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Memo To The Legislature: The Beverly-Killea Act Hasn't Been Law Since 2014

California's first limited liability company act was known as the Beverly-Killea Limited Liability Company Act, former Corporations Code Section 17000 et seq.  In 2012, the legislature replaced it with the ill conceived California Revised Uniform Limited Liability Company Act that took effect on January 1, 2014.  The legislature enacted both of these acts and thus might reasonably be expected to know that the Beverly-Killea Act is no more.  

In April, the Senate Judiciary Committee met to consider SB 904 (Wieckowski), a bill to extend the sunset date on the existing statutory authority for issuing an alarm company operator’s licenses to LLCs, if, among other things, certain insurance requirements are met.  The Committee's analysis repeatedly referred to the Beverly-Killea Act without any recognition that it hasn't been the law in years.  Below are a few of the anachronistic references:

"Under the Beverly-Killea Limited Liability Company Act (the LLC Act) (SB 469 (Beverly and Killea, Ch. 1200, Stats.1994)), a foreign or domestic limited liability company (LLC) is prohibited from rendering professional services in this state unless expressly authorized under applicable provisions of law."

"Under the Beverly-Killea LLC Act, an LLC cannot provide professional services unless permitted by the Business and Professions Code."

"Existing law, the Beverly-Killea LLC Act, generally prohibits domestic and foreign limited liability companies from rendering professional services, as defined, in California. Existing law provides that an LLC may render services that may be lawfully rendered only pursuant to a license, certificate, or registration authorized by the Business and Professions Code if the applicable provisions of the Business and Professions Code authorize a limited liability company to hold that license, certificate, or registration. (Corp. Code Sec. 17701.04.) "

The last the reference is truly bizarre as the section reference is part of the current CARULLCA, not the former Beverly-Killea Act.  

The Senate was unperturbed by this anachronistic analysis.  The bill passed out of Judiciary Committee on a 7-0 vote and the Senate 39-0.  Perhaps the Assembly will be more current in its analysis.

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30172DBAB0084D3A8F39D7AF0A8E79BC.ashx Keith Paul Bishop
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