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Jurisdictional Updates 9-2-2021

Arizona Senate Bill 1230 (Chapter 309) signed by the governor May 3 and effective 91 days after adjournment (projected as May 28)  revises the Limited Liability Act relating to operating agreements, disassociation of a person from the LLC and administrative dissolution.

Arkansas Senate Bill 601 (Act 1041) signed by the governor April 29 and effective September 1  adopts the Uniform Limited Liability Company Act (ULLCA) which governs the formation, operation, and dissolution of LLCs and repeals the current law under which LLC’s are formed, operated, and dissolved. The bill also repeals the Small Business Entity Tax Pass Through Act and requires an LLC and its members to be taxed for state income tax purposes in the same manner as for federal income tax.

Illinois Senate Bill 2494 (Public Act 563) signed by the governor and effective August 20 amends the Mechanics Lien Act to clarify that provisions governing the circumstances in which it is not necessary to fix by contract a time for the completion or a time for payment in order to obtain a lien are operative from January 1, 2013 through December 31, 2026. 

Texas Senate Bill 1203 signed by the governor May 15 and effective September 1 amends the Business Organizations Code to among other things authorize the governing authority of a domestic entity to take an emergency action during an emergency period without satisfying the requirements of the entity’s governing documents or the code that apply outside of an emergency period with respect to procedural requirements for action at a meeting of the governing persons.  

House Bill 3131 signed by the governor June 16 and effective September 1 requires the certificate of formation filed after September 1 for a domestic corporation, limited partnership, limited liability company, professional association, cooperative, or real estate investment trust to state the preferred mailing address of the filing entity.

House Bill 1560 signed by the governor June 15 and effective September 1 continued for 12 years the functions of the State Department of Licensing and Regulation which had been scheduled for sunset September 1, 2021.