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Relating to the use of an entity name that falsely implies governmental affiliation.
No significant fiscal implication to the State is anticipated.
HB 1493 would prohibit private entities in the state from using a name that falsely implies a governmental affiliation. If the Secretary of State determines a filing entity is in violation of this rule, the entity would be required to cease doing business under their name and file an instrument to change their name. If enacted, governmental units would be entitled to enjoin a private entity’s use of a name that falsely implies governmental affiliation. If the court in an action finds that the private entity willfully intended to imply false governmental affiliation, it would be permitted to award reasonable attorney’s fees to the governmental unit.
Texas Action is neutral on HB 1493 as it does not touch directly upon any of our Liberty Principles. While we are hesitant about the broad discretion the Secretary of State may have to make these determinations, the proposed legal relief is limited to injunctions or attorney's fees if the private entity willfully has a misleading name.
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