Legislature(1997 - 1998)

05/07/1997 01:07 PM Senate L&C

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
               HB 266 LIMITED LIABILITY COMPANIES                             
  CHAIRMAN LEMAN  announced  HB 266  to be up for consideration.               
  REPRESENTATIVE JOE RYAN,  sponsor, said this bill updates State              
 statutes reflecting changes made in IRS regulations making it                 
 easier to form limited partnerships.  He anticipates 5,000                    
 companies being formed which would mean an extra $1 million to the            
 Department of Commerce and Economic Development.                              
  SENATOR MACKIE  asked what position the Department had on this.              
  REPRESENTATIVE RYAN  said they supported this and he hadn't heard of         
 any opposition.                                                               
  CHAIRMAN LEMAN  noted that he knew Willis Kirkpatrick supported this         
  MR. RICHARD HOMPESCH,  Attorney, said the applicability provision at         
 the end of the bill does not apply to any existing limited                    
 partnerships unless they file a statement with the Department of              
 Commerce and Economic Development that they elect to be covered by            
 this new law.  Any new limited partnerships filed after the                   
 effective date would be covered by this bill.                                 
 Secondly, he said, the bill sets out default rules for various                
 provisions.  Parties to these agreements can always agree                     
 otherwise.  This bill provides default rules if the parties do not            
 otherwise agree.  It also allows one-person limited liability                 
 companies which were authorized by treasury regulation.  It also              
 simplifies our laws.                                                          
  SENATOR MACKIE  moved to pass HB 266 from committee with individual          
 recommendations.  There were no objections and it was so ordered.             

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