Source: http://www.wvlegislature.gov/Bill_Status/bills_text.cfm?billdoc=sb570%20intr.htm&yr=2014&sesstype=RS&i=570
Timestamp: 2018-03-23 09:00:53
Document Index: 253043189

Matched Legal Cases: ['§31', '§31', '§31', '§47', '§47', '§31', '§31', '§31', '§47', '§47', '§47', '§47', '§47', '§47']

(By Senators Edgell, Fitzsimmons, Cookman, Wells, Miller and Walters)
[Introduced February 13, 2014; referred to the Committee on the Judiciary.]
A Bill to amend and reenact §31B-10-1003 of the Code of West Virginia, 1931, as amended; to amend and reenact §31D-15-1501 of said code; to amend and reenact §31E-14-1401 of said code; to amend said code by adding thereto a new section, designated §47-9-64; and to amend said code by adding thereto a new section, designated §47B-10-6, all relating to consistency regarding exemptions for businesses; and standardization of limited liability companies, limited partnership and limited liability partnership in accordance to existing corporate exemptions.
That §31B-10-1003 of the Code of West Virginia, 1931, as amended, be amended and reenacted; that §31D-15-1501 of said code be amended and reenacted; that §31E-14-1401 of said code be amended and reenacted; that said code be amended by adding thereto a new section, designated §47-9-64; and that said code be amended by adding thereto a new section, designated §47B-10-6, all to read as follows:
(a) A foreign limited liability company may not conduct affairs in this state until it obtains a certificate of authority from the Secretary of State.
(a) (b) The following activities, among others, of a foreign limited liability company that do not constitute transacting business conducting affairs in this state within the meaning of subsection a of this article include section:
(2) Holding meetings of its members or managers the board of directors or shareholders or carrying on any other activity concerning its internal corporate affairs;
(5) (4) Selling through independent contractors;
(6) (5) Soliciting or obtaining orders, whether by mail or through employees or agents or otherwise, if the orders require acceptance outside this state before they become contracts;
(7) (6) Creating or acquiring indebtedness, mortgages or security interests in real or personal property;
(8) (7) Securing or collecting debts or enforcing mortgages or other security interests in property securing the debts: and holding, protecting and maintaining property so acquired; Provided, That this exemption does not include debts collected by collection agencies as defined in subdivision(b), section two, article sixteen, chapter forty-seven of this code;
(9) (8) Conducting an isolated transaction that is completed within thirty days and is not one in the course of similar transactions of a like manner nature;
(10) (9) Transacting business Conducting affairs in interstate commerce;
(10) Granting funds or other gifts;
(11) Distributing information to its shareholders or members;
(12) Effecting sales through independent contractors;
(13) The acquisition by purchase of lands secured by mortgage or deeds;
(14) Physical inspection and appraisal of property in West Virginia as security for deeds of trust, or mortgages and negotiations for the purchase of loans secured by property in West Virginia;
(15) The management, rental, maintenance and sale or the operating, maintaining, renting or otherwise dealing with selling or disposing of property acquired under foreclosure sale or by agreement in lieu of foreclosure sale;
(11) (16) Applying for withholding tax on an employee residing in the State of West Virginia who works for the foreign limited liability company in another state; and
(12) (17) Holding all, or a portion thereof, of the outstanding stock of another corporation authorized to transact business in the State of West Virginia: Provided, That the foreign limited liability company does not produce goods, services or otherwise conduct business in the State of West Virginia.
(c) This section does not apply in determining the contacts or activities that may subject a foreign limited liability company to service of process, taxation or regulation under any other law of this state The list of activities in subsection (b) of this section is not exhaustive.
(d) A foreign limited liability company is deemed to be transacting business in this state if:
(2) The limited liability company commits a tort, in whole or in part, in this state; or
(3) The limited liability company manufactures, sells, offers for sale or supplies any product in a defective condition and that product causes injury to any person or property within this state notwithstanding the fact that the limited liability company had no agents, servants or employees, or contacts within this state at the time of the injury.
