House Bill 0361

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    Florida House of Representatives - 1999                 HB 361

        By Representative Ritter






  1                      A bill to be entitled

  2         An act relating to partnership filings

  3         administered by the Department of State;

  4         amending s. 620.8101, F.S.; defining the terms

  5         "foreign limited liability partnership" and

  6         "limited liability partnership" and redefining

  7         the term "statement"; amending ss. 620.8103,

  8         620.8105, 620.81055, 620.8106, 620.8201,

  9         620.8303, 620.8304, 620.8306, 620.8307,

10         620.8701, 620.8702, 620.8703, 620.8704,

11         620.8801, 620.8805, 620.8806, 620.8807,

12         620.8903, 620.8906, and 620.8907, F.S.;

13         conforming statutory cross references;

14         providing for registration requirements;

15         providing document filing fees; providing for

16         governing law; providing for partners'

17         liability; providing for actions for and

18         against partners; providing for purchase of

19         dissociated interests; providing for settlement

20         and contribution; providing for conversions;

21         providing for the effect of merger; creating

22         ss. 620.9001, 620.9002, 620.9003, 620.9101,

23         620.9102, 620.9103, 620.9104, 620.9105, and

24         620.187, F.S.; adopting the model act

25         provisions of the limited liability partnership

26         act into the Revised Uniform Partnership Act of

27         1995; providing for statement of qualification,

28         name, annual report, statement of foreign

29         qualification, effect of failure to qualify,

30         activities not constituting transacting

31         business, action by Attorney General, and

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  1         limited liability limited partnerships;

  2         amending s. 865.09, F.S.; providing for

  3         conditions for exemption from fictitious name

  4         registration; providing for the use of

  5         corporate names; redesignating s. 620.90, F.S.,

  6         as s. 620.9901, F.S., relating to

  7         applicability; redesignating s. 620.91, F.S.,

  8         as s. 620.9902, F.S., relating to a saving

  9         clause; repealing ss. 620.78, 620.781, 620.782,

10         620.783, 620.784, 620.7851, 620.786, 620.787,

11         620.788, 620.7885, 620.7887, and 620.789, F.S.,

12         relating to registered limited liability

13         partnerships; providing an effective date.

14

15  Be It Enacted by the Legislature of the State of Florida:

16

17         Section 1.  Section 620.8101, Florida Statutes, is

18  amended to read:

19         620.8101  Definitions.--As used provided in this act,

20  the term:

21         (1)  "Act" means the Revised Uniform Partnership Act of

22  1995, consisting of ss. 620.81001-620.9902 620.81001-620.8908.

23         (2)  "Business" means any trade, occupation,

24  profession, or investment activity.

25         (3)  "Debtor in bankruptcy" means a person who is the

26  subject of:

27         (a)  An order for relief under Title 11, United States

28  Code, or a comparable order under a successor statute of

29  general application; or

30         (b)  A comparable order under federal or state law

31  governing insolvency.

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  1         (4)  "Distribution" means a transfer of money or other

  2  property from a partnership to a partner in the partner's

  3  capacity as a partner or to the partner's transferee.

  4         (5)  "Foreign limited liability partnership" means a

  5  partnership that is formed under laws other than the laws of

  6  this state and has the status of a limited liability

  7  partnership under those laws.

  8         (6)  "Limited liability partnership" means a

  9  partnership that has filed a statement of qualification under

10  s. 620.9001 and has not filed a similar statement in any other

11  jurisdiction.

12         (7)(5)  "Partnership" means an association of two or

13  more persons to carry on as coowners a business for profit

14  formed under s. 620.8202, predecessor law, or the comparable

15  law of another jurisdiction.

16         (8)(6)  "Partnership agreement" means an agreement,

17  whether written, oral, or implied, among the partners

18  concerning the partnership, including amendments to the

19  partnership agreement.

20         (9)(7)  "Partnership at will" means a partnership in

21  which the partners have not agreed to remain partners until

22  the expiration of a definite term or the completion of a

23  particular undertaking.

24         (10)(8)  "Partnership interest" or "partner's interest

25  in the partnership" means all of a partner's interests in the

26  partnership, including the partner's transferable interest and

27  all management and other rights.

28         (11)(9)  "Person" means an individual, corporation,

29  business trust, estate, trust, partnership, limited

30  partnership, association, joint venture, limited liability

31

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  1  company, government, governmental subdivision, agency, or

  2  instrumentality, or any other legal or commercial entity.

  3         (12)(10)  "Property" means all property, real,

  4  personal, or mixed, tangible or intangible, or any interest

  5  therein.

  6         (13)(11)  "Registration" or "registration statement"

  7  means a partnership registration statement filed with the

  8  Department of State under s. 620.8105.

  9         (14)(12)  "State" means a state of the United States,

10  the District of Columbia, the Commonwealth of Puerto Rico, or

11  any territory or insular possession subject to the

12  jurisdiction of the United States.

