BILL ANALYSIS

H.B. 3131

By: Cole

Business & Industry

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Because the mailing address listed on a business entity's certificate of formation is often the address for the registered agent of the entity, tax information and other correspondence sent by the comptroller of public accounts is often not received by the taxpayer for whom it is intended. Furthermore, the entity's registered agent may change or the agent's address may change after the certificate has been filed with the secretary of state, but this updated information is not often forwarded to the comptroller. These situations can have negative consequences for the taxpayer, sometimes resulting in charter forfeiture. H.B. 3131 seeks to ensure that important tax information is reaching the right people by requiring a certificate of formation of certain business entities to state the entity's preferred mailing address.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 3131 amends the Business Organizations Code to require the certificate of formation of a domestic corporation, limited partnership, limited liability company, professional association, cooperative, or real estate investment trust to state the entity's preferred mailing address.

EFFECTIVE DATE

September 1, 2021.