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               ENGROSSED SUBSTITUTE SENATE BILL 6168

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State of Washington      54th Legislature     1996 Regular Session

 

By Senate Committee on Law & Justice (originally sponsored by Senators Smith, Johnson, Newhouse and Winsley)

 

Read first time 01/25/96.

 

Amending the limited liability companies act.



    AN ACT Relating to limited liability companies; amending RCW 1.16.080, 19.80.005, 19.80.010, 25.15.010, 25.15.020, 25.15.045, 25.15.150, 25.15.270, and 25.15.325; adding new sections to chapter 25.15 RCW; and creating a new section.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

 

    Sec. 1.  RCW 1.16.080 and 1891 c 23 s 1, part are each amended to read as follows:

    (1) The term "person" may be construed to include the United States, this state, or any state or territory, or any public or private corporation or limited liability company, as well as an individual.

    (2) Unless the context clearly indicates otherwise, the terms "association," "unincorporated association," and "person, firm, or corporation" or substantially identical terms shall, without limiting the application of any term to any other type of legal entity, be construed to include a limited liability company.

 

    Sec. 2.  RCW 19.80.005 and 1984 c 130 s 2 are each amended to read as follows:

    Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter:

    (1) "Trade name" means a word or name, or any combination of a word or name, used by a person to identify the person's business which:

    (a) Is not, or does not include, the true and real name of all persons conducting the business; or

    (b) Includes words which suggest additional parties of interest such as "company," "and sons," or "and associates."

    (2) "Business" means an occupation, profession, or employment engaged in for the purpose of seeking a profit.

    (3)"Executed" by a person means that a document signed by such person is signed by that person under penalties of perjury and in an official and authorized capacity on behalf of the person submitting the document to the department of licensing.

    (4) "Person" means any individual, partnership, limited liability company, or corporation conducting or having an interest in a business in the state.

    (5) "True and real name" means:

    (a) The surname of an individual coupled with one or more of the individual's other names, one or more of the individual's initials, or any combination;

    (b) The designation or appellation by which an individual is best known and called in the business community where that individual transacts business, if this is used as that individual's legal signature;

    (c) The registered corporate name of a domestic corporation as filed with the secretary of state;

    (d) The registered corporate name of a foreign corporation authorized to do business within the state of Washington as filed with the secretary of state;

    (e) The registered partnership name of a domestic limited partnership as filed with the secretary of state;

    (f) The registered partnership name of a foreign limited partnership as filed with the secretary of state; or

    (g) The name of a general partnership which includes in its name the true and real names, as defined in (a) through (f) of this subsection, of each general partner as required in RCW 19.80.010.

 

    Sec. 3.  RCW 19.80.010 and 1984 c 130 s 3 are each amended to read as follows:

    Each person or persons who shall carry on, conduct, or transact business in this state under any trade name shall register that trade name with the department of licensing as set forth in this section:

    (1) Sole proprietorship or general partnership:  The registration shall set forth the true and real name or names of each person conducting the same, together with the post office address or addresses of each such person and the name of the general partnership, if applicable.

    (2) Foreign or domestic limited partnership:  The registration shall set forth the limited partnership name as filed with the office of the secretary of state.

    (3) Foreign or domestic limited liability company:  The registration shall set forth the limited liability company name as filed with the office of the secretary of state.

    (4) Foreign or domestic corporation:  The registration shall set forth the corporate name as filed with the office of the secretary of state.

    (((4))) (5) The registration shall be executed by:

    (a) The sole proprietor of a sole proprietorship;

    (b) A general partner of a domestic or foreign general or limited partnership; or

    (c) An officer of a domestic or foreign corporation.

