House Study Bill 61 - Introduced SENATE/HOUSE FILE _____ BY (PROPOSED SECRETARY OF STATE BILL) A BILL FOR An Act authorizing the secretary of state to modify fees for 1 businesses newly organizing in this state during an Iowa 2 start a business month. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1167DP (3) 85 da/nh

S.F. _____ H.F. _____ DIVISION I 1 IOWA START-UP BUSINESS INITIATIVE 2 Section 1. NEW SECTION . 9.4A Iowa start a business 3 initiative. 4 1. As used in this section, unless the context otherwise 5 requires, “business entity” means a profit or nonprofit business 6 organized under the laws of this state, including but not 7 limited to a partnership or limited liability partnership 8 under chapter 486A; a limited partnership under chapter 488; 9 a limited liability company under chapter 489; a corporation 10 under chapter 490; a cooperative association under chapter 499, 11 501, or 501A; or a nonprofit corporation under chapter 504. 12 2. The secretary of state may establish and administer an 13 Iowa start a business initiative. In order to participate in 14 the initiative as an Iowa start-up business, a business entity 15 must qualify as a newly formed Iowa-based business according to 16 requirements established by rules adopted by the secretary of 17 state. 18 3. The secretary of state may designate a month as “Iowa 19 start a business month”. 20 4. The secretary of state may reduce or waive any fee that 21 must be paid to the secretary of state as a direct result of 22 organizing an Iowa start-up business during an Iowa start a 23 business month, which may include a filing fee paid by a person 24 as required pursuant to section 486A.1202, 488.1206, 489.117, 25 490.122, 499.45, 501.105, 501A.205, or 504.113. 26 5. If the secretary of state implements this section 27 or any part of this section, it shall adopt all rules that 28 the secretary of state determines are necessary for its 29 administration. 30 DIVISION II 31 COORDINATING PROVISIONS 32 Sec. 2. Section 486A.1202, Code 2013, is amended by adding 33 the following new subsection: 34 NEW SUBSECTION . 4. The secretary of state may reduce or 35 -1- LSB 1167DP (3) 85 da/nh 1/ 4

S.F. _____ H.F. _____ waive any fee that is otherwise required to be collected by the 1 secretary of state under this chapter, if the fee is to be paid 2 by a person as a direct result of organizing an Iowa start-up 3 business as provided in section 9.4A. 4 Sec. 3. Section 488.1206, Code 2013, is amended by adding 5 the following new subsection: 6 NEW SUBSECTION . 4. The secretary of state may reduce or 7 waive any fee that is otherwise required to be collected by the 8 secretary of state under this chapter, if the fee is to be paid 9 by a person as a direct result of organizing an Iowa start-up 10 business as provided in section 9.4A. 11 Sec. 4. Section 489.117, Code 2013, is amended by adding the 12 following new subsection: 13 NEW SUBSECTION . 3A. The secretary of state may reduce or 14 waive any fee that is otherwise required to be collected by the 15 secretary of state under this chapter, if the fee is to be paid 16 by a person as a direct result of organizing an Iowa start-up 17 business as provided in section 9.4A. 18 Sec. 5. Section 490.122, Code 2013, is amended by adding the 19 following new subsection: 20 NEW SUBSECTION . 4. The secretary of state may reduce or 21 waive any fee that is otherwise required to be collected by the 22 secretary of state under this chapter, if the fee is to be paid 23 by a person as a direct result of organizing an Iowa start-up 24 business as provided in section 9.4A. 25 Sec. 6. Section 499.45, Code 2013, is amended to read as 26 follows: 27 499.45 Fees. 28 1. A fee of twenty dollars shall be paid to the secretary 29 of state upon filing articles of incorporation, amendments, or 30 renewals. 31 2. Except as provided in this section , the association shall 32 pay the fees prescribed by section 490.122 when the documents 33 described in that section are delivered to the secretary of 34 state for filing. 35 -2- LSB 1167DP (3) 85 da/nh 2/ 4

S.F. _____ H.F. _____ 3. The secretary of state may reduce or waive any fee that 1 is otherwise required to be collected by the secretary of state 2 under this chapter, if the fee is to be paid by a person as 3 a direct result of organizing an Iowa start-up business as 4 provided in section 9.4A. 5 Sec. 7. Section 501.105, Code 2013, is amended by adding the 6 following new subsection: 7 NEW SUBSECTION . 7. The secretary of state may reduce or 8 waive any fee that is otherwise required to be collected by the 9 secretary of state under this chapter, if the fee is to be paid 10 by a person as a direct result of organizing an Iowa start-up 11 business as provided in section 9.4A. 12 Sec. 8. Section 501A.205, Code 2013, is amended by adding 13 the following new subsection: 14 NEW SUBSECTION . 4. The secretary of state may reduce or 15 waive any fee that is otherwise required to be collected by the 16 secretary of state under this chapter, if the fee is to be paid 17 by a person as a direct result of organizing an Iowa start-up 18 business as provided in section 9.4A. 19 Sec. 9. Section 504.113, Code 2013, is amended by adding the 20 following new subsection: 21 NEW SUBSECTION . 4. The secretary of state may reduce or 22 waive any fee that is otherwise required to be collected by the 23 secretary of state under this chapter, if the fee is to be paid 24 by a person as a direct result of organizing an Iowa start-up 25 business as provided in section 9.4A. 26 EXPLANATION 27 This bill authorizes the secretary of state to provide for an 28 Iowa start-up business initiative for the benefit of domestic 29 business entities newly organized under the laws of this state 30 according to rules adopted by the secretary of state. Under 31 the initiative, the secretary of state may designate a month 32 as “Iowa start a business month”. The secretary of state may 33 reduce or waive any fee required to be paid by a person as a 34 direct result of organizing an Iowa start-up business during 35 -3- LSB 1167DP (3) 85 da/nh 3/ 4

S.F. _____ H.F. _____ that month (e.g., filing articles of incorporation for an Iowa 1 corporation). The businesses affected include partnerships 2 (Code chapter 486A), limited partnerships (Code chapter 488), 3 limited liability companies (Code chapter 489), business 4 corporations (Code chapter 490), various forms of cooperatives 5 (Code chapters 499, 501, and 501A), and nonprofit corporations 6 (Code chapter 504). The secretary of state is authorized to 7 adopt rules to administer the initiative. 8 -4- LSB 1167DP (3) 85 da/nh 4/ 4