Regular Session
Government Affairs & Regulatory Compliance Analysis
HB40 significantly expands the Texas Business Court's authority by lowering the jurisdictional threshold from $10 million to $5 million and explicitly adding intellectual property and software disputes to its docket. Crucially, while the administrative structure takes effect in 2025, the legal standards apply retroactively to civil actions commenced on or after September 1, 2024, requiring an immediate audit of all active litigation and contract venue clauses.
Rep. Brooks Landgraf·House Bill·Regular Session
Fifteenth Court of Appeals • Office of Court Administration • Texas Business Court • Texas Supreme Court
This legislation has regulatory implications for the following Texas businesses and organizations:
Notable regulatory updates (effective 2025-09-01). Consider how these changes may affect your operations.
Affected business types:
Affected business types:
lowMinimal cost impact anticipated.
JD Key Consulting provides government affairs and regulatory strategy services. We help businesses navigate Texas agencies, understand legislative impacts, and advocate for their interests.
JD Key Consulting provides strategic guidance on Texas regulatory compliance and legislative impact for your business.
Key implementation requirements and action items for compliance with this legislation
The law allows for Supplemental Jurisdiction over related claims only if all parties and the judge agree. This creates a risk of bifurcated litigation, where a breach of contract claim proceeds in the Business Court while a related tort claim remains in a regular District Court. Until the Supreme Court clarifies the rules for "related claims," businesses must prepare for the cost and complexity of defending two parallel lawsuits for the same underlying dispute.
JD Key Consulting specializes in Texas regulatory compliance strategy. Work directly with James Dickey—former Chairman of the Republican Party of Texas—to understand this bill's impact on your operations and develop an actionable compliance plan.
Schedule a ConsultationInformation presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.
This bill's path through the Texas Legislature
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Common questions about HB40
HB40 significantly expands the Texas Business Court's authority by lowering the jurisdictional threshold from $10 million to $5 million and explicitly adding intellectual property and software disputes to its docket. Crucially, while the administrative structure takes effect in 2025, the legal standards apply retroactively to civil actions commenced on or after September 1, 2024, requiring an immediate audit of all active litigation and contract venue clauses.
HB40 was authored by Texas Representative Brooks Landgraf during the Regular Session.
HB40 was signed into law by Governor Greg Abbott on June 20, 2025.
HB40 is enforced by Fifteenth Court of Appeals, Office of Court Administration, Texas Business Court and Texas Supreme Court.
The regulatory priority for HB40 is rated as "moderate". Businesses and organizations should review the legislation to understand potential impacts.
The cost impact of HB40 is estimated as "low". This may vary based on industry and implementation requirements.
HB40 addresses topics including business & commerce, business & commerce--general, courts, courts--administration and courts--appellate.
Key dates for HB40: Effective date is 2025-09-01. Rulemaking: Establish procedures for the prompt, efficient, and final determination of business court jurisdiction, including standards of proof and interlocutory appeals. (No specific date listed; required for implementation); Adopt rules governing the transfer of civil actions commenced before September 1, 2024, to the Business Court. (No specifi
HB40 primarily affects Texas businesses and commercial enterprises, insurance companies and financial institutions, property owners and real estate professionals. These businesses should review the legislation with their legal and compliance teams to understand potential impacts.
JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.
