BILL ANALYSIS Senate Research Center S.B. 2690 89R11136 SCR-F By: Hancock Business & Commerce 4/22/2025 As Filed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT Currently, organizations and businesses are receiving solicitations suggesting or asserting needed certifications from organizations posing as governmental entities. Some of these solicitations are mimicking governmental notices from the secretary of state's office and using P.O. Boxes near the Texas Capitol to appear more legitimate. Therefore, entities are being deceived to pay significantly more than what the state charges for the service. S.B. 2690 seeks to ensure that consumers have awareness of solicitations that are not from governmental entities in order to protect them from being scammed. It will require nongovernmental entities to disclose that they are nongovernmental entities in a specified format and allow for penalties against actors who violate the law. As proposed, S.B. 2690 amends current law relating to solicitations for the retrieval of certain documents from the secretary of state and provides a civil penalty. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 17, Business and Commerce Code, by adding Subchapter M, as follows: SUBCHAPTER M. SOLICITATIONS FOR RETRIEVAL OF CERTAIN GOVERNMENT DOCUMENTS Sec. 17.961. DEFINITION. Defines "business certification document." Sec. 17.962. REQUIRED DISCLOSURE FOR MAIL SOLICITATIONS. (a) Prohibits a nongovernmental entity or individual from mailing, or directing another person to mail, a solicitation for the retrieval of a business certification document unless the solicitor includes with the mailed solicitation the disclosure required by this section, prominently displayed in 18-point, boldfaced type, and in capital letters in English, Spanish, and any other language in which the solicitation is printed. (b) Sets forth the required language of the disclosure described by Subsection (a). Sec. 17.963. REQUIRED DISCLOSURE FOR TELEPHONE OR IN-PERSON SOLICITATIONS. (a) Prohibits a nongovernmental entity or individual from making, or directing another person to make, a telephone or in-person solicitation for the retrieval of a business certification document unless the solicitor provides to each person solicited, at the beginning of the solicitation and again before accepting payment from the person, the disclaimer described by Subsection (b). (b) Sets forth the required language for the solicitor described by Subsection (a). (c) Requires that the disclaimer described by Subsection (b) be made slowly, in a clear voice, and in the same language in which the solicitation is made. Sec. 17.964. INVESTIGATION. (a) Authorizes a complaint concerning a violation of this subchapter to be made to the secretary of state (SOS). (b) Requires SOS to investigate a complaint made under Subsection (a). Authorizes SOS to refer the complaint to the attorney general. Sec. 17.965. CIVIL PENALTY. (a) Provides that a person who violates this subchapter is liable to this state for a civil penalty in an amount not to exceed $500 for each violation. Provides that each solicitation is a separate violation for purposes of this subsection. (b) Requires the court, in determining the amount of the civil penalty imposed under this section, to consider the amount necessary to deter future violations. (c) Authorizes the attorney general or the county attorney or district attorney in the county in which the violation occurs to bring an action to recover a civil penalty under this section. SECTION 2. Makes application of this Act prospective. SECTION 3. Effective date: September 1, 2025.
BILL ANALYSIS
Senate Research Center S.B. 2690
89R11136 SCR-F By: Hancock
Business & Commerce
4/22/2025
As Filed
Senate Research Center
S.B. 2690
89R11136 SCR-F
By: Hancock
Business & Commerce
4/22/2025
As Filed
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
Currently, organizations and businesses are receiving solicitations suggesting or asserting needed certifications from organizations posing as governmental entities. Some of these solicitations are mimicking governmental notices from the secretary of state's office and using P.O. Boxes near the Texas Capitol to appear more legitimate. Therefore, entities are being deceived to pay significantly more than what the state charges for the service.
S.B. 2690 seeks to ensure that consumers have awareness of solicitations that are not from governmental entities in order to protect them from being scammed. It will require nongovernmental entities to disclose that they are nongovernmental entities in a specified format and allow for penalties against actors who violate the law.
As proposed, S.B. 2690 amends current law relating to solicitations for the retrieval of certain documents from the secretary of state and provides a civil penalty.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Chapter 17, Business and Commerce Code, by adding Subchapter M, as follows:
SUBCHAPTER M. SOLICITATIONS FOR RETRIEVAL OF CERTAIN GOVERNMENT DOCUMENTS
Sec. 17.961. DEFINITION. Defines "business certification document."
Sec. 17.962. REQUIRED DISCLOSURE FOR MAIL SOLICITATIONS. (a) Prohibits a nongovernmental entity or individual from mailing, or directing another person to mail, a solicitation for the retrieval of a business certification document unless the solicitor includes with the mailed solicitation the disclosure required by this section, prominently displayed in 18-point, boldfaced type, and in capital letters in English, Spanish, and any other language in which the solicitation is printed.
(b) Sets forth the required language of the disclosure described by Subsection (a).
Sec. 17.963. REQUIRED DISCLOSURE FOR TELEPHONE OR IN-PERSON SOLICITATIONS. (a) Prohibits a nongovernmental entity or individual from making, or directing another person to make, a telephone or in-person solicitation for the retrieval of a business certification document unless the solicitor provides to each person solicited, at the beginning of the solicitation and again before accepting payment from the person, the disclaimer described by Subsection (b).
(b) Sets forth the required language for the solicitor described by Subsection (a).
(c) Requires that the disclaimer described by Subsection (b) be made slowly, in a clear voice, and in the same language in which the solicitation is made.
Sec. 17.964. INVESTIGATION. (a) Authorizes a complaint concerning a violation of this subchapter to be made to the secretary of state (SOS).
(b) Requires SOS to investigate a complaint made under Subsection (a). Authorizes SOS to refer the complaint to the attorney general.
Sec. 17.965. CIVIL PENALTY. (a) Provides that a person who violates this subchapter is liable to this state for a civil penalty in an amount not to exceed $500 for each violation. Provides that each solicitation is a separate violation for purposes of this subsection.
(b) Requires the court, in determining the amount of the civil penalty imposed under this section, to consider the amount necessary to deter future violations.
(c) Authorizes the attorney general or the county attorney or district attorney in the county in which the violation occurs to bring an action to recover a civil penalty under this section.
SECTION 2. Makes application of this Act prospective.
SECTION 3. Effective date: September 1, 2025.