CORPORATIONS – States findings of the Legislature and calls on Congress to repeal the Corporate Transparency Act.

68th Legislature, 1st Regular Session (2025)

HJM 3 urges Congress to repeal the Corporate Transparency Act, claiming it burdens Idaho's small businesses with unnecessary regulations that hinder growth.

Delivered to Secretary of State at 11:47 a.m. on March 12, 2025

#businessandbusinessentities #congress #unitedstates #federallawsandrelations #government #legislature #memorials #records

Bill Overview

Bill Number: HJM 3

Title: Corporations – States findings of the Legislature and calls on Congress to repeal the Corporate Transparency Act.

Status: Delivered to Secretary of State on March 12, 2025

Introduced: February 4, 2025

Classification: Joint Memorial

Subject Areas: Business and Business Entities, Federal Laws and Relations, Government, Legislature, Memorials, Records

Purpose and Intent

HJM 3 expresses the Idaho Legislature's desire for the United States Congress to repeal the Corporate Transparency Act (CTA), which was enacted in 2021. The memorial argues that the CTA imposes unnecessary regulations on small businesses in Idaho, which could hinder their growth and operational efficiency.

Key Provisions

Findings of the Legislature:

The memorial highlights that Idaho is home to over 900,000 business entities, with small businesses employing more than half of the state's workforce.
It notes Idaho's recognition as the state with the largest small business growth and its status as the least regulated state in the nation due to regulatory reforms like the Red Tape Reduction Act.

Concerns with the Corporate Transparency Act:

The CTA requires certain business entities to disclose beneficial ownership information, which is seen as an additional regulatory burden.
The memorial references ongoing legal challenges to the CTA, including a nationwide preliminary injunction that has created confusion regarding compliance deadlines.

Call to Action:

The memorial requests that Congress act swiftly to repeal the CTA to alleviate the reporting requirements that are deemed onerous for Idaho business owners.

Impact

Affected Parties:

Primarily impacts small businesses in Idaho, which may face increased regulatory burdens and privacy concerns due to the CTA.
The memorial aims to relieve these businesses from what is perceived as unnecessary red tape.

Fiscal Note:

The memorial states that there is no estimated fiscal impact to the general fund associated with this resolution.

Legislative Timeline

February 4, 2025: Bill introduced and referred to the Joint Rules Committee for printing.

February 18, 2025: Passed in the House and filed for first reading in the Senate.

March 10, 2025: Passed in the Senate and returned to the House for enrollment.

March 12, 2025: Delivered to the Secretary of State.

Conclusion

HJM 3 serves as a formal request from the Idaho Legislature to the U.S. Congress to repeal the Corporate Transparency Act, citing concerns over its impact on small businesses and the regulatory environment in Idaho. The memorial reflects a broader commitment to maintaining a business-friendly climate in the state.

Bill