Senate passes bill to create specialty business court

The Iowa Senate on May 2, 2026 passed Senate File 639, a bill to create and codify a specialty business court to hear corporate disputes with original jurisdiction for cases exceeding $200,000. The Senate adopted a House amendment clarifying initial appointments before voting to pass the bill.

Senator Bussello, who opened debate for the sponsor, said the bill formalizes a business court that has operated by rule for more than a decade, and that codifying it will provide a “reliable, predictable venue” for resolving commercial disputes and help attract companies seeking alternatives to Delaware incorporation. "It will be staffed by two full-time district court judges who are dedicated experts in business matters," Bussello said.

Under the bill as discussed on the floor, the court would be a practical statewide resource: the two judges would travel to the county where a dispute originates to hear cases, and when the business docket is light they could assist with other district court matters. The Senate agreed to concur in the House amendment (House Amendment 5255), and then moved SF 639 as amended to final reading.

The Senate recorded a roll-call result of 38 ayes and 8 nays; the presiding officer declared the bill passed by a constitutional majority and ordered the bill messaged to the House.

The measure was presented as part of a broader effort to modernize the state’s corporate and judicial framework; proponents said it would reduce lengthy litigation timelines and provide specialized judges for complex corporate disputes. The Senate’s action completes its consideration on this file; the next step is transmittal to the House.