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S.B. 173

             1     

BUSINESS ENTITY AMENDMENTS

             2     
2010 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Lyle W. Hillyard

             5     
House Sponsor: Fred R Hunsaker

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies provisions in Title 16, Corporations, Title 48, Partnership, Title 76,
             10      Utah Criminal Code, and Title 78B, Judicial Code, related to business entities required
             11      to file with the Division of Corporations and Commercial Code, including addressing
             12      issues regarding filings and the responsibilities of the division.
             13      Highlighted Provisions:
             14          This bill:
             15          .    repeals outdated language related to registered agents;
             16          .    requires certain documents to be in a machine printed format;
             17          .    addresses the Division of Corporations and Commercial Code's subpoena powers;
             18          .    addresses the notice requirement in articles of organization for series limited
             19      liability companies;
             20          .    repeals language in the criminal code that addresses filings or service of process
             21      with the Division of Corporations and Commercial Code;
             22          .    repeals language related to sworn certificates being required of a nonresident doing
             23      business in the state; and
             24          .    makes technical and conforming changes.
             25      Monies Appropriated in this Bill:
             26          None
             27      Other Special Clauses:


             28          None
             29      Utah Code Sections Affected:
             30      AMENDS:
             31          16-6a-202, as last amended by Laws of Utah 2008, Chapter 364
             32          16-10a-202, as last amended by Laws of Utah 2008, Chapter 364
             33          16-10a-1503, as last amended by Laws of Utah 2008, Chapters 249 and 364
             34          42-2-5, as last amended by Laws of Utah 2008, Chapter 307
             35          48-2c-113, as last amended by Laws of Utah 2008, Chapter 364
             36          48-2c-410, as enacted by Laws of Utah 2001, Chapter 260
             37          48-2c-606, as enacted by Laws of Utah 2006, Chapter 92
             38          48-2c-607, as enacted by Laws of Utah 2006, Chapter 92
             39          76-10-1209, as last amended by Laws of Utah 2009, Chapter 183
             40          76-10-1219, as last amended by Laws of Utah 1984, Chapter 66
             41          76-10-1220, as last amended by Laws of Utah 1984, Chapter 66
             42          76-10-1221, as last amended by Laws of Utah 1984, Chapter 66
             43          78B-3-204, as renumbered and amended by Laws of Utah 2008, Chapter 3
             44      REPEALS:
             45          78B-3-203, as renumbered and amended by Laws of Utah 2008, Chapter 3
             46     
             47      Be it enacted by the Legislature of the state of Utah:
             48          Section 1. Section 16-6a-202 is amended to read:
             49           16-6a-202. Articles of incorporation.
             50          (1) The articles of incorporation shall set forth:
             51          (a) one or more purposes for which the nonprofit corporation is organized;
             52          (b) a corporate name for the nonprofit corporation that satisfies the requirements of
             53      Section 16-6a-401 ;
             54          (c) the information required by Subsection 16-17-203 (1);
             55          (d) the name and address of each incorporator;
             56          (e) whether or not the nonprofit corporation will have voting members;
             57          (f) if the nonprofit corporation is to issue shares of stock evidencing membership in the
             58      nonprofit corporation or interests in water or other property rights:


             59          (i) the aggregate number of shares that the nonprofit corporation has authority to issue;
             60      and
             61          (ii) if the shares are to be divided into classes:
             62          (A) the number of shares of each class;
             63          (B) the designation of each class; and
             64          (C) a statement of the preferences, limitations, and relative rights of the shares of each
             65      class; and
             66          (g) provisions not inconsistent with law regarding the distribution of assets on
             67      dissolution.
             68          (2) The articles of incorporation may but need not set forth:
             69          (a) the names and addresses of the individuals who are to serve as the initial directors;
             70          (b) provisions not inconsistent with law regarding:
             71          (i) managing the business and regulating the affairs of the nonprofit corporation;
             72          (ii) defining, limiting, and regulating the powers of:
             73          (A) the nonprofit corporation;
             74          (B) the board of directors of the nonprofit corporation; and
             75          (C) the members of the nonprofit corporation or any class of members;
             76          (iii) whether cumulative voting will be permitted; and
             77          (iv) the characteristics, qualifications, rights, limitations, and obligations attaching to
             78      each or any class of members; and
             79          (c) any provision that under this chapter is permitted to be in the articles of
             80      incorporation or required or permitted to be set forth in the bylaws, including elective
             81      provisions that in accordance with this chapter shall be included in the articles of incorporation
             82      to be effective.
             83          (3) (a) It is sufficient under Subsection (1)(a) to state, either alone or with other
             84      purposes, that the purpose of the nonprofit corporation is to engage in any lawful act for which
             85      a nonprofit corporation may be organized under this chapter.
             86          (b) If the articles of incorporation include the statement described in Subsection (3)(a),
             87      all lawful acts and activities shall be within the purposes of the nonprofit corporation, except
             88      for express limitations, if any.
             89          (4) The articles of incorporation need not set forth any corporate power enumerated in


