What happened: Texas has a chance to complete the triple crown of its pro-business legal environment. That’s why the Texas Legislature is advancing SB 29 by Sen. Bryan Hughes – legislation that will “ensure Texas businesses are protected from frivolous attacks by profit-seeking activists” and that will “guarantee company leaders can make decisions based on the best interests of the company’s stakeholders rather than outsiders.”

Tell me more: SB 29 codifies a long-standing concept in corporate common law called the “business judgment rule,” ensuring corporate directors cannot be sued for decisions made in good faith, even if the outcome is unfavorable. It also establishes stricter requirements for shareholder lawsuits, preventing opportunistic legal attacks that could disrupt businesses.

• The bill has passed out of the Senate State Affairs Committee and is headed to the Senate floor.

Why it matters: A stable and predictable legal framework attracts businesses, fuels economic and job growth and enhances Texas as a state of opportunity.

• By codifying corporate protections against needless and disruptive litigation, SB 29 would ensure that companies can focus on innovation and expansion rather than legal battles – helping establish Texas the leading state for incorporations.

TLR Thoughts: TLR has long advocated for policies that protect businesses from abusive litigation while ensuring fairness in the legal system. TLR-backed SB 29 – and its House companion HB 15 by Rep. Morgan Meyer – are a crucial step in strengthening Texas’ pro-business legal environment, giving companies the certainty they need to grow and create jobs.

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