Houston Daily

Governor Greg Abbott has signed three significant pieces of business legislation into law, including Senate Bill 29, which establishes the business judgment rule in Texas. This move is aimed at enhancing Texas' capital market environment and maintaining its status as a leading state for business. The signing took place during a ceremony at the Texas Capitol.

"Texas is the reigning and undisputed champion for doing business in the United States of America," Governor Abbott stated. He emphasized that continuous innovation and improvement are necessary to maintain this status. "Senate Bill 29 provides business decision makers the certainty that sound business judgments made in the best interest of shareholders will not be second-guessed by courts."

Lieutenant Governor Dan Patrick highlighted the strength of Texas' economy due to conservative, pro-growth policies. "Senate Bill 29, which the Senate and I prioritized, continues the Texas Miracle by attracting new companies to our state," he said.

Speaker Dustin Burrows expressed confidence that these measures would reinforce Texas as America's premier business destination. "This session, the Texas Legislature worked to bolster our state’s business-friendly reputation by providing certainty for businesses and investors," Burrows noted.

James Lee from TXSE Group Inc. praised the leadership's dedication to making Texas a top choice for corporate registrations and relocations. Glenn Hamer from the Texas Association of Business celebrated these legislative achievements as securing Texas' position as a leader in job creation.

Senate Bill 29 codifies the business judgment rule and reforms derivative claims processes while creating a mechanism to pre-assess corporate director independence. Senate Bill 1058 introduces a franchise tax exemption for stock exchanges operating in Texas under certain conditions. House Joint Resolution 4 enacts a constitutional ban on stock exchange transaction taxes and occupations taxes.