Bills › 91st General Assembly
Relating to services provided by the secretary of state, providing fees, and making appropriations
Sponsored by the House Ways and Means (successor To Hsb 17) Committee
Topics:Business & economyState governmentTechnology & privacy
Where it is now
- Done: IntroducedFebruary 3, 2025
- Done: SubcommitteeFebruary 20, 2025
- Done: House committeeApril 2, 2025
- Done: Passes the HouseMay 12, 202590–0
- Done: Senate committeeFebruary 12, 2026
- Done: Passes the SenateApril 14, 202647–0
- Done: To the GovernorMay 5, 2026
- Done: Signed into lawJune 2, 2026
SF 629 became law → The same legislation passed as SF 629, so this version was set aside. Go to SF 629 What’s a funnel?
What’s in it
AI summary The secretary of state could collect new fees and higher surcharges for people who want to file business documents quickly. These extra funds would be used to update technology and manage business organizations. Starting in 2025, the secretary can collect up to $2 million in additional fees each year to help modernize business services.1
Read the official explanation
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.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.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 The Code section is repealed on July 1, 2026.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.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 $15.13). Moneys in the fund are appropriated to the office of the secretary for the exclusive purpose of administering business organization statutes (Code Title XII).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.
Why it matters. The Secretary of State could set new fees for business services and charge additional surcharges of $175 for same-day service or $250 for one-hour service when filing business documents. These changes would affect businesses filing documents such as corporations, limited liability companies, and partnerships. Revenue to the Business Services Modernization Fund is estimated to increase by up to $2.0 million annually beginning in fiscal year 2026.2
Senate subcommittee
Named January 25, 2026. It hasn’t reported yet.
Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part
Fiscal note
Can’t be estimated Compare with other bills
AI summary This bill allows the Secretary of State to set new fees for business services and creates two new expedited filing surcharges. It is estimated that revenue to the Business Services Modernization Fund will increase by up to $2.0 million annually beginning in fiscal year 2026. The increase in revenue to the Business Administration Fund from the new filing surcharges cannot be estimated because it is unknown how many businesses will use those services.4
Read the fiscal note
Description
House File 985 relates to fees for business services offered by the Secretary of State (SOS) that support the duties of the Office.
The Bill requires the SOS to adopt administrative rules pursuant to Iowa Code chapter 17A when setting additional fee amounts for performing services. The Bill prohibits the SOS from collecting additional fees totaling more than $2.0 million for services in a fiscal year. The Bill requires the SOS to deposit any additional fee amounts collected into the Business Services Modernization Fund. The Bill also renames the Technology Modernization Fund to the Business Services Modernization Fund, and makes the Fund permanent by eliminating its repeal.
The Bill also creates two additional surcharges. The Bill creates an expedited filing service at a cost of $250 for a one-hour filing service and $175 for a same-day filing service. The Bill also requires the SOS to provide written confirmation of an expedited filing. Any moneys collected from the two additional surcharges will be deposited into the Business Administration Fund.
Background
Iowa Code section 9.4 requires the SOS to collect certain fees, including fees determined by administrative rule. Iowa Code section 9.4A created the Technology Modernization Fund. The Technology Modernization Fund was established to modernize technology used by the SOS. Funds are available until fully expended or until June 30, 2026, whichever occurs first. Iowa Code section 9.15 requires the SOS to offer expedited filing services and allows the SOS to impose a surcharge for the service. Currently, the SOS offers two additional surcharges: $50 for a two-day service and $15 for a five-day service. Surcharge revenue is deposited into the Business Administration Fund created to administer business organization statutes. The following business entity forms may request the SOS’s expedited business filing services:
- Uniform partnership pursuant to Iowa Code section 486A.105A.
- Uniform limited partnership pursuant to Iowa Code section 488.206A.
- Uniform limited liability company pursuant to Iowa Code section 489.122A.
- Business corporation pursuant to Iowa Code section 490.120A.
- Corporation for pecuniary profit pursuant to Iowa Code section 491.5A.
- Cooperative association pursuant to Iowa Code sections 499.44A and 501A.201A.
- Closed cooperative pursuant to Iowa Code section 501.105A.
- Revised Iowa nonprofit corporation pursuant to Iowa Code section 504.111A.
Assumptions
- The SOS estimates that there will be a maximum increase in revenue to the Business Services Modernization Fund of $2.0 million.
- A revenue increase as a result of a two-hour filing service and a same-day filing service cannot be estimated as it is unknown how many business entities will use the services.
Fiscal Impact
House File 985 is estimated to increase revenue to the Business Services Modernization Fund by up to $2.0 million annually beginning in FY 2026. An increase in revenue to the Business Administration Fund as a result of a two-hour and a same-day filing service cannot be estimated as it is unknown how many business entities will use these services.
Source
- Secretary of State
- Business Entities, Expedited Filings · April 22, 2025
Iowa Code it changes
Lobbying
2 for · 0 against · 11 undecided · Who →