| 1 | 1 | | 85R12203 GRM-D |
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| 2 | 2 | | By: Garcia S.B. No. 1579 |
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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 authorizing the secretary of state to terminate the |
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| 8 | 8 | | existence of a domestic filing entity if a substantial owner or |
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| 9 | 9 | | governing person of the entity has been convicted of human |
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| 10 | 10 | | trafficking or compelling prostitution. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Section 11.251(b), Business Organizations Code, |
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| 13 | 13 | | is amended to read as follows: |
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| 14 | 14 | | (b) The secretary of state may terminate a filing entity's |
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| 15 | 15 | | existence if the secretary finds that: |
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| 16 | 16 | | (1) the entity has failed to, and, before the 91st day |
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| 17 | 17 | | after the date notice was mailed has not corrected the entity's |
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| 18 | 18 | | failure to: |
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| 19 | 19 | | (A) file a report within the period required by |
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| 20 | 20 | | law or pay a fee or penalty prescribed by law when due and payable; |
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| 21 | 21 | | or |
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| 22 | 22 | | (B) maintain a registered agent or registered |
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| 23 | 23 | | office in this state as required by law; [or] |
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| 24 | 24 | | (2) the entity has failed to, and, before the 16th day |
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| 25 | 25 | | after the date notice was mailed has not corrected the entity's |
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| 26 | 26 | | failure to, pay a fee required in connection with the filing of its |
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| 27 | 27 | | certificate of formation, or payment of the fee was dishonored when |
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| 28 | 28 | | presented by the state for payment; or |
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| 29 | 29 | | (3) a person who has an ownership interest of at least |
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| 30 | 30 | | 51 percent in the entity or a governing person of the entity has |
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| 31 | 31 | | been convicted of an offense under Section 20A.02, 20A.03, or |
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| 32 | 32 | | 43.05, Penal Code. |
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| 33 | 33 | | SECTION 2. Section 11.251(b), Business Organizations Code, |
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| 34 | 34 | | as amended by this Act, applies to a filing entity only if an |
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| 35 | 35 | | offense described by that section is committed on or after the |
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| 36 | 36 | | effective date of this Act. If the offense was committed before the |
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| 37 | 37 | | effective date of this Act, the filing entity is governed by the law |
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| 38 | 38 | | in effect on the date the offense was committed, and the former law |
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| 39 | 39 | | is continued in effect for that purpose. For purposes of this |
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| 40 | 40 | | section, an offense was committed before the effective date of this |
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| 41 | 41 | | Act if any element of the offense occurred before that date. |
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| 42 | 42 | | SECTION 3. This Act takes effect immediately if it receives |
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| 43 | 43 | | a vote of two-thirds of all the members elected to each house, as |
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| 44 | 44 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 45 | 45 | | Act does not receive the vote necessary for immediate effect, this |
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| 46 | 46 | | Act takes effect September 1, 2017. |
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