District 11 - Republican
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Session: State Capitol, Room 24 Juneau, AK 99801-1182 Toll Free: (800) 773-4968 Phone: (907) 465-4968 Fax: (907) 465-2040 Send E-Mail Interim: 716 W 4th, Suite 640 Anchorage, AK 99501-2133 Phone: (907) 269-0117 Fax: (907) 269-0119 |
Sponsor Statement for HB 130
Limited Liability Companies and Partnerships for Architects, Engineers, and Land Surveyors
An Act adding limited liability companies and limited liability partnerships to the organizations that can be authorized to practice architecture, engineering, land surveying, and landscape architecture; and relating to state and municipal contracts for architectural, engineering, land surveying, and landscape architectural services.
Updated: January 12, 2000 The State Board of Registration for Architects, Engineers and Land Surveyors (AELS) has the duty of licensing architects, engineers, land surveyors or landscape architects under the provisions of AS 08.48.011. In addition to individual licenses, the Board has requirements for certain business entities (corporations) to register with the AELS and these entities must receive a license to practice. During the last several years, the Legislature has authorized limited liability companies and limited liability partnerships. The Department of Law has advised the Department of Commerce and Economic Development that these new entities are not covered under the AELS licensing laws. Limited liability companies (LLCs) are covered in AS 10.50. Alaska's law was adopted in 1994. The entity is a hybrid form of business structure that combines the tax advantages of a partnership and the liability safeguards of a corporation. Limited liability partnerships (LLPs) are covered in AS 32.05 and were adopted in Alaska in 1996. LLPs are a type of general partnership and provide a flexible form of organization for small businesses. HB 130 would allow the Board to register LLCs or LLPs in a similar manner as corporations with the designation of an Alaskan licensee as the responsible licensee in charge of such entity. Such registration would continue to provide consumer protection and licensee accountability for the people of Alaska using the services of these professionals. Section 11 of the bill was added at the request of the Board. When the name and purview of the AELS Board were changed, a corresponding change (adding "landscape architectural" in the list of services) was not made in AS 36.90.100. Section 11 would rectify this oversight and make the necessary corresponding changes concerning LLCs and LLPs. We would appreciate your support of this legislation.