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H0617...........................................................by BUSINESS CORPORATIONS - NAME - Amends existing law to require that the name of a corporation or limited liability company reinstated after dissolution shall be distinguishable from the names of other business entities organized or doing business in Idaho. 02/18 House intro - 1st rdg - to printing 02/21 Rpt prt - to Bus 03/02 Rpt out - rec d/p - to 2nd rdg 03/03 2nd rdg - to 3rd rdg 03/07 3rd rdg - PASSED - 57-0-13 AYES -- Barraclough(Barraclough), Bell, Bieter, Black, Boe, Bruneel, Callister, Campbell, Chase, Cheirrett, Clark, Crow, Cuddy, Deal, Denney, Field(13), Field(20), Gagner, Geddes, Gould, Hadley, Hammond, Hansen(23), Hansen(29), Hornbeck, Jaquet, Judd, Kellogg, Kendell, Lake, Linford, Loertscher, Mader, McKague, Meyer, Mortensen, Moyle, Pischner, Pomeroy, Ridinger, Ringo, Robison, Sali, Schaefer, Sellman, Shepherd, Smith, Smylie, Stevenson, Stoicheff, Stone, Taylor, Trail, Wheeler, Wood, Zimmermann, Mr Speaker NAYS -- None Absent and excused -- Alltus, Barrett, Ellsworth, Henbest, Jones, Kempton, Kunz, Marley, Montgomery, Moss, Pearce, Reynolds, Tilman Floor Sponsor - Meyer Title apvd - to Senate 03/08 Senate intro - 1st rdg - to Com/HuRes 03/17 Rpt out - rec d/p - to 2nd rdg 03/20 2nd rdg - to 3rd rdg 04/04 3rd rdg - PASSED - 35-0-0 AYES -- Andreason, Boatright, Bunderson, Burtenshaw, Cameron, Crow, Danielson, Darrington, Davis, Deide, Dunklin, Frasure, Geddes, Hawkins, Ingram, Ipsen, Keough, King-Barrutia, Lee, McLaughlin, Noh, Parry, Richardson, Riggs, Risch, Sandy, Schroeder, Sorensen, Stegner, Stennett, Thorne, Walton, Wheeler, Whitworth, Williams NAYS -- None Absent and excused -- None Floor Sponsor - Crow Title apvd - to House 04/05 To enrol - rpt enrol - Sp signed - Pres signed 04/06 To Governor 04/14 Governor signed Session Law Chapter 325 Effective: 07/01/00 - Sections 1, 2, 3, and 5 01/01/01 - Section 4
H0617|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature Second Regular Session - 2000IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 617 BY BUSINESS COMMITTEE 1 AN ACT 2 RELATING TO THE NAMES OF BUSINESS ENTITIES FILED WITH THE SECRETARY OF STATE; 3 AMENDING SECTION 30-1-1422, IDAHO CODE, TO REQUIRE THAT THE NAME OF A COR- 4 PORATION REINSTATED AFTER DISSOLUTION BE DISTINGUISHABLE FROM THE NAMES OF 5 OTHER BUSINESS ENTITIES ORGANIZED OR AUTHORIZED TO TRANSACT BUSINESS IN 6 THIS STATE; AMENDING SECTION 30-1-1506, IDAHO CODE, TO REQUIRE THAT FOR- 7 EIGN CORPORATIONS USE NAMES DISTINGUISHABLE FROM OTHER BUSINESS ENTITIES; 8 AMENDING SECTION 30-3-121, IDAHO CODE, TO REQUIRE THAT FOREIGN NONPROFIT 9 CORPORATIONS USE NAMES DISTINGUISHABLE FROM OTHER BUSINESS ENTITIES; 10 AMENDING SECTION 53-3-303, IDAHO CODE, AS ADDED BY SECTION 2, CHAPTER 65, 11 LAWS OF 1998, TO REQUIRE THAT PARTNERSHIPS USE NAMES DISTINGUISHABLE FROM 12 OTHER BUSINESS ENTITIES; AMENDING SECTION 53-643C, IDAHO CODE, TO REQUIRE 13 THAT THE NAME OF A LIMITED LIABILITY COMPANY REINSTATED AFTER DISSOLUTION 14 BE DISTINGUISHABLE FROM OTHER BUSINESS ENTITIES; AND PROVIDING EFFECTIVE 15 DATES. 16 Be It Enacted by the Legislature of the State of Idaho: 17 SECTION 1. That Section 30-1-1422, Idaho Code, be, and the same is hereby 18 amended to read as follows: 19 30-1-1422. REINSTATEMENT FOLLOWING ADMINISTRATIVE DISSOLUTION. (1) A cor- 20 poration administratively dissolved under section 30-1-1421, Idaho Code, may 21 apply to the secretary of state for reinstatement within ten (10) years after 22 the effective date of dissolution. The application must: 23 (a) Recite the name of the corporation at the time of its dissolution and 24 the date of its incorporation; 25 (b) State that the corporation applies for reinstatement; 26 (c)If the corporation's name or one deceptively similar thereto has been27appropriated by another entity whose organizational documents are filed28with the secretary of state, be accompanied either by a consent to the use29of a deceptively similar name executed by the other entity or by articles30of amendment by which the corporation adopts a new name which complies31withState that the corporation's proposed name satisfies the requirements 32 of section 30-1-401, Idaho Code; and 33 (d) Be accompanied by a current annual report, appointment of registered 34 agent or articles of amendment to extend the corporate existence, as 35 appropriate to the reason for administrative dissolution. 36 (2) If the secretary of state determines that the application contains 37 the information required by subsection (1) of this section and that the infor- 38 mation is correct, he shall cancel the dissolution and prepare a certificate 39 of reinstatement that recites the fact and effective date of the reinstate- 40 ment, file a copy thereof and return the original to the corporation. 