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 stipulations that a filed record is only effective if submitted by an authorized person or the filing office, and it outlines specific conditions under which filing may not occur, such as refusals by the filing office based on reasonable belief of harassment or fraud.

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 the filing office to notify secured parties of termination statements and for secured parties to seek reinstatement through expedited review or court action.

Additionally, the bill establishes new chapters addressing deceptive solicitations and unauthorized entity formations. Chapter 17 prohibits misleading solicitations from non-government entities, requiring clear disclaimers that they are advertisements and not government communications. It mandates that solicitations provide information on how to file documents with the secretary of state and disclose the identity of the sender. The Attorney General is empowered to enforce violations of this chapter.

Chapter 18 provides a framework for individuals to report unauthorized business formations, allowing the secretary of state to nullify such formations if found unauthorized based on a duly completed affidavit. The chapter outlines the process for reviewing affidavits, notifying complainants, and the potential for appeals to the superior court. It also includes provisions for criminal investigations related to unauthorized filings.

The bill is set to take effect on July 1, 2026, aimed at improving the integrity of business filings and protecting against fraudulent activities.

Statutes affected:
3212: 6-1-1.1