             90      this chapter.
             91          (5) The articles of incorporation shall:
             92          (a) be signed by each incorporator; and
             93          (b) meet the filing requirements of Section 16-6a-105 .
             94          [(6) The appointment of the registered agent shall be signed by the registered agent
             95      on:]
             96          [(a) the articles of incorporation; or]
             97          [(b) an acknowledgment attached to the articles of incorporation.]
             98          [(7)] (6) (a) If this chapter conditions any matter upon the presence of a provision in
             99      the bylaws, the condition is satisfied if the provision is present either in:
             100          (i) the articles of incorporation; or
             101          (ii) the bylaws.
             102          (b) If this chapter conditions any matter upon the absence of a provision in the bylaws,
             103      the condition is satisfied only if the provision is absent from both:
             104          (i) the articles of incorporation; and
             105          (ii) the bylaws.
             106          Section 2. Section 16-10a-202 is amended to read:
             107           16-10a-202. Articles of incorporation.
             108          (1) The articles of incorporation shall set forth:
             109          (a) the purpose or purposes for which the corporation is organized;
             110          (b) a corporate name for the corporation that satisfies the requirements of Section
             111      16-10a-401 ;
             112          (c) the number of shares the corporation is authorized to issue;
             113          (d) the information required by Section 16-10a-601 with respect to each class of shares
             114      the corporation is authorized to issue;
             115          (e) the information required by Subsection 16-17-203 (1); and
             116          (f) the name and address of each incorporator.
             117          (2) The articles of incorporation may set forth:
             118          (a) the names and addresses of the individuals who are to serve as the initial directors;
             119          (b) provisions not inconsistent with law regarding:
             120          (i) managing the business and regulating the affairs of the corporation;


             121          (ii) defining, limiting, and regulating the powers of the corporation, its board of
             122      directors, and its shareholders;
             123          (iii) a par value for authorized shares or classes of shares; and
             124          (iv) the imposition of personal liability on shareholders for the debts of the corporation
             125      to a specified extent and upon specified conditions; and
             126          (c) any provision that under this chapter is permitted to be in the articles of
             127      incorporation or required or permitted to be set forth in the bylaws including elective
             128      provisions which, to be effective, must be included in the articles of incorporation, as provided
             129      in this chapter.
             130          (3) It shall be sufficient under Subsection (1)(a) to state, either alone or with other
             131      purposes, that the purpose of the corporation is to engage in any lawful act or activity for which
             132      corporations may be organized under [the Utah Revised Business Corporation Act] this
             133      chapter, and by such statement all lawful acts and activities shall be within the purposes of the
             134      corporation, except for express limitations, if any.
             135          (4) The articles of incorporation need not set forth any of the corporate powers
             136      enumerated in this chapter.
             137          (5) The articles of incorporation shall be signed by each incorporator and meet the
             138      filing requirements of Section 16-10a-120 .
             139          [(6) The appointment of the registered agent shall be signed by the registered agent on
             140      the articles of incorporation or on an attached acknowledgement.]
             141          [(7)] (6) (a) If this chapter conditions any matter upon the presence of a provision in
             142      the bylaws, the condition is satisfied if the provision is present either in the articles of
             143      incorporation or the bylaws.
             144          (b) If this chapter conditions any matter upon the absence of a provision in the bylaws,
             145      the condition is satisfied only if the provision is absent from both the articles of incorporation
             146      and the bylaws.
             147          Section 3. Section 16-10a-1503 is amended to read:
             148           16-10a-1503. Application for authority to transact business.
             149          (1) A foreign corporation may apply for authority to transact business in this state by
             150      delivering to the division for filing an application for authority to transact business setting
             151      forth:


