House pauses Share Assessment Act after floor debate over notice by mail

House Bill 53, the Share Assessment Act, which updates rules for assessing corporate shares and procedures for enforcing unpaid assessments, was circuited on the House floor after members debated the standard for notice to shareholders.

Representative James Gowans, the bill sponsor, said the measure clarifies how both nonprofit and for‑profit corporate shares may be assessed and provides procedures for notice, sale, and a redemption period. Gowans explained the bill targets delinquent shares and allows sale procedures with a 30‑day redemption window.

Several members, including Representative Dave Clark and others, raised concerns that the bill’s existing language calling for notice by first‑class mail may leave shareholders insufficiently informed before shares are sold. As Representative Clark said, "The mail notice... our first class mail is the requirement in the bill, but I would think that certified might even be better." Colleagues argued over the trade‑off between the extra cost of certified mail (approximately $3.50 per piece, as one member noted) and the importance of ensuring notice when an asset potentially worth thousands of dollars is at stake. Alternative proposals discussed included a two-step approach: a first‑class initial notice followed by certified return‑receipt notice if initial delivery failed.

Given the range of concerns — from small water companies’ cost burdens to the need for reliable legal notice for high‑value shares — the House agreed to "circle" the bill to allow sponsors and interested parties to work out precise mailing language and options. No floor amendment changing the bill’s mailing standard was adopted; the bill was set aside for further drafting.