Texas House Bill HB2827

Texas 2017 - 85th Regular

Caption

Relating to corporations, associations, real estate investment trusts, and related entities; authorizing fees.

Impact

The bill is expected to have a significant impact on state laws governing business organizations. By defining and authorizing clear fees for different types of corporate filings, HB2827 aims to reduce ambiguity for businesses. Moreover, it is anticipated that the changes will encourage more efficient corporate management and compliance with state regulations. By clarifying the requirements and associated costs, the bill could lead to fewer bureaucratic obstacles, potentially fostering an increase in business activity and competition in the Texas market.

Summary

House Bill 2827 addresses various aspects of business organizations within Texas, focusing on corporations, real estate investment trusts, and associated entities. One of the primary goals of this bill is to streamline the process of filing and regulation by authorizing certain fees associated with the formation, amendment, and dissolution of corporations. This includes setting specific amounts for filing certificates of formation, amendments, and registrations, which is intended to ease the operational burden on businesses and create a more efficient administrative environment for economic activities.

Sentiment

Discussions surrounding HB2827 have largely been favorable, particularly among business advocacy groups that emphasize the importance of reducing regulatory burdens. Proponents argue that by establishing a clear fee structure, the bill will promote transparency and predictability, which are essential for attracting investment and fostering growth. Conversely, some skepticism exists regarding the capacity of the state to manage changes effectively, as there are concerns about potential pitfalls in the implementation of these new regulations.

Contention

Notable points of contention include the overall fees established by the bill and the implications these might have for smaller businesses. Critics argue that while larger corporations may absorb these costs more readily, smaller businesses could find the new fees to be burdensome. Furthermore, there is a debate regarding the adequacy of consumer protections in the sphere of corporate regulations, with various stakeholders expressing concern that the bill may favor corporate interests at the expense of accountability.