within an operating division of 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 68. Subsections 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 if the place of arbitration is
located in a county within an active business court division, 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 69. Subsection 172.175(a), Civil Practice &
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 from the
business court if the county in which the place of arbitration is
located is within an operating division of the business court,
before or during an arbitration.
SECTION 70. (a) Except as provided by Subsection (b), 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.
(b) Sections 8 and 14(3) of this Act take effect pursuant to
Subsection (a) only if the voters, in an election held on November
4, 2025, approve a constitutional amendment providing that judges
appointed to the business court may serve terms of office as
provided in Section 8 of this Act. If the voters do not approve such
a constitutional amendment, then Sections 8 and 14(3) do not take
effect and are null and void.
SECTION 71. With the exception of Section 12 of this Act,
the changes in law made by this Act apply to civil actions commenced
on or after September 1, 2024, including actions pending in the
business court on the effective date of this Act.
SECTION 72. Section 6(b), Chapter 380 (H.B. 19), Acts of the
88th Legislature, Regular Session, 2023, is amended to read as
follows:
(b) On or [ before September 1, 2026, but not before July 1,
2026 ] after January 1, 2026 , the governor shall appoint one
judge[ s ] to each of the Second, Fifth, Sixth, Seventh, Ninth, and
Tenth Business Court Divisions , and on or after September 1, 2026,
the governor shall appoint one additional judge to each of the First
and Eleventh Business Court Divisions , as required by Section
25A.009, Government Code [ , as added by this Act ].
Monitoring 
