COMMERCE Secretary Remedio C. Mafnas on Tuesday sent the Senate a letter rescinding her earlier support for Senate Bill 23-49, which proposes a 90-day deadline to pay penalty fees for late filing of annual corporation reports.
She explained that the letter that was sent on Nov. 18, 2024 to the Senate Committee on Resources, Economic Development & Programs, and Gaming chair was written by one of her directors. However, her name and signature were at the bottom of the letter.
In her new letter to the committee chair, Senate Floor Leader Corina Magofna, on Monday, Mafnas said she strongly opposes the proposed amendment to Public Law 21-37 that would set a higher fee structure for the Office of the Registrar of Corporations.
“I [also] do not recommend [an] automatic dissolution of a corporation after 90 days. Once a corporation is dissolved the business license is automatically terminated. Once the business owners come back to reinstate, they’d be required to pay the back penalties plus pay additional $200 for the reinstatement fee, and acquire a new business license and pay another $100,” Mafnas said.
She said the automatic dissolution after 90 days for entities failing to pay annual report and late fees “is absolutely not a commendable measure as once a corporation is dissolved, the business license is automatically terminated.”
“If this is just an oversight on the business owners and the business license is terminated, the business operations will be automatically terminated and it will take time to reinstate and obtain another business license. Therefore, I strongly recommend that the 90-day automatic dissolution/termination be taken out,” Mafnas said.
She also recommended leaving the penalty fee for late filing of non-profit corporation annual reports and minutes at $25, noting that a non-profit entity “is not-for-profit, and most of the time, the members themselves pay the penalties out of pocket.”
