House passes substitute licensing-eligibility bill requiring identification and affidavit for business licenses

The House passed a substitute to House Bill 227 on a closely divided 38–36 vote after lengthy floor debate and multiple amendments.

Representative Sandstrom, sponsor of the substitute, said Amendment No. 1 clarifies that where a business is owned by an entity, officers or partners residing in the U.S. must be covered by the affidavit requirement, while the original licensing filing remains available to one person. "This amendment seeks to clarify that if a business is owned by an entity, then the offices, directors or partners who reside in the U.S. would also have the affidavit pertain to them," Sandstrom said.

Supporters, including Sandstrom and Representative King, said the measure mirrors federal verifications and would deter fraud, telling a Draper example of a bogus gun shop that defrauded customers. "Now if this bill would have been in effect, the police could have tracked down the person," Sandstrom said.

Opponents argued the bill places burdens on lawful businesses and constitutes an unfunded mandate for cities and counties. Representative Anderson said the bill unfairly burdens law-abiding business owners and would not stop determined fraudsters who can obtain fake identification. Representative Dougal criticized the measure as potentially expanding enforcement costs for local governments that the bill does not fund.

The floor also addressed whether cities would enforce the provision; the sponsor said the League of Cities and Towns remained neutral and that compliance could be achieved through minor online changes. The House voted to place the substitute on the calendar, adopted amendments (including clarifications for entity-owned businesses), and approved final passage. The bill will be transmitted to the Senate.