Texas Senate Bill SB1970

Texas 2019 - 86th Regular

Caption

Relating to the filing of an assumed name certificate by certain business entities.

Impact

The impact of this legislation is significant as it alters the landscape of business entity registration in Texas. By centralizing the filing of assumed name certificates, the bill likely aims to enhance efficiency and reduce administrative burdens for businesses, particularly new startups. This change is critical for compliance, ensuring that businesses can fulfill their naming requirements without the complexity of dealing with multiple local jurisdictions.

Summary

SB1970 addresses the requirements for filing an assumed name certificate by specific types of business entities in Texas. The bill amends Section 71.103 of the Business and Commerce Code by changing the filing process to the office of the Secretary of State and eliminating the necessity for filing with county clerks. This simplification aims to streamline business registration and make it easier for companies to operate without navigating the previous dual filing process.

Sentiment

The overall sentiment surrounding SB1970 appears to be positive among business advocates and small business owners who benefit from clearer and simpler filing procedures. Supporters argue that the changes will encourage entrepreneurship and economic growth by removing obstacles that may have previously discouraged potential business formations. However, there may be concerns among local governments regarding the loss of local control over business regulations.

Contention

While the bill aims to improve business processes, some stakeholders might express contention regarding the shift of filing authority away from localities to a state-level agency. This could lead to criticisms about the state’s overreach into areas traditionally managed by local governments, raising questions about the balance of regulatory power. Overall, while the intention is to simplify business operations, it is crucial to monitor how these changes affect local governance and community needs.