Senate Bill 2190c1

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    Florida Senate - 2000                           CS for SB 2190

    By the Committee on Judiciary and Senator Saunders





    308-1889-00

  1                      A bill to be entitled

  2         An act relating to business entities; amending

  3         ss. 607.11101, 608.4383, 620.204, 620.8906,

  4         F.S.; deleting requirement that a deed be

  5         recorded in order to transfer title to real

  6         property incident to merger; amending s.

  7         608.406, F.S.; clarifying application of

  8         limited liability company name requirements to

  9         a fictitious name; amending s. 620.8904, F.S.;

10         deleting requirement that a deed be recorded in

11         order to transfer title to real property

12         incident to conversion of a partnership or a

13         limited partnership; creating s. 694.16, F.S.,

14         relating to conveyances incident to the merger

15         or conversion of a business entity; providing a

16         directive to the Division of Statutory

17         Revision; providing an effective date.

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

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21         Section 1.  Subsection (2) of section 607.11101,

22  Florida Statutes, is amended to read:

23         607.11101  Effect of merger of domestic corporation and

24  other business entity.--When a merger becomes effective:

25         (2)  The title to all real estate and other property,

26  other than real property or any interest therein, owned by

27  each domestic corporation and other business entity that is a

28  party to the merger is vested in the surviving entity without

29  reversion or impairment. Title to real property or any

30  interest therein shall be conveyed by the recordation of a

31  deed with payment of applicable taxes thereon.

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    Florida Senate - 2000                           CS for SB 2190
    308-1889-00




  1         Section 2.  Subsection (3) is added to section 608.406,

  2  Florida Statutes, to read:

  3         608.406  Limited liability company name.--

  4         (3)  The provisions of paragraph (1)(a) do not apply to

  5  a fictitious name registered pursuant to s. 865.09.

  6         Section 3.  Subsection (2) of section 608.4383, Florida

  7  Statutes, is amended to read:

  8         608.4383  Effect of merger.--When a merger becomes

  9  effective:

10         (2)  The title to all real estate and other property,

11  other than real property or any interest therein, owned by

12  each domestic limited liability company corporation and other

13  business entity that is a party to the merger is vested in the

14  surviving entity without reversion or impairment. Title to

15  real property or any interest therein shall be conveyed by the

16  recordation of a deed with payment of applicable taxes

17  thereon.

18         Section 4.  Paragraph (b) of subsection (1) of section

19  620.204, Florida Statutes, is amended to read:

20         620.204  Effect of merger.--

21         (1)  When a merger becomes effective:

22         (b)  The title to all real estate and other property,

23  other than real property or any interest therein, owned by

24  each domestic limited partnership corporation and other

25  business entity that is a party to the merger is vested in the

26  surviving entity without reversion or impairment. Title to

27  real property or any interest therein shall be conveyed by the

28  recordation of a deed with payment of applicable taxes

29  thereon.

30         Section 5.  Subsection (2) of section 620.8904, Florida

31  Statutes, is amended to read:

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    Florida Senate - 2000                           CS for SB 2190
    308-1889-00




  1         620.8904  Effect of conversion; entity unchanged.--

  2         (2)  When a conversion takes effect:

  3         (a)  Title to all real estate and other personal

  4  property owned by the converting partnership or limited

  5  partnership is remains vested in the converted entity without

  6  reversion or impairment. Title to all real property owned by

  7  the converting partnership or limited partnership shall be

  8  transferred by deed to the converted entity; and

  9         (b)  All liabilities and obligations of the converting

10  partnership or limited partnership continue as liabilities and

11  obligations of the converted entity.

12         Section 6.  Subsection (1) of section 620.8906, Florida

13  Statutes, is amended to read:

14         620.8906  Effect of merger.--

15         (1)  When a merger takes effect:

16         (a)  The separate existence of every partnership or

17  limited partnership which is a party to the merger, other than

18  the surviving entity, ceases;

19         (b)  Title to all real estate and other personal

20  property, or any interest therein, owned by each of the

21  domestic merged partnerships or limited partnerships vests in

22  the surviving entity without reversion or impairment.  Title

23  to all real property owned by each of the merged partnerships

24  or limited partnerships shall be transferred by deed to the

25  surviving entity;

26         (c)  All liabilities and obligations of each

27  partnership or limited partnership which is a party to the

28  merger become the liabilities and obligations of the surviving

29  entity;

30         (d)  A claim existing or action or proceeding pending

31  by or against a partnership or limited partnership which is a

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    Florida Senate - 2000                           CS for SB 2190
    308-1889-00




  1  party to the merger may be continued as if the merger had not

  2  occurred, or the surviving entity may be substituted as a

  3  party to the action or proceeding;

  4         (e)  Neither the rights of creditors of a converting

  5  partnership or limited partnership nor any liens upon the

  6  property of any party to the merger are impaired by such

  7  merger; and

  8         (f)  Each partner of a party to the merger is entitled

  9  only to the rights provided in the plan of merger.

10         Section 7.  Section 694.16, Florida Statutes, is

11  created to read:

12         694.16  Conveyances by merger or conversion of business

13  entities.--As to any merger or conversion of business entities

14  prior to the effective date of this act, the title to all real

15  estate, or any interest therein, owned by a business entity

16  that was a party to a merger or a conversion is vested in the

17  surviving entity without reversion or impairment,

18  notwithstanding the requirement of a deed which was previously

19  required by s. 607.11101, s. 608.4383, s. 620.204, s.

20  620.8904, or s. 620.8906.

21         Section 8.  In the next addition of the official

22  Florida Statutes, the Division of Statutory Revision is

23  directed to replace the phrase "the effective date of this

24  act" in section 694.16, Florida Statutes, with the date on

25  which this act takes effect.

26         Section 9.  This act shall take effect upon becoming a

27  law.

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    Florida Senate - 2000                           CS for SB 2190
    308-1889-00




  1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
  2                             SB 2190

  3

  4  A new section is added to the bill which amends s. 608.406,
    F.S. Subsection (3) provides that the provisions of subsection
  5  (1)(a) of s. 608.406, F.S., shall not apply to a fictitious
    name registered with the Division of Corporations of the
  6  Department of State pursuant to s. 865.09, F.S. Accordingly,
    limited liability companies whose names have been registered
  7  under the Fictitious Name Act do not have to include the
    words, abbreviations, or designations required by s.
  8  608.406(1)(a), F.S., in their company names.

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