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Governor Abbott Signs Trio of Pro-Business Laws in Austin

Texas Capitol Celebrates New Business Laws

News Summary

Governor Greg Abbott has signed three significant bills into law in Texas, enhancing the state’s business-friendly environment. Key legislation includes Senate Bill 29, which strengthens protections for business decisions by codifying the business judgment rule. Other bills aim to create tax exemptions for stock exchanges and ban transaction taxes, further positioning Texas as a prime destination for corporate investment. With a focus on empowering businesses and fostering economic growth, Texas is set to attract new ventures and solidify its status as a business powerhouse.

AUSTIN, TEXAS – Governor Greg Abbott has signed into law three significant pro-business bills aimed at reinforcing Texas’s appeal as a top destination for business and investment. The laws were enacted during the 89th Regular Legislative Session and are designed to enhance the state’s capital market environment.

One of the most notable laws, Senate Bill 29, establishes the business judgment rule in Texas law, ensuring that sound business decisions made in the best interest of shareholders are not subject to second-guessing by courts. This legislation aims to clarify that business decisions should be made by elected officers and shareholders, rather than unelected judges. By doing so, it supports a broader framework for corporate governance designed to encourage sound decision-making and protect businesses from excessive legal scrutiny.

Alongside Senate Bill 29, Governor Abbott also signed Senate Bill 1058, which creates a franchise tax exemption for stock exchanges operating in Texas, helping reduce certain tax burdens associated with their operations. This initiative is expected to attract financial institutions to the state. Additionally, House Joint Resolution 4, a constitutional measure, bans stock exchange transaction taxes and occupations taxes, further establishing a supportive economic climate for business development.

The signing ceremony at the Texas Capitol was attended by key political figures, including Lieutenant Governor Dan Patrick and Speaker Dustin Burrows, who have supported these legislative initiatives throughout the session. The Governor noted Texas’s status as “the reigning and undisputed champion for doing business in the United States of America,” highlighting the state’s ongoing commitment to fostering a pro-business environment.

Lieutenant Governor Patrick commended Texas’s conservative, pro-growth policies, stating that they have created a low-regulation environment that is attractive for businesses. Speaker Burrows reinforced this sentiment, emphasizing the Texas Legislature’s continuing efforts to enhance the state’s business-friendly reputation and encourage further investment.

Texas’s reputation as a premier destination for corporate registrations and relocations has also been acknowledged by industry experts. James Lee, founder of TXSE Group Inc., stated that the state has become the top choice for businesses seeking to establish themselves or relocate. Moreover, Glenn Hamer, President and CEO of the Texas Association of Business, referred to the signing of these bills as a “trifecta” that solidifies Texas’s position, noting that Texas now surpasses New York in terms of finance jobs.

The newly enacted laws are anticipated to solidify Texas’s status as a leading hub for businesses and corporate governance. By creating a more favorable environment for capital market operations and minimizing regulatory burdens, the legislation seeks to attract new companies to the state, further driving economic growth.

As Texas moves forward with these pro-business reforms, the state continues to showcase its commitment to maintaining its competitive edge in attracting corporate investments and enhancing its economic climate. These legislative measures are expected to contribute significantly to the ongoing growth of the Texas economy, benefiting both businesses and residents alike.