13         (15)(13)  "Statement" means a statement of partnership

14  authority under s. 620.8303, a statement of denial under s.

15  620.8304, a statement of dissociation under s. 620.8704, a

16  statement of dissolution under s. 620.8805, a statement of

17  merger under s. 620.8907, a statement of qualification under

18  s. 620.9001, a statement of foreign qualification under s.

19  620.9102, or an amendment or cancellation of any of the

20  foregoing.

21         (16)(14)  "Transfer" includes an assignment,

22  conveyance, lease, mortgage, deed, or encumbrance.

23         Section 2.  Subsection (2) of section 620.8103, Florida

24  Statutes, is amended to read:

25         620.8103  Effect of partnership agreement; nonwaivable

26  provisions.--

27         (2)  The partnership agreement may not:

28         (a)1.  Vary the rights and duties under s. 620.8105

29  except to eliminate the duty to provide copies of statements

30  to all of the partners;

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  1         (b)  Vary the law applicable to a limited liability

  2  partnership under s. 620.8106(2);

  3         (c)2.  Unreasonably restrict the right of access to

  4  books and records under s. 620.8403(2), or to information

  5  under s. 620.8403(3); and (3); or

  6         (d)3.  Eliminate the duty of loyalty under s.

  7  620.8404(2) or s. 620.8603(2)(c), but:

  8         1.  The partnership agreement may identify specific

  9  types or categories of activities that do not violate the duty

10  of loyalty, if not manifestly unreasonable;, or

11         2.  All of the partners or a number or percentage

12  specified in the partnership agreement may authorize or

13  ratify, after full disclosure of all material facts, a

14  specific act or transaction that otherwise would violate the

15  duty of loyalty;

16         (e)(b)  Unreasonably reduce the duty of care under s.

17  620.8404(3) or s. 620.8603(2)(c);

18         (f)(c)  Eliminate the obligation of good faith and fair

19  dealing under s. 620.8404(4), but the partnership agreement

20  may prescribe the standards by which the performance of the

21  obligation is to be measured if the standards are not

22  manifestly unreasonable;

23         (g)(d)  Vary the power to dissociate as a partner under

24  s. 620.8602(1), except to require the notice under s.

25  620.8601(1) to be in writing;

26         (h)(e)  Vary the right of a court to expel a partner

27  under the events specified in s. 620.8601(5);

28         (i)(f)  Vary the requirement to wind up the partnership

29  business in cases specified in s. 620.8801(4), (5), or (6)

30  620.8601(4), (5), or (6);

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  1         (j)(g)  Change the notice provisions contained in s.

  2  620.8902(6) or s. 620.8905(6); or

  3         (k)(h)  Restrict rights of third parties under this

  4  act.

  5         Section 3.  Subsections (1), (4), (5), and (7) of

  6  section 620.8105, Florida Statutes, are amended to read:

  7         620.8105  Execution, filing, and recording of

  8  partnership registration and other statements.--

  9         (1)  A partnership may file a partnership registration

10  statement with the Department of State, which must include:

11         (a)  The name of the partnership, which is must be

12  filed for purpose of public notice only and creates shall

13  create no presumption of ownership beyond that which is

14  created under the common law and which shall be recorded by

15  the Department of State without regard to any other name

16  recordation.

17         (b)  The street address of the chief executive office

18  of the partnership and the street address of the principal

19  office of the partnership in this state, if there is one.

20         (c)1.  The names and mailing addresses of all partners

21  of the partnership; or

22         2.  The name and street address of an agent in this

23  state appointed and maintained by the partnership, who shall

24  maintain a list of the names and mailing addresses of all of

25  the partners of the partnership and, on request for good cause

26  shown, shall make the list available to any person at an

27  office open from at least 10 a.m. to 12 noon each day, except

28  Saturdays, Sundays, and legal holidays.

29         (d)  Pursuant to s. 119.092, the partnership's federal

30  employer identification number.

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  1         (e)  The name and recorded document number in this

  2  state of a partner or agent named pursuant to subparagraph

  3  (c)2. that is a person other than an individual.

  4         (4)  Except as provided in s. 620.8304 or s. 620.8704,

  5  a statement may be filed with the Department of State only if

  6  the partnership has filed a registration statement pursuant to

  7  subsection (1).  If otherwise sufficient, a certified copy of

  8  a statement that is filed in a jurisdiction other than this

  9  state may be filed with the Department of State in lieu of an

10  original statement.  Any such filing has the effect provided

11  in this act with respect to partnership property located in,

12  or transactions that occur in, this state.

13         (5)  A partnership registration statement or other

14  statement must be delivered to the Department of State for

15  filing, which may be accomplished by include electronic filing

16  pursuant to s. 15.16 and must be typewritten or legibly

17  printed in the English language.

