| 1 | 1 | | 84R8107 EES-F |
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| 2 | 2 | | By: Taylor of Collin S.B. No. 1973 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the names of certain businesses. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Section 5.051, Business Organizations Code, is |
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| 10 | 10 | | amended to read as follows: |
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| 11 | 11 | | Sec. 5.051. ASSUMED NAME. A domestic entity or a foreign |
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| 12 | 12 | | entity having authority to transact business in this state may |
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| 13 | 13 | | transact business under an assumed name by filing an assumed name |
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| 14 | 14 | | certificate in accordance with Chapter 71, Business & Commerce |
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| 15 | 15 | | Code. Except as provided by Section 5.053, the [The] requirements |
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| 16 | 16 | | of this subchapter do not apply to an assumed name set forth in an |
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| 17 | 17 | | assumed name certificate filed under that chapter. |
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| 18 | 18 | | SECTION 2. Section 5.053, Business Organizations Code, is |
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| 19 | 19 | | amended to read as follows: |
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| 20 | 20 | | Sec. 5.053. DISTINGUISHABLE [IDENTICAL AND DECEPTIVELY |
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| 21 | 21 | | SIMILAR] NAMES REQUIRED [PROHIBITED]. (a) The name of a [A] filing |
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| 22 | 22 | | entity or the name under which [may not have a name, and] a foreign |
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| 23 | 23 | | filing entity registers [may not register] to transact business in |
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| 24 | 24 | | this state must be distinguishable from [under a name, that is the |
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| 25 | 25 | | same as, or that the secretary of state determines to be deceptively |
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| 26 | 26 | | similar or similar to]: |
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| 27 | 27 | | (1) the name of another existing filing entity; |
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| 28 | 28 | | (2) the name of a foreign filing entity that is |
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| 29 | 29 | | registered under Chapter 9; |
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| 30 | 30 | | (3) an assumed name for which a foreign filing entity |
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| 31 | 31 | | has an assumed name certificate under Chapter 71, Business & |
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| 32 | 32 | | Commerce Code; |
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| 33 | 33 | | (4) a name that is reserved under Subchapter C; or |
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| 34 | 34 | | (5) [(4)] a name that is registered under Subchapter |
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| 35 | 35 | | D. |
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| 36 | 36 | | (b) Subsection (a) does not apply if: |
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| 37 | 37 | | (1) the other entity or the person for whom the name is |
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| 38 | 38 | | reserved or registered, as appropriate, consents in writing to the |
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| 39 | 39 | | use of the [similar] name and files with the secretary of state an |
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| 40 | 40 | | amendment to the entity's certificate of formation or registration |
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| 41 | 41 | | changing the entity's name or files with the secretary of state a |
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| 42 | 42 | | written notice of withdrawal of the reservation or registration of |
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| 43 | 43 | | the name, as appropriate; or |
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| 44 | 44 | | (2) the filing entity or foreign filing entity |
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| 45 | 45 | | delivers to the secretary of state a certified copy of the final |
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| 46 | 46 | | judgment of a court of competent jurisdiction establishing the |
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| 47 | 47 | | entity's right to have the name. |
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| 48 | 48 | | SECTION 3. This Act takes effect June 1, 2016. |
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