An Act Relative to Improving the Safety and Standards of Organizing a Business

Chapter 9 of the General Laws is hereby amended by adding the following chapter:-

Section 32.

The state secretary, before approving a certificate of organization in connection with a corporation or limited liability company shall require all documents necessary for licensure, in the area that applies to the prospective corporation or limited liability company, be provided to his office. These documents shall include criminal offender record information for all people employed by the corporation or limited liability company.

The state secretary shall appoint a council within his office to immediately make an investigation as to the applicants for incorporation of such an institution and as to the purposes thereof and any other material facts relative thereto. Said council may approve such certificate. In acting upon any such certificate, said council shall give a public hearing, notice of which shall, at the expense of the applicants, be published once a week for 3 successive weeks in 2 newspapers, 1 of which is published in the county where the institution has or is to have its principal office or place of business, the last publication to be at least 3 days before the date set for the hearing. Said council after making its investigation hereunder and subject to licensure provisions, shall make a determination approving or disapproving the certificate of organization hereunder and shall forthwith report its findings to the state secretary.

If the council disapproves a certificate of organization, it shall submit with its report a written statement setting forth in detail the reasons for its disapproval of such certificate. If it appears from the report so submitted to the secretary that the council does not approve of such certificate, he shall refuse to endorse his approval thereon, otherwise he shall endorse his approval thereon unless he finds that the provisions of law relative to the organization of the corporation or limited liability company have not been complied with. If such certificate or articles are not approved hereunder, the applicant or applicants may appeal to the superior court, which shall hear the case and determine whether or not the certificate shall be approved.

The state secretary is permitted to raise the application fees for certificates of organization to offset the additional costs of the administrative process proscribed by this section