 

    Sec. 4.  RCW 25.15.010 and 1994 c 211 s 102 are each amended to read as follows:

    (1) The name of each limited liability company as set forth in its certificate of formation:

    (a) Must contain ((either)) the words "Limited Liability Company," the words "Limited Liability" and abbreviation "Co.," or the abbreviation "L.L.C." or "LLC";

    (b) Except as provided in subsection (1)(d) of this section, may contain the name of a member or manager;

    (c) Must not contain language stating or implying that the limited liability company is organized for a purpose other than those permitted by RCW 25.15.030;

    (d) Must not contain any of the words or phrases:  "Bank," "banking," "banker," "trust," "cooperative," "partnership," "corporation," "incorporated," or the abbreviations "corp.," "ltd.," or "inc.," or "L.P.," or any combination of the words "industrial" and "loan," or any combination of any two or more of the words "building," "savings," "loan," "home," "association," and "society," or any other words or phrases prohibited by any statute of this state; and

    (e) Must be distinguishable upon the records of the secretary of state from the names described in RCW 23B.04.010(1)(d) and 25.10.020(1)(d), and the names of any limited liability company reserved, registered, or formed under the laws of this state or qualified to do business as a foreign limited liability company in this state.

    (2) A limited liability company may apply to the secretary of state for authorization to use any name which is not distinguishable upon the records of the secretary of state from one or more of the names described in subsection (1)(e) of this section.  The secretary of state shall authorize use of the name applied for if the other corporation, limited partnership, or limited liability company consents in writing to the use and files with the secretary of state documents necessary to change its name or the name reserved or registered to a name that is distinguishable upon the records of the secretary of state from the name of the applying limited liability company.

    (3) A name shall not be considered distinguishable upon the records of the secretary of state by virtue of:

    (a) A variation in the designation, under subsection (1)(a) of this section, used for the same name;

    (b) The addition or deletion of an article or conjunction such as "the" or "and" from the same name;

    (c) Punctuation, capitalization, or special characters or symbols in the same name; or

    (d) Use of abbreviation or the plural form of a word in the same name.

    (4) This chapter does not control the use of assumed business names or "trade names."

 

    Sec. 5.  RCW 25.15.020 and 1994 c 211 s 104 are each amended to read as follows:

    (1) Each limited liability company shall continuously maintain in this state:

    (a) A registered office, which may but need not be a place of its business in this state.  The registered office shall be at a specific geographic location in this state, and be identified by number, if any, and street, or building address or rural route, or, if a commonly known street or rural route address does not exist, by legal description.  A registered office may not be identified by post office box number or other nongeographic address.  For purposes of communicating by mail, the secretary of state may permit the use of a post office address in the same city as the registered office in conjunction with the registered office address if the limited liability company also maintains on file the specific geographic address of the registered office where personal service of process may be made;

    (b) A registered agent for service of process on the limited liability company, which agent may be either an individual resident of this state whose business office is identical with the limited liability company's registered office, or a domestic corporation, limited partnership, or limited liability company, or a foreign corporation, limited partnership, or limited liability company authorized to do business in this state having a business office identical with such registered office; and

    (c) A registered agent who shall not be appointed without having given prior written consent to the appointment.  The written consent shall be filed with the secretary of state in such form as the secretary may prescribe.  The written consent shall be filed with or as a part of the document first appointing a registered agent.

    (2) ((A registered agent may change the address of the registered office of the limited liability company or companies for which such registered agent is registered agent to another address in this state by filing with the secretary of state a certificate, executed by such registered agent, setting forth the names of all the limited liability companies represented by such registered agent, and the address at which such registered agent has maintained the registered office for each of such limited liability companies, and further certifying to the new address to which each such registered office will be changed on a given day, and at which new address such registered agent will thereafter maintain the registered office for each of the limited liability companies recited in the certificate.  Upon the filing of such certificate, the secretary of state shall furnish to the registered agent a certified copy of the same, and thereafter, or until further change of address, as authorized by law, the registered office in this state of each of the limited liability companies recited in the certificate shall be located at the new address of the registered agent thereof as given in the certificate.  In the event of a change of name of any person acting as a registered agent of a limited liability company, such registered agent shall file with the secretary of state a certificate, executed by such registered agent, setting forth the new name of such registered agent, the name of such registered agent before it was changed, the names of all the limited liability companies represented by such registered agent, and the address at which such registered agent has maintained the registered office for each of such limited liability companies.  Upon the filing of such certificate, the secretary of state shall furnish to the registered agent a certified copy of the certificate.  Filing a certificate under this section shall be deemed to be an amendment of the certificate of formation of each limited liability company affected thereby and each such limited liability company shall not be required to take any further action with respect thereto, to amend its certificate of formation under RCW 25.15.075.  Any registered agent filing a certificate under this section shall promptly, upon such filing, deliver a copy of any such certificate to each limited liability company affected thereby.