18         (7)  A partnership may amend or cancel its

19  registration, and a person authorized by this act to file a

20  statement of partnership authority, a statement of denial, a

21  statement of dissociation, a statement of dissolution, a

22  statement of merger, a statement of qualification, or a

23  statement of foreign qualification may amend or cancel such

24  the statement, by filing an amendment or cancellation that:

25         (a)  Identifies the partnership and the statement being

26  amended or canceled; and

27         (b)  States the substance of what is being amended or

28  canceled.

29         Section 4.  Subsection (1) of section 620.81055,

30  Florida Statutes, 1998 Supplement, is amended to read:

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  1         620.81055  Fees for filing documents and issuing

  2  certificates; powers of the Department of State.--

  3         (1)  The Department of State shall collect the

  4  following fees when documents authorized by this act are

  5  delivered to the Department of State for filing:

  6         (a)  Partnership registration statement:  $50.

  7         (b)  Statement of partnership authority:  $25.

  8         (c)  Statement of denial:  $25.

  9         (d)  Statement of dissociation:  $25.

10         (e)  Statement of dissolution:  $25.

11         (f)  Statement of qualification:  $25.

12         (g)  Statement of foreign qualification:  $25.

13         (h)  Limited liability partnership annual report:  $25.

14         (i)(f)  Statement of merger for each party thereto:

15  $25.

16         (j)(g)  Amendment to any statement or registration:

17  $25.

18         (k)(h)  Cancellation of any statement or registration:

19  $25.

20         (l)(i)  Certified copy of any recording or part

21  thereof: $52.50.

22         (m)(j)  Certificate of status:  $8.75.

23         (n)(k)  Any other document required or permitted to be

24  filed by this act: $25.

25         Section 5.  Section 620.8106, Florida Statutes, is

26  amended to read:

27         620.8106  Governing law governing internal relations.--

28         (1)  Except as otherwise provided in subsection (2),

29  the law of the jurisdiction in which a partnership has its

30  chief executive office governs relations among partners and

31  between the partners and a partnership.

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  1         (2)  The law of this state governs relations among the

  2  partners and between the partners and the partnership and the

  3  liability of partners for an obligation of a limited liability

  4  partnership.

  5         Section 6.  Section 620.8201, Florida Statutes, is

  6  amended to read:

  7         620.8201  Partnership as entity.--

  8         (1)  A partnership is an entity distinct from its

  9  partners.

10         (2)  A limited liability partnership continues to be

11  the same entity that existed before the filing of a statement

12  of qualification under s. 620.9001.

13         Section 7.  Subsection (2) of section 620.8303, Florida

14  Statutes, is amended to read:

15         620.8303  Statement of partnership authority.--

16         (2)  If a filed statement of partnership authority is

17  executed pursuant to s. 620.8105(6) 620.8105(3) and states the

18  name of the partnership but does not contain all of the other

19  information required by subsection (1), the statement

20  nevertheless operates with respect to a person not a partner

21  as provided in subsections (3) and (4).

22         Section 8.  Subsection (3) of section 620.8304, Florida

23  Statutes, is amended to read:

24         620.8304  Statement of denial.--

25         (3)  A statement of denial is a limitation on authority

26  as provided in s. 620.8303(3) and (4) 620.8303(5) and (6).

27         Section 9.  Section 620.8306, Florida Statutes, is

28  amended to read:

29         620.8306  Partner's liability.--

30         (1)  Except as otherwise provided in subsections (2)

31  and (3) subsection (2), all partners are liable jointly and

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  1  severally for all obligations of the partnership unless

  2  otherwise agreed by a claimant or provided by law.

  3         (2)  A person admitted as a partner into an existing

  4  partnership is not personally liable for any partnership

  5  obligation incurred before the person's admission as a

  6  partner.

  7         (3)  An obligation of a partnership incurred while the

  8  partnership is a limited liability partnership, whether

  9  arising in contract, tort, or otherwise, is solely the

10  obligation of the partnership. A partner is not personally

11  liable, directly or indirectly, by way of contribution or

12  otherwise, for such an obligation solely by reason of being or

13  so acting as a partner. This subsection applies

14  notwithstanding anything inconsistent in the partnership

15  agreement that existed immediately before the vote required to

16  become a limited liability partnership under s. 620.9001(2).

17         Section 10.  Subsections (2) and (4) of section

18  620.8307, Florida Statutes, are amended to read:

19         620.8307  Actions by and against partnership and

20  partners.--

21         (2)  An action may be brought against the partnership

22  and, to the extent not inconsistent with s. 620.8306, any or

23  all of the partners in the same action or in separate actions.

24         (4)  A judgment creditor of a partner may perfect a

25  judgment lien but may not proceed against or otherwise levy or

26  execute against the assets of the partner to satisfy a

27  judgment arising from a partnership obligation or liability

28  unless the partner is personally liable for the claim under s.

