Bill
AJR 8
Establish a specialized Nevada Business Court with three or more judges to handle exclusive original jurisdiction over major commercial disputes, funded by the Legislature.
Status
- Enrolled and delivered to the Secretary of State (File No. 24).
- AJR 8 proposes a constitutional amendment and, consistent with Nevada practice for constitutional change, must be approved in identical form by the Legislature in the next regular session (2027) before being submitted to voters for final ratification.
Purpose / Intent
- To authorize the Nevada Legislature, subject to available funding, to create a specialized statewide Business Court with appointed judges experienced in complex commercial law. Proponents intend the court to improve expertise and efficiency in commercial litigation and to enhance Nevada’s competitiveness for corporate formations and related state revenue.
Key provisions
- New Article 6, Section 3B (summary of main elements):
- Authorization: The Legislature may — to the extent money is available — enact laws to establish a Business Court consisting of three judges (or more as the Legislature provides).
- Jurisdiction: If established, the Business Court would have exclusive original jurisdiction over disputes involving:
- shareholder rights;
- mergers & acquisitions;
- fiduciary duties;
- receiverships involving business entities;
- other commercial or contractual disputes between business entities and similar business disputes where equitable or declaratory relief is sought.
- Case management: The chief judge may, in reasonable discretion upon petition, transfer a matter to an appropriate district court if better suited there.
- Selection and appointment of judges:
- A Special Nominating Commission (composition prescribed by the amendment and Legislature) selects three nominees per seat.
- The Governor appoints judges from those nominees.
- The Chief Justice of the Nevada Supreme Court appoints the Business Court’s chief judge.
- Special Nominating Commission composition (minimum): Speaker of the Assembly; Senate Majority Leader; Chief Justice; chief judges of the two most populous judicial districts; a district judge from another judicial district; plus any additional members the Legislature prescribes. Members may designate replacements.
- Powers/terms:
- Business Court judges have the same powers, duties, limitations as district judges for matters within the court’s jurisdiction.
- Terms: 6 years (except initial appointees). Judges seeking to remain must declare candidacy and face a retention/continuation question at the next general election; a 55% affirmative vote is required to continue; otherwise the seat is filled by appointment from Commission nominees.
- Appellate review: The Nevada Supreme Court has exclusive appellate jurisdiction over Business Court decisions.
- Flexibility: The Legislature may increase or decrease the number of judges/divisions as caseload and funding permit.
Procedural / Fiscal notes
- Official fiscal note entries in committee materials: Effect on State: No. Effect on Local Government: No. (The amendment is enabling; actual fiscal impact depends on future legislative implementation and appropriations.)
- Implementation timing: Even if voters later approve the amendment, the Business Court would only be created by subsequent enabling legislation and appropriation of funds by the Legislature.
Potential effects and considerations
- Expected benefits: greater judicial expertise and efficiency in complex commercial litigation; potential to make Nevada more attractive for business formations and investor activity (advocates cite Delaware and recent Texas reforms as comparators).
- Trade-offs/concerns: creation of an appointed, specialized court (rather than elected district judges) raises institutional questions about accountability and scope; fiscal and administrative impacts depend on later legislative design (staffing, locations, filing fees, interaction with district courts).
- Narrow jurisdiction: The court is limited to intra-business and commercial disputes; employment, personal injury, consumer, discrimination, and other non-business claims would remain in ordinary district courts.
Next steps
- AJR 8 must be approved again in identical form during the 2027 Legislative Session to be placed before Nevada voters for final approval or rejection. If voters ratify the amendment, the Legislature would later pass enabling laws to set up the court and appropriate funds.
Compiled from official sources — confirm details with the bill’s official record.
Sign in to ask a question.