             152          (a) its corporate name and its assumed name, if any;
             153          (b) the name of the state or country under whose law it is incorporated;
             154          (c) its date of incorporation and period of its corporate duration;
             155          (d) the street address of its principal office;
             156          (e) the information required by Subsection 16-17-203 (1);
             157          (f) the names and usual business addresses of its current directors and officers;
             158          (g) the date it commenced or expects to commence transacting business in this state;
             159      and
             160          (h) any additional information the division may determine is necessary or appropriate
             161      to determine whether the application for authority to transact business should be filed.
             162          (2) The foreign corporation shall deliver with the completed application for authority to
             163      transact business a certificate of existence, or a document of similar import, duly authorized by
             164      the lieutenant governor or other official having custody of corporate records in the state or
             165      country under whose law it is incorporated. The certificate of existence shall be dated within
             166      90 days [prior to] before the day on which the application for authority to transact business by
             167      the division is filed.
             168          [(3) The foreign corporation shall include in the application for authority to transact
             169      business, or in an accompanying document, the written consent to appointment by the
             170      designated registered agent.]
             171          [(4)] (3) (a) The division may permit a tribal corporation to apply for authority to
             172      transact business in this state in the same manner as a foreign corporation incorporated in
             173      another state.
             174          (b) If a tribal corporation elects to apply for authority to transact business in this state,
             175      for purposes of this chapter, the tribal corporation shall be treated in the same manner as a
             176      foreign corporation incorporated under the laws of another state.
             177          Section 4. Section 42-2-5 is amended to read:
             178           42-2-5. Certificate of assumed and of true name -- Contents -- Execution -- Filing
             179      -- Notice.
             180          (1) For purposes of this section, "filed" means the Division of Corporations and
             181      Commercial Code has:
             182          (a) received and approved, as to form, a document submitted under this chapter; and


             183          (b) marked on the face of the document a stamp or seal indicating:
             184          (i) the time of day and date of approval;
             185          (ii) the name of the division; and
             186          (iii) the division director's signature and division seal, or facsimiles of the signature or
             187      seal.
             188          [(1) Every] (2) A person who carries on, conducts, or transacts business in this state
             189      under an assumed name, whether that business is carried on, conducted, or transacted as an
             190      individual, association, partnership, corporation, or otherwise, shall file with the Division of
             191      Corporations and Commercial Code a certificate setting forth:
             192          (a) the name under which the business is, or is to be carried on, conducted, or
             193      transacted[, and];
             194          (b) the full true name, or names, of the person owning, and the person carrying on,
             195      conducting, or transacting the business; and
             196          [(b)] (c) the location of the principal place of business, and the street address of the
             197      person.
             198          [(2) The] (3) A certificate filed under this section shall be:
             199          (a) executed by the person owning, and the person carrying on, conducting, or
             200      transacting the business[, and shall be];
             201          (b) filed not later than 30 days after the time of commencing to carry on, conduct, or
             202      transact the business[.]; and
             203          [(3) "Filed" means the Division of Corporations and Commercial Code has received
             204      and approved, as to form, a document submitted under the provisions of this chapter, and has
             205      marked on the face of the document a stamp or seal indicating the time of day and date of
             206      approval, the name of the division, the division director's signature and division seal, or
             207      facsimiles of the signature or seal.]
             208          (c) submitted in a machine printed format.
             209          (4) [Every] A certificate filed with the Division of Corporations and Commercial Code
             210      under this chapter shall include the following notice in a conspicuous place on the face thereof:
             211          NOTICE - THE FILING OF THIS APPLICATION AND ITS APPROVAL BY THE
             212      DIVISION OF CORPORATIONS AND COMMERCIAL CODE DOES NOT AUTHORIZE
             213      THE USE IN THE STATE OF UTAH OF AN ASSUMED NAME IN VIOLATION OF THE


