Bill: HB 1581, 83(R) - 2013

Bill Caption

Relating to an entity's designation of an agent for service of process, notice, or demand in an assumed business or professional name certificate.

Fiscal Notes

No significant fiscal implication to the State is anticipated. There could be some costs related to counties related to the filing requirements; however, the amounts would vary depending on current procedures and the number of assumed name certificates that are filed by sole proprietorships and other unincorporated businesses and professions.

Bill Analysis

Summary: HB 1581 would require a business to certify with the county clerk in every county where the proper name is registered, the assumed name that it uses.

Analysis: HB 1581 would add to the information a business is required to file with the county clerk in counties where their proper name is registered. While this is a slight increase in regulation, it is intended to close a loophole in the law that allows a business to register under one name and operate under another so that it is more difficult to initiate legal proceedings against that business. Businesses should not be able to use a loophole to skirt the law or obfuscate their identity in order to avoid responsibility for their actions. Allowing the loophole to remain open creates a competitive disadvantage for businesses that follow the intent of the law. We support HB 1581.

Source URL (retrieved on 04/18/2024 10:04 PM): http://reports.texasaction.com/bill/83r/hb1581?print_view=true