    (3) The registered agent of one or more limited liability companies may resign and appoint a successor registered agent by  filing a certificate with the secretary of state, stating that it resigns and the name and address of the successor registered agent.  There shall be attached to such certificate a statement executed by each affected limited liability company ratifying and approving such change of registered agent.  Upon such filing, the successor registered agent shall become the registered agent of such limited liability companies as have ratified and approved such substitution and the successor registered agent's address, as stated in such certificate, shall become the address of each such limited liability company's registered office in this state.  The secretary of state shall furnish to the successor registered agent a certified copy of the certificate of resignation.  Filing of such certificate of resignation shall be deemed to be an amendment of the certificate of formation of each limited liability company affected thereby and each such limited liability company shall not be required to take any further action with respect thereto, to amend its certificate of formation under RCW 25.15.075.

    (4) The registered agent of a limited liability company may resign without appointing a successor registered agent by filing a certificate with the secretary of state stating that it resigns as registered agent for the limited liability company identified in the certificate, but such resignation shall not become effective until one hundred twenty days after the certificate is filed.  There shall be attached to such certificate an affidavit of such registered agent, that at least thirty days prior to and on or about the date of the filing of said certificate, notices were sent by certified or registered mail to the limited liability company for which such registered agent is resigning as registered agent, at the principal office thereof within or outside this state, if known to such registered agent or, if not, to the last known address of the attorney or other individual at whose request such registered agent was appointed for such limited liability company, of the resignation of such registered agent.  After receipt of the notice of the resignation of its registered agent, the limited liability company for which such registered agent was acting shall obtain and designate a new registered agent, to take the place of the registered agent so resigning)) A limited liability company may change its registered office or registered agent by delivering to the secretary of state for filing a statement of change that sets forth:

    (a) The name of the limited liability company;

    (b) If the current registered office is to be changed, the street address of the new registered office in accord with subsection (1) of this section;

    (c) If the current registered agent is to be changed, the name of the new registered agent and the new agent's written consent, either on the statement or attached to it, to the appointment; and

    (d) That after the change or changes are made, the street addresses of its registered office and the business office of its registered agent will be identical.

    (3) If a registered agent changes the street address of the agent's business office, the registered agent may change the street address of the registered office of any limited liability company for which the agent is the registered agent by notifying the limited liability company in writing of the change and signing, either manually or in facsimile, and delivering to the secretary of state for filing a statement that complies with the requirements of subsection (2) of this section and recites that the limited liability company has been notified of the change.

    (4) A registered agent may resign as agent by signing and delivering to the secretary of state for filing a statement that the registered office is also discontinued.  After filing the statement the secretary of state shall mail a copy of the statement to the limited liability company at its principal office.  The agency appointment is terminated, and the registered office discontinued is so provided, on the thirty-first day after the date on which the statement was filed.

 

    Sec. 6.  RCW 25.15.045 and 1995 c 337 s 14 are each amended to read as follows:

