Connecticut House Bill HB06605

Connecticut 2021 Regular Session

• Introduced: 3/9/21
• Refer: 3/9/21
• Report Pass: 3/29/21
• Refer: 4/9/21
• Report Pass: 4/15/21
• Engrossed: 5/24/21
• Report Pass: 5/26/21

Caption

An Act Concerning Business Registrations, Trade Names, The Commercial Recording Division Within The Office Of The Secretary Of The State And Commercial Registered Agents.

Impact

The implications of HB 6605 on state law involve amendments to the statutes governing corporate and business entity registrations. By enhancing the electronic aspects of these processes, the bill is expected to reduce bureaucratic delays and improve accessibility for businesses dealing with state registration. Additionally, the bill articulates a clearer framework for how trade names may be registered and utilized, requiring businesses to disclose certain information to ensure transparency around the use of trade names. This represents a significant step towards modernizing Connecticut's business framework and enhancing compliance.

Summary

House Bill 6605 aims to streamline the processes regarding business registrations and trade names in Connecticut. It modifies existing laws to incorporate more digital solutions, including the establishment of an electronic business portal. This portal is intended to assist business entities in navigating the state’s regulatory and registration requirements, thereby promoting efficiency and encouraging entrepreneurship. Additionally, the bill seeks to modernize the requirements for business filings, such as incorporating email addresses and North American Industry Classification System codes into applications and registrations.

Sentiment

The reception of HB 6605 has been largely positive, particularly among business advocates who see the modernization efforts as conducive to economic growth. Proponents argue that the digital enhancements will significantly benefit small businesses by providing them with easier access to necessary resources and state services. However, there is some wariness regarding the extent of personal information required in filings, especially concerning privacy and the implications of increased data disclosure. Critics express concern that, while the intention is to increase accessibility, the requirements could pose challenges for some small entity operators.

Contention

Notable points of contention surrounding HB 6605 focus on the balance between necessary transparency in business operations and the protection of personal information. Opponents argue that the bill may inadvertently expose personal data of business owners through mandatory disclosures. Furthermore, while the electronic system aims to streamline processes, there are concerns about the effectiveness of the proposed new system and whether it will adequately address existing bottlenecks in business registration and compliance. Discussions around the bill highlight the ongoing tension in regulatory frameworks between facilitating business ease-of-entry and ensuring data security.