Business fraud bills clear Senate

CHEYENNE - Two bills designed to combat business fraud in the state passed the Wyoming Senate Monday and now go to the House.

The bills were requested by Secretary of State Max Maxfield and have the support of Gov. Dave Freudenthal.

The state's laws on limited liability corporations have permitted companies to set up "shell" corporations with only drop boxes as addresses. Officials said this prevented law enforcement officials from finding fraud perpetrators and has made the state a fraud magnet.

One of the bills moving through the Legislature, Senate File 26, would give registered agents more responsibility in keeping track of their corporate clients.

As the bill stands, a registered agent must contact each domestic company he represents at least once every 13 months.

The bill passed the Senate 19-11.

A second proposal, Senate File 18, to penalize companies that submit fraudulent documents, passed on third and final Senate reading 30-0.

Senate rejects water loan fee

CHEYENNE - Members of the Wyoming Senate don't want communities to pay an administrative fee out of their state "clean water" loans.

So they voted 22-7 against House Bill 66, which would have allowed the state to impose a 1 percent fee on the loans.

Senate President John Schiffer, R-Kaycee, led the opposition, arguing that the communities are doing the right thing by ensuring clean water for their residents.

He maintained the Office of State Land and Investments, which runs the $25 million revolving loan account, doesn't need the money.

The agency has an operating budget of $48 million, Schiffer said.

Supporters of the bill said they understood the fees can be paid from federal dollars.

But a fiscal note to the bill said the administrative fee would replace diminishing federal money that currently covers the administrative costs of the program.