A bill for an act providing for certain business entities acting under the jurisdiction of the secretary of state by providing for the removal of information from a filing based on a sworn affidavit and administrative dissolution based on the response to interrogatories.(Formerly SSB 3165.)
Impact
The proposed bill is expected to streamline the legal and bureaucratic framework governing business entities in Iowa. By empowering the Secretary of State to act upon credible information that suggests illegitimate use of business entities, the bill enhances the state’s capability to address fraud and other unlawful practices proactively. This could lead to a more reliable environment for both consumers and legitimate businesses, contributing to overall economic stability. Moreover, the requirement for a prompt response to interrogatories ensures that entities remain compliant with state laws, thereby reducing the administrative burden associated with maintaining these entities.
Summary
Senate File 2402 introduces significant amendments to the regulation and management of various business entities under the jurisdiction of the Iowa Secretary of State. It aims to enhance the mechanisms for ensuring compliance and preventing fraudulent activities among these entities, including partnerships and corporations. The bill outlines a formal process for the removal of unauthorized information from business filings based on sworn affidavits and introduces the possibility of administrative dissolution for entities that fail to respond adequately to interrogatories regarding their conduct. This aligns with the state's objective to maintain the integrity of its business registration process and protect against misuse of business structures.
Contention
Notable points of contention surrounding SF2402 may arise from concerns about the balance between regulatory oversight and the operational freedom of businesses. Opponents might argue that the bill could lead to overreach by the Secretary of State, particularly regarding the criteria for initiating interrogatories and dissolving businesses. The reliance on 'credible information' could also be a point of debate as it may not always lead to clear-cut conclusions and could pose challenges for businesses in demonstrating compliance under scrutiny. Additionally, the implications of administrative dissolution without adequate due process may be critiqued by business advocates who emphasize the need for fair handling of entity compliance matters.
Related
A bill for an act providing for certain business entities acting under the jurisdiction of the secretary of state by providing for the removal of information from a filing based on a sworn affidavit and administrative dissolution based on the response to interrogatories.(See HF 2678.)
Related
A bill for an act providing for certain business entities acting under the jurisdiction of the secretary of state by providing for the removal of information from a filing based on a sworn affidavit and administrative dissolution based on the response to interrogatories.(See SF 2402.)
Similar To
A bill for an act providing for certain persons acting under the jurisdiction of the secretary of state, including by providing for information from required filings, and the administrative dissolution of certain entities, and making penalties applicable. (Formerly HSB 665.) Effective date: 07/01/2026.
A bill for an act providing for certain business entities acting under the jurisdiction of the secretary of state by providing for the removal of information from a filing based on a sworn affidavit and administrative dissolution based on the response to interrogatories.(See HF 2678.)
A bill for an act providing for certain business entities acting under the jurisdiction of the secretary of state by providing for the removal of information from a filing based on a sworn affidavit and administrative dissolution based on the response to interrogatories.(See SF 2402.)
A bill for an act providing for certain persons acting under the jurisdiction of the secretary of state, including by providing for information from required filings, and the administrative dissolution of certain entities, and making penalties applicable. (Formerly HSB 665.) Effective date: 07/01/2026.
A bill for an act providing for an expedited filing service for filers of business documents administered by the secretary of state, and providing fees.(Formerly SSB 1003; See SF 629.)
A bill for an act providing for an expedited filing service for filers of business documents administered by the secretary of state, and providing fees.(Formerly HSB 17; See HF 985.)
A bill for an act providing for an expedited filing service for filers of business documents administered by the secretary of state, and providing fees. (Formerly SF 285, SSB 1003.) Effective date: 07/01/2026
A bill for an act relating to documents filed with the secretary of state by business entities, including by authorizing the secretary of state to refuse to file documents or remove information from documents.
A bill for an act providing for the conversion of partnerships into other forms of domestic or foreign organizations, and providing for fees.(Formerly SSB 3160; See SF 2468.)
Reforms the organizational structure for the Department of Transportation and Development including its duties, powers, and responsibilities of officers and employees (EN INCREASE SD EX See Note)
A bill for an act providing for certain business entities acting under the jurisdiction of the secretary of state by providing for the removal of information from a filing based on a sworn affidavit and administrative dissolution based on the response to interrogatories.(See HF 2678.)