According to the Legislative Budget Board (LBB), SB 2690 is not expected to have a significant fiscal impact on the state. The bill would require the Texas Secretary of State (SOS) to investigate complaints regarding misleading solicitations for business certification documents. It also enables civil penalties—up to $500 per violation—for noncompliant entities, with enforcement authority granted to the Office of the Attorney General (OAG) or local prosecutors.
The Secretary of State is expected to manage any additional investigatory responsibilities within existing agency resources, indicating no need for new funding or personnel. Similarly, the OAG has reported that any legal work generated by this bill’s enforcement provisions could also be absorbed with current staffing and budgetary levels. The Office of Court Administration has assessed that the legislation will not significantly affect the workload or costs of the state judiciary.
From a local government perspective, while counties may potentially receive civil penalty revenues from enforcement actions, the fiscal note estimates that these collections would not yield a significant financial benefit. As such, the bill’s financial effects are minimal and manageable for both state and local entities.
SB 2690 is a narrowly tailored consumer protection measure designed to prevent deceptive solicitations that target Texas businesses under the guise of official government correspondence. As explained in the bill analysis, many entities currently receive misleading solicitations from private companies that closely mimic communications from the Secretary of State’s office. These third-party solicitations often use addresses near the Capitol and stylistic elements intended to suggest governmental authority, leading businesses to pay unnecessary fees for services that are available at a lower cost—or free—directly from the state.
The bill directly addresses this problem by requiring nongovernmental entities to clearly disclose, in specified language and format, that they are not affiliated with the government and that the documents in question can be obtained from the Secretary of State. These requirements apply to both mailed and verbal solicitations and are backed by modest enforcement provisions. The Secretary of State is empowered to investigate violations, and the Attorney General or local prosecutors may seek civil penalties of up to $500 per infraction.
From a liberty-focused perspective, SB 2690 effectively balances individual liberty and personal responsibility with limited government. It imposes no restrictions on legitimate business activity but instead curbs deceptive practices that erode market trust and exploit less-informed consumers. Moreover, the bill requires no new bureaucratic structures or major state expenditures, as confirmed by the Legislative Budget Board’s finding that the bill has no significant fiscal impact on either state or local governments.
Ultimately, SB 2690 promotes transparency, reinforces honest commerce, and empowers business owners to make informed decisions. These outcomes support all five core liberty principles—especially limited government, free enterprise, and individual liberty—and warrant a favorable vote. Texas Policy Research recommends that lawmakers vote YES on SB 2690.