Texas Is the Low-Cost, High-Reward Darling of Big Tech (The Wall Street Journal)
What happened: Apple is the latest technology giant to announce its move to the Lone Star State, where it will launch a new 250,000 square-foot factory in Houston to make servers for an artificial-intelligence system. Read more
Remind me: Tech investments are transforming the Texas economy, often via companies from California in search of lower taxes and fewer regulations on land use and labor.
- Major corporations like Tesla, Meta and Hewlett Packard have already moved operations to Texas, citing lower costs and a growing talent pool.
- To further attract businesses, Texas launched on Sept. 1, 2024 a specialized business court to streamline complex business cases and to reduce backlogs in state district courts.
In his own words: “In the end, it’s all about the cost of doing business, and the cost of doing business is just lower in Texas.” —John Diamond, an economist at Rice University
TLR Thoughts: The creation of the Texas business court is one of the most transformative steps the state has ever taken to strengthen Texas’s economic competitiveness. This session, TLR is working with the Texas Legislature to further enhance the business court and the state’s corporate governance laws—so that Texas can further cement its status as the best place in the nation to live and to work.
Report: Lawsuits cost Texans $38 billion a year (The Center Square)
What happened: A recent report by the U.S. Chamber of Commerce found that tort lawsuit costs burdened Texas households with $38 billion in 2022, driving up insurance premiums, business expenses and the overall cost of living. Read more
Tell me more: Texas represents “one of the leading states in year-over-year growth in tort costs.” From 2016-2022, tort costs increased at a rate of 9.7%.
- Rising litigation expenses in the state have forced businesses to raise prices, cut jobs or close, while also making insurance less accessible for individuals and employers.
- According to the U.S. Chamber of Commerce study, “the high tort costs in Texas can be attributed to several factors that influence the state’s legal environment, which is known for significant nuclear verdicts—large jury awards exceeding $10 million. These large awards not only increase the cost of individual cases but also contribute to higher insurance premiums and legal fees, which are ultimately passed on to consumers and businesses.”
In his own words: “Small businesses are burdened with soaring insurance premiums that jeopardize their survival, while the constant wave of lawsuits drives up the costs of essential items like food and medical care.” —Imad Sarkis, vice president of Exxpress Mart convenience stores and member of the Lone Star Economic Alliance (LSEA)
TLR Thoughts: One of TLR’s major priorities during the 2025 Texas Legislative Session is reining in the nuclear verdicts that are hurting small businesses and discouraging large corporations from allocating capital to Texas. To address this issue, TLR, alongside the Texas Trucking Association and the Texas Food and Fuel Association, created LSEA—a statewide business coalition comprised of more than 1,000 Texas individual citizens, companies and business associations working together to urge legislative reforms that will restore fairness and transparency to Texas’s legal system.
Two Texas Legislators File Groundbreaking Bill to Transform Texas Corporate Law (PR Newswire)
What happened: On Feb. 27, Texas state Sen. Bryan Hughes (R-Mineola) and state Rep. Morgan Meyer (R-University Park) filed companion landmark bills promising to reshape the American business landscape. Senate Bill (SB) 29/House Bill (HB) 15 aim to make Texas the preferred jurisdiction for legal domestication by proposing “a series of amendments to the Texas Business Organizations Code that would increase the certainty for how corporate decision-making is reviewed by the courts.” Read more
Tell me more: With growing concerns over Delaware’s legal system becoming less reliable due to activist influence, SB 29/HB 15 seek to reinforce Texas as a hub for business excellence, innovation and growth.
Worth noting: The bills have garnered strong support from business leaders across Texas, including TLR, the Texas Stock Exchange (TXSE) and the Alliance for Corporate Excellence.
- TLR Chairman Dick Weekley said of SB 29/HB 15: “This critical legislation will further solidify Texas as the nation’s leader in business and economic development—and will draw even more companies to Texas, empowering them to create jobs and continue the Texas Miracle. TLR applauds Senator Hughes and Chairman Meyer for their strong leadership and for their commitment to business excellence in the state.”
TLR Thoughts: SB 29/HB 15 will help ensure that Texas remains the premier state for corporate operations, fostering an environment of innovation, job creation and economic growth for years to come—and positioning Texas as a major challenger to the decadeslong dominance of Delaware’s business courts.
