Full Text of SB2359 98th General Assembly
SB2359 98TH GENERAL ASSEMBLY |
| | 98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014 SB2359 Introduced 2/15/2013, by Sen. Heather A. Steans SYNOPSIS AS INTRODUCED: |
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Amends the Limited Liability Company Act. Provides that a low-profit limited liability company may be organized for religious, scientific, and literary purposes, for the purpose of fostering amateur sports competition, and for the purpose of preventing cruelty to children or animals.
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| | A BILL FOR |
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| | | SB2359 | | LRB098 06641 JLS 40781 b |
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| 1 | | AN ACT concerning business.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Limited Liability Company Act is amended by | 5 | | changing Section 1-26 as follows: | 6 | | (805 ILCS 180/1-26)
| 7 | | Sec. 1-26. Low-profit limited liability company. | 8 | | (a) A low-profit limited liability company shall at all | 9 | | times significantly further the accomplishment of one or more | 10 | | charitable , religious, scientific, literary, or educational | 11 | | purposes , the purpose of fostering national or international | 12 | | amateur sports competition (but only if no part of its | 13 | | activities involve the provision of athletic facilities or | 14 | | equipment), or the purpose of prevention of cruelty to children | 15 | | or animals, within the meaning of Section 170(c)(2)(B) of the | 16 | | Internal Revenue Code of 1986, 26 U.S.C. 170(c)(2)(B), or its | 17 | | successor, and would not have been formed but for the | 18 | | relationship to the accomplishment of such charitable or | 19 | | educational purposes. | 20 | | (b) A limited liability company which intends to qualify as | 21 | | a low-profit limited liability company pursuant to the | 22 | | provisions of this Section shall so indicate in its articles of | 23 | | organization, and further state that: |
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| 1 | | (1) no significant purpose of the company is the | 2 | | production of income or the appreciation of property; | 3 | | however, the fact that a person produces significant income | 4 | | or capital appreciation shall not, in the absence of other | 5 | | factors, be conclusive evidence of a significant purpose | 6 | | involving the production of income or the appreciation of | 7 | | property; and | 8 | | (2) no purpose of the company is to accomplish one or | 9 | | more political or legislative purposes within the meaning | 10 | | of Section 170(c)(2)(D) of the Internal Revenue Code of | 11 | | 1986, 26 U.S.C. 170(c)(2)(D), or its successor. | 12 | | (c) A company that no longer satisfies the requirements of | 13 | | this Section 1-26 continues to exist as a limited liability | 14 | | company and shall promptly amend its articles of organization | 15 | | so that its name and purpose no longer identify it as a | 16 | | low-profit limited liability company or L3C. | 17 | | (d) Any company operating or holding itself out as a | 18 | | low-profit limited liability company in Illinois, any company | 19 | | formed as a low-profit limited liability company under this | 20 | | Act, and any chief operating officer, director, or manager of | 21 | | any such company is a "trustee" as defined in Section 3 of the
| 22 | | Charitable Trust Act. | 23 | | (e) Nothing in this Section 1-26 prevents a limited | 24 | | liability company that is not organized under it from electing | 25 | | a charitable or educational purpose set forth in subsection (a) | 26 | | in whole or in part for doing business under this Act.
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| 1 | | (Source: P.A. 96-126, eff. 1-1-10; 96-1000, eff. 7-2-10.)
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