89th Legislature Regular Session

SB 2690

Overall Vote Recommendation
Yes
Principle Criteria
Free Enterprise
Property Rights
Personal Responsibility
Limited Government
Individual Liberty
Digest
SB 2690 seeks to increase transparency and protect businesses from misleading solicitations by establishing new disclosure requirements for nongovernmental entities that offer document retrieval services related to business certification filings with the Texas Secretary of State. The bill creates Subchapter M in Chapter 17 of the Texas Business & Commerce Code, defining a “business certification document” as one required to be filed under Chapter 4 of the Business Organizations Code, or any document produced by the Secretary of State affirming the existence or registration of a business.

Under SB 2690, any nongovernmental person or entity that sends a mail solicitation for such documents must include a prominently displayed disclaimer in bold, 18-point font, in English, Spanish, and any other language used in the solicitation. The notice must clearly state that the sender is not a governmental entity and that business certification documents are available directly from the Secretary of State’s office. Similar disclosures must be made in verbal solicitations, whether in-person or by phone, at the beginning of the interaction and again before accepting payment. The verbal disclaimer must be delivered clearly and in the same language used during the solicitation.

The bill authorizes the Secretary of State to investigate complaints of noncompliance and permits the referral of such complaints to the Office of the Attorney General. It imposes a civil penalty of up to $500 per violation, with each individual solicitation constituting a separate offense. Enforcement actions may be initiated by the Attorney General or by local county and district attorneys. The bill applies only to solicitations made on or after its effective date, September 1, 2025.
Author
Kelly Hancock
Sponsor
Shelley Luther
Fiscal Notes

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.

Vote Recommendation Notes

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.

  • Individual Liberty: The bill empowers individuals—especially small business owners—to make informed choices by protecting them from deceptive solicitations. By requiring clear disclaimers that a service is not from the government, it safeguards the right of individuals to control their own decisions and avoid being misled or coerced into unnecessary purchases.
  • Personal Responsibility: The bill encourages ethical behavior by holding solicitors accountable for misleading tactics. It promotes a standard where individuals and companies must clearly disclose their intentions and accept responsibility for honest representation in their commercial dealings.
  • Free Enterprise: This legislation does not ban private businesses from offering services. It simply requires transparency. That means businesses can still compete in the marketplace, but they must compete fairly, not by pretending to be a government entity. This helps maintain a level playing field and builds trust in the marketplace.
  • Private Property Rights: While the bill does not directly involve physical property, it protects the financial interests of business owners, helping ensure they aren't tricked into spending money on overpriced or unnecessary services. This supports the broader principle that people have a right to use their property—including money—without being deceived.
  • Limited Government: SB 2690 reflects a light-touch regulatory approach. It gives the Secretary of State authority to investigate complaints and allows enforcement through existing legal channels (Attorney General or local prosecutors). No new agencies or major regulatory programs are created. The penalties are modest and designed to deter abuse, not expand state power.
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