S.B. 227 & 228: COMMITTEE SUMMARY - PROFESSIONAL LTD. LIABILITY CO.



Senate Bills 227 and 228 (as introduced 2-26-97)

Sponsor: Senator Michael J. Bouchard

Committee: Economic Development, International Trade and Regulatory Affairs


Date Completed: 3-12-97


CONTENT


Senate Bill 227 would amend Article 20 of the Occupational Code, which regulates architects, professional engineers, and land surveyors, to include a limited liability company (LLC) in the Article's definition of "firm" and include a member of an LLC in the Article's definition of "principal". Currently, "firm" means a sole proprietorship, partnership, or corporation through which a person licensed under Article 20 offers or provides a service to the public. "Principal" means "a sole proprietor, partner, or the president, vice-president, secretary, treasurer, or director of a corporation".


Senate Bill 228 would amend the Michigan Limited Liability Company Act to specify that a professional LLC could engage in the practice of architecture, professional engineering, or professional surveying in Michigan if at least two-thirds of the company's members were licensed in this State to render the professional service offered. The Act currently provides that a professional LLC may render one or more professional services, and each member and manager must be a person licensed in one or more of the professional services rendered by the company.


MCL 339.2001 (S.B. 227) - Legislative Analyst: P. Affholter

450.4904 (S.B. 228)


FISCAL IMPACT


The bills would have no fiscal impact on State or local government.


- Fiscal Analyst: M. Tyszkiewicz




S9798\S227SA

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.