Requires the department of state to review filings for fraud; provides that the department of state shall charge no fee for the dissolution or modification of a business corporation created by fraud; provides an administrative procedure to address fraudulent entity filings.
Impact
The bill would amend existing laws related to limited liability companies and business corporations by eliminating fees for the dissolution or modification of businesses that are fraudulently created. The legislative changes would empower the Department of State to actively engage in reviewing filings associated with suspected fraud, which signifies a shift toward a more proactive governance approach. By allowing consumers to report unauthorized use of their information and facilitating a straightforward process for resolving such issues, the FEEA aims to strengthen consumer protection and deter future fraud.
Summary
S09986, also known as the 'Fraudulent Entities Elimination Act' (FEEA), is a legislative proposal introduced in the New York Senate aimed at addressing the pervasive issue of fraudulent business entities. The bill proposes an administrative procedure for the Department of State to review and dissolve businesses formed under fraudulent means, providing a specific mechanism for individuals whose personal information has been misused in the creation of these entities. Currently, the lack of effective measures has allowed such fraudulent businesses to thrive, contributing to various illegal activities including identity theft and money laundering. The act declares the necessity to safeguard the integrity of business registrations and protect consumers from these unscrupulous practices.
Contention
While the bill has overall supportive sentiments aimed at combatting fraud, there may be concerns regarding the balance between regulatory oversight and the administrative capacity of the Department of State to effectively handle increased review responsibilities. Stakeholders might debate the implications of potential bureaucratic delays or the adequacy of resources to manage the heightened scrutiny without compromising efficiency. Additionally, businesses could express anxiety about the potential for misunderstandings that may arise from the new review procedures, necessitating clear definitions and guidelines to prevent undue burden on legitimate business operations.
An Act Concerning Trade Names, Fraudulent Filings, Impermissible Business Solicitations, Dissolution Of Corporations, The Issuance Of An Apostille And Fees Charged By A Notary.
Enacts the "stopping abuse and fraud enabled by (SAFE) platforms act"; requires a mechanism for users to report fraudulent content; prohibits platforms recommending, promoting, curating, prioritizing, or displaying fraudulent content for delivery to a user if it knows or has reason to know that the content is fraudulent.
Enacts the "stopping abuse and fraud enabled by (SAFE) platforms act"; requires a mechanism for users to report fraudulent content; prohibits platforms recommending, promoting, curating, prioritizing, or displaying fraudulent content for delivery to a user if it knows or has reason to know that the content is fraudulent.
Enacts the "fraudulent claims reduction and unlawful deception act" or "FRAUD act"; establishes the crimes of staging a construction site accident for insurance fraud and auto insurance fraud involving staged collisions and fabricated claims; provides for enhanced penalties and enforcement for construction site and auto claims fraud.
Enacts the "fraudulent claims reduction and unlawful deception act" or "FRAUD act"; establishes the crimes of staging a construction site accident for insurance fraud and auto insurance fraud involving staged collisions and fabricated claims; provides for enhanced penalties and enforcement for construction site and auto claims fraud.
Reduces electric corporations' response time for securing downed wires to one hour upon notice; provides that corporations failing to do so shall be subject to a fine in an amount to be determined by the department of public service.