Monitoring the SessionHB 872
Died in committee
Initial review · graded Oct 20, 2026 · Headline, summary and grade are analysis of the bill text, not a finding about any person · How we grade
relating to the burden of proof in certain derivative proceedings.
Caption from analyzed text · version I.
The corporation has to prove it acted in its own best interest.
This bill changes who has to prove what in a shareholder lawsuit brought on behalf of a corporation that claims the company improperly weighed environmental, social, and governance (ESG) criteria. It touches Texas corporations, their directors and officers, and shareholders who bring these derivative suits. In those cases, the corporation must prove its act or omission was in its own best interest, instead of the shareholder having to prove it was not, for suits filed on or after September 1, 2025.
Labels: ZOMBIE BILL. Died 2 times: 88R HB 4794 (Died in committee) and this bill (Died in committee). Checked against 88R only.BACK FROM THE DEAD. Same text as a bill filed before that died: 88R HB 4794 (Died in committee). Filed in 2 sessions, counting this one. Checked against 88R only.TRY NO. 2. Filed in 2 sessions: 88R and 89R. Checked against 88R only.
89R-HB872 · 2024-11-12
relating to the burden of proof in certain derivative proceedings.
The corporation has to prove it acted in its own best interest.
This bill changes who has to prove what in a shareholder lawsuit brought on behalf of a corporation that claims the company improperly weighed environmental, social, and governance (ESG) criteria. It touches Texas corporations, their directors and officers, and shareholders who bring these derivative suits. In those cases, the corporation must prove its act or omission was in its own best interest, instead of the shareholder having to prove it was not, for suits filed on or after September 1, 2025.
[ ] NONE FOUND
No significant fiscal implication to the State is anticipated.
LBB estimate · fiscal note version I · source
Fiscal note · version I · April 19, 2025
No first-year general revenue figure available here.
LBB published estimates · flow over the stated periods.
Source snapshot 2026-10-19, Central time.
THE TEXT
…“the burden of proof is on the corporation to prove the act or omission was in the best interest of the corporation”
Bill text, introduced version (I)
The bill makes shareholder suits over ESG decisions easier to win by putting the burden of proof on the corporation.
THANK YOU FOR CHECKING THE RECEIPT
CAMPAIGN PAID FOR BY
Not tied to this bill.
The author's campaign account only. Own money and internal transfers are separate on the member page.
Derived itemized flow · Nov 1, 2024 to Oct 24, 2026. State data as of Nov 4, 2026.
Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.
$37,500.00
Also funds 124 other sitting lawmakers.
Derived recipient stock · Jul 10, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.
TEC account match.
TeamDerived itemized flow · Nov 22, 2024 to Oct 21, 2026. State data as of Nov 4, 2026.
Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.
Report IDs: 101013450, 101032507, 101072627.
Missing data does not establish zero giving. Display amounts are rounded.
$37,500.00
Also funds 124 other sitting lawmakers.
Derived recipient stock · Jul 10, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.
TEC account match.
TeamDerived itemized flow · Nov 22, 2024 to Oct 21, 2026. State data as of Nov 4, 2026.
Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.
Report IDs: 101013450, 101032507, 101072627.
No floor vote loaded for this bill.
No significant fiscal implication to the State is anticipated.
LBB estimate · fiscal note version I · source
Fiscal note · version I · April 19, 2025
No first-year general revenue figure available here.
LBB published estimates · flow over the stated periods.
Source snapshot 2026-10-19, Central time.
Analysis of text version I by claude-opus-5-5, Oct 20, 2026, against the published rubric.
Filed 2 times: 88R and 89R. Checked against 88R only.
by Rep. Harrison, same lead author · Died in committee · same text
Introduced textLast action, Mar 22, 2023: Referred to Judiciary & Civil Jurisprudence
Relating to the burden of proof in certain derivative proceedings.
Caption, 88R bill history
Texas House · Filed Nov 12, 2024
05/08/2025 H Failed to receive affirmative vote in comm.
Texas Legislature Online · Introduced
Data snapshot Oct 26, 2026 at 4:19 AM CDT. Grades, charges, quotes and corrections follow the published record.
House committee · Judiciary & Civil Jurisprudence · Final status: Died in committee
Business & Commerce--General
The text as introduced · 194 words
89R1267 SRA-D By: Harrison H.B. No. 872 A BILL TO BE ENTITLED AN ACT relating to the burden of proof in certain derivative proceedings. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter L, Chapter 21, Business Organizations Code, is amended by adding Section 21.5525 to read as follows: Sec. 21.5525. BURDEN OF PROOF IN CERTAIN DERIVATIVE PROCEEDINGS. Notwithstanding any other law, in a derivative proceeding by a shareholder that alleges an act or omission related to the improper consideration of environmental, social, and governance criteria in the performance of the act or omission, the burden of proof is on the corporation to prove the act or omission was in the best interest of the corporation. SECTION 2. Section 21.5525, Business Organizations Code, as added by this Act, applies only to an action commenced on or after the effective date of this Act. An action commenced before the effective date of this Act is governed by the law as it existed immediately before the effective date of this Act, and the former law is continued in effect for that purpose. SECTION 3. This Act takes effect September 1, 2025.