HB 5227: Relating to Secretary of State annual reports, fees, and veteran-owned business logotypes - West Virginia

hb5227 s jud amt adopted.htm → hb5227 hfa akers 2-24 _1 adopted.htm · 8 edits

MODERATE

The bill was amended to replace a committee title with a new version sponsored by Delegate Akers, which significantly expands the legislation to include detailed definitions, fee structures, and new reporting requirements. The changes establish specific fees for annual and biennial reports, introduce a biennial reporting election for compliant businesses, create a veteran-owned business logotype program, and add strict penalties for soliciting report filings from businesses without pre-existing relationships.

Scope change

The bill's scope expanded from a general amendment to include specific definitions, fee schedules, data purchase options, and protections against unauthorized solicitation of business filings.

DEFINITION

Added precise legal definitions for terms like 'veteran,' 'veteran-owned business,' 'business activity,' and 'registration fee' to clarify who must pay fees and what constitutes a business.

ADDED

Established a $25 annual report fee and a $50 biennial report fee, replacing previous fee structures.

REQUIREMENT

Required annual reports to include email addresses for notices and reminders, unless a technical inability prevents compliance.

Mandated the creation of an official veteran-owned business logotype and application process by the Secretary of State.

ELIGIBILITY

Created an election process allowing businesses with five consecutive years of timely filings to switch to biennial reporting instead of annual.

FISCAL

Authorized the Secretary of State to sell the Business Organizations Database for $12,000 and monthly updates for $1,000.

ENFORCEMENT

Added a misdemeanor penalty and treble damages for anyone who solicits report filings from businesses without a pre-existing commercial relationship.

TIMELINE

Set a July 1, 2026, effective date for amendments regarding the biennial reporting election and included provisions for veteran-owned business fee exemptions starting July 1, 2015.

hb5227 s jud am _1 adopted.htm → hb5227 s jud amt adopted.htm · 7 edits

MODERATE

The bill was amended to update the effective date of biennial reporting options from 2008 to 2026, add new definitions for veteran-owned businesses, and introduce a formal logotype program for these entities. The amendment also clarifies reporting requirements by mandating email addresses on filings and establishes specific late fee structures and bad check penalties.

Scope change

The bill's scope expanded to include specific provisions for veteran-owned and active-duty member-owned businesses, including fee exemptions and a state-recognized logotype.

TIMELINE

The effective date for electing biennial reports was changed from June 30, 2008, to July 1, 2026, indicating a long-term legislative delay or placeholder.

DEFINITION

New definitions were added for 'veteran-owned business' and 'active-duty member-owned business,' requiring 51% ownership by veterans or active-duty military members or their spouses.

ELIGIBILITY

Veteran-owned and active-duty member-owned businesses registered after specific dates are exempt from annual report fees for their first four years.

REQUIREMENT

Annual and biennial reports now require the inclusion of an email address for sending informational notices and reminders.

The Secretary of State is required to develop an official logotype for veteran-owned businesses by July 1, 2026.

ENFORCEMENT

Specific late fees were established ($50 for annual, $100 for biennial delinquencies) and a bad check fee of up to $5 plus bank charges was authorized.

New penalties were added for third parties who solicit fees for annual report filings, including misdemeanor charges and treble damages for victims.

Enrolled Version → hb5227 s jud am _1 adopted.htm · 6 edits

MODERATE

The bill was amended to replace the original 2026 session text with a significantly expanded version that includes provisions from a 2008 law. The changes introduce new requirements for reporting email addresses, establish a bad check fee, and add a misdemeanor penalty for unauthorized solicitation of report filings. Additionally, the amendment clarifies late fee structures and adds specific exemptions for veteran-owned businesses regarding annual report fees for their first four years.

Scope change

The bill's scope expanded from a simple fee update to include comprehensive reporting requirements, consumer protections against unauthorized solicitation, and specific veteran business incentives.

REQUIREMENT

Added a mandatory requirement for all reports to include an email address for notifications.

Established a formal process for entities to elect biennial reporting after five years of timely annual filings.

ENFORCEMENT

Introduced a $5 bad check fee for rejected payments and a misdemeanor penalty for third parties soliciting report filings.

ELIGIBILITY

Added a four-year exemption from annual report fees for veteran-owned and active-duty member-owned businesses.

FISCAL

Clarified that late fee collections over $25,000 must be deposited into the General Revenue Fund rather than the administrative fees account.

TIMELINE

Retained the original effective date of July 1, 2026, while incorporating legacy rules from a 2008 enactment.

Engrossed Version → Enrolled Version · 7 edits · Apr 1, 2026

MODERATE

The bill was finalized and enacted into law, changing the effective date from July 1, 2026, to July 1, 2026, while adding new provisions for veteran-owned business exemptions and a logotype. The text was cleaned up to remove website navigation artifacts and consolidate definitions for clarity. Key additions include a formal exemption for veteran-owned businesses for their first four years, a requirement for email addresses on reports, and stricter enforcement regarding bad checks and late fees.

Scope change

The bill's scope expanded to include specific protections and exemptions for veteran-owned and active-duty member-owned businesses, which were previously only defined but not granted fee exemptions or official recognition.

ELIGIBILITY

Veteran-owned and active-duty member-owned businesses are now exempt from annual report fees for their first four years after registration.

REQUIREMENT

Annual and biennial reports must now include an email address for official notices, unless technically impossible.

The definition of 'business activity' was slightly streamlined to remove redundant references to specific foreign corporation statutes.

ENFORCEMENT

New provisions allow the Secretary of State to assess a bad check fee of up to $5 plus bank charges if a payment is rejected due to insufficient funds.

The Secretary of State is now authorized to waive or reduce late fees if the delinquency was caused by circumstances beyond the filer's control.

DEFINITION

A formal definition and application process were added for an official 'veteran-owned business' logotype to be used by qualifying businesses.

TIMELINE

The effective date for the new biennial reporting election rules and veteran logotype requirements is set for July 1, 2026.

Introduced Version → Engrossed Version · 6 edits · Mar 10, 2026

MODERATE

The bill was amended to introduce biennial reporting options for businesses that have a clean compliance history, allowing them to file reports every two years instead of annually. It also updated the effective date for these new reporting rules to July 1, 2026, and added provisions for a veteran-owned business logotype and stricter penalties for solicitation scams targeting businesses.

Scope change

The bill now applies to businesses electing biennial reporting, expanding the scope beyond just annual filings, and introduces new requirements for veteran-owned business identification.

REQUIREMENT

Added a new option for businesses to elect biennial reporting (every two years) instead of annual reporting if they have filed timely reports for five consecutive years and are in good standing.

Added a new subsection requiring the Secretary of State to develop an official logotype for veteran-owned businesses and an application process for its use.

Added a provision allowing the Secretary of State to waive new business registration fees at up to three entrepreneurship events or conferences.

TIMELINE

Updated the effective date for new reporting requirements from the previous year to July 1, 2026.

DEFINITION

Added a new definition for 'Biennial Report fee' to establish the $50 fee for the two-year reporting cycle.

ENFORCEMENT

Added new subsections to criminalize and penalize third-party solicitation scams that falsely claim to offer services for filing annual reports.

Relating to Secretary of State annual reports, fees, and veteran-owned business logotypes

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