Iowa Senate Bill SF425

Iowa 2023-2024 Regular Session

• Introduced: 2/27/23
• Refer: 3/2/23

Caption

A bill for an act relating to utilization of filing services offered by the secretary of state.(Formerly SSB 1042.)

Impact

This legislation impacts state laws related to business entity formations and compliance requirements managed by the Secretary of State. By implementing these surcharges, the bill facilitates quicker responses to urgent filing needs while also generating additional revenue for the state through administrative fees. The removal of certain reporting requirements aims to lessen bureaucratic burdens on businesses, providing them with more straightforward procedures for reinstatement and compliance.

Summary

Senate File 425, introduced by the Committee on Commerce, addresses the utilization of filing services offered by the Secretary of State in Iowa. The bill introduces various expedited filing service surcharges, allowing users to pay for expedited processing of their documents. Specifically, it details a fee structure that includes $250 for one-hour service, $175 for same-day service, $50 for two-day service, and $15 for five-day service, thus aiming to streamline business processes for corporations and limited liability companies (LLCs). The intention is to improve administrative efficiency and provide better service to citizens and businesses requiring timely filings.

Contention

Notably, there are concerns regarding the introduction of service fees. Critics may argue that such surcharges could disproportionately affect smaller businesses that might find the additional costs burdensome. The intricacies of amending existing laws concerning LLCs and corporations could also lead to discussions about ensuring transparency and fairness in how these changes impact business operations in Iowa. Overall, the balance between improved efficiency and the potential financial burden on small enterprises will likely be a point of contention in the bill's further discussions.