A bill for an act providing fees for the filing of a biennial report by business entities with the secretary of state.(Formerly HSB 109; See HF 997.)
The main impact of HF759 is the introduction of flexibility concerning the filing fee associated with biennial reports. Previously, certain entities faced a statutorily fixed fee of $60, but this bill allows the Secretary of State to set the fee, which could vary depending on the regulatory landscape, leading to potential increases or decreases in costs for businesses. This change aims to streamline the filing process while ensuring that the costs align with administrative needs and efforts in processing these reports.
House File 759 aims to amend existing laws related to the filing of biennial reports by business entities with the Iowa Secretary of State. The bill outlines that business entities, whether domestic or foreign, must file a biennial report that must include specific information such as the entity's name, address of the registered office, and the name of the registered agent. Additionally, the bill introduces the provision for the Secretary of State to impose and collect a filing fee as a condition for accepting these reports, replacing a previously fixed fee with a variable one determined by the Secretary of State.
The bill may face contention regarding the potential financial implications for small businesses, which could find variable fees burdensome. While larger corporations may absorb any fee changes more easily, small start-ups could perceive this as an unnecessary financial strain. Additionally, the empowerment of the Secretary of State to determine the fees adds a layer of regulatory oversight that some may view skeptically, fearing it might lead to increasing costs without corresponding benefits in terms of service or efficiency.