Less than a year after the Texas Business Court officially began accepting cases on September 1, 2024, the Texas legislature, through House Bill No. 40 (“HB 40”) made the first changes to the Business Court’s jurisdiction since its creation. Governor Abbott signed HB 40 into law on June 20, 2025, and the changes went into effect on September 1, 2025.[1]

HB 40 makes important changes to the Business Court’s jurisdiction, including, among other things:

• Updating the definition of a “Qualified Transaction” in Section 25A.001(14) of the Government Code to include a “series of related transactions;”[2]
• A reduction of the amount of consideration required for a transaction to be considered a “Qualified Transaction” from $10 million to $5 million, in aggregate;[3]
• Adding concurrent jurisdiction over certain intellectual property ownership, use, licensing, lease, installation, and performance disputes, including those involving certain trade secrets;[4]
• Adding concurrent jurisdiction over actions to enforce certain arbitration agreements;[5] and
• Providing that the amount in controversy for jurisdictional purposes under Subsections (b) or (d) of Section 25A.004 of the Government Code is the total amount of all joined parties’ claims.[6]

HB 40 establishes a mechanism for transferring cases pending before the Business Court’s official launch date of September 1, 2024 to that court.[7]  However, such transfers are permitted only upon the agreed motion of a party and with the Business Court’s approval.[8]

This legislative change appears to be a direct response to judicial interpretations, including a decision by the Fifteenth Court of Appeals, which held that the Business Court lacked jurisdiction over cases filed in other courts prior to its operational start date. By explicitly granting jurisdiction over certain pre-September 1 cases, the Legislature aims to clarify and expand the Business Court’s authority, addressing procedural gaps identified during its initial months of operation. [9]

As of September 1, 2025, HB 40 has made it significantly easier for parties to satisfy the jurisdictional requirements of the Business Court. Previously, cases involving “Qualified Transactions” needed to meet a burdensome $10 million consideration threshold. Under the new provisions, parties will only need to demonstrate an aggregate consideration of $5 million. [10]

Additionally, HB 40’s recognition of jurisdiction over a series of related transactions is expected to broaden access to the Business Court, enabling more complex commercial disputes to qualify under the revised framework.

HB 40’s reforms align with the core mission of the Texas Business Court—to offer a specialized forum that streamlines the resolution of complex commercial disputes. By utilizing judges with deep experience in business law, the Business Court aims to deliver greater efficiency, consistency, and predictability in outcomes, enhancing confidence in the judicial process for commercial litigants.[11]

The Legislature did not modify the Business Court’s supplemental jurisdiction provisions, which continue to require mutual consent of the litigants and the Business Court itself before supplemental claims can be litigated in that forum. Although an earlier version of HB 40 proposed eliminating the consent requirement, that version ultimately did not pass and was not signed into law by Governor Abbott.

As a result, claims related to a case or controversy pending in the Business Court may still be adjudicated separately—but concurrently—by another Texas court, potentially leading to parallel proceedings.[12]

Stay tuned for more updates from Shields Legal Group as the Texas Business Court continues to evolve.

Related Articles

• Removal of Pre-Existing Suits to the Texas Business Court is a Non-Starter
• Arbitration and the New Texas Business Court: Expanding Dispute Resolution Options in Texas
• Texas Business Court’s Supplemental Jurisdiction Rules Invite Risks of Satellite Litigation:  Contract Drafting Issues and Recommendations
• Texas Business Court Shaping Up With Judicial Appointments
• Texas Governor Greg Abbott Signs Bill Creating New Texas Business Court To Open September 2024

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[1] https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB40

[2] Act of June 2, 2005, 89th Leg., R.S., H.B. 40, § 43 (to be codified as an amendment to Tex. Gov’t Code, § 25A.001(14)).

[3] Act of June 2, 2005, 89th Leg., R.S., H.B. 40, § 43 (to be codified as an amendment to Tex. Gov’t Code, § 25A.001(14)(A)).

[4] Act of June 2, 2005, 89th Leg., R.S., H.B. 40, § 45 (to be codified as an amendment to Tex. Gov’t Code, § 25A.004(d)(4)).

[5] Act of June 2, 2005, 89th Leg., R.S., H.B. 40, § 45 (to be codified as an amendment to Tex. Gov’t Code, § 25A.004(d-1)).

[6] Act of June 2, 2005, 89th Leg., R.S., H.B. 40, § 45 (to be codified as an amendment to Tex. Gov’t Code, § 25A.004(i).

[7] Act of June 2, 2005, 89th Leg., R.S., H.B. 40, § 56 (to be codified as an amendment to Tex. Gov’t Code, § 25A.021).

[8] Id.

[9] See Clark, Bayley S., Removal of Pre-Existing Suits to the Texas Business Court is a Non-Starter, available at: https://shieldslegal.com/texas-business-court-case-removal/; see also In re ETC Field Services, LLC, 707 S.W.3d 924, 928 (Tex. App.—15th Dist. 2025, orig. proceeding) (“Because removal to the business court does not apply to cases commenced elsewhere before September 1, 2024, we hold that business court did not abuse its discretion in remanding this civil action to the district court from which it came.”); Bestway Oilfield, Inc. v. Cox, No. 24-BC11A-0016, 2025 WL 251338, at *5 (Tex. Bus. Ct. Jan. 17, 2025) (holding that parties to actions commenced before September 1, 2024, were unable to waive application of the applicable law barring the Business Court from exercising jurisdiction over cases commenced before September 1, 2024).

[10] See Act of June 2, 2005, 89th Leg., R.S., H.B. 40, § 43 (to be codified as an amendment to Tex. Gov’t Code, § 25A.001(14)(A)).

[11] See Hoke, Katherine D., Texas Business Court Shaping Up with Judicial Appointments, available at: https://shieldslegal.com/texas-business-court-appointments/

[12] See Shields Legal Group, Texas Business Court’s Supplemental Jurisdiction Rule Invite Risk of Satellite Litigation: Contract Drafting Issues and Recommendations, available at: https://shieldslegal.com/texas-business-court-jurisdiction/