Bill Text: TX SB275 | 2021-2022 | 87th Legislature | Comm Sub
Bill Title: Relating to the use of an entity name that falsely implies governmental affiliation.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Engrossed - Dead) 2021-05-26 - Withdrawn from calendar (by author) [SB275 Detail]
Download: Texas-2021-SB275-Comm_Sub.html
| 87R27889 AJA-F | ||
| By: Hinojosa, et al. | S.B. No. 275 | |
| (Herrero) | ||
| Substitute the following for S.B. No. 275: No. | ||
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| relating to the use of an entity name that falsely implies | ||
| governmental affiliation. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Title 6, Civil Practice and Remedies Code, is | ||
| amended by adding Chapter 150C to read as follows: | ||
| CHAPTER 150C. ENTITY NAME FALSELY IMPLYING GOVERNMENTAL | ||
| AFFILIATION | ||
| Sec. 150C.001. DEFINITION. In this chapter, "governmental | ||
| unit" has the meaning assigned by Section 101.001. | ||
| Sec. 150C.002. FALSELY IMPLYING GOVERNMENTAL AFFILIATION. | ||
| (a) A governmental unit is entitled to enjoin another person's use | ||
| of an entity name that falsely implies governmental affiliation | ||
| with the governmental unit. | ||
| (b) In an action brought under this section, the | ||
| governmental unit is entitled to injunctive relief throughout the | ||
| state. | ||
| (c) If the court finds that the person against whom the | ||
| injunctive relief is sought wilfully intended to imply governmental | ||
| affiliation with the governmental unit, the court, in the court's | ||
| discretion, may award reasonable attorney's fees and court costs to | ||
| the governmental unit. | ||
| SECTION 2. Subchapter B, Chapter 5, Business Organizations | ||
| Code, is amended by adding Section 5.064 to read as follows: | ||
| Sec. 5.064. NAME FALSELY IMPLYING GOVERNMENTAL AFFILIATION | ||
| PROHIBITED. (a) A filing entity or a foreign filing entity may not | ||
| use a name in this state that falsely implies an affiliation with a | ||
| governmental entity. | ||
| (b) The submission of a filing instrument is an affirmation | ||
| by the organizer or by a managerial official named in the filing | ||
| instrument that the name provided as the name of the filing entity | ||
| does not falsely imply an affiliation with a governmental entity. | ||
| (c) The addition of a word, phrase, or abbreviation that is | ||
| required to be included in the name of a domestic or foreign filing | ||
| entity under the provisions of this chapter is not a factor when | ||
| determining whether a name violates Subsection (a). | ||
| (d) For purposes of this section, an entity name means: | ||
| (1) the name of a domestic filing entity, as evidenced | ||
| by its certificate of formation, as amended or restated; or | ||
| (2) in the case of a foreign filing entity, the name of | ||
| the foreign filing entity or the fictitious name of a foreign filing | ||
| entity, as evidenced by its application for registration or its | ||
| most recent amended registration. | ||
| (e) The secretary of state shall adopt rules and prescribe | ||
| procedures to implement this section. | ||
| SECTION 3. This Act takes effect September 1, 2021. | ||
