The bill amends various sections of Vermont's statutes to modernize and clarify the legal framework governing business entities and cooperative associations. Key changes include renaming the "Corporations Division" to "Business Services Division" and adopting more gender-neutral language regarding the Secretary of State's signature. The terminology surrounding cooperatives is updated, replacing "cooperatives" with "general cooperative corporations and cooperative associations," and new definitions for terms like "association" and "consumers cooperative" are introduced to highlight their nonprofit nature. The bill also outlines specific requirements for articles of incorporation, including the need for an agent for service of process and the business addresses of directors, while establishing a fee structure for various filings.

Additionally, the bill streamlines the registration process for business entities by replacing the term "returns" with "registration" and mandating that registrations be filed by an authorized person within 10 days of commencing business. It introduces penalties for non-compliance, including a civil penalty for businesses that fail to register, and clarifies the Secretary of State's authority to terminate registrations for non-compliance. The bill also emphasizes the importance of maintaining accurate records, requiring businesses to provide email addresses for agents designated for service of process, and allows for the reservation of business names. Furthermore, it mandates a study by the Secretary of State to assess the need for further updates to business organization laws, with interim findings due by November 15, 2025, and a final report by December 1, 2026. The act is set to take effect on July 1, 2025.

Statutes affected:
As Passed By the House -- Official: 3-102a, 3-133, 11-15, 11-22, 11-23, 11-25, 11A-14, 11A-15, 11A-16, 11B-14, 11B-15, 11B-16, 11C-14, 12-25, 30-81
As Passed By the House -- Unofficial: 3-102a, 3-133, 11-15, 11-22, 11-23, 11-25, 11A-14, 11A-15, 11A-16, 11B-14, 11B-15, 11B-16, 11C-14, 12-25, 30-81
As Passed by Both House and Senate -- Official: 3-102a, 3-133, 11-15, 11-22, 11-23, 11-25, 11A-14, 11A-15, 11A-16, 11B-14, 11B-15, 11B-16, 11C-14, 12-25, 30-81, 11-4028
As Passed by Both House and Senate -- Unofficial: 3-102a, 3-133, 11-15, 11-22, 11-23, 11-25, 11-4028, 11A-14, 11A-15, 11A-16, 11B-14, 11B-15, 11B-16, 11C-14, 12-25, 30-81
As Enacted: 3-102a, 3-133, 11-15, 11-22, 11-23, 11-25, 11-4028, 11A-14, 11A-15, 11A-16, 11B-14, 11B-15, 11B-16, 11C-14, 12-25, 30-81