Legislation
An L3C is established pursuant to the law of the state in which the entity is formed. To authorize the organization of an L3C, legislation must be passed that amends the state's general limited liability company law. Thus far, legislation has been passed in Illinois, Louisiana, Maine, Michigan, North Carolina, Rhode Island, Utah, Vermont, and Wyoming and the federal jurisdictions of the Crow Indian Nation of Montana and the Oglala Sioux Tribe. As of January 11, 2013, the Secretaries of State of the nine states and two Indian Nations that authorize them reported that 711 active L3Cs are in operation. HB 1299 was introduced on January 14, 2013 in North Dakota, which would authorize the organization of L3Cs. Legislation has been written for 26 additional states but has not yet been introduced.
In May, 2012, the IRS released proposed regulations that broaden the landscape of what constitutes an acceptable PRI by adding nine new examples of investments that would qualify, along with some general principles. An amendment to the Illinois L3C law that would allow for a more expansive description of the purposes for which L3Cs can be created, consistent with the proposed examples of PRIs set forth by the IRS in 2012, unanimously passed the Illinois Senate on April 17, 2013, and has been referred to the Illinois House Rules Committee. The expanded clause would make Illinois the first state to authorize L3Cs whose purposes may reflect the whole range of statutorily sanctioned PRIs. Legislation is also pending at federal level that will simplify the process for receiving IRS approval that an investment qualifies as a PRI.
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Famous quotes containing the word legislation:
“No legislation can suppress nature; all life rushes to reproduction; our procreative faculties are matured early, while passion is strong, and judgment and self-restraint weak. We cannot alter this, but we can alter what is conventional. We can refuse to brand an act of nature as a crime, and to impute to vice what is due to ignorance.”
—Tennessee Claflin (1846–1923)
“Coming out, all the way out, is offered more and more as the political solution to our oppression. The argument goes that, if people could see just how many of us there are, some in very important places, the negative stereotype would vanish overnight. ...It is far more realistic to suppose that, if the tenth of the population that is gay became visible tomorrow, the panic of the majority of people would inspire repressive legislation of a sort that would shock even the pessimists among us.”
—Jane Rule (b. 1931)
“But the wise know that foolish legislation is a rope of sand, which perishes in the twisting; that the State must follow, and not lead the character and progress of the citizen; the strongest usurper is quickly got rid of; and they only who build on Ideas, build for eternity; and that the form of government which prevails, is the expression of what cultivation exists in the population which permits it.”
—Ralph Waldo Emerson (1803–1882)