The Buckeye Institute has filed its fourth amicus brief in the case of Texas Top Cop Shop v. Bondi, urging the U.S. Court of Appeals for the Fifth Circuit to uphold a district court's injunction against the Corporate Transparency Act. The law is criticized for granting the government extensive powers to collect private information from small business owners.
Robert Alt, president and CEO of The Buckeye Institute, stated, "The alarming reporting requirements in this law constitute an unconstitutional dragnet federal surveillance program of American small business owners." He added that it contradicts "our First Amendment-protected right to associate, free from the government’s prying eyes."
The institute argues that the Corporate Transparency Act resembles measures previously deemed unconstitutional in Americans for Prosperity Found. v. Bonta and NAACP v. Alabama. The act mandates around 32 million small businesses to register detailed personal information about their beneficial owners with the federal government. Non-compliance results in criminal penalties and a $500 daily fine for late or inaccurate reports.
The Center for Individual Rights represents Texas Top Cop Shop in this significant legal battle. The Buckeye Institute has previously submitted three amicus briefs advocating for a preliminary injunction to halt enforcement of what they consider a chilling law.