Washington State House of Representatives Office of Program Research | BILL ANALYSIS |
Judiciary Committee |
HB 1264
This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent. |
Title: An act relating to creation and registration of entities formed by public agencies.
Brief Description: Regarding the creation and registration of entities formed by public agencies.
Sponsors: Representatives Springer, Rodne and Eddy.
Brief Summary of Bill |
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Hearing Date: 1/28/09
Staff: Edie Adams (786-7180)
Background:
Interlocal Cooperation Act
The Interlocal Cooperation Act allows public agencies to enter into agreements with one another for joint or cooperative action. Any power or authority held by a public agency may be exercised jointly with one or more other public agencies having the same power or authority. A "public agency" includes any agency, political subdivision, or unit of local government. The term specifically includes municipal corporations, special purpose districts, local service districts, state agencies, federal agencies, recognized Indian tribes, and other states' political subdivisions.
Public agencies that enter into joint agreements may create a separate legal entity, such as a nonprofit corporation or a partnership, to carry out the purposes of agreement. In a 2008 act relating to the procurement of renewable resources, the Legislature amended the Interlocal Cooperation Act to allow public agencies to form limited liability companies to carry out their joint agreements.
Business Entity Registration
Statutes governing the formation and operation of business entities, including nonprofit corporations, partnerships, and limited liability companies, require those entities to designate and maintain a registered agent. The registered agent is an agent of the entity for the purposes of receiving service of process or other notices on behalf of the entity.
A registered agent may be an individual resident of Washington, a domestic corporation or nonprofit corporation, or a foreign corporation or nonprofit corporation authorized to do business in Washington. The statutes governing general partnerships and limited liability companies also allow limited liability companies to serve as a registered agent.
Summary of Bill:
Various business entity statutes are amended to allow governmental entities to serve as a registered agent of the business entity.
The Nonprofit Corporation Act and the Nonprofit Miscellaneous and Mutual Corporation Act are amended to allow a governmental body or agency to serve as a registered agent.
The General Partnership Act and the Limited Partnership Act are amended to allow a government or a governmental subdivision, agency, or instrumentality to serve as a registered agent.
The Limited Liability Company Act is amended to allow the registered agent of a limited liability company to be a government, a governmental subdivision, agency, or instrumentality, or a separate legal entity comprised of two or more of these entities.
The provision of the Interlocal Cooperation Act that allows public agencies to enter into joint agreements and create a separate legal entity to carry out the purposes of the agreement (RCW 39.34.030) is reenacted without amendment.
Appropriation: None.
Fiscal Note: Not requested.
Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.