SESSION OF 2020
SUPPLEMENTAL NOTE ON SENATE BILL NO. 251
As Amended by House Committee on
Commerce, Labor and Economic Development

Brief*
SB 251, as amended, would revise and update certain
provisions pertaining to business and other related filings.

Business Filings
The bill would change the annual report currently
required to be filed with the Secretary of State by business
entities to a biennial business entity information report
beginning in 2022. The current annual report fee of $40 would
be replaced by a fee of $80 for each biennially filed report.
Business entities formed in even-numbered years would
be required to file reports in even-numbered years and
business entities formed in odd-numbered years would be
required to file reports in odd-numbered years.
The bill would also eliminate a provision excluding
corporations from being required to file annual reports when
such corporations have filed articles of incorporation less than
six months prior to the last day of its tax period.
The bill would clarify, for corporate naming purposes,
“professional association” may be abbreviated “P.A.” or “PA,”
and the two abbreviations would be considered to be
identical.

____________________
*Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
http://www.kslegislature.org
 The bill would allow for business filings with the
Secretary of State to be signed via electronic signature.
The bill would eliminate various obsolete references to
previously repealed statutes related to business filings.

Blanket Music Licenses
The bill would repeal statutes requiring blanket music
licenses and related documents to be filed with the Secretary
of State and providing for service of process upon the
Secretary of State in any legal action related to blanket music
licenses.

Series Limited Liability Companies (Series LLCs)
The bill would delay implementation of the following
series LLC provisions from July 1, 2020, to July 1, 2022,
which were enacted in 2019 HB 2039:
● Merger or consolidation of series LLCs;
● Reinstatement of canceled series LLC certificates
of designation;
● Restated certificates of designation;
● Extensive amendment, restructuring, and
expansion of the main statute governing series
LLCs;
● Other series LLC amendments in the Revised
Limited Liability Company Act, including statutes
regarding cancellation of articles of organization,
notice by filing with the Secretary of State, fees for
documents provided by the Secretary of State,
reinstatement of canceled or forfeited articles of
organization, annual reports, and tax periods; and

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 ● Series LLC provisions in the Business Entity
Standard Treatment (BEST) Act and the Uniform
Commercial Code.
Street Address Definition
The bill would define “street address” within the Kansas
Uniform Partnership Act to be the location including the
number, street, city, and postal code.

Background
On March 17, 2020, the House Committee on
Commerce, Labor and Economic Development (House
Committee) added the contents of SB 424, as amended by
the Senate Committee of the Whole, to SB 251 and passed
the bill.
SB 251
The bill was introduced by Senator Olson. In the Senate
Committee on Commerce (Senate Committee) hearing,
Senator Olson and representatives of the Kansas Chamber of
Commerce and the National Federation of Independent
Business testified in support of the bill. They indicated the bill
would lessen the administrative and compliance burden on
businesses. The Secretary of State offered written-only
neutral testimony on the bill. No other testimony was
provided.
The Senate Committee amended the bill by replacing a
provision that would have given business entities an option to
file reports annually, biennially, or triennially with a
requirement that the report be filed biennially beginning in
2022.
In the House Committee hearing, Senator Olson and
representatives of the Office of the Secretary of State,

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Kansas Chamber of Commerce, and the National Federation
of Independent Business testified in support of the bill. They
indicated the bill would lessen the administrative and
compliance burden on businesses. No other testimony was
provided.

According to the fiscal note prepared by the Division of
the Budget on the bill as introduced, the Secretary of State
indicates enactment of the bill would increase agency
expenditures in FY 2020 by $125,512 and in FY 2021 by
$108,612, and would require the addition of 2.0 FTE
employees beginning in FY 2021. Any fiscal effect associated
with enactment of the bill is not reflected in The FY 2021
Governor’s Budget Report. However, upon the Senate
Committee amending the bill, a representative of the
Secretary of State indicated the amendment to the bill would
eliminate the requirement of increased expenditures and
additional employees.
SB 424
The bill was introduced by the Senate Committee at the
request of the Office of the Secretary of State.
In the Senate Committee hearing, a representative of
the Office of the Secretary of State provided proponent
testimony, stating the bill contains a number of administrative
updates identified by the Secretary of State during a
comprehensive review of the Secretary’s statutory
responsibilities. No neutral or opponent testimony was
provided.
The Senate Committee of the Whole adopted a
technical amendment.
In the House Committee hearing, a representative of the
Office of the Secretary of State provided proponent testimony,
stating the bill contains a number of administrative updates
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identified by the Secretary of State during a comprehensive
review of the Secretary’s statutory responsibilities. No neutral
or opponent testimony was provided.
According to the fiscal note prepared by the Division of
the Budget on the bill as introduced, the Office of the
Secretary of State indicates the bill would have no effect on
agency expenditures; however, the bill would reduce revenue
anticipated to be collected in FY 2021 under the series LLC
provision in current law as that revenue would not be
collected until FY 2023. The agency is unable to estimate
what the amount of the reduction. Any fiscal effect associated
with enactment of the bill is not reflected in The FY 2021
Governor’s Budget Report.


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Statutes affected:
As introduced: 17-1513, 17-7503, 17-1618, 17-2036, 17-2037, 17-2718, 17-4634, 17-4677, 17-5902, 17-6014, 17-7002, 17-7504, 17-7505, 17-7506, 17-7507, 17-7509, 17-7510, 17-7511, 79-5401, 17-7512, 17-76, 17-7903, 17-6803, 17-6804, 17-6805, 17-7904, 17-7685a, 17-7905, 17-7936, 17-7906, 17-7910, 53-601, 56-1a605, 56-1a606, 56-1a607, 75-446, 75-447
As Amended by Senate Committee: 17-1513, 17-7503, 17-1618, 17-2036, 17-2037, 17-2718, 17-4634, 17-4677, 17-5902, 17-6014, 17-7002, 17-7504, 17-7505, 17-7506, 17-7507, 17-7509, 17-7510, 17-7511, 79-5401, 17-7512, 17-76, 17-7903, 17-6803, 17-6804, 17-6805, 17-7904, 17-7685a, 17-7905, 17-7936, 17-7906, 17-7910, 53-601, 56-1a605, 56-1a606, 56-1a607, 75-446, 75-447
As Amended by House Committee: 17-1513, 17-7503, 17-1618, 17-2036, 17-2037, 17-2711, 17-2718, 17-4634, 17-4677, 17-5902, 17-6014, 17-7002, 17-7504, 17-7505, 17-7506, 17-7507, 17-7509, 17-7511, 79-5401, 17-7675, 17-7679, 17-76, 17-7680, 17-7903, 17-6803, 17-6804, 17-6805, 17-78, 17-7685a, 17-7910, 17-7918, 17-7923, 17-7933, 45-229, 53-601, 56-1a151, 56-1a605, 75-446, 75-447, 84-1, 84-9