    (1) A person or group of persons licensed or otherwise legally authorized to render professional services within this state may organize and become a member or members of a professional limited liability company under the provisions of this chapter for the purposes of rendering professional service.  A "professional limited liability company" is subject to all the provisions of chapter 18.100 RCW that apply to a professional corporation, and its managers, members, agents, and employees shall be subject to all the provisions of chapter 18.100 RCW that apply to the directors, officers, shareholders, agents, or employees of a professional corporation, except as provided otherwise in this section.  Nothing in this section prohibits a person duly licensed or otherwise legally authorized to render professional services in any jurisdiction other than this state from becoming a member of a professional limited liability company organized for the purpose of rendering the same professional services.  Nothing in this section prohibits a professional limited liability company from rendering professional services outside this state through individuals who are not duly licensed or otherwise legally authorized to render such professional services within this state.  Notwithstanding RCW 18.100.065, persons engaged in a profession and otherwise meeting the requirements of this chapter may operate under this chapter as a professional limited liability company so long as each member personally engaged in the practice of the profession in this state is duly licensed or otherwise legally authorized to practice the profession in this state and:

    (a) At least one manager of the company is duly licensed or otherwise legally authorized to practice the profession in this state; or

    (b) Each member in charge of an office of the company in this state is duly licensed or otherwise legally authorized to practice the profession in this state.

    (2) If the company's members are required to be licensed to practice such profession, and the company fails to maintain for itself and for its members practicing in this state a policy of professional liability insurance, bond, or other evidence of financial responsibility of a kind designated by rule by the state insurance commissioner and in the amount of at least one million dollars or such greater amount as the state insurance commissioner may establish by rule for a licensed profession or for any specialty within a profession, taking into account the nature and size of the business, then the company's members shall be personally liable to the extent that, had such insurance, bond, or other evidence of responsibility been maintained, it would have covered the liability in question.

    (3) For purposes of applying the provisions of chapter 18.100 RCW to a professional limited liability company, the terms "director" or "officer" shall mean manager, "shareholder" shall mean member, "corporation" shall mean professional limited liability company, "articles of incorporation" shall mean certificate of formation, "shares" or "capital stock" shall mean a limited liability company interest, "incorporator" shall mean the person who executes the certificate of formation, and "bylaws" shall mean the limited liability company agreement.

    (4) The name of a professional limited liability company must contain either the words "Professional Limited Liability Company," or the words "Professional Limited Liability" and the abbreviation "Co.," or the abbreviation "P.L.L.C." or "PLLC" provided that the name of a professional limited liability company organized to render dental services shall contain the full names or surnames of all members and no other word than "chartered" or the words "professional services" or the abbreviation "P.L.L.C." or PLLC".

    (5) Subject to the provisions in article VII of this chapter, the following may be a member of a professional limited liability company and may be the transferee of the interest of an ineligible person or deceased member of the professional limited liability company:

    (a) A professional corporation, if its shareholders, directors, and its officers other than the secretary and the treasurer, are licensed or otherwise legally authorized to render the same specific professional services as the professional limited liability company; and

    (b) Another professional limited liability company, if the managers and members of both professional limited liability companies are licensed or otherwise legally authorized to render the same specific professional services.

 

    Sec. 7.  RCW 25.15.150 and 1994 c 211 s 401 are each amended to read as follows:

    (1) Unless the certificate of formation vests management of the limited liability company in a manager or managers((,)):  (a) Management of the business or affairs of the limited liability company shall be vested in the members; and (b) each member is an agent of the limited liability company for the purpose of its business and the act of any member for apparently carrying on in the usual way the business of the limited liability company binds the limited liability company unless the member so acting has in fact no authority to act for the limited liability company in the particular matter and the person with whom the member is dealing has knowledge of the fact that the member has no such authority.  Subject to any provisions in the limited liability company agreement or this chapter restricting or enlarging the management rights and duties of any person or group or class of persons, the members shall have the right and authority to manage the affairs of the limited liability company and to make all decisions with respect thereto.

    (2) If the certificate of formation vests management of the limited liability company in one or more managers, then such persons shall have such power to manage the business or affairs of the limited liability company as is provided in the limited liability company agreement.  Unless otherwise provided in the limited liability company agreement, such persons:

    (a) Shall be designated, appointed, elected, removed, or replaced by a vote, approval, or consent of members contributing, or required to contribute, more than fifty percent of the agreed value (as stated in the records of the limited liability company required to be kept pursuant to RCW 25.15.135) of the contributions made, or required to be made, by all members at the time of such action;

    (b) Need not be members of the limited liability company or natural persons; and

    (c) Unless they have been earlier removed or have earlier resigned, shall hold office until their successors shall have been elected and qualified.

