Legislature(2017 - 2018)HOUSE FINANCE 519
05/09/2017 01:30 PM House FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB74 | |
| HB124 | |
| HB150 | |
| HB142 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 159 | TELECONFERENCED | |
| += | HB 150 | TELECONFERENCED | |
| += | HB 124 | TELECONFERENCED | |
| + | HB 142 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 74 | TELECONFERENCED | |
HOUSE BILL NO. 124
"An Act relating to corporations, including benefit
corporations, and other entities; and providing for an
effective date."
2:29:39 PM
Co-Chair Foster MOVED to ADOPT Amendment 2 (copy on file):
Page 15, following line 2:
Insert a new section to read:
"Sec. 10.60.725. Reliance by third parties.
(a) A person who, in good faith, enters into
a transaction with a benefit corporation may
assume without inquiry that the transaction,
and each action or inaction by any director
or officer of the benefit corporation giving
effect to the transaction, does not conflict
with the benefit corporation's general
public benefit purpose or specific public
benefit purpose.
(b) Nothing in this section exempts a
covered financial institution from
identifying and verifying the beneficial
owner of a legal entity that is a customer
as required under a federal or state law or
regulation. In this subsection, "covered
financial institution" has the meaning given
in 31C.F.R.1010.605."
Representative Wilson OBJECTED for discussion.
Co-Chair Foster invited his staff to the table to explain
the amendment.
JANE PIERSON, STAFF, REPRESENTATIVE NEAL FOSTER, explained
that Amendment 2 was the safe harbor amendment which had
been offered before. The language had been corrected. The
amendment operated as a safe harbor for parties that
entered into contractual relationships with benefit
corporations. It prevented third parties from being able to
assume a contract, made sure the contract did not conflict
with any public benefit goals, and provided assurances that
the contract would be enforced. The amendment was offered
to provide contractual certainty to third parties dealing
with benefit corporations.
Ms. Pierson continued that absent the proposed language,
third parties might feel compelled to make an independent
assessment of whether the transaction satisfied the public
benefit requirement. The analysis might increase the cost
of completing transactions and make some transactions more
difficult to complete. The safe harbor amendment would make
it easier for benefit corporations to include third parties
to transact business with them.
Co-Chair Foster relayed the list of available testifiers.
Representative Wilson WITHDREW her OBJECTION.
There being NO OBJECTION, Amendment 2 was ADOPTED.
Vice-Chair Gara reviewed the fiscal note:
[FN1 - Fiscal Impact Note]
Department: Department of Commerce, Community and
Economic Development
Appropriation: Corporations, Business and Professional
Licensing
Allocation: Corporations, Business and Professional
Licensing
OMB Component Number: 2360
Vice-Chair Gara reported that the cost reflected in the
fiscal note was $27,400 in the first year with no other
costs estimated in the future. The costs had to do with
database changes to accommodate the new from of business.
Representative Wilson noted that the costs were paid for
through program receipts but wanted further detail. Vice-
Chair Gara thought the committee should defer to someone
from DCCED.
JANEY HOVENDEN, DIRECTOR, DIVISION OF CORPORATIONS,
BUSINESS AND PROFESSIONAL LICENSING, DEPARTMENT OF
COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT, responded
that fees would be spread across corporations' business
licensing revenues.
Representative Wilson asked how much money was in the fund
that was not being utilized. Ms. Hovenden did not have the
exact dollar amount but relayed that any of the excess
revenues went back into the general fund. She estimated the
dollar amount to be about $6 million.
Co-Chair Seaton MOVED to report CSHB 124 (FIN) out of
Committee with individual recommendations and the
accompanying fiscal note.
Representative Wilson OBJECTED.
A roll call vote was taken on the motion.
IN FAVOR: Gara, Grenn, Stutes, Kawasaki, Ortiz, Thompson,
Seaton, Foster
OPPOSED: Tilton, Wilson, Pruitt
The MOTION to REPORT OUT CSHB 74(FIN) PASSED (8/3).
CSHB 74(FIN) was REPORTED OUT of Committee with a "do pass"
recommendation and with a previously published fiscal
impact note: FN1(CED).