Bill > HF985

Introduced Session

GENERAL. This bill amends several sections in Code chapter 9 that provides for the collection of fees by the secretary of state (secretary) and the appropriation of moneys from certain funds under the control of the secretary of state to support of the office. BUSINESS SERVICES MODERNIZATION. Code section 9.4 requires the secretary to collect all fees directed to be collected by the secretary. This includes a special fee imposed by the secretary for providing a copy of a law or record. The secretary is authorized to determine the amount of the special fee by rule. The bill amends that section by authorizing the secretary to adopt by rule additional fee amounts to be imposed and collected by the secretary. For each fiscal year beginning on or after July 1, 2025, the secretary cannot collect more than $2 million in such additional fee amounts. The fee amounts are to be deposited in the technology modernization fund created in Code section 9.4A. Moneys in the fund are appropriated to the secretary of state for purposes of modernizing technology used by the secretary to fulfill the duties of office. The Code section is repealed on July 1, 2026. The bill renames the fund to the business services modernization fund and revises its purpose. Under the bill, for each fiscal year beginning on or after July 1, 2025, moneys in the fund are appropriated to the secretary for purposes of modernizing operations within the business services division. The bill eliminates the repeal. BUSINESS ADMINISTRATION. The bill amends a provision enacted in 2021 Iowa Acts, chapter 165, section 253, which requires the secretary to establish and administer programs providing extra services to filers of documents under a number of Code sections regulating business entities. Code section 9.15 requires the secretary to offer a service in which a business document is filed on an expedited basis. This includes two additional surcharges for expedited services: for a two-day service, an additional $50, and for a five-day service, an additional $15. Moneys collected from the surcharges are deposited in the business administration fund (fund) created in the same Act (Code section 9.13). Moneys in the fund are appropriated to the office of the secretary for the exclusive purpose of administering business organization statutes (Code Title XII). The specific business entities include partnerships (Code section 486A.105A), limited partnerships (Code section 488.206A), limited liability companies (Code section 489.122A), for-profit corporations (Code section 490.120A), other corporations for pecuniary profit (Code section 491.5A), traditional modern cooperative associations (Code section 499.44A), closed cooperatives (Code section 501.105A), cooperatives organized under the Iowa cooperative associations Act (Code section 501A.201A), and nonprofit corporations (Code section 504.111A). The bill provides two additional surcharges for such services: for a one-hour service, an additional $250, and for same-day service, an additional $175. At the time of the expedited filing, the secretary must provide a written confirmation of an expedited filing.

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Other Sponsors (1)

Subcommittee: Bousselot, Bisignano, and Schultz. (on 01/25/2026)

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