             214      RIGHTS OF ANOTHER UNDER FEDERAL, STATE, OR COMMON LAW (SEE UTAH
             215      CODE ANN. SECTIONS 42-2-5 ET SEQ.).
             216          (5) (a) A certificate filed under this section shall include a portion that allows the
             217      person filing the form to voluntarily disclose the gender and race of one or more owners of the
             218      entity for which the filing is made.
             219          (b) Race shall be indicated under Subsection (5)(a) by selecting from the categories of
             220      race listed in 15 U.S.C. Sec. 631(f).
             221          (c) A person is not required to provide information under Subsection (5)(a) concerning
             222      the gender or race of one or more owners of the entity for which the filing is made.
             223          (d) (i) The Division of Corporations and Commercial Code shall compile information
             224      concerning the gender or race included on certificates filed with the Division of Corporations
             225      and Commercial Code.
             226          (ii) Information compiled by the Division of Corporations and Commercial Code under
             227      Subsection (5)(d)(i) may be compiled in a manner determined by the Division of Corporations
             228      and Commercial Code by rules made pursuant to Title 63G, Chapter 3, Utah Administrative
             229      Rulemaking Act.
             230          Section 5. Section 48-2c-113 is amended to read:
             231           48-2c-113. Inspection of records by members and managers.
             232          (1) A current or former member or manager of a company is entitled to inspect and
             233      copy, during regular business hours at the company's principal office, any of the records
             234      described in Subsection (2) after first giving the company written notice of the demand at least
             235      five business days before the inspection is to occur.
             236          (2) Records required to be kept at the principal office under Subsection (1) include:
             237          (a) a current list in alphabetical order of the full name and last-known business,
             238      residence, or mailing address of each member and each manager;
             239          (b) a copy of the stamped articles of organization and all certificates of amendment
             240      thereto, together with a copy of all signed powers of attorney pursuant to which the articles of
             241      organization or any amendment has been signed;
             242          (c) a copy of the writing required of an organizer under Subsection 48-2c-401 (2);
             243          (d) a copy of the company's federal, state, and local income tax returns and reports, if
             244      any, for the three most recent years;


             245          (e) a copy of any financial statements of the company, if any, for the three most recent
             246      years;
             247          (f) a copy of the company's operating agreement, if any, and all amendments thereto;
             248          (g) a copy of the minutes, if any, of each meeting of members and of any written
             249      consents obtained from members; and
             250          (h) unless otherwise set forth in the articles of organization or the operating agreement,
             251      a written statement setting forth:
             252          (i) the amount of cash and a description and statement of the agreed value of the other
             253      property or services contributed and agreed to be contributed by each member;
             254          (ii) the times at which, or events on the happening of which, any additional
             255      contributions agreed to be made by each member are to be made;
             256          (iii) any right of a member to receive distributions;
             257          (iv) any date or event upon the happening of which a member is entitled to payment in
             258      redemption of the member's interest in the company; and
             259          (v) any date or event upon the happening of which the company is to be dissolved and
             260      its affairs wound up.
             261          (3) This section does not affect:
             262          (a) the right of a member or manager to inspect records if the member or manager is in
             263      litigation with the company, to the same extent as any other litigant; or
             264          (b) the power of a court, independent of this chapter, to compel the production of
             265      records for examination.
             266          (4) A current or former member or manager may not use any information obtained
             267      through the inspection or copying of records permitted by Subsection (1) for any improper
             268      purpose.
             269          (5) The division may on the division's own behalf subpoena [any of the records] a
             270      record described in Subsection (2) if a company denies any current or former member or
             271      manager access to the records.
             272          Section 6. Section 48-2c-410 is amended to read:
             273           48-2c-410. Transfer to other jurisdiction.
             274          (1) Any domestic company may transfer to or domesticate in any jurisdiction besides
             275      this state that permits the transfer to or domestication in such jurisdiction of a limited liability


