UTAH, USA. 8th August, 2024 - Independent Attorney General candidate Austin Hepworth has filed a constitutional challenge against the United States federal government. Specifically challenging the Federal Corporate Transparency Act (CTA) on behalf of small businesses in Utah and other states. The CTA, a federal law passed by Congress, imposes new compliance burdens on small businesses.
Hepworth argues that the CTA violates several constitutional protections:
1. Fourth Amendment: The law requires small business owners to provide information that could be used against them in law enforcement actions and shared with other countries, which Hepworth contends constitutes an unreasonable search and seizure.
2. Fifth Amendment: Hepworth claims the CTA is overly vague, as it requires reporting the identities of individuals who "substantially control" a company, even indirectly. This ambiguity can lead to excessive discretion by enforcers and unclear compliance requirements.
3. First Amendment: The forced disclosure of private relationships could infringe on free speech and association rights, potentially exposing individuals to legal risks based on their associations or public stances on sensitive issues.
4. Tenth Amendment: Hepworth argues that business regulation should be left to the states, as the CTA oversteps federal authority by imposing uniform rules on business ownership.
Hepworth likens the CTA's requirements to a hypothetical scenario where law-abiding citizens must disclose all medicines and visitors in their homes to help identify illegal activity. He asserts that the law imposes undue burdens on small business owners, who are not responsible for law enforcement, and argues that the government's benefit is minimal.
He emphasizes the importance of constitutional protections and believes that the courts will uphold these rights, ensuring that small business owners are not unduly burdened by unconstitutional government regulations.