Relating to the designation of an agent or office for service of process, notice, or demand by a person doing business under an assumed name.
Impact
The bill specifically impacts how businesses register and modify their assumed names and agents in Texas. By requiring that changes to the designated agent for service of process be formally documented and filed in the office of the county clerk where the original certificate was filed, HB1581 establishes a clear and formalized procedure for such updates. This aligns with efforts to improve the legal framework surrounding business operations, ultimately increasing transparency and accountability.
Summary
House Bill 1581 introduces amendments to the Business & Commerce Code of Texas regarding the designation of agents for service of process, notice, or demand for businesses operating under an assumed name. The bill stipulates that entities must provide the name and street address of their registered agent within their assumed name certificate. This change aims to enhance the clarity and accuracy of business registration documents, making it easier for individuals or entities to locate those responsible for receiving legal notices.
Contention
While the bill generally received broad support, as evidenced by a nearly unanimous 140-1 voting record on the third reading in the House, there were discussions surrounding the implications of additional bureaucratic requirements placed on small businesses. Some stakeholders raised concerns that the added regulation could lead to unintentional compliance issues, particularly for newly formed businesses that might struggle to navigate changing legal frameworks. Therefore, the balance between ensuring legal clarity and maintaining an accessible business environment was a point of contention during deliberations.
Relating to the regulation of money services businesses; creating a criminal offense; creating administrative penalties; authorizing the imposition of a fee.
Relating to the transfer and statutory novation of insurance policies from a transferring insurer to an assuming insurer through an insurance business transfer plan; authorizing fees.
Relating to the regulation of the collection, use, processing, and treatment of consumers' personal data by certain business entities; imposing a civil penalty.
Relating to the authority of individuals over the personal identifying information collected, processed, or maintained about the individuals and certain others by certain businesses.
Relating to the formation of decentralized unincorporated associations and the use of distributed ledger or blockchain technology for certain business purposes; authorizing a fee.