41 (3) When the reinstatement is effective, it relates back to and takes 42 effect as of the effective date of the administrative dissolution and the cor- 43 poration resumes carrying on its business as if the administrative dissolution 2 1 had never occurred. 2 SECTION 2. That Section 30-1-1506, Idaho Code, be, and the same is hereby 3 amended to read as follows: 4 30-1-1506. CORPORATE NAME OF FOREIGN CORPORATION. (1) If the corporate 5 name of a foreign corporation does not satisfy the requirements of section 6 30-1-401, Idaho Code, the foreign corporation to obtain or maintain a certifi- 7 cate of authority to transact business in this state must either: 8 (a)May aAdd the word "corporation," "incorporated," "company," or 9 "limited," or the abbreviation "corp.," "inc.," "co.," or "ltd.," to its 10 corporate name for use in this state; or 11 (b)May uUse a fictitious name to transact business in this state if its 12 real name is unavailable and it delivers to the secretary of state for 13 filing a copy of the resolution of its board of directors, certified by 14 its secretary, adopting the fictitious name. 15 (2) Except as authorized by subsections (3) and (4) of this section, the 16 corporate name, including a fictitious name, of a foreign corporation mustnot17 bethe same as or deceptively similar todistinguishable upon the records of 18 the secretary of state from: 19 (a) The name of any corporation, limited liability company, limited part- 20 nership or limited liability partnership organized under the laws of this 21 state or authorized to transact business in this state; 22 (b) A reserved or registered name for a corporation, limited liability 23 company or limited partnership; or 24 (c) The fictitious name of another foreign corporation authorized to 25 transact business in this state. 26 (3) A foreign corporation may apply to the secretary of state for autho- 27 rization to use in this state a name which isdeceptively similar to the name28of another corporation, limited liability company, limited partnership or lim-29ited liability partnership which is organized under the laws of this state or30which is authorized to transact business in thisnot distinguishable upon the 31 records of the secretary of state from the name of any other legal entity 32 whose organizational documents are filed with the secretary of state. The sec- 33 retary of state shall authorize use of the name applied for if: 34 (a) The other entity consents to the use in writing and submits an under- 35 taking in a form satisfactory to the secretary of state to change its name 36 to a name that is distinguishable upon the records of the secretary of 37 state from the applying corporation; or 38 (b) The applicant delivers to the secretary of state a certified copy of 39 a final judgment of a court of competent jurisdiction establishing the 40 applicant's right to use the name in this state. 41 (4) A foreign corporation may use in this state a name which is the same 42 as the name, including the fictitious name, of another domestic or foreign 43 corporation or limited liability company organized under the laws of this 44 state or authorized to transact business in this state, if the foreign corpo- 45 ration: 46 (a) Has been formed by reorganization of the other entity; or 47 (b) Has acquired all or substantially all of the assets, including the 48 name, of the other entity. 49 (5) If a foreign corporation authorized to transact business in this 50 state changes its corporate name to one that does not satisfy the requirements 51 of section 30-1-401, Idaho Code, it may not transact business in this state 52 under the changed name, and it shall adopt a name satisfying the requirements 53 of section 30-1-401, Idaho Code, and obtain an amended certificate of author- 3 1 ity under section 30-1-1504, Idaho Code. 2 SECTION 3. That Section 30-3-121, Idaho Code, be, and the same is hereby 3 amended to read as follows: 4 30-3-121. CORPORATE NAME OF FOREIGN CORPORATION. (1) If the corporate 5 name of a foreign corporation does not satisfy the requirements of section 6 30-3-27, Idaho Code, the foreign corporation, to obtain or maintain a certifi- 7 cate of authority to transact business in this state, may use a fictitious 8 name to transact business in this state if its real name is unavailable and it 9 delivers to the secretary of state for filing a copy of the resolution of its 10 board of directors, certified by its secretary, adopting the fictitious name. 11 (2) Except as authorized in subsections (3) and (4) of this section, the 12 corporate name, including a fictitious name, of a foreign corporation mustnot13 bethe same as, or deceptively similar todistinguishable upon the records of 14 the secretary of state from: 15 (a) The corporate name of a nonprofit or business corporation incorpo- 16 rated or authorized to transact business in this state; 17 (b) A corporate name reserved or registered under section 30-3-28 or 18 30-3-29, Idaho Code; and 19 (c) The fictitious name of another foreign business or nonprofit corpora- 20 tion authorized to transact business in this state. 