             276      company by delivering to the division for filing articles of transfer meeting the requirements of
             277      Subsection (2) if such transfer is approved by the members as provided in the company's
             278      operating agreement or, if the operating agreement does not so provide, by all of the members.
             279          (2) The articles of transfer shall state:
             280          (a) the name of the company;
             281          (b) the date of filing of the company's original articles of organization with the
             282      division;
             283          (c) the jurisdiction to which the company shall be transferred or in which it shall be
             284      domesticated;
             285          (d) the future effective date, which shall be a date certain, of the transfer or
             286      domestication if it is not to be effective upon the filing of the articles of transfer;
             287          (e) that the transfer or domestication has been approved by the members;
             288          (f) that the existence of the company as a domestic company of this state shall cease
             289      when the articles of transfer become effective;
             290          (g) the agreement of the company that it may be served with process in this state in any
             291      proceeding for enforcement of any obligation of the company arising while it was a company
             292      under the laws of this state; and
             293          [(h) that it irrevocably appoints the director of the division as its agent to accept service
             294      for process in any proceeding; and]
             295          [(i)] (h) if the company does not apply for authority to transact business in this state as
             296      a foreign company pursuant to Section 48-2c-1604 , then the address to which a copy of service
             297      of process [referred to in Subsection (2)(h) shall be mailed to it by the division in the event of
             298      service upon the director of the division and the agreement of the company to give the division
             299      written notice of any change in the address] may be made under Subsection (2)(g).
             300          (3) When the articles of transfer are filed with the division, or upon the future, delayed
             301      effective date of the articles of transfer, and payment to the division of all fees prescribed under
             302      this chapter, the company shall cease to exist as a domestic company of this state. Thereafter,
             303      any certificate of the division as to the transfer shall be prima facie evidence of the transfer or
             304      domestication by the company out of this state.
             305          (4) Transfer or domestication of a company out of this state in accordance with this
             306      section and the resulting cessation of its existence as a domestic company of this state shall not


             307      be considered to affect any obligations or liabilities of the company incurred prior to the
             308      transfer or domestication or the personal liability of any person incurred prior to the transfer or
             309      domestication, including, but not limited to, any taxes owing to this state, nor shall it be
             310      considered to affect the choice of law applicable to the company with respect to matters arising
             311      prior to such transfer or domestication.
             312          Section 7. Section 48-2c-606 is amended to read:
             313           48-2c-606. Series of members, managers, or limited liability company interests.
             314          (1) (a) An operating agreement may establish or provide for the establishment of one or
             315      more designated series of members, managers, or interests in the company having separate
             316      rights, powers, or duties with respect to specified property or obligations of the limited liability
             317      company or profits and losses associated with specified property or obligations.
             318          (b) The separate rights, powers, and duties of a series shall be identified in the
             319      operating agreement.
             320          (2) A series may have a business purpose or investment objective separate from the
             321      company.
             322          (3) A series' debts, liabilities, obligations, and expenses are enforceable against the
             323      assets of that series only, and not against the assets of the company generally or any other series
             324      if:
             325          (a) the operating agreement provides for separate treatment of the series;
             326          (b) separate and distinct records are maintained concerning the series;
             327          (c) the assets associated with the series are held and accounted for separately from the
             328      other assets of the company and any other series; and
             329          (d) notice of the limitation on liability of a series is included in the company's articles
             330      of organization in accordance with Section 48-2c-607 .
             331          (4) None of the debts, liabilities, obligations, and expenses incurred, contracted for, or
             332      otherwise existing with respect to the company generally or any other series are enforceable
             333      against the assets of a series if:
             334          (a) the operating agreement provides for separate treatment of the series;
             335          (b) separate and distinct records are maintained concerning the series;
             336          (c) the assets associated with the series are held and accounted for separately from the
             337      other assets of the company and any other series; and


             338          (d) notice of the limitation on liability of a series is included in the company's articles
             339      of organization in accordance with Section 48-2c-607 .
             340          (5) A series may contract on its own behalf and in its own name, including through a
             341      manager.
             342          (6) Notwithstanding other provisions of this section:
             343          (a) property and assets of a series may not be transferred to the company generally or
             344      another series if the transfer impairs the ability of the series releasing the property or assets to
             345      pay its debts existing at the time of the transfer unless fair value is given to the transferring
             346      series for the property or assets transferred; and
             347          (b) a tax or other liability of the company generally or of a series may not be assigned
             348      by the series against which the tax or other liability is imposed to the company generally or to
             349      another series within the company if the assignment impairs a creditor's right and ability to
             350      fully collect an amount due when owed.
             351          Section 8. Section 48-2c-607 is amended to read:
             352           48-2c-607. Notice of series -- Articles of organization.
             353          (1) Notice in a company's articles of organization of the limitation on liabilities of a
             354      series, as required by Section 48-2c-606 , is sufficient whether or not the company has
             355      established any series at the time the notice is included in the articles of organization.
             356          (2) The notice required by Section 48-2c-606 :
             357          (a) need not reference any specific series[.]; and
             358          (b) for articles of organization or an amendment to articles of organization made to
             359      include notice of series that is filed on or after May 11, 2010, notice in a company's articles of
             360      organization is sufficient for purposes of Subsection (1) only if the notice of series appears
             361      immediately following the provision stating the name of the company.
             362          (3) The filing of the notice required by Section 48-2c-606 with the division constitutes
             363      notice of the limitation on liability of a series.
             364          Section 9. Section 76-10-1209 is amended to read:
             365           76-10-1209. Injunctive relief -- Jurisdiction -- Consent to be sued.
             366          (1) The district courts of this state shall have full power, authority, and jurisdiction,
             367      upon application by any county attorney or city attorney within their respective jurisdictions or
             368      the attorney general, to issue any and all proper restraining orders, preliminary and permanent


