News Summary

Texas has passed Senate Bill No. 29, positioning itself as a competitive alternative to Delaware for corporate relocations. The bipartisan support for this bill reflects the state’s commitment to enhancing its business environment. Key reforms included in SB 29 aim to streamline corporate governance and reduce litigation risks, which could attract organizations looking to relocate. With new measures to simplify legal processes and improve corporate practices, Texas is eager to welcome businesses and bolster job creation, marking a significant shift in its economic landscape.

Texas Passes Senate Bill 29, Reinforcing Corporate Reforms to Attract Business Relocation

On May 7, 2025, Texas lawmakers unanimously passed Senate Bill No. 29 (SB 29), a landmark legislation aimed at enhancing the state’s appeal as a prime destination for corporate relocations and reincorporations. The bill received overwhelming bipartisan support in both chambers, signifying a united front in bolstering the state’s economic environment. SB 29 now stands ready for the signature of Governor Greg Abbott to be signed into law.

The core objective of SB 29 is to position Texas as a competitive alternative to Delaware, which has long been the favored state for businesses to incorporate due to its established corporate laws. This new legislation introduces a suite of corporate reforms expected to enhance business excellence, stimulate innovation, and foster job creation within the state.

Key Features of Senate Bill 29

Among the key provisions within SB 29 is the codification of the business judgment rule, which safeguards corporate directors from personal liability when they act in good faith and in the best interest of their corporation. This pivotal change aims to encourage more informed decision-making without the fear of legal repercussions.

The bill also allows Texas corporations to set a minimum ownership threshold that shareholders must meet to pursue derivative claims, effectively limiting frivolous lawsuits and improving corporate governance. Additionally, SB 29 empowers corporations to designate exclusive venues for internal entity claims and waives the right to jury trials in specific instances, streamlining legal processes and reducing potential litigation risks.

Another significant reform includes restrictions on requests for corporate books and records, clarifying that emails and texts do not qualify as corporate records unless directly related to corporate actions. This clarification seeks to eliminate ambiguity in legal proceedings. Furthermore, the legislation permits corporations to waive class-by-class voting in certain contexts, allowing all classes of stock to vote as a single class, thereby simplifying decision-making processes.

Supporting Economic Development Goals

The overarching goal of SB 29 is to nurture a stable and predictable legal environment that motivates businesses to consider relocating to Texas. Business advocacy groups, such as Texans for Lawsuit Reform (TLR), have praised the bill for its potential to fortify Texas’s standing in business and economic development initiatives. In tandem with SB 29, Texas has also seen the establishment of specialized Business Courts, further reflecting the state’s commitment to creating a business-friendly legal framework.

The provisions outlined in SB 29 apply to Texas corporations that are listed on a national securities exchange but can also be voluntarily adopted by other companies. This flexibility provides a pathway for myriad businesses to take advantage of the enhanced protections and legal clarifications to bolster their operations in Texas.

A New Capital Access Opportunity

In conjunction with the significant corporate reforms introduced by SB 29, Texas is also developing the Texas Stock Exchange (TXSE). This new exchange aims to serve as a crucial venue for both U.S. and global companies looking to access U.S. capital markets, offering a stable trading platform for listed companies. This initiative further underscores Texas’s ambitions to solidify its status as a leading destination for business operations.

As the state moves forward, the passage of Senate Bill 29 marks a critical step in transforming Texas’s corporate landscape. By establishing a more favorable business environment and reducing potential litigation burdens, Texas aims not just to retain its existing businesses but to attract new companies seeking a robust and efficient legal foundation.

Deeper Dive: News & Info About This Topic

• Foley: Passage of Senate Bill 29 Positions Texas as Leading State for Incorporations
• PR Newswire: Texans for Lawsuit Reform Lauds Passage of Major Legislation
• National Law Review: Texas Legislature Proposes Amendments to Business Organizations Code
• Statesman: Texas Tort Reform Bill Generates Controversy
• Wikipedia: Texas

Author: STAFF HERE COLLEGE WRITER

The COLLEGE STATION STAFF WRITER represents the experienced team at HERECollegeStation.com, your go-to source for actionable local news and information in College Station, Brazos County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Brazos Valley Fair & Rodeo, Chilifest, and Aggie Muster. Our coverage extends to key organizations like the Bryan-College Station Chamber of Commerce and United Way of the Brazos Valley, plus leading businesses in education, biotechnology, and retail that power the local economy such as Texas A&M University, Fujifilm Diosynth Biotechnologies, and H-E-B. As part of the broader HERE network, including HEREAustinTX.com, HEREDallas.com, HEREHouston.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.