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Relating to the names of certain businesses.
No significant fiscal implication to the State is anticipated.
SB 1313 would amend Section 5.053(b) of the Business Organizations Code. This legislation would require a filing entity or foreign filing entity to provide the Secretary of State (SOS) a notarized letter containing another entity’s consent to register under a particular name that may be the same or may look deceptively similar.
To operate in Texas, some corporations are required to register with the Secretary of State (SOS). Current laws prohibit these entities from using the same or similar business names as other businesses that are already registered with the SOS.
However, if a business receives the consent from another business to use the same or a similar name, then they may use that name. Unfortunately, a business registering to operate in Texas can easily forge a document supposedly claiming to receive consent from another business that has an existing name registered with SOS.
SB 1313 would create an extra layer of protection from these forged documents by requiring a business to submit a notarized letter of consent. This would make sure that the document is legitimate and not forged.
We support SB 1313 because by protecting the name of a business this legislation is protecting the private property of it too.