             369      injunctions, and any other writs and processes appropriate to carry out and enforce the
             370      provisions of this part. No restraining order or injunction, however, shall issue except upon
             371      notice to the person sought to be enjoined. That person shall be entitled to a trial of the issues
             372      commencing within three days after filing of an answer to the complaint and a decision shall be
             373      rendered by the court within two days after the conclusion of the trial. If a final order or
             374      judgment of injunction is entered against the person sought to be enjoined, this final order or
             375      judgment shall contain a provision directing the person to surrender to the sheriff of the county
             376      in which the action was brought any pornographic material in the person's possession which is
             377      subject to the injunction; and the sheriff shall be directed to seize and destroy this material.
             378          (2) Any person not qualified to do business in the state who sends or brings any
             379      pornographic material into the state with the intent to distribute or exhibit it to others in this
             380      state [thereby] consents that the person may be sued in any proceedings commenced under this
             381      section [and therefor appoints the director of the Division of Corporations and Commercial
             382      Code to be the agent upon whom may be served all legal process against that person. Service
             383      of process shall be made by serving a copy of same upon the director of the Division of
             384      Corporations and Commercial Code or by filing the copy in that office, together with payment
             385      of a fee determined by the division pursuant to Section 63J-1-504 . This service shall be
             386      sufficient service upon the defendant if:].
             387          [(a) notice of the service and a copy of the process are within 10 days thereafter sent by
             388      mail by the prosecuting attorney to the defendant at the address of the defendant that appears
             389      on any material exhibited or distributed, and if no address appears, then the last known address
             390      of the defendant; and]
             391          [(b) the prosecuting attorney's affidavit of compliance with the provisions of this
             392      Subsection (2) are attached to the summons. The Division of Corporations and Commercial
             393      Code shall keep a record of all the process served upon it under this section, showing the day
             394      and hour of the service. Nothing in this Subsection (2) shall be construed to limit the operation
             395      of Rule 17(e) of the Utah Rules of Civil Procedure.]
             396          [(3) This section shall not be construed in any way to limit the district courts in the
             397      exercise of their jurisdiction under any other provision of law.]
             398          Section 10. Section 76-10-1219 is amended to read:
             399           76-10-1219. Qualification for distribution of films.


             400          (1) A distributor which is a corporation shall be qualified to distribute films within this
             401      state if:
             402          (a) it is a domestic corporation in good standing or a foreign corporation authorized to
             403      transact business in this state; and
             404          (b) it submits itself to the jurisdiction and laws of this state relating to being a
             405      distributer in this state.
             406          [(b) it has filed with the Division of Corporations and Commercial Code a statement
             407      upon forms prescribed and furnished by that office, signed and verified on behalf of the
             408      corporation by an officer qualified and authorized to bind the corporation for such purpose, a
             409      statement indicating that it desires to be qualified to distribute films in this state and that it
             410      submits itself to the jurisdiction and laws of this state relating thereto and, further, indicating
             411      the following:]
             412          [(i) the address of its principal office;]
             413          [(ii) the name under which it wishes to distribute films in this state;]
             414          [(iii) the names and addresses of all directors and officers;]
             415          [(iv) the address of the registered office in this state; and]
             416          [(v) the name of its registered agent in this state;]
             417          [(c) it files a current statement on or before March 1 of each year thereafter indicating
             418      that information specified in Subsection (b) of this Subsection (1) in the manner provided
             419      therein.]
             420          (2) A distributor which is not a corporation shall be qualified to distribute films within
             421      this state if:
             422          (a) it has and continuously maintains a registered office in this state; and
             423          (b) it has a registered agent whose business address is at that registered office and
             424      which is either an individual residing and domiciled in this state, a domestic corporation in
             425      good standing, or a foreign corporation authorized to transact business in this state[;].
             426          [(c) it has filed with the Division of Corporations and Commercial Code a statement,
             427      upon forms prescribed and furnished by that office, signed and verified, indicating that it
             428      desires to be qualified to distribute films in this state and that it submits itself to the jurisdiction
             429      and laws of this state relating thereto and, further, indicating the following:]
             430          [(i) the address of its principal office;]