29  620.8306 and:

30         (a)  A judgment based on the same claim has been

31  obtained against the partnership and a writ of execution on

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  1  the judgment has been returned unsatisfied in whole or in

  2  part;

  3         (b)  The partnership is a debtor in bankruptcy;

  4         (c)  The partner has agreed that the creditor need not

  5  exhaust partnership assets;

  6         (d)  A court grants permission to the judgment creditor

  7  to proceed against or otherwise levy or execute against the

  8  assets of a partner based on a finding that partnership assets

  9  subject to execution are clearly insufficient to satisfy the

10  judgment, that exhaustion of partnership assets is excessively

11  burdensome, or that the grant of permission is an appropriate

12  exercise of the court's equitable powers; or

13         (e)  Liability is imposed on the partner by law or

14  contract independent of the existence of the partnership.

15         Section 11.  Subsection (2) of section 620.8701,

16  Florida Statutes, is amended to read:

17         620.8701  Purchase of dissociated partner's interest.--

18         (2)  The buyout price of a dissociated partner's

19  interest is the amount that would have been distributable to

20  the dissociating partner under s. 620.8807(2) if, on the date

21  of dissociation, the assets of the partnership were sold at a

22  price equal to the greater of the liquidation value of the

23  assets or the value of the assets based upon a sale of the

24  entire business as a going concern without having the

25  dissociated partner and the partnership being wound wind up as

26  of such date.  Interest must be paid from the date of

27  dissociation to the date of payment.

28         Section 12.  Subsection (1) of section 620.8702,

29  Florida Statutes, is amended to read:

30         620.8702  Dissociated partner's power to bind and

31  liability to partnership.--

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  1         (1)  For 1 year after a partner dissociates without

  2  resulting in a dissolution and winding up of the partnership

  3  business, the partnership, including a surviving partnership

  4  under ss. 620.8901-620.8908, is bound by an act of the

  5  dissociated partner which would have bound the partnership

  6  under s. 620.8301 before dissociation only if, at the time of

  7  entering into the transaction, the other party:

  8         (a)  Reasonably believed that the dissociated partner

  9  was then a partner;

10         (b)  Did not have notice of the partner's dissociation;

11  and

12         (c)  Is not deemed to have had knowledge under s.

13  620.8303(4) 620.8303(5) or notice under s. 620.8704(4).

14         Section 13.  Subsection (2) of section 620.8703,

15  Florida Statutes, is amended to read:

16         620.8703  Dissociated partner's liability to other

17  persons.--

18         (2)  A partner who dissociates without resulting in a

19  dissolution and winding up of the partnership business is

20  liable as a partner to any other party to a transaction

21  entered into by the partnership, or a surviving partnership

22  under ss. 620.8901-620.8908, within 1 year after the partner's

23  dissociation only if the partner is liable for the obligation

24  under s. 620.8306 and, at the time of entering into the

25  transaction, the other party:

26         (a)  Reasonably believed that the dissociated partner

27  was then a partner;

28         (b)  Did not have notice of the partner's dissociation;

29  and

30         (c)  Is not deemed to have had knowledge under s.

31  620.8303(4) 620.8301(5) or notice under s. 620.8704(4).

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  1         Section 14.  Subsection (3) of section 620.8704,

  2  Florida Statutes, is amended to read:

  3         620.8704  Statement of dissociation.--

  4         (3)  A statement of dissociation is a limitation on the

  5  authority of a dissociated partner for purposes of s.

  6  620.8303(4) and (5) 620.8303(5) and (6).

  7         Section 15.  Section 620.8801, Florida Statutes, is

  8  amended to read:

  9         620.8801  Events causing dissolution and winding up of

10  partnership business.--A partnership is dissolved, and its

11  business must be wound up, only upon the occurrence of any of

12  the following events:

13         (1)  In a partnership at will, the partnership's having

14  notice from a partner, other than a partner who is dissociated

15  under s. 620.8601(2)-(10), of such partner's express will to

16  withdraw as a partner, or withdraw on a later date specified

17  by the partner;

18         (2)  In a partnership for a definite term or particular

19  undertaking:

20         (a)  The expiration of 90 days after a partner's

21  dissociation by death or otherwise under s. 620.8601(6)-(10)

22  or 90 days after by wrongful dissociation under s.

