Delaware Offers 30-Minute Expedite Service

Effective October 1, 2009, the Delaware Division of Corporations began to offer a 30-minute expedited service. This service is available only through Delaware registered agents. The fee for this service will be $1,500.

The State of Delaware will make every effort to complete the filing process in 30 minutes. However, the Division will not guarantee completion within 30 minutes. If they successfully meet the 30 minute timeline, they assess the premium fee of $1,500. If they do not meet the 30 minute timeline, they will only assess a 1 hour fee of $1,000.

Any expedited service previously submitted can be upgraded to a 30 minute service.

As is the policy with Priority 1 and 2 service, the clock will stop if the filing is suspended to customer service. Once the corrected document has been sent back to the State, the 30 minutes will start over.

Cut off time for 30 minute service will be 9:00 p.m. eastern standard time.

The 30 minute service is separate and distinct from and does not replace the Global Filing policy. The fee for Global Filings will remain at $1000.

The State of Delaware will accept all document types for 30-minute filing requests with the exception of preclearances and banks.

However, please be advised that the likelihood of meeting the 30 minute filing timeframe will be greatly enhanced for documents that meet the following conditions:

• The document is precleared with a clear letter.
• The document precleared is the document being submitted.
• All Franchise Taxes and Annual Reports are paid and filed in advance.
• All entities are in good standing prior to submitting 30 minute filing(s). (Excluding Renewals)
• The document does not exceed 50 pages.
• For multiple part document filings, the time frame is 30 minutes per filing.
• The document type is one that is listed below:
• New Entities of any type
• Amendments
• Restated Certificate of Incorporation
• Mergers with five (5) or fewer entities
• Renewals
• Conversions
• Domestications
• Cancellations
• Dissolutions
• Designations
• Corrections
• Terminations/Amendments (Effective dates)
• 30 Minute Service will not be available for the following documents:
• Retirements
• Consolidations

If you have any questions, call a CSC Customer Service Specialist at 800.927.9800.

Tax Amnesty Periods Ending in Delaware, Maryland

The Delaware Department of Finance Division of Revenue’s Voluntary Tax Compliance Initiative (VTCI) program authorized by House Bill 268 ends Friday, October 30. Individual and business taxpayers with outstanding tax liabilities administered by the Division of Revenue can pay past-due taxes or file past-due tax returns free of penalty, interest, and collection fees.  Franchise taxes and annual fees payable to the Secretary of State are not applicable to this program.  More details on VTCI can be accessed from http://revenue.delaware.gov/amnesty.shtml

Maryland’s tax amnesty program also ends October 30. Individuals and businesses can take advantage of Maryland's programs for liabilities on returns due on or before December 31, 2008. Approved applicants will have all unpaid civil penalties, except previously assessed fraud penalties, and one-half any unpaid interest waived as part of the program. Businesses are not eligible for amnesty if the applicant: (i) has more than 500 employees in the United States or is a member of a corporate group that has more than 500 employees in the United States; (ii) took advantage of a 2001 Tax Amnesty; or (iii) was eligible for the July 1, 2004 through November 1, 2004 settlement period as provided in Chapter 557 of the Acts 2004. More information can be accessed from the Comptroller’s website at http://business.marylandtaxes.com/paymentinfo/amnesty2009.asp

Virginia’s Get Square tax amnesty program started on October 7 and continues until December 5. Individuals and businesses can participate to satisfy tax bills and file delinquent returns for taxes that are administered by Virginia’s Department of Taxation. In order to qualify, bills must be related to an amnesty eligible tax type and period and have an assessment date on or before July 9, 2009.  Taxpayers who choose not to participate will have to pay a 20 percent penalty on outstanding taxes.  More information is available at
http://www.getsquareva.com/

Delaware

The State of Delaware has mailed to registered agents for non-stock corporations an amendment form to complete and file by November 30 at no charge if the corporation meets the requirements in Section 391(j) of the General Corporation Law for “exempt corporation”.  Corporations meeting one of the listed requirements in Section 391(j) set forth below will pay an Annual Report filing fee of $25.00 instead of $50.00 fee required for non-exempt corporations.  The listed requirements are

