Introduction

In the vast Texas expanse – where the legal landscape is as diverse and dynamic as its geography – 2024 promises to bring about a constellation of legal trends and developments that will significantly impact companies and individuals alike when doing business in Texas. At the time of writing, Texas leads the United States with 55 Fortune 500 companies headquartered in the state. Texas is home to four of the United States’ largest cities, with Austin, Dallas, Houston, and San Antonio on the list of the top ten most populous cities.

Texas aims to continue its stronghold as a pro-business state. From establishing specialised business courts to combating the border crises and contentious COVID-19 debates, the Lone Star State is grappling with multifaceted legal challenges. This article will explore four critical legal topics that will shape the immediate future of the Texas legal landscape.

• New Business Courts on the horizon.
• Taking the border crises by the horns.
• Freedom to choose vaccines.
• Cleaning up oil fields.
• Federal courts in Texas are the preferred venue for many.

Introducing Business Courts

Business disputes often involve legal nuances that require a deeper understanding of commercial matters. But Texas courts often hear these and myriad other disputes ranging from personal injury to criminal matters. Texas is undergoing a groundbreaking transformation in its court system to address business complexities and ensure consistency in the interpretation of commercial law. With the passage of House Bill 19 (H.B. 19), the state is creating specialised business courts, paving the way for a more streamlined resolution of business disputes. These new trial and appellate courts, with judges appointed by the Governor and Senate consent, are set to take effect from 1 September 2023. However, their application will commence on cases filed after 1 September 2024. This development will reshape the Texas legal landscape and enhance the predictability and stability of business law.

The process of establishing the Texas Business Courts was neither short nor straightforward. Previous attempts to create these courts in past legislative sessions encountered various obstacles. With H.B. 19 now in place, any challenges to the constitutionality of these courts will fall under the purview of the Texas Supreme Court, which has been granted exclusive jurisdiction over constitutional disputes related to the Business Courts.

The establishment of business courts in Texas represents a significant shift in the state’s legal landscape. It aims to create a more focused and specialised approach to resolving commercial disputes, thereby improving the efficiency and effectiveness of the legal system in handling intricate business matters. With these courts, Texas again positions itself at the forefront of commercial law, offering a robust and consistent legal framework within which businesses can operate.

Texas Leads the Border Crisis

The border crisis continues as a pressing concern for Texas, and the state is taking historic steps to address it. Governor Greg Abbott’s Operation Lone Star has seen the deployment of the Texas National Guard and Texas Department of Public Safety to the southern border. This operation is dedicated to curbing illegal crossings, apprehending human smugglers and cartel members, and preventing the continuing influx of drugs and weapons. As the federal government grapples with this challenge, Texas is steadfastly holding the line, striving to protect its borders and maintain security.

In March 2021, Governor Abbott initiated Operation Lone Star, attributing its launch to an upswing in border crossings and fentanyl trafficking following the inauguration of President Biden. He decided to declare a state of emergency across most Texas counties bordering Mexico. Notably, this declaration was renewed for 58 specific counties, reaffirming the gravity of the situation.

Operation Lone Star witnessed the strategic deployment of the Texas National Guard to bolster border security.

The operation increased funding channeled to local law enforcement agencies to enhance the programme’s effectiveness and took measures to fortify physical barriers. In a notable development, Governor Abbott announced the formation of a specialised unit known as the “Texas Tactical Border Force,” further underlining the state’s resolve to address the border situation.

The collaborative dimension of Operation Lone Star extended beyond Texas, as Governor Abbott sought support from Republican leaders in neighbouring states. Oklahoma Governor Kevin Stitt revealed that a coalition of 12 GOP governors had committed to dispatching 1,305 National Guardsmen and 231 law enforcement personnel to augment the operation’s efforts.

To sustain the financial requirements of Operation Lone Star, the Texas state government ventured into the realm of seeking private donations. Official records attest that the operation has resulted in the apprehension of over 390,500 migrants and asylum seekers. More than 30,000 individuals were in custody, with many facing charges related to the state crime of criminal trespass. These developments drew criticism from various quarters, including rights groups, the legislature and other stakeholders. However, Governor Abbott’s office staunchly defended Operation Lone Star, asserting that it serves as a critical response to fill the void to secure the border effectively.

