Texas Governor Abbott signed House Bill 40, significantly expanding and refining the Texas Business Court just two years after its creation. Key changes include lowering the amount-in-controversy threshold from $10 million to $5 million across all case types, expanding substantive jurisdiction to cover intellectual property, trade secrets, and arbitration enforcement cases, clarifying that only business, commercial, or investment contracts may elect business court jurisdiction by agreement, authorizing transfer of pre-September 2024 cases by agreed motion, and tasking the Texas Supreme Court with establishing a jurisdictional framework and rulemaking procedures. The legislature also eliminated the sunset provision for unfunded court divisions, signaling the business court is a permanent fixture in the Texas legal system.