(e) A foreign limited liability company's making of a contract, the committing of a manufacture or sale, offer of sale or supply of defective product as described in subsection (d) of this section is deemed to be the agreement of that foreign limited liability company that any notice or process served upon, or accepted by, the Secretary of State in a proceeding against that foreign limited liability company arising from, or growing out of, contract, tort or manufacture or sale, offer of sale or supply of the defective product has the same legal force and validity as process duly served on that corporation in this state.
(f) A person may apply for an exemption by delivering an application to the Secretary of State for filing along with a filing fee of $25. The application must set forth:
(1) Name of the organization applying for exemption;
(2) The state the organization was organized in and date of its formation in that state;
(3) The address of the principal office of the organization;
(4) The type of business to be conducted in West Virginia; and
(5) Any other information the Secretary of State deems appropriate to determine if an exemption is to be granted.
(12) Distributing information to its shareholders or members; (13) Effecting sales through independent contractors;
(1) Maintaining, defending, or settling any proceeding;(2) Holding meetings of the board of directors or members or carrying on other activities concerning internal corporate affairs;(3) Maintaining bank accounts;
§47-9-64. Activities not constituting transacting business.
(a) A foreign limited partnership may not conduct affairs in this state until it obtains a certificate of authority from the Secretary of State.
(17) Applying for withholding tax on an employee residing in the State of West Virginia who works for the foreign limited partnership in another state; and
(18) Holding all, or a portion thereof, of the outstanding stock of another limited partnership authorized to transact business in the State of West Virginia: Provided, That the foreign limited partnership does not produce goods, services or otherwise conduct business in the State of West Virginia.
(d) A foreign limited partnership is deemed to be transacting business in this state if:
(1) The limited partnership makes a contract to be performed, in whole or in part, by any party thereto in this state;
(2) The limited partnership commits a tort, in whole or in part, in this state; or
(3) The limited partnership manufactures, sells, offers for sale or supplies any product in a defective condition and that product causes injury to any person or property within this state notwithstanding the fact that the limited partnership had no agents, servants or employees or contacts within this state at the time of the injury.
(e) A foreign limited partnership's making of a contract, the committing of a manufacture or sale, offer of sale or supply of defective product as described in subsection (d) of this section is deemed to be the agreement of that foreign limited partnership that any notice or process served upon, or accepted by, the Secretary of State in a proceeding against that foreign limited partnership arising from, or growing out of, contract, tort or manufacture or sale, offer of sale or supply of the defective product has the same legal force and validity as process duly served on that limited partnership in this state.
(3) The address of the principal office of the organization; (4) The type of business to be conducted in West Virginia; and (5) Any other information the Secretary of State deems appropriate to determine if an exemption is to be granted.
§47B-10-6. Activities not constituting transacting business.
(a) A foreign limited liability partnership may not conduct affairs in this state until it obtains a certificate of authority from the Secretary of State.
(18) Holding all, or a portion thereof, of the outstanding stock of another limited liability partnership authorized to transact business in the State of West Virginia: Provided, That the foreign limited liability partnership does not produce goods, services or otherwise conduct business in the State of West Virginia.
(d) A foreign limited liability partnership is deemed to be transacting business in this state if:
(1) The limited liability partnership makes a contract to be performed, in whole or in part, by any party thereto in this state;
(2) The limited liability partnership commits a tort, in whole or in part, in this state; or
(e) A foreign limited liability partnership's making of a contract, the committing of a manufacture or sale, offer of sale or supply of defective product as described in subsection (d) of this section is deemed to be the agreement of that foreign limited liability partnership that any notice or process served upon, or accepted by, the Secretary of State in a proceeding against that foreign limited liability partnership arising from, or growing out of, contract, tort or manufacture or sale, offer of sale or supply of the defective product has the same legal force and validity as process duly served on that corporation in this state.
NOTE: The purpose of this bill is to specify and centralize exemptions for corporations, limited liability companies, limited partnerships and limited liability partnerships. The bill amends decentralized exemptions of limited liability companies to make them equivalent to corporations. The bill sets this as the standard for limited partnerships and limited liability partnerships as well.
§47-9-64 and §47B-10-6 are new; therefore strike-throughs and underscoring have been omitted.