1. tax exempt under Internal Revenue Code Section 501(c)(3);
2. civic organization under Section 8110(c)(1) of title 9

http://delcode.delaware.gov/title9/c081/sc01/index.shtml#8110
or Section 6840(4) of title 4 http://delcode.delaware.gov/title16/c068/sc06/index.shtml#6840

1. charitable/fraternal organization under Section 2593(1) of Title 6 http://delcode.delaware.gov/title6/c025/sc10/index.shtml#2593
2. listed in Section 8106(a) of Title 9 http://delcode.delaware.gov/title9/c081/sc01/index.shtml#8106
3. is organized primarily or exclusively for religious or charitable purposes; or
4. (i) is organized not profit and (ii) no part of its net earnings inures to the benefit of any member or individual.

If you have any questions, call a CSC Customer Service Specialist at 800.927.9800.

California

October 11 was the last day for California’s governor to sign or veto bills passed by the legislature on or before September 11.  Among the 226 bills signed by the governor were:

Assembly Bill 1233 (Chapter 631) clarifies various sections of the Corporations Code so that nonprofit and consumer cooperative corporations may have more certainty in their operations. The bill specifies that a person who does not have authority to act as a member of the governing board is not a director, but if the  articles or bylaws provide that a natural person is a director or a member of the governing body because he or she occupied a certain position, then that person is a director for all purposes.

http://www.leginfo.ca.gov/pub/09-10/bill/asm/ab_1201-1250/ab_1233_bill_20091011_chaptered.html

Assembly Bill 1546 (Chapter 544) amends current law allowing a canceled domestic limited partnership to revive by accompanying a certificate of revival, filed with the Secretary of State, with specified information confirmed by the Franchise Tax Board, including confirmation that all taxes owed by the partnership have been paid to the Franchise Tax Board.  AB 1546 requires the partnership, on or after January 1, 2010, to accompany the certificate of revival with written confirmation, obtained from the Franchise Tax Board, that all required tax returns have been filed by the partnership. This bill would further authorize the Franchise Tax Board to assess a specialized tax service fee of $100 for a limited partnership revival confirmation letter request, until January 1, 2011, after which the amount of the fee would be set by regulation.  Access bill text at:
http://www.leginfo.ca.gov/pub/09-10/bill/asm/ab_1501-1550/ab_1546_bill_20091011_chaptered.html

Senate Bill 40 (Chapter 552) effective January 1, 2010 provides that a document containing more than the last four (4) digits of a social security number is not entitled for recording. This bill also provides that a county recorder shall be deemed to be in compliance if he or she uses due diligence to truncate social security numbers in documents recorded. The complete bill text can be accessed at
http://www.leginfo.ca.gov/pub/09-10/bill/sen/sb_0001-0050/sb_40_bill_20091011_chaptered.html

The governor also signed a series of bills intended to increase protection for consumers in the lending market and provide law enforcement with tools to crack down on certain mortgage practices:

Assembly Bill 260 (Chapter 629) enacts the Higher-Priced Mortgage Loan Law to codify a fiduciary duty for mortgage brokers, authorize California’s mortgage regulators to apply specified federal mortgage lending laws and regulations to their licensees and cap prepayment penalties and yield spread premiums on higher-priced loans. http://www.leginfo.ca.gov/pub/09-10/bill/asm/ab_0251-0300/ab_260_bill_20091011_chaptered.html

Assembly Bill 329 (Chapter 236) establishes the Reverse Mortgage Elder Protection Act of 2009 to provide senior homeowners with greater consumer protections to ensure that they are fully informed about the consequences of entering into a reverse mortgage agreement. Specifically, the bill requires lenders to provide prospective borrowers with a clear and informative written disclosure statement and a written checklist pertaining to the risks and suitability of a reverse mortgage, prior to borrower attending loan counseling.
http://www.leginfo.ca.gov/pub/09-10/bill/asm/ab_0301-0350/ab_329_bill_20091011_chaptered.html

