Remedio Mafnas
COMMERCE Secretary Remedio C. Mafnas supports Senate Bill 23-49, which proposes a 90-day deadline to pay penalty fees for late filing of annual corporation reports. She said it would deter businesses from evading their “financial obligations” to the government.
Authored by Senate Floor Leader Corina L. Magofna, S.B. 23-49, which is now with the Senate Committee on Resources, Economic Development, Programs and Gaming, would amend Public Law 21-37 to establish a 90-day deadline to pay the penalty fees imposed on businesses that are behind in filing their annual reports with the Office of the Registrar of Corporations.
If after 90 days and the business has not paid the $150 penalty fee, “the corporate entity shall automatically be dissolved and cease its operations,” the bill stated. It would also increase to $50 from $25 the penalty for the late filing of non-profit corporation reports.
S.B. 23-49 states that it does not intend to cause an undue burden of indefinitely charging daily late fees, in addition to a late filing fee of annual reports. The bill aims to “deter corporations from ignoring the penalty fees, and…open a new business under a new name to evade the penalty fees.” This practice, the bill stated, “must be curtailed.”
In his letter to Magofna last week, Mafnas said she is “generally supportive” of the proposed amendments to the law. She said these would address the challenges posed by late filings and non-compliance while maintaining a fair and comprehensive fee structure.
As for the automatic dissolution of a corporation once the 90-day period to pay the late filing fee has lapsed, the Commerce secretary said, “It will not only discourage the formation of new entities to evade financial obligations, but also reinforce the importance of timely compliance with statutory requirements.”
She said the 90-day deadline to pay penalty fees “aligns with the evolving demands placed on the Office of the Registrar of Corporations.”
