HB40

Regular Session

Relating to the business court.

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Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Immediate Action Plan

Operational Changes Required

Strategic Ambiguities & Considerations

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Information 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.

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Quick Reference

Frequently Asked Questions

Common questions about HB40

Q

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).

Q

Who authored HB40?

HB40 was authored by Texas Representative Brooks Landgraf during the Regular Session.

Q

When was HB40 signed into law?

HB40 was signed into law by Governor Greg Abbott on June 20, 2025.

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Which agencies enforce HB40?

HB40 is enforced by Fifteenth Court of Appeals, Office of Court Administration, Texas Business Court and Texas Supreme Court.

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How urgent is compliance with HB40?

The compliance urgency for HB40 is rated as "moderate". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

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What is the cost impact of HB40?

The cost impact of HB40 is estimated as "low". This may vary based on industry and implementation requirements.

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What topics does HB40 address?

HB40 addresses topics including business & commerce, business & commerce--general, courts, courts--administration and courts--appellate.

Legislative data provided by LegiScanLast updated: November 25, 2025

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