COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:2201S.01I Bill No.:SB 570 Subject:Secretary of State Type:Original Date:March 31, 2025Bill Summary:This proposal repeals the expiration date for the fees credited to the
Secretary of State' Technology Trust Fund.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net
Effect on General
Revenue $0$0$0
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028SOS Technology
Trust Fund (0266) *$0
More or Less than
$1,779,703
More or Less than
$3,559,405
Total Estimated Net
Effect on Other State
Funds $0
More or Less than
$1,779,703
More or Less than
$3,559,405
* Oversight assumes several provisions in current law allow the SOS to collect an additional $5
fee on fees for filings relating to business organizations, commercial transactions, and
trademarks, names, and private emblems to be credited to the State's Technology Trust Fund.
These provisions are set to expire on December 31, 2026. This proposal repeals the expiration
date allowing SOS to continue collecting revenue as a result.
Numbers within parentheses: () indicate costs or losses. L.R. No. 2201S.01I
Bill No. SB 570
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ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net
Effect on All Federal
Funds $0$0$0
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net
Effect on FTE 000
☐ Estimated Net Effect (expenditures or reduced revenues) expected to exceed $250,000 in any
of the three fiscal years after implementation of the act or at full implementation of the act.
☒ Estimated Net Effect (savings or increased revenues) expected to exceed $250,000 in any of
the three fiscal years after implementation of the act or at full implementation of the act.
ESTIMATED NET EFFECT ON LOCAL FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Local Government$0$0$0 L.R. No. 2201S.01I
Bill No. SB 570
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March 31, 2025
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FISCAL ANALYSIS
ASSUMPTION
Sections 347.740, 351.127, 355.023, 356.233, 359.653, 400.9-528 and 417.018 – Secretary of
State fees
Officials from the Office of the Secretary of State (SOS) assume that removing the expiration
date will not result in any changes in revenue. Failure to extend or remove the sunset date will
result in a loss of approximately $3.4 million dedicated to the Technology Fund.
The SOS is a silo IT department. All changes to the software would require working with a third-
party vendor and/or the Information Technology department.
The SOS reserves the right to offset or request additional resources for estimated fiscal note
impacts during the budget process.
SOS has provided the information in the table below:
Business Registration System Totals for
1/1/2024 - 12/31/2024
Business
Type
Filing
Method
CountTotal AmountTech Fee CorpOnline455,867$10,669,331.81 CorpPaper93,531$1,685,578.60 SOPOnline11$235.00 SOPPaper3,638$31,260.00 UCCOnline150,847$1,534,838.00 UCCPaper7,987$115,806.00 Total Paper Filings105,156$1,832,644.60 Total Online Filings606,725$12,204,404.81 Total Corp Filings549,398$12,354,910.41 Total SOP Filings3,649$31,495.00 Total UCC Filings158,834$1,650,644.00 711,881 $3,559,405.00
Oversight notes the SOS also provided the amount collected in 2022 was $3,409,910 and
$3,402,585 in 2023. L.R. No. 2201S.01I
Bill No. SB 570
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Oversight assumes several provisions in current law allow the SOS to collect an additional $5
fee for filings relating to business organizations, commercial transactions, and trademarks,
names, and private emblems to be credited to the State's Technology Trust Fund. These
provisions are set to expire on December 31, 2026. This proposal repeals the expiration date.
Oversight will reflect a partial year (6 months) of the fee collection continuing in FY 2027 with
the full year of the continued fee collection beginning in FY 2028.
Officials from the Office of the State Treasurer assume the proposal will have no fiscal impact
on their respective organization. Oversight does not have any information to the contrary.
Therefore, Oversight will reflect a zero impact in the fiscal note.
FISCAL IMPACT – State GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028SOS TECNOLOGY TRUST FUND
(0266)
Revenue - SOS (§347.740-417.018)
Various fees collected by SOS as a
result of removing the expiration date$0
More or Less
than
$1,779,703
More or Less
than
$3,559,405
ESTIMATED NET EFFECT ON
SOS TECHNOLOGHY TRUST
FUND $0
More or Less
than
$1,779,703
More or Less
than
$3,559,405
FISCAL IMPACT – Local GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028$0$0$0
FISCAL IMPACT – Small Business
This will affect small businesses that will be required to pay these fees as a result of this
proposal.
FISCAL DESCRIPTION
Several provisions in current law allow the Secretary of State to collect an additional $5 fee on
fees for filings relating to business organizations, commercial transactions, and trademarks, L.R. No. 2201S.01I
Bill No. SB 570
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March 31, 2025
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names, and private emblems to be credited to the state's technology trust fund. These provisions
are set to expire on December 31, 2026. This act repeals the expiration date.
This legislation is not federally mandated, would not duplicate any other program and would not
require additional capital improvements or rental space.
SOURCES OF INFORMATION
Office of the Secretary of State
Office of the State Treasurer
Julie MorffJessica HarrisDirectorAssistant DirectorMarch 31, 2025March 31, 2025