Bill Sponsors
Representative Brandon C. Potter
Committee
House Corporations
Summary
Select
This bill allows Los Toros Records, Inc. to get its corporate charter back. To do this, the company must file any missing tax returns, pay all taxes owed to the state, and pay any required fees to the Secretary of State by December 31, 2026. If the company completes these steps and obtains a certificate proving payment, the previous cancellation of its charter will be reversed, and it can operate as a corporation again with all its original rights and responsibilities.
Sponsor
Analysis
Pros for Progressives
- Enables the collection of past-due taxes and fees from the corporation, generating revenue that can be used to fund public services and social safety nets.
- Provides a pathway for a small business to regain its legal standing, supporting economic diversity and community welfare.
- Offers a systemic second chance for a local enterprise to correct administrative errors, prioritizing rehabilitation over permanent punitive closure.
Cons for Progressives
- Grants special legislative privileges to a single private corporation, which may be seen as inequitable and favoring corporate interests.
- Forgives the corporation's past non-compliance with state tax and reporting laws without imposing additional penalties, potentially undermining corporate accountability.
- Utilizes limited legislative time and government resources to address the administrative failures of one specific business rather than focusing on broader social justice initiatives.
Pros for Conservatives
- Promotes corporate freedom by allowing a private business to regain its official charter and resume its operations in the free market.
- Reduces permanent government interference by reversing the state's revocation of the company's charter, allowing the business to exist without permanent penalty.
- Encourages economic activity and self-reliance by giving the corporation a clear, achievable pathway to resolve its administrative issues.
Cons for Conservatives
- Undermines the rule of law by granting a special exception to a company that previously failed to comply with standard tax and reporting regulations.
- Represents legislative inefficiency by requiring a specific act of the state legislature to resolve a routine administrative issue for a single private business.
- Sets a precedent of government leniency for delinquent taxpayers, potentially discouraging other businesses from paying their taxes and filing reports on time.
Constitutional Concerns
None Likely
Impact Overview
Groups Affected
- Los Toros Records, Inc.
- Rhode Island Secretary of State
- Rhode Island Division of Taxation
Towns Affected
All
Cost to Taxpayers
None
Revenue Generated
Amount unknown
BillBuddy Impact Ratings
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Regulatory
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Environmental Impact
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Privacy Impact
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Bill Status
Current Status
Held
Comm Passed
Floor Passed
Law
History
• 05/06/2026 Introduced, referred to House Corporations
• 05/08/2026 Scheduled for hearing and/or consideration (05/12/2026)
• 05/12/2026 Committee recommends passage
• 05/08/2026 Scheduled for hearing and/or consideration (05/12/2026)
• 05/12/2026 Committee recommends passage
Bill Text
SECTION 1. If, on or before December 31, 2026, Los Toros Records, Inc., incorporated on September 3, 1999, shall file any corporation tax returns as may be required, and shall pay all taxes which were due or should have been due to the state, and shall file with the secretary of state a certificate signed by the tax administrator that such tax returns and such taxes have been paid; and shall also file all reports and pay all fees which may be required by the secretary of state, then the revocation of the charter of said corporation shall thereupon to wit, upon the filing of said certificate, said reports and the payment of said fees, be vacated and said corporation shall thereupon be entitled to all privileges, benefits and powers and subject to all of the same duties and liabilities as though no revocation of its charter had taken place.
SECTION 2. This act shall take effect upon passage.
SECTION 2. This act shall take effect upon passage.