2023 Texas Statutes › Business Organizations Code › Title 1 - General Provisions › Chapter 5 - Names of Entities; Registered Agents and Registered Offices › Subchapter B. General Provisions Relating to Names of Entities › Section 5.065. False Implication of Governmental Affiliation; Authority of Secretary of State and Attorney General

Sec. 5.065.  FALSE IMPLICATION OF GOVERNMENTAL AFFILIATION; AUTHORITY OF SECRETARY OF STATE AND ATTORNEY GENERAL.  (a)  On the written request of a governmental entity specifying the basis on which a filing entity's or foreign filing entity's name falsely implies affiliation with the governmental entity, the secretary of state may, in the secretary's reasonable discretion and after consultation with the attorney general, determine not later than the 30th day after the date of the secretary's acceptance of a filing instrument that a filing entity's or a foreign filing entity's name falsely implies an affiliation with a governmental entity in violation of Section 5.064.
(b)  If the secretary of state determines under Subsection (a) that a filing entity's or foreign filing entity's name falsely implies an affiliation with a governmental entity, the secretary of state shall notify the entity in writing of the determination.  The secretary of state shall provide the filing entity or foreign filing entity an opportunity to respond to the notice not later than the 60th day after the date of the notice, including through the submission of documentation verifying that the entity is affiliated with the governmental entity or by demonstrating that the entity's name does not falsely imply affiliation with the governmental entity.  The secretary of state shall make a final determination, based on the filing entity's or foreign filing entity's response, as to whether or not the entity's name falsely implies an affiliation with a governmental entity.
(c)  After making a final determination based on the filing entity's or foreign filing entity's response under Subsection (b), the secretary of state shall notify the filing entity or foreign filing entity of the secretary's final determination.  If the entity does not timely respond to notice provided to the entity under Subsection (b), the secretary's initial determination becomes final.  If the secretary of state finally determines that the filing entity's or foreign filing entity's name falsely implies an affiliation with a governmental entity, not later than the 90th day after the date the secretary of state sends the notification required by Subsection (b), the entity shall:
(1)  cease transacting business or operating under that name in this state; and
(2)  file with the secretary of state the applicable instrument to amend the entity's name as shown in the records of the secretary of state.
(d)  If a filing entity or a foreign filing entity fails to take the action required by Subsection (c)(2), the secretary of state shall notify the attorney general of the entity's failure to file the applicable filing instrument.
(e)  The attorney general may bring an action in the name of the state for injunctive relief to require compliance with this section.
(f)  An action under this section may be brought in a district court in Travis County.
(g)  The attorney general may recover reasonable expenses incurred in obtaining injunctive relief under this section, including court costs, reasonable attorney's fees, and investigatory costs.
(h)  The secretary of state shall adopt rules and prescribe procedures to implement this section.
Added by Acts 2021, 87th Leg., R.S., Ch. 658 (H.B. 1493), Sec. 2, eff. September 1, 2021.