Iowa 2023-2024 Regular Session

Iowa Senate Bill SF2347

Introduced
2/14/24  
Refer
2/15/24  
Introduced
2/14/24  

Caption

A bill for an act providing for limited liability companies, providing for fees, and including effective date provisions.(Formerly SSB 3147.)

Impact

The impact of SF2347 on state laws revolves around the regulation and administrative framework for LLCs. By modernizing the Iowa Code on LLCs, it seeks to ensure clarity in the formation and operation of these business entities. The introduction of filing fees and the specific requirements for derivative actions could affect how LLC members manage internal disputes within their organizations. While supporters of the bill argue that these changes create a uniform standard beneficial for business operations, critics may voice concerns about the implications of fees on small businesses and accessibility.

Summary

Senate File 2347, often referred to as SF2347, seeks to amend provisions associated with Limited Liability Companies (LLCs) as outlined in Iowa Code chapter 489. The bill introduces terminology changes for consistency with model legislation, modifies requirements for various filings, and establishes specific fees for changing registered agent or registered office, among other provisions. This act aims to modernize and streamline the legal framework governing LLCs in Iowa to align with best practices recommended by national standards.

Contention

One notable point of contention involves the restrictions placed on derivative actions within LLCs. The bill removes the previously allowed exception regarding the futility of making demands before a member could file a derivative action, which may lead to disagreements among members regarding access to legal recourse. Additionally, the introduction of filing fees for certain documents could draw criticism from small business advocates who may perceive these as additional burdens. Overall, the discussions surrounding the bill reflect varied perspectives on balancing administrative efficiency against protecting member rights within LLCs.

Companion Bills

IA SSB3147

Related A bill for an act providing for limited liability companies, providing for fees, and including effective date provisions.(See SF 2347.)

IA HSB659

Related A bill for an act providing for limited liability companies, providing for fees, and including effective date provisions.(See HF 2582, HF 2647.)

IA HF2582

Similar To A bill for an act providing for limited liability companies, providing for fees, and including effective date provisions.(Formerly HSB 659; See HF 2647.)

IA HF2647

Similar To A bill for an act providing for limited liability companies, providing for fees, and including effective date provisions. (Formerly HF 2582, HSB 659.) Effective date: 05/01/2024.

Previously Filed As

IA HF918

A bill for an act relating to motor vehicle financial liability coverage, providing penalties, and including effective date provisions. (Formerly HSB 172.)

IA HF545

A bill for an act providing for the regulation of delivery network companies and drivers, making penalties applicable, and including effective date provisions.(Formerly HF 7.)

IA HF2767

A bill for an act providing for the sale and distribution of certain food, providing for fees, making penalties applicable, and including effective date provisions. (Formerly HF 2444.)

IA HF993

A bill for an act providing for the direct shipment of alcoholic liquor, providing fees, and including effective date provisions.(Formerly HF 761, HF 140; See HF 2354.)

IA HF2354

A bill for an act providing for the direct shipment of alcoholic liquor, providing fees, and including effective date provisions.(Formerly HF 993, HF 761, HF 140.)

IA HF761

A bill for an act providing for the direct shipment of alcoholic liquor, providing fees, and including effective date provisions.(Formerly HF 140; See HF 993, HF 2354.)

IA SF570

A bill for an act creating a specialty business court, providing fees, and including effective date and applicability provisions.(Formerly SSB 1203; See SF 639.)

IA HF2766

A bill for an act relating to captive insurance companies and life captive reinsurance companies, and including civil penalties. (Formerly HSB 756.) Effective date: 07/01/2026.

IA SF543

A bill for an act relating to the conduct of election recounts, providing penalties, and including effective date provisions.(Formerly SSB 1176.)

IA SF2499

A bill for an act relating to captive insurance companies and life captive reinsurance companies, and including civil penalties.(Formerly SF 2446, SSB 3179.)

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