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Registrar of Corporations urges Senate to remove daily late-filing penalties in House Bill 24-13
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Summary
The CNMI registrar of corporations testified in favor of House Bill 24-13, which would eliminate daily penalties for late annual filings and leave a one-time flat penalty of $150 for for-profits and $25 for nonprofits.
John David Rages, registrar of corporations in the CNMI Department of Commerce, told the Senate on Aug. 13 that House Bill 24-13 would reduce pressure on small businesses by eliminating daily penalties for late annual reports and replacing them with a one-time flat fee.
Rages said the bill would amend Title 4, Division 4, Section 4205 of the Commonwealth Code to remove daily penalties. Under the proposal, for-profit corporations would face a one-time flat penalty of $150 and nonprofit organizations a one-time flat penalty of $25 for late filing.
Rages said his office had found that roughly 25% of dissolutions, terminations and withdrawals were tied to the burden of daily penalty fees and that, as an example, an entity that missed the March 1, 2024, deadline could currently face $1,110 in accumulated daily penalties. He told senators the department believes removing daily penalties would improve compliance and reduce voluntary closures.
Why it matters: The registrar framed the change as easing burdens on small businesses and nonprofits to promote compliance and economic activity. Rages said the Office of the Registrar of Corporations supports the bill and urged the Senate to pass it.
No formal vote on House Bill 24-13 was recorded during the Aug. 13 session; Rages’ remarks were entered into the public record for committee consideration.