    (3) If the certificate of formation vests management of the limited liability company in a manager or managers, no member, acting solely in the capacity as a member, is an agent of the limited liability company.

 

    Sec. 8.  RCW 25.15.270 and 1994 c 211 s 801 are each amended to read as follows:

    A limited liability company is dissolved and its affairs shall be wound up upon the first to occur of the following:

    (1) The dissolution date, if any, specified in a limited liability company agreement((, or thirty years from the date of the formation of the limited liability company if no such date is set forth in the limited liability company agreement)).  If a date is not specified in the agreement or the agreement does not specify perpetual existence, then the dissolution date is thirty years after the date of formation.  If a dissolution date is specified in the agreement, it is renewable by consent of all the members;

    (2) The happening of events specified in a limited liability company agreement;

    (3) The written consent of all members;

    (4) An event of dissociation of a member, unless the business of the limited liability company is continued either by the consent of all the remaining members within ninety days following the occurrence of any such event or pursuant to a right to continue stated in the limited liability company agreement;

    (5) The entry of a decree of judicial dissolution under RCW 25.15.275;

    (6) At any time there are fewer than two members unless, within ninety days following the event of dissociation upon which the number of members is reduced below two, one or more additional members are admitted so that there are at least two members; or

    (7) The expiration of two years after the effective date of dissolution under RCW 25.15.285 without the reinstatement of the limited liability company.

 

    Sec. 9.  RCW 25.15.325 and 1994 c 211 s 904 are each amended to read as follows:

    (1) A foreign limited liability company may register with the secretary of state under any name (whether or not it is the name under which it is registered in the jurisdiction of its formation) that includes the words "Limited Liability Company," the words "Limited Liability" and the abbreviation "Co.," or the abbreviation "L.L.C." and that could be registered by a domestic limited liability company.  A foreign limited liability company may apply to the secretary of state for authorization to use a name which is not distinguishable upon the records of the office of the secretary of state from the names described in RCW 23B.04.010(1)(d), and the names of any domestic or foreign limited liability company reserved, registered, or formed under the laws of this state.  The secretary of state shall authorize use of the name applied for if the other corporation, limited liability company, or limited partnership consents in writing to the use and files with the secretary of state documents necessary to change its name, or the name reserved or registered to a name that is distinguishable upon the records of the secretary of state from the name of the applying foreign limited liability company.

    (2) Each foreign limited liability company shall continuously maintain in this state:

    (a) A registered office, which may but need not be a place of its business in this state.  The registered office shall be at a specific geographic location in this state, and be identified by number, if any, and street, or building address or rural route, or, if a commonly known street or rural route address does not exist, by legal description.  A registered office may not be identified by post office box number or other nongeographic address.  For purposes of communicating by mail, the secretary of state may permit the use of a post office address in the same city as the registered office in conjunction with the registered office address if the foreign limited liability company also maintains on file the specific geographic address of the registered office where personal service of process may be made;

    (b) A registered agent for service of process on the foreign limited liability company, which agent may be either an individual resident of this state whose business office is identical with the foreign limited liability company's registered office, or a domestic corporation, a limited partnership or limited liability company, or a foreign corporation authorized to do business in this state having a business office identical with such registered office; and

    (c) A registered agent who shall not be appointed without having given prior written consent to the appointment.  The written consent shall be filed with the secretary of state in such form as the secretary may prescribe.  The written consent shall be filled with or as a part of the document first appointing a registered agent.  In the event any individual, limited liability company, limited partnership, or corporation has been appointed agent without consent, that person or corporation may file a notarized statement attesting to that fact, and the name shall forthwith be removed from the records of the secretary of state.

