Houston Daily

Lieutenant Governor Dan Patrick of Texas said that Senate Bill 29 will help keep Texas open for business by attracting companies and boosting prosperity. He also mentioned that House Bill 9 provides significant tax relief for small businesses.

"Texas is — and will always be — open for business," said Patrick, Lt Governor. "This bill will help attract companies to our state and bring greater prosperity to Texans. Right before the bill signing on Wednesday, the Texas Senate passed House Bill 9 off the floor, which cuts taxes for small businesses by raising the exemption for business personal property from $2,500 to $125,000."

Governor Greg Abbott announced in a press release that he signed three major pro-business bills into law, including SB 29. This bill codifies the business judgment rule in Texas and enhances the state's appeal as a corporate hub. During a ceremony attended by state leaders and business executives, Abbott emphasized that these new laws will help Texas maintain its status as a leading state for business through innovation and predictability. According to TXSE Group CEO James Lee, the legislation positions Texas as the top destination for corporate registrations, relocations, and securities listings. SB 29 also reforms how derivative claims are handled and establishes a process for evaluating corporate director independence. These laws aim to accelerate Texas’ economic leadership.

Patrick's May 16 statement | X.com

The tort reform bill SB 29 is set to reach Governor Abbott’s desk with bipartisan support. The bill introduces key corporate tort reforms aimed at making Texas a prime location for business relocation and reincorporation, challenging Delaware’s dominance by offering clearer legal standards. It codifies the business judgment rule and sets limits on shareholder derivative claims, reinforcing protections for corporate decision-making. The bill is expected to boost job creation and economic development, signaling that Texas is committed to innovation and growth.

A study by The Perryman Group, commissioned by Citizens Against Lawsuit Abuse (CALA), found Texans pay an average of $1,725 annually in higher prices due to excessive lawsuits—above the national average of $1,666. This "lawsuit tax" increases costs for goods, insurance, and services, affecting consumers and businesses alike. From 2009-2023, Texas led the nation with 207 "nuclear verdicts" totaling more than $45 billion. These lawsuits have resulted in $33.6 billion in annual direct costs and over 450,000 lost jobs across the state. Business leaders and CALA officials are advocating for reforms to limit inflated medical bills, enhance billing transparency, and ensure fair noneconomic damage awards.

According to a report from the American Tort Reform Association (ATRA), Texas is a major hub for legal services advertising. Dallas and Houston both rank among the top ten U.S. media markets for spending on these ads in 2024. Dallas saw approximately $69.8 million spent on 622,212 ads while Houston accounted for over $56.6 million on more than 411,000 ads. These figures reflect a broader national surge in trial lawyer advertising which reached $2.5 billion across the U.S.—more than double what pizza restaurants spent.

Dan Patrick has served as Texas’s lieutenant governor since 2014, championing conservative policies on tax reform, border security, education, and energy. He led efforts to deliver the largest property tax cut in state history—$18 billion—and is known for his strong support of law enforcement, school choice, and the oil and gas industry.