HCS/SB 326 - This act modifies and creates new provisions relating to business organizations.
LOW-PROFIT LIMITED LIABILITY COMPANIES
This act permits the creation of low-profit limited liability companies, or L3C's. An L3C is a limited liability company that does not have as its primary purpose the production of income or the appreciation of property. In order to be considered an L3C, the company must further the accomplishment of one or more charitable or educational purposes within the meaning of the Internal Revenue Code. Furthermore, the company must not have been formed but for the furtherance of such purposes.
Limited liability companies seeking to establish as an L3C are required to include the word "L3C" in its name as set forth in its articles of organization. Moreover, the company is required to state in the articles that no significant purpose of the company is the production of income or the appreciation of property and that it is not the purpose to accomplish one or more political or legislative purposes.
REAL PROPERTY OWNED BY LIMITED LIABILITY COMPANIES
Currently, limited liability companies leasing real property to others or owning unoccupied real property in Kansas City are required to file an affidavit with the city clerk listing the manager of the property. This act requires the affidavit to name a natural person with control of the property and his or her street address.
If the person who manages the property changes, the LLC must file a new affidavit listing a successor manager within 30 days. No LLC may be charged a fee for filing a required affidavit. If an LLC required to file an affidavit fails to file an affidavit, any person adversely affected or the city may petition the court to direct the filing of an affidavit.
This provision is identical to the perfected HB 493 (2017), HCS/SCS/SB 112 (2017), and a provision in HCS/SB 332 (2017), and substantially similar to SB 286 (2017), a provision in the truly agreed to CCS/HCS/SB 111 (2017), SB 365 (2017), SB 693 (2016), HB 1708 (2016), SCS/SB 335 (2015), the perfected version of HCS/HB 864 (2015), and a provision in HCS/HB 1154 (2015).
TECHNOLOGY TRUST FUND
Several provisions in current law allow the Secretary of State to collect an additional $5 fee on fees for filings relating to business organizations, commercial transactions, and trademarks, names and private emblems to be credited to the state's technology trust fund. These provisions are set to sunset on December 31, 2017.
This act extends the sunset provisions to December 31, 2025.
These provisions are identical to HB 1045 (2017) and SB 348 (2017) and substantially similar to provisions in the truly agreed to CCS/HCS/SB 95 (2017).