Bill would let Secretary of State reject or cancel business filings found false or fraudulent

The Vermont House Committee on Commerce and Economic Development on March 12, 2025 heard the Secretary of State’s office propose new authority to reject, amend or terminate business registrations that contain false, fraudulent or clearly erroneous information.

The proposal, offered by David Hall, director of the Business Services Division in the Office of the Secretary of State, would add a new statutory section (proposed in committee discussion as 16 38) to allow two distinct actions: (1) a ministerial-style rejection of a filing the office reasonably determines contains an obvious error, and (2) after notice and an administrative hearing under the Vermont Administrative Procedure Act (3 V.S.A. chapter 25), the office could amend a record or terminate a registration if it finds false or fraudulent information or filing in bad faith. Hall said aggrieved parties would be able to appeal a final agency decision de novo to the Civil Division of Washington County Superior Court.

Why it matters: Hall framed the change as addressing a practical gap in the current business-records…