23  620.8602(2), unless before that time a majority in interest of

24  the remaining partners, including partners who have rightfully

25  dissociated pursuant to s. 620.8602(2)(b)1., agree to continue

26  the partnership;

27         (b)  The express will of all of the partners to wind up

28  the partnership's business; or

29         (c)  The expiration of the term or the completion of

30  the undertaking;

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  1         (3)  An event agreed to in the partnership agreement

  2  resulting in the winding up of the partnership business;

  3         (4)  An event which makes it unlawful for all or

  4  substantially all of the business of the partnership to be

  5  continued, provided, a cure of the illegality, within 90 days

  6  after notice to the partnership of the event, is effective

  7  retroactively to the date of the event for purposes of this

  8  section;

  9         (5)  On application by a partner, a judicial

10  determination that:

11         (a)  The economic purpose of the partnership is likely

12  to be unreasonably frustrated;

13         (b)  Another partner has engaged in conduct relating to

14  the partnership business which makes it not reasonably

15  practicable to carry on the business in partnership with such

16  partner; or

17         (c)  It is not otherwise reasonably practicable to

18  carry on the partnership business in conformity with the

19  partnership agreement; or

20         (6)  On application by a transferee of a partner's

21  transferable interest, a judicial determination that it is

22  equitable to wind up the partnership business:

23         (a)  After the expiration of the term or completion of

24  the undertaking, if the partnership was for a definite term or

25  particular undertaking at the time of the transfer or entry of

26  the charging order that gave rise to the transfer; or

27         (b)  At any time, if the partnership was a partnership

28  at will at the time of the transfer or entry of the charging

29  order that gave rise to the transfer.

30         Section 16.  Subsections (2) and (4) of section

31  620.8805, Florida Statutes, are amended to read:

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  1         620.8805  Statement of dissolution.--

  2         (2)  A statement of dissolution cancels a filed

  3  statement of partnership authority for purposes of s.

  4  620.8303(3) 620.8305(5) and is a limitation on authority for

  5  purposes of s. 620.8303(4) 620.8303(6).

  6         (4)  After filing and, if appropriate, recording a

  7  statement of dissolution, a dissolved partnership may file

  8  and, if appropriate, record a statement of partnership

  9  authority that which will operate with respect to a person who

10  is not a partner, as provided in s. 620.8303(3) and (4)

11  620.8303(5) and (6), in any transaction, whether or not the

12  transaction is appropriate for winding up the partnership

13  business.

14         Section 17.  Subsection (1) of section 620.8806,

15  Florida Statutes, is amended to read:

16         620.8806  Partner's liability to other partners after

17  dissolution.--

18         (1)  Except as otherwise provided in subsection (2) and

19  s. 620.8306, after dissolution, a partner is liable to the

20  other partners for the partner's share of any partnership

21  liability incurred under s. 620.8804.

22         Section 18.  Subsections (2), (3), and (4) of section

23  620.8807, Florida Statutes, are amended to read:

24         620.8807  Settlement of accounts and contributions

25  among partners.--

26         (2)  Each partner is entitled to a settlement of all

27  partnership accounts upon winding up the partnership business.

28  In settling accounts among the partners, any profits and

29  losses that which result from the liquidation of the

30  partnership assets must be credited and charged to the

31  partners' accounts. The partnership shall make a distribution

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  1  to a partner in an amount equal to any excess of the credits

  2  over the charges in the partner's account but excluding from

  3  the calculation charges attributable to an obligation for

  4  which the partner is not personally liable under s. 620.8306.

  5  A partner shall contribute to the partnership an amount equal

  6  to any excess of the charges over the credits in the partner's

  7  account.

  8         (3)  If a partner fails to contribute the full amount

  9  required under subsection (2), all of the other partners shall

10  contribute, in the proportions in which those such partners

11  share partnership losses, the additional amount necessary to

12  satisfy the partnership obligations for which they are

13  personally liable under s. 620.8306.  A partner or partner's

14  legal representative may recover from the other partners any

15  contributions the partner makes to the extent the amount

16  contributed exceeds that such partner's share of the

17  partnership obligations for which the partner is personally

18  liable under s. 620.8306.

19         (4)  After the settlement of accounts, each partner

20  shall contribute, in the proportion in which the partner

21  shares partnership losses, the amount necessary to satisfy

22  partnership obligations that were not known at the time of the

23  settlement and for which the partner is personally liable

24  under s. 620.8306.

25         Section 19.  Subsection (5) of section 620.8903,

26  Florida Statutes, is amended to read:

27         620.8903  Conversion of limited partnership to

28  partnership.--

29         (5)  A limited partner who becomes a general partner as

30  a result of a conversion remains liable only as a limited

31  partner for an obligation incurred by the limited partnership

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  1  before the conversion takes effect. Except as otherwise

  2  provided in s. 620.8306(3), the partner is liable as a general

  3  partner for an obligation of the partnership incurred after

  4  the conversion takes effect.

  5         Section 20.  Subsection (3) of section 620.8906,

  6  Florida Statutes, is amended to read:

  7         620.8906  Effect of merger.--

  8         (3)  A partner of the surviving partnership or limited

  9  partnership is liable for:

10         (a)  All obligations of a party to the merger for which

11  the partner was personally liable before the merger;

12         (b)  All other obligations of the surviving entity

13  incurred before the merger by a party to the merger, but such

14  obligations may be satisfied only out of property of the

15  surviving entity; and

16         (c)  Except as otherwise provided in s. 620.8306, all

17  obligations of the surviving entity incurred after the merger

18  takes effect, but such obligations may be satisfied only out

19  of property of the surviving entity if the partner is a

20  limited partner.

