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A BILL TO BE ENTITLED
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AN ACT
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relating to the use of an entity name that falsely implies |
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governmental affiliation. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Title 6, Civil Practice and Remedies Code, is |
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amended by adding Chapter 150C to read as follows: |
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CHAPTER 150C. ENTITY NAME FALSELY IMPLYING GOVERNMENTAL |
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AFFILIATION |
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Sec. 150C.001. DEFINITION. In this chapter, "governmental |
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unit" has the meaning assigned by Section 101.001. |
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Sec. 150C.002. FALSELY IMPLYING GOVERNMENTAL AFFILIATION. |
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(a) A governmental unit is entitled to enjoin another person's use |
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of an entity name that falsely implies governmental affiliation |
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with the governmental unit. |
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(b) In an action brought under this section, the |
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governmental unit is entitled to injunctive relief throughout the |
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state. |
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(c) If the court finds that the person against whom the |
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injunctive relief is sought wilfully intended to imply governmental |
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affiliation with the governmental unit, the court, in the court's |
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discretion, may award reasonable attorney's fees and court costs to |
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the governmental unit. |
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SECTION 2. Subchapter B, Chapter 5, Business Organizations |
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Code, is amended by adding Section 5.064 to read as follows: |
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Sec. 5.064. NAME FALSELY IMPLYING GOVERNMENTAL AFFILIATION |
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PROHIBITED. (a) A filing entity or a foreign filing entity may not |
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use a name in this state that falsely implies an affiliation with a |
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governmental entity. |
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(b) The submission of a filing instrument is an affirmation |
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by the organizer or by a managerial official named in the filing |
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instrument that the name provided as the name of the filing entity |
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does not falsely imply an affiliation with a governmental entity. |
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(c) The addition of a word, phrase, or abbreviation that is |
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required to be included in the name of a domestic or foreign filing |
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entity under the provisions of this chapter is not a factor when |
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determining whether a name violates Subsection (a). |
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(d) For purposes of this section, an entity name means: |
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(1) the name of a domestic filing entity, as evidenced |
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by its certificate of formation, as amended or restated; or |
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(2) in the case of a foreign filing entity, the name of |
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the foreign filing entity or the fictitious name of a foreign filing |
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entity, as evidenced by its application for registration or its |
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most recent amended registration. |
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(e) The secretary of state shall adopt rules and prescribe |
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procedures to implement this section. |
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SECTION 3. This Act takes effect September 1, 2021. |