HF 985 (LSB 1686HZ (3) 91)

HOUSE FILE 985

BY  COMMITTEE ON WAYS AND MEANS

(SUCCESSOR TO HF 198)
(SUCCESSOR TO HSB 17)

A BILL FOR

An Act relating to services provided by the secretary of state, providing fees, and making appropriations.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 9.4, Code 2025, is amended to read as follows:
   9.4  Fees.
   1.  The secretary of state shall collect all fees directed by law to be collected by the secretary of state, including a fee to be determined by the secretary of state by rule adopted pursuant to chapter 17A for a copy of any law or record.
   2.  a.  The secretary of state shall adopt rules pursuant to chapter 17A that specify additional fee amounts to be imposed by the secretary of state for performing services under law.
   b.  For the fiscal year beginning July 1, 2025, and for each fiscal year thereafter, the secretary of state shall not collect additional fee amounts imposed under paragraph “a” of more than two million dollars.
   c.  The secretary of state shall deposit additional fee amounts imposed under paragraph “a” and collected under paragraph “b” in the business services modernization fund created pursuant to section 9.4A.
    Sec. 2.  Section 9.4A, Code 2025, is amended to read as follows:
   9.4A  Technology Business services modernization fund.
   1.  A technology modernization business services modernization fund is created in the state treasury under the control of the secretary of state. Moneys in the fund are appropriated to the secretary of state for purposes of modernizing technology used by the secretary of state to fulfill the duties of office.
   2.  On and after For the fiscal year beginning July 1, 2022 2025, and for each fiscal year thereafter, any unobligated or unencumbered moneys remaining in this the business services modernization fund are appropriated to the secretary of state for purposes of modernization modernizing operations within the business services division until fully expended or until June 30, 2026, whichever occurs first.
   3.  This section is repealed July 1, 2026.
    Sec. 3.  Section 9.15, Code 2025, is amended to read as follows:
   9.15  Expedited filing service —— surcharge.
   1.  Upon the request of the filer of a document, the secretary shall provide an expedited filing service. As part of the service, the secretary shall file a document submitted by a filer on an expedited basis.
   2.  The secretary shall implement, assess, and collect a surcharge for providing the expedited filing service based on the period of service as follows:
   a.  For a one-hour service, the surcharge shall be two hundred fifty dollars.
   b.  For a same-day service, the surcharge shall be one hundred seventy-five dollars.
   c.  For a two-day service, the surcharge shall be fifty dollars.
   b.  d.  For a five-day service, the surcharge shall be fifteen dollars.
   3.  The surcharge shall be added to the amount of the fee implemented, assessed, and collected for the actual filing of the document.
   4.  At the time of the expedited filing, the secretary shall provide written confirmation of the filing.
   4.  5.  Any moneys collected by the secretary under this section shall be deposited in the business administration fund created in section 9.13.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   GENERAL. This bill amends several sections in Code chapter 9 that provides for the collection of fees by the secretary of state (secretary) and the appropriation of moneys from certain funds under the control of the secretary of state to support of the office.
   BUSINESS SERVICES MODERNIZATION. Code section 9.4 requires the secretary to collect all fees directed to be collected by the secretary. This includes a special fee imposed by the secretary for providing a copy of a law or record. The secretary is authorized to determine the amount of the special fee by rule. The bill amends that section by authorizing the secretary to adopt by rule additional fee amounts to be imposed and collected by the secretary. For each fiscal year beginning on or after July 1, 2025, the secretary cannot collect more than $2 million in such additional fee amounts. The fee amounts are to be deposited in the technology modernization fund created in Code section 9.4A. Moneys in the fund are appropriated to the secretary of state for purposes of modernizing technology used by the secretary to fulfill the duties of office. The Code section is repealed on July 1, 2026. The bill renames the fund to the business services modernization fund and revises its purpose. Under the bill, for each fiscal year beginning on or after July 1, 2025, moneys in the fund are appropriated to the secretary for purposes of modernizing operations within the business services division. The bill eliminates the repeal.
   BUSINESS ADMINISTRATION. The bill amends a provision enacted in 2021 Iowa Acts, chapter 165, section 253, which requires the secretary to establish and administer programs providing extra services to filers of documents under a number of Code sections regulating business entities. Code section 9.15 requires the secretary to offer a service in which a business document is filed on an expedited basis. This includes two additional surcharges for expedited services: for a two-day service, an additional $50, and for a five-day service, an additional $15. Moneys collected from the surcharges are deposited in the business administration fund (fund) created in the same Act (Code section 9.13). Moneys in the fund are appropriated to the office of the secretary for the exclusive purpose of administering business organization statutes (Code Title XII). The specific business entities include partnerships (Code section 486A.105A), limited partnerships (Code section 488.206A), limited liability companies (Code section 489.122A), for-profit corporations (Code section 490.120A), other corporations for pecuniary profit (Code section 491.5A), traditional modern cooperative associations (Code section 499.44A), closed cooperatives (Code section 501.105A), cooperatives organized under the Iowa cooperative associations Act (Code section 501A.201A), and nonprofit corporations (Code section 504.111A). The bill provides two additional surcharges for such services: for a one-hour service, an additional $250, and for same-day service, an additional $175. At the time of the expedited filing, the secretary must provide a written confirmation of an expedited filing.