By MCKENNA HARFORD
KU Statehouse Wire Service
TOPEKA — Members of the House Committee on Commerce, Labor and Economic Development heard testimony this week for a bill that would exempt veterans and military members from paying a one-time filing fee for formation of business entities.
Former representative Rob Bruchman from Leawood authored the bill, HB2038, in an effort to honor veterans and make it easier for them to start businesses.
“What we want to do is inspire veterans who come back to be entrepreneurs and bring their skills from the combat zone and try to build something,” Bruchman said. “In some ways this is a way to say we appreciate your service.”
The current fee for forming a corporation is $90; a nonprofit corporation is $20; limited liability companies, limited liability partnerships and limited partnerships are $165. HB2038 would not exempt veterans from other business filing fees.
The total estimated fiscal effect would be $207,000 according to the bill’s fiscal note. However, committee chair Rep. Les Mason (R-McPherson) said it’s hard to estimate the cost because the businesses haven’t been formed.
“It’s not that it costs anything but we just might forgo that kind of money, but I think that the $207,000 is way high,” Mason said.
Bruchman argued that it would be a small investment with potentially large returns.
Other committee members debated the language of the bill and questioned who should be considered a veteran under this bill. Rep. Jerry Stogsdill (D-Prairie Village), said the bill “ought to be as expansive as possible,” but Rep. Roger Elliot (R-Wichita) disagreed. He said he was surprised by the broadness of the statute and would support restricting the exemption to combat veterans and military members.
The bill currently includes all combat and noncombat veterans and active duty military members. Bruchman said he is open to changing the bill to narrow the scope of who receives the fee exemptions so that the bill can pass.
“I would say anything is an improvement,” Bruchman said.
The committee will discuss the bill and consider amendments during the next few days.