Relative to the operation and regulation of certain business entities within the state.
Impact
The bill amends several existing statutes to facilitate the easier establishment and operation of business entities within the state. Significant procedural changes include the simplification of the process for limited partnerships to change their registered agent or office address, which will adopt a uniform procedure similar to that used by other business types. Moreover, it revises the fee structure associated with document certification from a per-page charge to a flat fee per document, aiming to reduce administrative burdens on businesses interacting with the Secretary of State's office.
Summary
SB197 is designed to update and streamline the regulations governing certain business entities in New Hampshire. The proposed bill introduces multiple provisions including allowing domestic nonprofit organizations and nonfiling entities to appoint an agent for service of process, thus simplifying their administrative responsibilities. It also mandates that foreign business entities affirm their 'good standing' in their state of incorporation when applying to conduct business within New Hampshire. Another critical change allows both domestic and foreign benefit corporations to include the designation 'PBC' in their names, which underscores their status as Public Benefit Corporations.
Sentiment
The general sentiment surrounding SB197 appears to be supportive, particularly from business leaders and entities seeking to ease the administrative complexities related to establishing and maintaining corporate status. Lawmakers have expressed a consensus that these changes will foster a more favorable business environment in New Hampshire. However, there are concerns regarding the implications of reducing fees and its impact on state revenue, with some opposition stemming from a lack of clarity on how these changes will affect service delivery and enforcement of regulations.
Contention
One notable point of contention regarding SB197 is its potential impact on the revenue of the state from administrative fees associated with business registrations. The anticipated fiscal impact suggests a decrease of approximately $30,500 annually starting from 2024, which raises questions about budget impacts on the Department of State and how it may affect service levels in processing business filings. Moreover, the broad definition of business entities covered could lead to further discussions around compliance and enforcement mechanisms as more organizations may opt to register under these streamlined processes.
A bill for an act relating to documents filed with the secretary of state by business entities, including by authorizing the secretary of state to refuse to file documents or remove information from documents.