The financial dimension of Operation Lone Star is indeed substantial. Governor Abbott disclosed that the operation’s costs have surpassed USD4.5 billion, underscoring the state’s serious commitment to addressing the border crisis. This financial dedication was further emphasised in a comprehensive report published in March 2022 by The Texas Tribune, ProPublica, and The Marshall Project. The information unveiled that the programme incurred expenses amounting to USD2.5 million every week, highlighting both the financial investment and the considerable impact on the state’s budget. These financial implications and broader operational aspects signify the depth of Texas’ commitment to resolving the border challenge.

COVID-19 and the Private Business Sector

In the ongoing debate over COVID-19 vaccine mandates, Texas is at the epicentre of a significant legal and political showdown. Senate Bill 7, proposed by Senator Mayes Middleton, outlines a strict ban on vaccine mandates imposed by private businesses. The bill lacks exceptions and threatens employers with state fines and other actions if they terminate or penalise employees who refuse to receive the vaccine. Advocates argue that this legislation is fundamentally about preserving individual liberties and medical freedom for all Texans. It raises questions regarding the balance between public health and personal choice. This debate continues evolving against the pandemic’s backdrop.

Senate Bill 7 has already passed the Senate Health and Human Services Committee along party lines, with Republicans in favour and Democrats opposing it. The proposed legislation may soon reach the Senate floor for further debate on exemptions for healthcare facilities.

The debate surrounding vaccine mandates in private businesses is not unique to Texas, but the state’s response is emblematic of its commitment to individual freedoms and the role of the government in public health matters. This legal issue reflects a broader national conversation on personal liberty and public health that continues to evolve and shape the legal landscape.

The Fight Against Oil Field Waste

Amid the ongoing legal discussions in Texas, another pivotal concern revolves around handling hazardous oilfield waste. Draft regulations were unveiled by state regulators in early October 2023, outlining the procedures for managing waste left in the aftermath of well-drilling activities. The significant involvement of industry representatives and consultants in formulating these regulations renders this matter particularly contentious. This collaborative process was set in motion in 2021 and notably included insights and feedback from advocates within the oil and gas business sector.

Adding a layer of intricacy to this issue is the participation of a commissioner who maintains investments in companies specialising in oilfield waste management. Jim Wright, one of the elected commissioners within the regulatory body, actively campaigned with a focus on revising Rule 8, which directly pertains to oilfield waste management. The revelation of his ownership of stocks in hazardous waste management enterprises has given rise to apprehensions and inquiries regarding potential conflicts of interest in his regulatory role.

Throughout the expansive landscape of Texas, communities have been engaged in protracted battles to forestall the influx of oilfield waste dumps into their residential areas. Many residents have regarded this struggle as an arduous endeavour characterised by uphill challenges and persistent activism. An illustrative example of this effort can be found southeast of San Antonio. In this locale, the transportation of waste materials to a commercial pit facility adjacent to a family farm has ignited concerns among residents who are fervently dedicated to safeguarding the well-being of their communities and the natural environment.

Federal Courts in Texas will Remain Active and Busy

Texas federal courts will remain active, ranging from heated political disputes to business issues. Starting with the ultra-conservative 5th Circuit Court of Appeals, which covers Texas, Louisiana, and Mississippi, its opinions comprise 20% of the cases presently before the United States Supreme Court. Many of these cases are politically charged, given litigants often select the 5th Circuit and Texas as a testing ground for nationally relevant issues. With the federal courts packed with Trump-era appointments, we predict that Texas will remain in the national litigation spotlight in 2024 and beyond.

The federal bankruptcy courts continue to serve as the venues of choice but for business, not political, reasons. The data shows that Texas leads the United States with roughly 40% of the business Chapter 11 reorganisation filings through 2023. We expect that to continue because the courts have developed rules that favour expeditious case treatment and fairness to all constituents.

Conclusion

As 2024 unfolds, Texas stands at a crossroads, grappling with a complex web of legal issues, from establishing specialised business courts to managing the border crisis, debating vaccine mandates, confronting the challenges of oilfield waste disposal, and navigating national issues in the courts. These legal trends and developments are not only shaping the state’s legal landscape but also leaving an indelible mark on the lives of its residents. As the legal community and policymakers address these challenges, Texas continues to evolve, adapt, and pave the way for legal precedent and solutions that reflect the unique character of the Lone Star State.