    (3) ((A registered agent may change the address of the registered office of the foreign limited liability company or companies for which the registered agent is registered agent to another address in this state by filing with the secretary of state a certificate, executed by such registered agent, setting forth the names of all the foreign limited liability companies represented by such registered agent, and the address at which such registered agent has maintained the registered office for each of such foreign limited liability companies, and further certifying to the new address to which each such registered office will be changed on a given day, and at which new address such registered agent will thereafter maintain the registered office for each of the foreign limited liability companies recited in the certificate.  Upon the filing of such certificate, the secretary of state shall furnish to the registered agent a certified copy of the same, and thereafter, or until further change of address, as authorized by law, the registered office in this state of each of the foreign limited liability companies recited in the certificate shall be located at the new address of the registered agent thereof as given in the certificate.  In the event of a change of name of any person acting as a registered agent of a foreign limited liability company, such registered agent shall file with the secretary of state a certificate, executed by such registered agent, setting forth the new name of such registered agent, the name of such registered agent before it was changed, the names of all the foreign limited liability companies represented by such registered agent, and the address at which such registered agent has maintained the registered office for each of such foreign limited liability companies.  Upon the filing of such certificate, the secretary of state shall furnish to the registered agent a certified copy of the same.  Filing a certificate under this section shall be deemed to be an amendment of the application for registration of each foreign limited liability company affected thereby and each foreign limited liability company shall not be required to take any further action with respect thereto, to amend its application under RCW 25.15.330.  Any registered agent filing a certificate under this section shall promptly, upon such filing, deliver a copy of any such certificate to each foreign limited liability company affected thereby.

    (4) The registered agent of one or more foreign limited liability companies may resign and appoint a successor registered agent by filing a certificate with the secretary of state, stating that it resigns and the name and address of the successor registered agent.  There shall be attached to such certificate a statement executed by each affected foreign limited liability company ratifying and approving such change of registered agent.  Upon such filing, the successor registered agent shall become the registered agent of such foreign limited liability company as has ratified and approved such substitution and the successor registered agent's address, as stated in such certificate, shall become the address of each such foreign limited liability company's registered office in this state.  The secretary of state shall furnish to the successor registered agent a certified copy of the certificate of resignation.  Filing of such certificate of resignation shall be deemed to be an amendment of the application for registration of each foreign limited liability company affected thereby and each such foreign limited liability company shall not be required to take any further action with respect thereto, to amend its application under RCW 25.15.330.

    (5) The registered agent of a foreign limited liability company may resign without appointing a successor registered agent by filing a certificate with the secretary of state stating that it resigns as registered agent for the foreign limited liability company identified in the certificate, but such resignation shall not become effective until one hundred twenty days after the certificate is filed.  There shall be attached to such certificate an affidavit of such registered agent, if an individual, or of the president, a vice‑president, or the secretary thereof if a corporation, that at least thirty days prior to and on or about the date of the filing of said certificate, notices were sent by certified or registered mail to the foreign limited liability companies for which such registered agent is resigning as registered agent, at the principal office thereof within or outside this state, if known to such registered agent or, if not, to the last known address of the attorney or other individual at whose request such registered agent was appointed for such foreign limited liability company, of the resignation of such registered agent.  After receipt of the notice of the resignation of its registered agent, the foreign limited liability company for which such registered agent was acting shall obtain and designate a new registered agent, to take the place of the registered agent so resigning.  If such foreign limited liability company fails to obtain and designate a new registered agent as aforesaid prior to the expiration of the period of one hundred twenty days after the filing by the registered agent of the certificate of resignation, such foreign limited liability company shall not be permitted to do business in this state and its registration shall be deemed to be canceled.  After the resignation of the registered agent shall have become effective as provided in this section and if no new registered agent shall have been obtained and designated in the time and manner aforesaid, service of legal process against the foreign limited liability company for which the resigned registered agent had been acting shall thereafter be upon the secretary of state in accordance with RCW 25.15.360)) A foreign limited liability company may change its registered office or registered agent by delivering to the secretary of state for filing a statement of change that sets forth:

    (a) The name of the foreign limited liability company;

    (b) If the current registered office is to be changed, the street address of the new registered office in accord with subsection (2)(a) of this section;

    (c) If the current registered agent is to be changed, the name of the new registered agent and the new agent's written consent, either on the statement or attached to it, to the appointment; and

    (d) That after the change or changes are made, the street addresses of its registered office and the business office of its registered agent will be identical.

