Connecticut House Bill HB05721

Connecticut 2011 Regular Session

• Introduced: 1/21/11
• Refer: 1/21/11

Caption

An Act Modifying Annual Reporting Fees Paid To The Secretary Of The State.

Impact

The adjustment in fee structure under HB 5721 is expected to have a positive impact on small not-for-profits, facilitating their operational sustainability by reducing costs associated with compliance. In contrast, the bill introduces an increase in the reporting fees for corporations with total annual revenues exceeding $5 million, designed to offset the revenue lost from the reduced fees for smaller entities. This change emphasizes the state's initiative to support smaller organizations while still maintaining overall revenue for the Secretary of the State's office.

Summary

House Bill 5721 aims to amend the annual reporting fees required to be paid to the Secretary of the State. Specifically, the bill proposes to reduce the annual reporting fee for not-for-profit organizations with total annual revenues of less than $100,000 from $50 to a significantly lower fee of $10. This measure is intended to alleviate the financial burden on small not-for-profit entities that often operate with limited resources and funding.

Contention

While the bill presents a beneficial approach for small not-for-profits, the increase in fees for larger corporations may be viewed as contentious. There could be concerns from the business community regarding the additional financial burden imposed by these higher fees. Critics of this adjustment might argue that placing increased pressure on larger corporations could disincentivize growth or enhance regulatory complexity. Nonetheless, supporters contend that the overall positive impact on small organizations justifies the fee increase for larger entities, thus fostering a balanced ecosystem for all types of organizations operating within the state.