Governor Greg Abbott has signed three significant pro-growth business laws into effect in Texas, including Senate Bill 29, which establishes the business judgment rule. This development took place during a ceremony at the Texas Capitol as part of the 89th Regular Legislative Session. The newly enacted legislation aims to enhance Texas’ capital market environment and reinforce its reputation as a leading state for business.
Governor Abbott expressed, “Texas is the reigning and undisputed champion for doing business in the United States of America,” emphasizing that maintaining this status requires ongoing innovation and improvement. He added that Senate Bill 29 ensures business decisions are made by elected officers and shareholders rather than unelected judges, thus providing decision-makers with certainty.
Lieutenant Governor Dan Patrick praised the legislation for continuing what he described as “the Texas Miracle” by attracting new businesses to the state. He stated, “Senate Bill 29 and the other bills Governor Abbott signed into law today solidify Texas’ dominant position in the global economy.”
Speaker Dustin Burrows highlighted Texas’ reputation for innovation and economic opportunity, stating that these measures strengthen its position as a premier business destination. He acknowledged the efforts of Governor Abbott, Lieutenant Governor Patrick, and legislative colleagues in securing a promising financial future for Texans.
James Lee of TXSE Group Inc. expressed confidence that Texas will become “the No. 1 choice for corporate registrations and relocations.” Glenn Hamer from the Texas Association of Business noted that these laws would maintain Texas as an ideal state for jobs and investment.
Senate Bill 29 codifies reforms related to derivative claims processes and introduces a mechanism to assess corporate director independence. Senate Bill 1058 provides a franchise tax exemption for stock exchanges operating within certain tax liabilities in Texas. House Joint Resolution 4 enacts a constitutional ban on stock exchange transaction taxes and occupation taxes.
