The bill amends the General Laws to enhance the integrity of secured transactions and the filing of trade names, introducing new definitions and provisions regarding 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 it outlines conditions for filing refusals. A new section, 6A-9-513.1, allows debtors to file sworn affidavits to terminate wrongfully filed financing statements, along with procedures for reinstatement if the filing was authorized.

Additionally, the bill establishes a new chapter that prohibits deceptive solicitations sent to businesses, requiring clear disclaimers that such solicitations are advertisements and not government communications. It mandates that solicitations include specific statements, provide information on where to file documents with the secretary of state, disclose the name and physical address of the sending entity, and avoid creating the impression of being official government documents. The attorney general is granted enforcement authority for violations of this section.

The bill also introduces provisions to combat business identity theft and unauthorized entity formation. It allows individuals to submit affidavits to the secretary of state if they suspect their identity has been misused to form an entity or if false statements were made in submitted documents. The secretary of state is responsible for reviewing these affidavits and can nullify unauthorized formations. An appeal process is outlined for disputed determinations, and the secretary of state may refer allegations for potential criminal investigations related to unauthorized filings.

These measures are set to take effect on July 1, 2026, and aim to protect businesses from fraudulent activities while ensuring the clarity of the filing process.

Statutes affected:
3212: 6-1-1.1
3212  SUB A: 6-1-1.1