21         Section 21.  Subsections (5) and (6) of section

22  620.8907, Florida Statutes, are amended to read:

23         620.8907  Statement of merger.--

24         (5)  A filed and, if appropriate, recorded statement of

25  merger, executed and affirmed declared to be accurate pursuant

26  to s. 620.8105(6) 620.8105(3), stating the name of a

27  partnership or limited partnership that is a party to the

28  merger in whose name property was held before the merger and

29  the name of the surviving entity, but not containing all of

30  the other information required by subsection (2), operates

31

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  1  with respect to the partnerships or limited partnerships named

  2  to the extent provided in subsection (4).

  3         (6)  A filed and, if appropriate, recorded statement of

  4  merger, executed and declared to be accurate pursuant to s.

  5  620.8105(3), stating the name of a partnership or limited

  6  partnership that is a party to the merger in whose name

  7  property was held before the merger and the name of the

  8  surviving entity, but not containing all of the other

  9  information required by subsection (2), operates with respect

10  to the partnerships or limited partnerships named to the

11  extent provided in subsections (4) and (5).

12         Section 22.  Section 620.9001, Florida Statutes, is

13  created to read:

14         620.9001  Statement of qualification.--

15         (1)  A partnership may become a limited liability

16  partnership pursuant to this section.

17         (2)  The terms and conditions on which a partnership

18  becomes a limited liability partnership must be approved by

19  the vote necessary to amend the partnership agreement except,

20  in the case of a partnership agreement that expressly

21  considers contribution obligations, the vote necessary to

22  amend those provisions.

23         (3)  After the approval required by subsection (2), a

24  partnership may become a limited liability partnership by

25  filing a statement of qualification.  The statement must

26  contain:

27         (a)  The name of the partnership as identified in the

28  records of the Department of State;

29         (b)  The street address of the partnership's chief

30  executive office and, if different, the street address of its

31  principal office in this state, if there is one;

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  1         (c)  The name and street address of the partnership's

  2  agent for service of process, who must be an individual

  3  resident of this state or other person authorized to do

  4  business in this state;

  5         (d)  A statement that the partnership elects to be a

  6  limited liability partnership; and

  7         (e)  A deferred effective date, if any.

  8         (4)  The status of a partnership as a limited liability

  9  partnership is effective on the later of the filing of the

10  statement or a date specified in the statement.  The status

11  remains effective, regardless of changes in the partnership,

12  until it is canceled pursuant to s. 620.8105(7) or revoked

13  pursuant to s. 620.9003.

14         (5)  The status of a partnership as a limited liability

15  partnership and the liability of its partners are not affected

16  by errors or later changes in the information required to be

17  contained in the statement of qualification under subsection

18  (3).

19         (6)  The filing of a statement of qualification

20  establishes that a partnership has satisfied all conditions

21  precedent to the qualification of the partnership as a limited

22  liability partnership.

23         (7)  An amendment or cancellation of a statement of

24  qualification is effective when it is filed or on a deferred

25  effective date specified in the amendment or cancellation.

26         Section 23.  Section 620.9002, Florida Statutes, is

27  created to read:

28         620.9002  Name.--The name of a limited liability

29  partnership must end with "Registered Limited Liability

30  Partnership," "Limited Liability Partnership," "R.L.L.P.,"

31  "L.L.P.," "RLLP," or "LLP."

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  1         Section 24.  Section 620.9003, Florida Statutes, is

  2  created to read:

  3         620.9003  Annual Report.--

  4         (1)  A limited liability partnership, and a foreign

  5  limited liability partnership authorized to transact business

  6  in this state, shall file an annual report in the office of

  7  the Secretary of State which contains:

  8         (a)  The name of the limited liability partnership and

  9  the state or other jurisdiction under whose laws the foreign

10  limited liability partnership is formed;

11         (b)  The current street address of the partnership's

12  chief executive office and, if different, the current street

13  address of its principal office in this state, if there is

14  one;

15         (c)  The partnership's Federal Employer Identification

16  Number, if any, or, if none, whether one has been applied for;

17  and

18         (d)  The name and street address of the partnership's

19  current agent for service of process, who must be an

20  individual resident of this state or other person authorized

21  to do business in this state.

22         (2)  An annual report must be filed between January 1

23  and May 1 of each year following the calendar year in which a

24  partnership files a statement of qualification or a foreign

25  partnership becomes authorized to transact business in this

26  state.

27         (3)  The Secretary of State may administratively revoke

28  the statement of qualification of a partnership that fails to

29  file an annual report when due or to pay the required filing

30  fee.  The Secretary of State shall provide the partnership at

31  least 60 days' written notice of intent to revoke the

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  1  statement.  The notice is effective 5 days after it is

  2  deposited in the United States mail addressed to the

  3  partnership at its chief executive office set forth in the

  4  last filed statement of qualification or annual report.  The

  5  notice must specify the annual report that has not been filed,

  6  the fee that has not been paid, and the date on or after which

  7  the revocation will become effective.  The revocation is not

  8  effective if the annual report is filed and the fee is paid

  9  before the effective date of the revocation.

