STATE OF OKLAHOMA

2nd Session of the 52nd Legislature (2010)

SENATE BILL 1675	By:	Coates

AS INTRODUCED

An Act relating to corporations; prohibiting recognition of certain professional entities; requiring submission of certain affidavit with specified filings; prohibiting Secretary of State from accepting filings without certain affidavit; prohibiting certain false statements; creating misdemeanor offense; establishing punishment; stating exceptions to applicability; providing for codification; and providing an effective date.

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1.     NEW LAW     A new section of law to be codified in the Oklahoma Statutes as Section 1006.1 of Title 18, unless there is created a duplication in numbering, reads as follows:
A.  No domestic or foreign corporation, limited liability company, or professional entity may be recognized if any individual or business entity owning five percent (5%) or more of the domestic or foreign corporation, limited liability company, or professional entity also owns or owned five percent (5%) or more of another business entity, whether active or inactive, which has final judgments for wages awarded pursuant to Section 165.1 et seq. of Title 40 of the Oklahoma Statutes, or workers’ compensation penalties awarded pursuant to Section 63.1 of Title 85 of the Oklahoma Statutes, which judgments are due and owing.
B.  Upon the filing of a Certificate of Incorporation under Section 1006 of Title 18 of the Oklahoma Statutes, a Certificate of a Foreign Corporation under Section 1130 of Title 18 of the Oklahoma Statutes, Articles of Organization under Section 2005 of Title 18 of the Oklahoma Statutes, or Certificate of Incorporation under Section 804 of Title 18 of the Oklahoma Statutes, the domestic or foreign corporation, limited liability company, or professional entity shall file an affidavit with the Secretary of State stating no individual or business entity owning five percent (5%) or more of the newly formed domestic or foreign corporation, limited liability company, or professional entity has any final judgments for wages awarded pursuant to Section 165.1 et seq. of Title 40 of the Oklahoma Statutes, or workers’ compensation penalties awarded pursuant to Section 63.1 of Title 85 of the Oklahoma Statutes, which judgments are due and owing.  The Secretary of State shall not accept the documents listed in this subsection for filing without the affidavit required by this section.
C.  Any person who makes a false statement or representation in the affidavit required in subsection B, who knows or should have known it to be false, shall be guilty of a misdemeanor and shall be punished by a fine of not less than One Hundred Dollars ($100.00) nor more than Five Thousand Dollars ($5,000.00), or by imprisonment for not longer than ninety (90) days, or by both such fine and imprisonment.
D.  This section shall not apply to domestic or foreign corporations, limited liability companies, or professional entities which have filed for bankruptcy under federal bankruptcy laws.
SECTION 2.  This act shall become effective November 1, 2010.

52-2-2846	TEK	1/8/2010 2:02:19 PM