Vote Recommendation | Economic Freedom | Property Rights | Personal Responsibility | Limited Government | Individual Liberty |
---|---|---|---|---|---|
Yes | Neutral | Positive | Neutral | Neutral | Neutral |
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.