The bill amends various sections of the General Laws concerning secured transactions and the filing of trade names, introducing new definitions and provisions that enhance the effectiveness of filed records. Key changes include stipulating that a filed record is only effective if submitted by an authorized person or the filing office, and outlining conditions under which filing may not occur, such as refusal by the filing office based on reasonable belief that the record is materially false or unauthorized.

Additionally, a new section, 6A-9-513.1, is added to allow for the termination of wrongfully filed financing statements through a notarized affidavit from the debtor, along with a process for reinstatement of such statements. This includes provisions for notifying the secured party of record and conducting administrative reviews.

The bill also addresses deceptive solicitations targeting businesses by mandating that these communications include clear disclaimers indicating they are advertisements, not government documents. It requires that such solicitations provide information on how to file documents with the secretary of state and disclose the sender's identity, including a physical address that is not a post office box. The Attorney General is granted enforcement authority for violations, and businesses are empowered to take legal action against deceptive practices.

Furthermore, the bill introduces new chapters that establish a framework for addressing unauthorized entity formations and identity theft. It allows individuals to submit affidavits to the secretary of state regarding unauthorized use of their identity in entity formation, with provisions for nullifying such formations if found unauthorized. The act is set to take effect on July 1, 2026.

Statutes affected:
8324: 6-1-1.1