SB 1675 Summary

• Prohibits recognition of domestic or foreign corporations, limited liability companies, and professional entities if owners of 5% or more have unpaid final wage judgments or workers' compensation penalties from other businesses.

• Requires filing of an affidavit with the Secretary of State stating no such owners have outstanding wage or workers' compensation judgments when incorporating or organizing a business entity.

• Secretary of State cannot accept incorporation or organization filings without the required affidavit attached to the documents.

• Makes false statements in the required affidavit a misdemeanor offense punishable by fines of $100 to $5,000, imprisonment up to 90 days, or both.

• Exemption provided for entities that have filed for bankruptcy under federal bankruptcy laws; effective date November 1, 2010.