ARC 6887C - Iowa Administrative Rules

Adopted and Filed

Fees, amendments to chs 30, 40

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ARC 6887C

SECRETARY OF STATE[721]

Adopted and Filed

Rule making related to fees

The Secretary of State hereby amends Chapter 30, "Uniform Commercial Code," and Chapter 40, "Corporations," Iowa Administrative Code.

Legal Authority for Rule Making

This rule making is adopted under the authority provided in Iowa Code chapter 17A and section 9.4A.

State or Federal Law Implemented

This rule making implements, in whole or in part, Iowa Code section 9.4A and 2022 Iowa Acts, Senate File 2385, section 29.

Purpose and Summary

In 2017, the Legislature authorized the Secretary of State to temporarily increase some fees for the purposes of modernizing Secretary of State technology to benefit Iowa's business community. Those temporary increases ended effective June 30, 2022. This rule making reverts those fees to the amounts prior to the increase. The Secretary of State's office stopped collecting the extra fees as scheduled starting July 1, 2022. This rule making reflects that practice.

Public Comment and Changes to Rule Making

Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on July 27, 2022, as ARC 6427C. No public comments were received. No changes from the Notice have been made.

Adoption of Rule Making

This rule making was adopted by the Secretary of State on January 15, 2023.

Fiscal Impact

The Secretary of State received up to $2 million in revenue to update and modernize technology. That total, plus slightly more in some years (sent to the General Fund), will no longer be collected by the Secretary of State. This is not an impact of the rule making itself, but is due to the sunset provision in the 2017 legislation authorizing those fees, ending June 30, 2022. This rule making merely reflects the sunset provision.

Jobs Impact

After analysis and review of this rule making, no impact on jobs has been found.

Waivers

Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Secretary of State for a waiver of the discretionary provisions, if any, pursuant to 721—Chapter 10.

Review by Administrative Rules Review Committee

The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee's meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).

Effective Date

This rule making will become effective on March 15, 2023.

The following rule-making actions are adopted:

Item 1. Amend subrule 30.1(10) as follows:

30.1(10) Filing fees.

a. Filing fee. The fee for filing and indexing a UCC document of one or two pages communicated on paper or in a paper-based format (including faxes) is $20 $10. If there are additional pages, the fee is $40 $20. But the fee for filing and indexing a UCC document communicated by a medium authorized by these rules which is other than on paper or in a paper-based format shall be $10 $5. Upon the expiration of the technology modernization fund in Iowa Code section 9.4A, as created by 2017 Iowa Acts, Senate File 516, section 23, the fees will revert back to the amounts authorized prior to July 1, 2017. Funds generated by these fees shall be exclusively used for improving business services technology.

b. UCC search fee. The fee for a UCC search request communicated verbally, on paper or in a paper-based format is $5.

c. UCC search—copies. The fee for paper copies of UCC documents is $1 per page.

Item 2. Amend subrule 40.8(1) as follows:

40.8(1) A limited partnership or foreign limited partnership authorized to transact business in this state shall deliver to the secretary of state for filing a biennial report that meets the requirements of Iowa Code section 488.210.

a. The fee for filing and indexing a biennial report filed on paper or in a paper-based format is $60 $45. This fee may be provided in the form of credit card, cash, personal check, cashier's check, or money order or by secretary of state charge account. Upon the expiration of the technology modernization fund in Iowa Code section 9.4A, as created by 2017 Iowa Acts, Senate File 516, section 23, the fee will revert back to the amount authorized prior to July 1, 2017. Funds generated by this fee shall be exclusively used for improving business services technology.

b. The fee for an electronic filing through the secretary of state Internet website is $45 $30. This fee must be paid by check, credit card, or secretary of state charge account credit card or secretary of state charge account. Upon the expiration of the technology modernization fund in Iowa Code section 9.4A, as created by 2017 Iowa Acts, Senate File 516, section 23, the fee will revert back to the amount authorized prior to July 1, 2017. Funds generated by this fee shall be exclusively used for improving business services technology.

Item 3. Amend subrule 40.8(2) as follows:

40.8(2) A limited liability company or a foreign limited liability company authorized to transact business in this state shall deliver to the secretary of state for filing a biennial report that meets the requirements of Iowa Code section 489.209.