Houston Daily

Charles Schwertner, a state senator from Texas's 5th District, said that Senate Bill 29 provides companies with greater legal certainty, aiding in job attraction and investment while reinforcing Texas’s pro-business reputation.

"Governor Abbott has signed SB 29 into law, a bill I was proud to co-author that will help attract companies and jobs to our state by codifying the business judgment rule to provide a more predictable legal framework for businesses," said Schwertner, State Senator of Texas Senate District 05. "Texas is not just maintaining its status as the best state for business - we're setting the standard and keeping the Texas economic miracle alive."

Governor Greg Abbott announced the signing of three significant pro-business bills into law, including SB 29. The bill codifies the business judgment rule in Texas and aims to enhance 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 a prime destination for corporate registrations, relocations, and securities listings. SB 29 also reforms the handling of derivative claims and establishes a process for evaluating corporate director independence. These laws collectively aim to bolster Texas’ economic leadership.

Schwertner's May 16 statement | X.com

The tort reform bill SB 29 is advancing to Governor Abbott’s desk with bipartisan support. It introduces key corporate tort reforms intended to make Texas an attractive location for business relocation and reincorporation, challenging Delaware’s dominance by offering clearer legal standards. The bill codifies the business judgment rule and sets limits on shareholder derivative claims, reinforcing protections for corporate decision-making. Its passage signals that Texas is "open for business" and 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. From 2009-2023, Texas led with 207 "nuclear verdicts" totaling over $45 billion in awards. These lawsuits have resulted in $33.6 billion in annual direct costs and over 450,000 lost jobs statewide. Business leaders and CALA officials are advocating for reforms to limit inflated medical bills and ensure fair noneconomic damage awards.

According to a study from the U.S. Chamber Institute for Legal Reform, Texas ranks among the top five states for nuclear verdicts with significant awards from personal injury cases between 2013-2022 amounting to $16 billion. The study noted how "anchoring" tactics inflated jury awards significantly. One notable case involved a $39 million verdict overturned by the Texas Supreme Court due to improper tactics.

Senator Charles Schwertner has been representing Senate District 5 since 2013 as a conservative Republican and sixth-generation Texan. He chairs the Senate Committee on Business and Commerce along with the Sunset Advisory Commission, playing an influential role in shaping policy on utilities, insurance, and finance.