CHEYENNE - A controversial bill to combat business fraud survived in the House Monday largely because of a compromise amendment.

Rep. Pete Illoway, R-Cheyenne, said the amendment to Senate File 26 has the support of both sides of the debate. He was referring to the registered agents, usually lawyers, who represent limited liability companies and other business entities, and the secretary of state's office.

The state agency wanted registered agents to be responsible for information about the companies they represent.

Lawyers in the House, as they had in the Senate, argued that the requirements in the original bill for registered agents were too onerous.

The compromise amendment offered by Illoway says that if the registered agents and the business entity agree, the business shall file the information with the secretary of state's office along with a consent form that verifies the agreement.

Wyoming's liberal laws for limited liability companies and other business entities have served as a magnet for business fraud, Secretary of State Max Maxfield has said.

Illoway said 1,670 companies filed registration forms with the secretary of state's office in December.

The problem is finding a "face" for these corporations in case of a fraud investigation, he said.

Illoway said a 1997 law requires registered agents to keep records for corporate clients. The bill simply expands that requirement to include limited liability companies, nonprofits, partnerships and other business entities.

He said four registered agents registered 1,174 entities with the secretary of state's securities division.

House Majority Floor Leader Colin Simpson, R-Cody, a lawyer, said quite a few registered agents don't charge a fee for registering their clients with the secretary of state's securities division.

He questioned why the Legislature can't require the businesses to be responsible for the information instead of burdening the registered agents with more regulations.

The bill has two more votes in the House. It then will be returned to the Senate for a vote on House changes.