What does Texas HB40 do?
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. Implementation Timeline Effective Date: September 1, 2025 (Administrative establishment of new court divisions).