Bills › 91st General Assembly
Providing for an expedited filing service for filers of business documents administered by the secretary of state, and providing fees
Sponsored by the House Judiciary Committee
Where it is now
- Done: IntroducedJanuary 15, 2025
- Done: SubcommitteeJanuary 15, 2025
- Done: House committeeJanuary 30, 2025
- Skipped: Passes the HouseContinued as HF 985
- Next: Senate committee
- Next: Passes the Senate
- Next: To the Governor
- Next: Signed into law
Became HF 985 → Its progress continues under the new number. Go to HF 985 What’s a funnel?
What’s in it
AI summary The Secretary of State would offer new, faster ways for businesses to file their paperwork. People filing documents for corporations, partnerships, or nonprofits could pay extra fees for one-hour or same-day service. If someone uses these faster options, the Secretary must provide a written confirmation that the filing was completed.1
Read the official explanation
BACKGROUND. This bill amends a provision enacted in 2021 Iowa Acts, chapter 165, section 253, which requires the secretary of state (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). BILL’S PROVISIONS. 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.
House subcommittee
Named February 20, 2025. On March 13, 2025 it recommended passage.
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
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.3
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