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S.B. 256

             1     

UNINCORPORATED BUSINESS ENTITIES ACT

             2     
AMENDMENTS

             3     
2012 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Lyle W. Hillyard

             6     
House Sponsor: Derek E. Brown

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill modifies the Unincorporated Business Entities Act and uncodified material to
             11      extend the effective date of the enactment of the Unincorporated Business Entities Act.
             12      Highlighted Provisions:
             13          This bill:
             14          .    amends certain dates related to the application of the Unincorporated Business
             15      Entities Act;
             16          .    extends the effective date of the enactment of the Unincorporated Business Entities
             17      Act to July 1, 2013; and
             18          .    makes technical and conforming amendments.
             19      Money Appropriated in this Bill:
             20          None
             21      Other Special Clauses:
             22          This bill takes effect on July 1, 2012.
             23      Utah Code Sections Affected:
             24      AMENDS:
             25          48-1b-1204 (Effective 07/01/12), as enacted by Laws of Utah 2011, Chapter 353
             26          48-1b-1205 (Effective 07/01/12), as enacted by Laws of Utah 2011, Chapter 353
             27          48-2d-1204 (Effective 07/01/12), as enacted by Laws of Utah 2011, Chapter 353


             28          48-2d-1205 (Effective 07/01/12), as enacted by Laws of Utah 2011, Chapter 353
             29          48-3-1405 (Effective 07/01/12), as enacted by Laws of Utah 2011, Chapter 353
             30      Uncodified Material Affected:
             31      AMENDS UNCODIFIED MATERIAL:
             32      Uncodified Section 311, Laws of Utah 2011, Chapter 353
             33     
             34      Be it enacted by the Legislature of the state of Utah:
             35          Section 1. Section 48-1b-1204 (Effective 07/01/12) is amended to read:
             36           48-1b-1204 (Effective 07/01/12). Savings clause.
             37          This chapter does not affect an action or proceeding commenced or right accrued before
             38      July 1, [2012] 2013.
             39          Section 2. Section 48-1b-1205 (Effective 07/01/12) is amended to read:
             40           48-1b-1205 (Effective 07/01/12). Applicability.
             41          (1) Before January 1, [2014] 2015, this chapter governs only a partnership formed:
             42          (a) after July 1, [2012] 2013, except a partnership that is continuing the business of a
             43      dissolved partnership; and
             44          (b) before July 1, [2012] 2013, that elects, as provided by Subsection (3), to be
             45      governed by this chapter.
             46          (2) On and after January 1, [2014] 2015, this chapter governs all partnerships.
             47          (3) Before January 1, [2014] 2015, a partnership voluntarily may elect, in the manner
             48      provided in its partnership agreement or by law for amending the partnership agreement, to be
             49      governed by this chapter. The provisions of this chapter relating to the liability of the
             50      partnership's partners to third parties apply to limit those partners' liability to a third party who
             51      had done business with the partnership within one year before the partnership's election to be
             52      governed by this chapter only if the third party knows or has received a notification of the
             53      partnership's election to be governed by this chapter.
             54          Section 3. Section 48-2d-1204 (Effective 07/01/12) is amended to read:
             55           48-2d-1204 (Effective 07/01/12). Savings clause.
             56          This chapter does not affect an action commenced, proceeding brought, or right accrued
             57      before July 1, [2012] 2013.
             58          Section 4. Section 48-2d-1205 (Effective 07/01/12) is amended to read:


             59           48-2d-1205 (Effective 07/01/12). Application to existing relationships.
             60          (1) Before January 1, [2014] 2015, this chapter governs only:
             61          (a) a limited partnership formed on or after July 1, [2012] 2013; and
             62          (b) subject to Subsections (3) and (4), a limited partnership formed before July 1,
             63      [2012] 2013, which elects, in the manner provided in its partnership agreement or by law for
             64      amending the partnership agreement, to be subject to this chapter.
             65          (2) Subject to Subsection (3), on and after January 1, [2014] 2015, this chapter governs
             66      all limited partnerships.
             67          (3) With respect to a limited partnership formed before July 1, [2012] 2013, the
             68      following rules apply except as the partners otherwise elect in the manner provided in the
             69      partnership agreement or by law for amending the partnership agreement:
             70          (a) Subsection 48-2d-104 (3) does not apply and the limited partnership has whatever
             71      duration it had under the law applicable immediately before July 1, [2012] 2013.
             72          (b) The limited partnership is not required to amend its certificate of limited
             73      partnership to comply with Subsection 48-2d-201 (1)(d).
             74          (c) Sections 48-2d-601 and 48-2d-602 do not apply and a limited partner has the same
             75      right and power to dissociate from the limited partnership, with the same consequences, as
             76      existed immediately before July 1, [2012] 2013.
             77          (d) Subsection 48-2d-603 (4) does not apply.
             78          (e) Subsection 48-2d-603 (5) does not apply and a court has the same power to expel a
             79      general partner as the court had immediately before July 1, [2012] 2013.
             80          (f) Subsection 48-2d-801 (3) does not apply and the connection between a person's
             81      dissociation as a general partner and the dissolution of the limited partnership is the same as
             82      existed immediately before July 1, [2012] 2013.
             83          (4) With respect to a limited partnership that elects pursuant to Subsection (1)(b) to be
             84      subject to this chapter, after the election takes effect the provisions of this chapter relating to
             85      the liability of the limited partnership's general partners to third parties apply:
             86          (a) before July 1, [2012] 2013, to:
             87          (i) a third party that had not done business with the limited partnership in the year
             88      before the election took effect; and
             89          (ii) a third party that had done business with the limited partnership in the year before


             90      the election took effect only if the third party knows or has received a notification of the
             91      election; and
             92          (b) on and after July 1, [2012] 2013, to all third parties, but those provisions remain
             93      inapplicable to any obligation incurred while those provisions were inapplicable under
             94      Subsection (4)(a)(ii).
             95          Section 5. Section 48-3-1405 (Effective 07/01/12) is amended to read:
             96           48-3-1405 (Effective 07/01/12). Application to existing relationships.
             97          (1) Before January 1, [2014] 2015, this chapter governs only:
             98          (a) a limited liability company formed on or after July 1, [2012] 2013; and
             99          (b) subject to Subsection (3), a limited liability company formed before July 1, [2012]
             100      2013, which elects, in the manner provided in its operating agreement or by law for amending
             101      the operating agreement, to be subject to this chapter.
             102          (2) Subject to Subsection (3), on and after January 1, [2014] 2015, this chapter governs
             103      all limited liability companies.
             104          (3) For the purposes of applying this chapter to a limited liability company formed
             105      before July 1, [2012] 2013:
             106          (a) the limited liability company's articles of organization are deemed to be the
             107      company's certificate of organization;
             108          (b) for the purposes of applying Subsection 48-3-102 (10) and subject to Subsection
             109      48-3-112 (4), language in the company's certificates of organization designating the limited
             110      liability company's management structure operates as if that language were in the operating
             111      agreement; and
             112          (c) the limited liability company has a perpetual duration unless otherwise stated in the
             113      limited liability company's articles of organization.
             114          Section 6. Uncodified Section 311, Laws of Utah 2011, Chapter 353
             115      is amended to read:
             116          Section 311. Effective date.
             117          This bill takes effect on July 1, [2012] 2013.
             118          Section 7. Effective date.
             119          This bill takes effect on July 1, 2012.





Legislative Review Note
    as of 2-10-12 10:49 AM


Office of Legislative Research and General Counsel


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