10         (4)  A revocation under subsection (3) affects only a

11  partnership's status as a limited liability partnership and is

12  not an event of dissolution of the partnership.

13         (5)  A partnership whose statement of qualification has

14  been administratively revoked may apply to the Secretary of

15  State for reinstatement within 2 years after the effective

16  date of the revocation.  The application must state:

17         (a)  The name of the partnership and the effective date

18  of the revocation; and

19         (b)  That the ground for revocation either did not

20  exist or has been corrected.

21         (6)  A reinstatement under subsection (5) relates back

22  to and takes effect as of the effective date of the

23  revocation, and the partnership's status as a limited

24  liability partnership continues as if the revocation had never

25  occurred.

26         Section 25.  Section 620.9101, Florida Statutes, is

27  created to read:

28         620.9101  Law governing foreign limited liability

29  partnership.--

30         (1)  The law under which a foreign limited liability

31  partnership is formed governs relations among the partners and

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  1  between the partners and the partnership and the liability of

  2  partners for obligations of the partnership.

  3         (2)  A foreign limited liability partnership may not be

  4  denied a statement of foreign qualification by reason of any

  5  difference between the laws under which the partnership was

  6  formed and the laws of this state.

  7         (3)  A statement of foreign qualification does not

  8  authorize a foreign limited liability partnership to engage in

  9  any business or exercise any power that a partnership may not

10  engage in or exercise in this state as a limited liability

11  partnership.

12         Section 26.  Section 620.9102, Florida Statutes, is

13  created to read:

14         620.9102  Statement of foreign qualification.--

15         (1)  Before transacting business in this state, a

16  foreign limited liability partnership must comply with the

17  requirements of s. 620.8105 and file a statement of foreign

18  qualification.  The statement must contain:

19         (a)  The name of the foreign limited liability

20  partnership which satisfies the requirements of the state or

21  other jurisdiction under whose law it is formed and ends with

22  "Registered Limited Liability Partnership," "Limited Liability

23  Partnership," "R.L.L.P.," "L.L.P.," "RLLP," or "LLP";

24         (b)  The street address of the partnership's chief

25  executive office and, if different, the street address of its

26  principal office in this state, if there is one;

27         (c)  The name and street address of the partnership's

28  agent for service of process who must be an individual

29  resident of this state or other person authorized to do

30  business in this state; and

31         (d)  A deferred effective date, if any.

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  1         (2)  The status of a partnership as a foreign limited

  2  liability partnership is effective on the later of the filing

  3  of the statement of foreign qualification or a date specified

  4  in the statement.  The status remains effective, regardless of

  5  changes in the partnership, until it is canceled pursuant to

  6  s. 620.8105(7) or revoked pursuant to s. 620.9003.

  7         (3)  An amendment or cancellation of a statement of

  8  foreign qualification is effective when it is filed or on a

  9  deferred effective date specified in the amendment or

10  cancellation.

11         Section 27.  Section 620.9103, Florida Statutes, is

12  created to read:

13         620.9103  Effect of failure to qualify.--

14         (1)  A foreign limited liability partnership

15  transacting business in this state may not maintain an action

16  or proceeding in this state unless it has in effect a

17  statement of foreign qualification.

18         (2)  The failure of a foreign limited liability

19  partnership to have in effect a statement of foreign

20  qualification does not impair the validity of a contract or

21  act of the foreign limited liability partnership or preclude

22  it from defending an action or proceeding in this state.

23         (3)  Limitations on personal liability of partners are

24  not waived solely by transacting business in this state

25  without a statement of foreign qualification.

26         (4)  If a foreign limited liability partnership

27  transacts business in this state without a statement of

28  foreign qualification, the Secretary of State may accept

29  substituted service of process, pursuant to the provisions of

30  s. 48.181 with respect to actions arising out of the

31  transaction of business in this state.

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  1         Section 28.  Section 620.9104, Florida Statutes, is

  2  created to read:

  3         620.9104  Activities not constituting transacting

  4  business.--

  5         (1)  Activities of a foreign limited liability

  6  partnership which do not constitute transacting business

  7  within the meaning of ss. 620.9101-620.9105 include:

  8         (a)  Maintaining, defending, or settling an action or

  9  proceeding;

10         (b)  Holding meetings of its partners or carrying on

11  any other activity concerning its internal affairs;

12         (c)  Maintaining bank accounts;

13         (d)  Maintaining offices or agencies for the transfer,

14  exchange, and registration of the partnership's own securities

15  or maintaining trustees or depositories with respect to those

16  securities;

17         (e)  Selling through independent contractors;

18         (f)  Soliciting or obtaining orders, whether by mail or

19  through employees or agents or otherwise, if the orders

20  require acceptance outside this state before they become

21  contracts;

22         (g)  Creating or acquiring indebtedness, mortgages, or

23  security interests in real or personal property;

24         (h)  Securing or collecting debts or foreclosing

25  mortgages or other security interests in property securing the

26  debts, and holding, protecting, and maintaining property so

27  acquired;

28         (i)  Conducting an isolated transaction that is

29  completed within 30 days and is not one in the course of

30  similar transactions of like nature; and

31         (j)  Transacting business in interstate commerce.

