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Committee approves bill to streamline removal of fraudulent business filings
Summary
The Departments & Agencies Committee advanced House Bill 13,41 to allow consumers to petition the Secretary of State to dissolve corporations fraudulently filed in their names after a 21‑day notice and a clear‑and‑convincing review.
The Departments & Agencies Committee voted to advance House Bill 13,41, a measure intended to speed removal of unauthorized business filings created under another person’s name.
Chairman Farmer, who carried the bill for the Secretary of State’s office, told the committee the measure creates a streamlined process for victims to ask the Secretary of State to dissolve corporations fraudulently formed using their information. “It’s gonna save the taxpayer, the consumer money,” Farmer said. Under the bill, a consumer may file a petition with the Secretary of State; the office would send notice to the entity’s registered address and, if there is no response within 21 days, determine under a “clear and convincing” standard whether the filing is fraudulent and dissolve the entity.
The bill’s sponsor said the current process to reverse an unauthorized filing requires a court order and legal counsel, and that the proposed administrative route would reduce the time and expense for affected individuals.
There were no amendments and no questions that changed the bill’s scope. The clerk recorded the vote as 7 ayes and 0 noes, and the measure was sent forward to the full State and Local Committee.
The bill text as explained covers: the petition process, notice to the registered agent or filing address, a 21‑day response period, and an administrative determination using the clear‑and‑convincing evidence standard; the transcript did not specify filing fees or an appeals process.