             431          [(ii) the name under which it wishes to distribute films in this state;]
             432          [(iii) the names and address of each partner or the sole proprietor, owning the
             433      distributorship;]
             434          [(iv) the address of its registered office in this state; and]
             435          [(v) the name of its registered agent in this state;]
             436          [(d) it files a current statement on or before March 1 of each year thereafter indicating
             437      that information specified in Subsection (b) of this Subsection (2) in the manner provided
             438      therein.]
             439          [(3) The Division of Corporations and Commercial Code shall keep a record of all
             440      processes, notices and demands served upon it pursuant to this section, together with the time
             441      of such service and its action relating thereto.]
             442          [(4)] (3) This section shall not affect the right to serve any process, notice, or demand,
             443      required or permitted by law to be served upon a distributor, in any other manner provided by
             444      law.
             445          Section 11. Section 76-10-1220 is amended to read:
             446           76-10-1220. Change of registered office or agent by film distributor.
             447          [(1)] A distributor qualified to distribute films in this state may change its registered
             448      office or registered agent [by filing with the Division of Corporations and Commercial Code a
             449      statement setting forth:] in accordance with Title 16, Chapter 17, Model Registered Agents
             450      Act.
             451          [(a) the name of the distributor;]
             452          [(b) the address of its present registered office;]
             453          [(c) the name of its present registered agent; and]
             454          [(d) the address of the new registered office or name of the new registered agent.]
             455          [(2) The statement provided for in this section must be signed, verified, and filed in the
             456      same manner as specified in Section 76-10-1219 .]
             457          [(3) If the Division of Corporations and Commercial Code finds that the statement
             458      conforms to the provisions of this act, it shall file the statement in its office and the change in
             459      the registered office or agent shall thereupon take effect.]
             460          [(4) Any registered agent may resign that position by filing a signed and verified notice
             461      of that resignation in duplicate with the Division of Corporations and Commercial Code which


             462      shall forthwith mail a copy thereof to the distributor at its principal office. That resignation
             463      shall take effect 30 days after receipt thereof by the Division of Corporations and Commercial
             464      Code.]
             465          Section 12. Section 76-10-1221 is amended to read:
             466           76-10-1221. Service of process, notice, or demand on registered agent of film
             467      distributor.
             468          [(1)] Any process, notice, or demand required or permitted by law to be served upon the
             469      distributor may be served upon the registered agent of that distributor.
             470          [(2) If the registered agent cannot with reasonable diligence be found at the registered
             471      office, the director of the Division of Corporations and Commercial Code shall constitute the
             472      agent of the distributor for the service of any process, notice, or demand required or permitted
             473      by law to be served upon the distributor. Service of any such process, notice, or demand upon
             474      the director of the Division of Corporations and Commercial Code shall be made in duplicate
             475      and the Division of Corporations and Commercial Code shall thereupon cause one of the
             476      copies thereof to be forwarded by registered mail to the distributor at its principal office
             477      indicated in that statement filed pursuant to Section 76-10-1219 . Such service shall be deemed
             478      complete upon the tenth day following that service.]
             479          Section 13. Section 78B-3-204 is amended to read:
             480           78B-3-204. Effect of failure to file certificate -- Service of process upon
             481      nonresident.
             482          If a nonresident person doing business [as provided in Section 78B-3-203 ] fails to [file
             483      a certificate, or the manager, superintendent, or agent designated in the certificate cannot be
             484      found] appoint a registered agent within the state in accordance with Title 16, Chapter 17,
             485      Model Registered Agents Act, service of process may be made by serving any person employed
             486      by or acting as an agent for the nonresident.
             487          Section 14. Repealer.
             488          This bill repeals:
             489          Section 78B-3-203, Sworn certificate of nonresident doing business here.





Legislative Review Note
    as of 2-9-10 12:29 PM


Office of Legislative Research and General Counsel


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