Assembly Bill 957 (Chapter 264) mandates that buyers of foreclosed homes may use a local escrow office to handle the transaction and prohibits a seller of residential property from requiring the buyer to use an escrow service company or purchase title insurance chosen by the seller or without good cause, disapproving the use of a title or escrow company chosen by the buyer.
http://www.leginfo.ca.gov/pub/09-10/bill/asm/ab_0951-1000/ab_957_bill_20091011_chaptered.html

Assembly Bill 1160 (Chapter 274) requires mortgage loan documents to be translated into the language the verbal negotiations were conducted (Spanish, Chinese, Tagalong, Korean and Vietnamese).
http://www.leginfo.ca.gov/pub/09-10/bill/asm/ab_1151-1200/ab_1160_bill_20091011_chaptered.html

Senate Bill 36 (Chapter 160) establishes standardized licensing requirements for all individual loan originators who offer or negotiate residential mortgages.
http://www.leginfo.ca.gov/pub/09-10/bill/sen/sb_0001-0050/sb_36_bill_20091011_chaptered.html

Senate Bill 94 (Chapter 630) effective upon enactment prohibits persons from charging advance fees to borrowers in connection with a loan modification, and requires those who wish to charge a fee for loan modification services to provide a notice to  borrowers regarding other options available to the borrower.
http://www.leginfo.ca.gov/pub/09-10/bill/sen/sb_0051-0100/sb_94_bill_20091011_chaptered.html

Senate Bill 204 (Chapter 568) amends existing laws related to licensing and regulation of escrow agents and exchange facilitators. http://www.leginfo.ca.gov/pub/09-10/bill/sen/sb_0201-0250/sb_204_bill_20091011_chaptered.html

Senate Bill 237 (Chapter 173) creates a registration program for appraisal management companies (AMCs) and prohibits any person or entity from acting in the capacity of an AMC without first obtaining a certificate for registration from the Office of Real Estate  Appraisers. http://www.leginfo.ca.gov/pub/09-10/bill/sen/sb_0201-0250/sb_237_bill_20091011_chaptered.html

Senate Bill 239 (Chapter 174) make it a felony to commit fraud in connection with a mortgage application. This bill makes individuals who engage in mortgage fraud guilty of a public offense punishable by imprisonment in the state prison or in a county jail up to one year. The bill also provides law enforcement with the necessary tools to make it easier to obtain a search warrant for real estate records and documents believed to contain evidence of mortgage fraud.
http://www.leginfo.ca.gov/pub/09-10/bill/sen/sb_0201-0250/sb_239_bill_20091011_chaptered.html

District of Columbia
Council Bill 439 (Act No. 196) which became law on an emergency basis October 8, 2009 without the mayor’s signature and expires January 6, 2010, amends the Nonprofit Corporation Act to provide that if a nonprofit corporation whose articles of incorporation were revoked has been reinstated, contracts or leases entered into by the nonprofit corporation and the DC government during the period of revocation shall be ratified.
http://www.dccouncil.washington.dc.us/images/00001/20090930172833.pdf

Florida
Elimination of signature notarization requirements for applications and renewals to facilitate online registration was among the changes resulting from HB 425 and SB 2262 signed July 17 and effective October 1 at the Florida Department of Business and Professional Regulation, which regulates more than one million businesses and individuals. More information is available on the agency’s website http://www.myfloridalicense.com/dbpr/os/News/LegCutsRedTape.html and
House Bill 425 (Chapter 195) can be accessed at http://laws.flrules.org/files/Ch_2009-195.pdf

Motor Vehicle Updates

California

All statewide DMV offices will be closed on the first three Fridays of each month through June 2010. Motorists who have a registration renewal date that falls on a Friday closure date will have penalties waived until the next business day.

District of Columbia

The DC DMV will no longer allow in-person registration renewals at a DMV service center or Inspection Station. Customers must use online or mail service.

Ohio

Effective immediately there will be a $20.00 late fee charged for vehicle registration renewals that are expired more than 7 days.