SENATE BILL No. 1238

May 3, 2000, Introduced by Senators HAMMERSTROM, SHUGARS, ROGERS and

MC COTTER and referred to the Committee on Economic Development, International

Trade and Regulatory Affairs.

A bill to amend 1993 PA 23, entitled

"Michigan limited liability company act,"

by amending section 904 (MCL 450.4904), as amended by 1997 PA

123.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1 Sec. 904. (1) Except as otherwise provided in this section

2 or otherwise prohibited, a professional limited liability company

3 may render 1 or more professional services, and each member and

4 manager shall be a licensed person in 1 or more of the profes-

5 sional services rendered by the company.

6 (2) If the professional limited liability company renders a

7 professional service that is included within the public health

8 code, 1978 PA 368, MCL 333.1101 to 333.25211, then all members

9 and managers of the company shall be licensed or legally

06408'00 DAM

2

1 authorized in this state to render the same professional

2 service.

3 (3) A licensed person of another jurisdiction may become a

4 member, manager, employee, or agent of the professional limited

5 liability company, but shall not render any professional services

6 in this state until the person is licensed or otherwise legally

7 authorized to render the professional service in this state.

8 (4) A limited liability company may engage in the practice

9 of architecture, professional engineering, or professional sur-

10 veying in this state if not less than 2/3 of the members or man-

11 agers of the limited liability company are licensed in this state

12 to render 1 or more of the professional services offered. A pro-

13 fessional limited liability company organized under this article

14 may engage in the practice of architecture, professional engi-

15 neering, or professional surveying in this state if all of the

16 members and managers of the professional limited liability com-

17 pany organized under this article are licensed in this state to

18 render 1 or more of the professional services offered.

19 (5) A professional limited liability company organized

20 under this article may engage in the practice of public account-

21 ing in this state if not less than 2/3 of the equity and voting

22 rights of the professional limited liability company are held

23 directly or beneficially by individuals who are licensed in good

24 standing as certified public accountants of this or another state

25 or the equivalent in another licensing jurisdiction acceptable to

26 the board of accountancy. As used in this subsection, "board of

06408'00

3

1 accountancy" means that board created in section 721 of the

2 occupational code, 1980 PA 299, MCL 339.721.

06408'00 Final page. DAM