Legislation adjusts state business fees

Erin Neff

Thursday, April 3, 2003 | 11:08 a.m.

CARSON CITY -- Assemblyman Chad Christensen turned one of Nevada's business nicknames around Wednesday, when he testified on behalf of a bill supported by the state's resident agents.

Assembly Bill 439, which Christensen sponsored, would increase certain fees resident agents pay to the secretary of state's office and create a new classification of partnerships to provide more liability protection for businesses.

"It's often been said that Nevada is the Delaware of the West," Christensen, R-Las Vegas, said. "This bill would help make Delaware the Nevada of the East."

AB439, backed by the Nevada Resident Agents Association, could raise more than $50 million over the next two fiscal years, according to Derek Rowley, president of that trade group.

The bill reduces the initial cost to incorporate a business in an attempt to draw more business to the state, but also increases the renewal fee to bring the state more money once the businesses have been established here.

It also creates a limited-liability limited partnership (LLLP) under Nevada law.

"When the state provides greater benefits, it makes sense for the state to charge greater fees," Rowley said.

The secretary of state's office expressed concerns about several sections of the bill, including one that would eliminate the requirement that a resident agent file a certificate of change when a corporation changes its name, merges or reorganizes.

"Our records do need to be updated," said Renee Parker, chief deputy secretary of state, in opposing that section of the bill.

Parker also said her office might need to change some of its technology programs to accommodate the new fee structures proposed in the bill.

AB439 is the companion to Senate Bill 298, sponsored by Sen. Randolph Townsend, R-Reno. SB298 was passed out of the Senate Judiciary Committee last week with several amendments similar to the ones Parker suggested to AB439 on Wednesday in the Assembly Judiciary Committee.

The Assembly committee took no action on AB439 on Wednesday.