PA 09-83—HB 6640

Judiciary Committee

Finance, Revenue and Bonding Committee

AN ACT INCREASING THE PENALTY FOR FOREIGN CORPORATIONS AND OTHER ENTITIES THAT TRANSACT BUSINESS OR CONDUCT AFFAIRS IN THIS STATE WITHOUT AUTHORITY

SUMMARY: This act increases, from $165 to $300, the penalty that the secretary of the state can impose on a foreign business entity for each month or part of one that it conducts business in the state without the required certificate or registration to do so. This applies to foreign stock and non-stock corporations, limited partnerships, limited liability companies, registered limited liability partnerships, and statutory trusts. By law, the secretary cannot impose this penalty if the foreign business entity gets the required certificate within 90 days of starting to transact business in the state.

By law, these entities are also liable to the state for fees and taxes that would have been imposed had they applied for and received the required certificate, and all interest and penalties for failing to pay them, for each year or part of one that they transact business in the state without a certificate. The secretary can levy the penalties, and the attorney general can sue to recover them and to prohibit the entity from continuing to conduct business in the state.

EFFECTIVE DATE: October 1, 2009

OLR Tracking: CR: VR: JL: DF