The bill amends the General Laws concerning secured transactions and the filing of trade names, introducing new definitions and provisions that clarify the effectiveness of filed records. It specifies that a filed record is only effective if submitted by an authorized person or the filing office and outlines conditions under which filing does not occur, such as when a filing office refuses to accept a record. A new section allows for the termination of wrongfully filed financing statements through a notarized affidavit from the debtor, detailing the process for filing termination statements and conditions for reinstatement.

Additionally, the bill addresses deceptive solicitations targeting businesses by mandating that such communications include clear disclaimers indicating they are advertisements, not government documents. It requires these solicitations to provide information on how to file documents with the secretary of state and disclose the sender's identity. The overall design and language of solicitations are prohibited from creating the impression of being official government notices or documents. The attorney general is granted enforcement authority for violations, and businesses are permitted to take legal action against deceptive practices.

The bill also establishes provisions for combating business identity theft and unauthorized entity formation, allowing individuals to submit affidavits to the secretary of state regarding unauthorized use of their identity in business formations. The secretary of state is empowered to determine if an entity formation is unauthorized and may nullify such entities based on the findings. The act is set to take effect on July 1, 2026.

Statutes affected:
8324: 6-1-1.1
8324  SUB A: 6-1-1.1