Rhode Island House Bill H7424

Rhode Island 2024 Regular Session

• Introduced: 2/2/24
• Refer: 2/2/24
• Report Pass: 3/7/24
• Engrossed: 3/12/24
• Refer: 4/3/24
• Report Pass: 5/7/24
• Passed: 6/25/24

Caption

Changes the term "assumed name" to "trade name" and centralizes the filing, administration and regulation process of trade names to the secretary of state and requires an annual renewal of the trade name.

Impact

With the passage of HB 7424, the existing framework for business name registration will see significant changes. The bill seeks to unify the process by consolidating records and requiring annual renewals of trade name registrations. Additionally, it will enable businesses to renew their trade names concurrently with their business licenses, thereby reducing administrative burdens. By establishing a centralized database for trade name records to be managed by the Secretary of State, the bill aims to enhance transparency and accessibility of business information.

Summary

House Bill 7424 aims to amend existing regulations concerning the filing of assumed business names by replacing the term 'assumed name' with 'trade name.' This legislation centralizes the administration and regulation of trade names under the authority of the Secretary of State. It mandates that all businesses conducting operations under a trade name must file for a trade name certificate. This shift is intended to streamline the filing process, ensuring that businesses are compliant with local and state regulations regarding the names they operate under.

Sentiment

The sentiment surrounding HB 7424 has been largely positive among business advocates, who view the bill as a beneficial reform that could simplify regulatory compliance for entrepreneurs. The move towards a centralized system is embraced as a modernization of the legislative framework governing business operations in the state. In contrast, some concerns have been raised about the potential for increased bureaucracy and the implications for small business operators in terms of ongoing compliance costs associated with annual renewals.

Contention

Despite its overall support, there are notable points of contention regarding the implementation of HB 7424. Critics argue that the requirement for annual renewal could pose a financial burden, particularly on smaller businesses or those operating under tighter profit margins. Furthermore, opponents worry about the potential complications that may arise during the transition to a new central database, including issues with record integrity and access problems for local municipalities. These concerns highlight the delicate balance lawmakers must navigate between regulatory efficiency and the needs of local businesses.