    (4) If a registered agent changes the street address of the agent's business office, the registered agent may change the street address of the registered office of any foreign limited liability company for which the agent is the registered agent by notifying the foreign limited liability company in writing of the change and signing, either manually or in facsimile, and delivering to the secretary of state for filing a statement that complies with the requirements of subsection (3) of this section and recites that the foreign limited liability company has been notified of the change.

    (5) A registered agent of any foreign limited liability company may resign as agent by signing and delivering to the secretary of state for filing a statement that the registered office is also discontinued.  After filing the statement the secretary of state shall mail a copy of the statement to the foreign limited liability company at its principal office address shown in its most recent annual report, or the address of its principal place of business shown in its application for certificate of registration if no annual report has been filed.  The agency appointment is terminated, and the registered office discontinued if so provided, on the thirty-first day after the date on which the statement was filed.

 

    NEW SECTION.  Sec. 10.  A new section is added to chapter 25.15 RCW under "Article IX" to read as follows:

    The secretary of state may commence a proceeding under section 11 of this act to revoke registration of a foreign limited liability company authorized to transact business in this state if:

    (1) The foreign limited liability company is without a registered agent or registered office in this state for sixty days or more;

    (2) The foreign limited liability company does not inform the secretary of state under RCW 25.15.330 that its registered agent or registered office has changed, that its registered agent has resigned, or that its registered office has been discontinued within sixty days of the change, resignation, or discontinuance;

    (3) A manager or other agent of the foreign limited liability company signed a document knowing it was false in any material respect with intent that the document be delivered to the secretary of state for filing; or

    (4) The secretary of state receives a duly authenticated certificate from the secretary of state or other official having custody of limited liability company records in the jurisdiction under which the foreign limited liability company was organized stating that the foreign limited liability company has been dissolved or its certificate or articles of formation canceled.

 

    NEW SECTION.  Sec. 11.  A new section is added to chapter 25.15 RCW under "Article IX" to read as follows:

    (1) If the secretary of state determines that one or more grounds exist under section 10 of this act for revocation of a foreign limited liability company's registration, the secretary of state shall give the foreign limited liability company written notice of the determination by first class mail, postage prepaid, stating in the notice the ground or grounds for and effective date of the secretary of state's determination, which date shall not be earlier than the date on which the notice is mailed.

    (2) If the foreign limited liability company does not correct each ground for revocation or demonstrate to the reasonable satisfaction of the secretary of state that each ground determined by the secretary of state does not exist within sixty days after notice is effective, the secretary of state shall revoke the foreign limited liability company's registration by signing a certificate of revocation that recites the ground or grounds for revocation and its effective date.  The secretary of state shall file the original of the certificate and mail a copy to the foreign limited liability company.

    (3) Documents to be mailed by the secretary of state to a foreign limited liability company for which provision is made in this section shall be sent to the foreign limited liability company at the address of the agent for service of process contained in the application or certificate of this limited liability company which is most recently filed with the secretary of state.

    (4) The authority of a foreign limited liability company to transact business in this state ceases on the date shown on the certificate revoking its registration.

    (5) The secretary of state's revocation of a foreign limited liability company's registration appoints the secretary of state the foreign limited liability company's agent for service of process in any proceeding based on a cause of action which arose during the time the foreign limited liability company was authorized to transact business in this state.

    (6) Revocation of a foreign limited liability company's registration does not terminate the authority of the registered agent of the foreign limited liability company.

 

    NEW SECTION.  Sec. 12.  Section 8, chapter ..., Laws of 1996 (section 8 of this act) does not apply to a limited liability company formed prior to the effective date of this act, unless the certificate of formation of the limited liability company is amended after the effective date of this act to provide that the limited liability company has perpetual duration.

 


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