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  1         (2)  For purposes of this act, the ownership in this

  2  state of income-producing real property or tangible personal

  3  property, other than property excluded under subsection (1),

  4  constitutes transacting business in this state.

  5         (3)  This section does not apply in determining the

  6  contacts or activities that may subject a foreign limited

  7  liability partnership to service of process, taxation, or

  8  regulation under any other law of this state.

  9         Section 29.  Section 620.9105, Florida Statutes, is

10  created to read:

11         620.9105  Action by Attorney General.--The Attorney

12  General may maintain an action to restrain a foreign limited

13  liability partnership from transacting business in this state

14  in violation of ss. 620.9101-620.9104.

15         Section 30.  Section 620.187, Florida Statutes, is

16  created to read:

17         620.187  Limited liability limited partnership.--

18         (1)  A limited partnership may become a limited

19  liability limited partnership by:

20         (a)  Obtaining the approval of the terms and conditions

21  of the limited partnership becoming a limited liability

22  limited partnership by the vote necessary to amend the limited

23  partnership agreement; however, in the case of a limited

24  partnership agreement that expressly considers contribution

25  obligations, the vote required is the vote necessary to amend

26  those provisions;

27         (b)  Filing a statement of qualification under s.

28  620.9001(3) of the Revised Uniform Partnership Act of 1995;

29  and

30         (c)  Complying with the name requirements of s.

31  620.9002 of the Revised Uniform Partnership Act of 1995.

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  1         (2)  A limited liability limited partnership continues

  2  to be the same entity that existed before the filing of a

  3  statement of qualification under s. 620.9001(3) of the Revised

  4  Uniform Partnership Act of 1995.

  5         (3)  Sections 620.8306(3) and 620.8307(6) of the

  6  Revised Uniform Partnership Act of 1995 apply to both general

  7  and limited partners of a limited liability limited

  8  partnership.

  9         Section 31.  Subsections (7) and (14) of section

10  865.09, Florida Statutes, 1998 Supplement, are amended to

11  read:

12         865.09  Fictitious name registration.--

13         (7)  EXEMPTIONS.--A business formed by an attorney

14  actively licensed to practice law in this state, or by a

15  person actively licensed by the Department of Business and

16  Professional Regulation or the Department of Health, for the

17  purpose of practicing his or her licensed profession, or by

18  any corporation, partnership, or other commercial entity that

19  is actively organized or registered with the Department of

20  State is not required to register its name pursuant to this

21  section, unless the name under which business is to be

22  conducted differs from the name as licensed or registered need

23  not be registered under this section, notwithstanding that it

24  transacts business ancillary to the practice of such

25  profession.

26         (14)  PROHIBITION.--A fictitious name registered as

27  provided in this section may not contain the words

28  "Corporation" or "Incorporated," or the abbreviations "Corp."

29  or "Inc.," unless the person or business for which the name is

30  registered is incorporated or has obtained a certificate of

31  authority to transact business in this state pursuant to

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  1  chapter 607 or chapter 617. However, a business incorporated

  2  or authorized under chapter 607 or chapter 617 is not required

  3  to register the corporate name pursuant to this section unless

  4  the name that the corporation intends to conduct business

  5  under differs from the corporation's name as stated in its

  6  articles of incorporation.

  7         Section 32.  Section 620.90, Florida Statutes, is

  8  transferred and redesignated as section 620.9901, Florida

  9  Statutes.

10         Section 33.  Section 620.91, Florida Statutes, is

11  transferred and redesignated as section 620.9902, Florida

12  Statutes.

13         Section 34.  Sections 620.78, 620.781, 620.782,

14  620.783, 620.7851, 620.786, 620.787, 620.788, 620.7885,

15  620.7887 and 620.789, Florida Statutes, and section 620.784,

16  Florida Statutes, 1998 Supplement, are repealed.

17         Section 35.  This act shall take effect upon becoming a

18  law.

19

20            *****************************************

21                          HOUSE SUMMARY

22
      Revises various sections of the Revised Uniform
23    Partnership Act. Adopts the model act provisions of the
      limited liability partnership act into the Revised
24    Uniform Partnership Act. Repeals the sections of part
      III, chapter 620, Florida Statutes, relating to
25    registered limited liability partnerships.

26

27

28

29

30

31

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