Providing for certain business entities by establishing a military service filing fee waiver, and including effective date provisions

BACKGROUND (BUSINESS ENTITIES)., partnership and limited partnership, business and nonprofit corporation, limited liability company, and cooperative). Generally, a business entity may be formed as a domestic business entity in its home state or as a foreign business entity doing business in a state although it was formed in another home state. In Iowa, a business entity is governed under its own dedicated Code chapter, often based on model legislation with fee amounts reserved for decision by the enacting body. In Iowa, like most states, a business entity is under the general authority of the secretary of state (secretary). SUMMARY. This bill provides that a qualified business entity that requests and receives a military service filing fee waiver (waiver) from the secretary is not required to submit a fee for filing a number of select documents. The bill specifies qualifications for a business entity, eligibility for the filer of a select document, and the names of select documents having fees waived, subject to further requirements that the secretary may adopt by rule. STATUTORY ORGANIZATION. The bill amends Code chapter establishing the secretary’s office. Specifically, it enacts new provisions in subchapter II of that Code chapter which currently includes provisions authorizing extra filing services. It also amends various Code chapters each of which governs a specific type of business entity. The bill amends the principal Code section in each such Code chapter that includes a laundry list of fees for filing documents. IN DETAIL —— QUALIFIED BUSINESS ENTITIES. First, in order to receive a waiver, the business entity must be qualified, meaning that the waiver is limited to a domestic or foreign limited partnership (Code chapter 488); domestic or foreign limited liability company (Code chapter 489); domestic or foreign business corporation (Code chapter 490); and domestic or foreign nonprofit corporation (Code chapter 504). IN DETAIL —— ELIGIBLE FILERS. Second, an individual acting on behalf of the qualified business entity must meet eligibility criteria. The individual must sign the document; must be an interest holder in the qualified business entity; and must be serving in the United States armed forces, the national guard or organized reserves, the United States coast guard, or the civil air patrol, or alternatively must be a veteran. IN DETAIL —— SELECT DOCUMENTS FOR FILING. Third, the filed document must be selected to receive the waiver. The bill provides that a number of different documents are subject to waiver as a select document depending upon the type of qualified business entity., the consolidating amendments) or that changes the document’s meaning (the adoption of an amendment engrossed into the document); a certificate of authority that allows a foreign business entity to do or transact business in this state; or a statement of domestication which is required for certain business entities when changing from foreign to domestic status or vice versa. IN DETAIL —— FEES ASSOCIATED WITH SELECT DOCUMENTS.117A.902) subject to a filing fee of $100.122.1055) subject to a filing fee of $5 under a catchall provision.122.1007), that are subject to a filing fee in the same amount.1503) subject to a filing fee of $100.6.1005) subject to a filing fee of $10.1503) subject to a filing fee of $25. EFFECTIVE DATE. The bill takes effect January 1, 2025.