Texas House Bill HB1581

Texas 2013 - 83rd Regular

Caption

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.