21 (3) A foreign corporation may apply to the secretary of state for autho- 22 rization to use in this state the name of another corporation, incorporated or 23 authorized to transact business in this state, that is not distinguishable 24 upon the records of the secretary of state from the name applied for. The 25 secretary of state shall authorize use of the name applied for if: 26 (a) The other corporation consents to the use in writing and submits an 27 undertaking in form satisfactory to the secretary of state to change its 28 name to a name that is distinguishable upon the records of the secretary 29 of state from the name of the applying corporation; or 30 (b) The applicant delivers to the secretary of state a certified copy of 31 a final judgment of a court of competent jurisdiction establishing the 32 applicant's right to use the name applied for in this state. 33 (4) A foreign corporation may use in this state the name, including the 34 fictitious name, of another domestic or foreign business or nonprofit corpora- 35 tion that is used in this state if the other corporation is incorporated or 36 authorized to transact business in this state and the foreign corporation: 37 (a) Has merged with the other corporation; 38 (b) Has been formed by reorganization of the other corporation; or 39 (c) Has acquired all or substantially all of the assets, including the 40 corporate name, of the other corporation. 41 (5) If a foreign corporation authorized to transact business in this 42 state changes its corporate name to one that does not satisfy the requirements 43 of section 30-3-27, Idaho Code, it shall not transact business in this state 44 under the changed name until it adopts a name satisfying the requirements of 45 section 30-3-27, Idaho Code, and obtains an amended certificate of authority 46 under section 30-3-119, Idaho Code. 47 SECTION 4. That Section 53-3-303, Idaho Code, as added by Section 2, 48 Chapter 65, Laws of 1998, be, and the same is hereby amended to read as fol- 49 lows: 50 53-3-303. STATEMENT OF PARTNERSHIP AUTHORITY. (a) A partnership may file 51 a statement of partnership authority, which: 4 1 (1) Must include: 2 (i) The name of the partnership which shall not include words of 3 organization which deceptively imply that the partnership is a dif- 4 ferent kind of legal entity andshall notmust bethe same as or5deceptively similar todistinguishable upon the records of the secre- 6 tary of state from the name of any other legal entity whose organiza- 7 tional documents are filed with the secretary of state, unless such 8 other entity consents in writing to the use of the name; 9 (ii) The street address of its chief executive office and of one (1) 10 office in this state, if there is one; 11 (iii) The names and mailing addresses of all of the partners or of an 12 agent appointed and maintained by the partnership for the purpose of 13 subsection (b) of this section; and 14 (iv) The names of the partners authorized to execute an instrument 15 transferring real property held in the name of the partnership; and 16 (2) May state the authority, or limitations on the authority, of some or 17 all of the partners to enter into other transactions on behalf of the 18 partnership and any other matter. 19 (b) If a statement of partnership authority names an agent, the agent 20 shall maintain a list of the names and mailing addresses of all of the part- 21 ners and make it available to any person on request for good cause shown, and 22 shall be authorized to accept service of process on behalf of the partnership. 23 (c) If a filed statement of partnership authority is executed pursuant to 24 section 53-3-105(b), Idaho Code, and states the name of the partnership but 25 does not contain all of the other information required by subsection (a) of 26 this section, the statement nevertheless operates with respect to a person not 27 a partner as provided in subsections (d) and (e) of this section. 28 (d) A grant of authority contained in a filed statement of partnership 29 authority is conclusive in favor of a person who gives value without knowledge 30 to the contrary, so long as and to the extent that a limitation on that 31 authority is not then contained in another filed statement. A filed cancella- 32 tion of a limitation on authority revives the previous grant of authority. 33 (e) A person not a partner is deemed to know of a limitation on the 34 authority of a partner to transfer real property held in the name of the part- 35 nership if a statement containing the limitation has been filed in the office 36 of the secretary of state. 37 (f) Except as otherwise provided in subsections (d) and (e) of this sec- 38 tion and sections 53-3-704 and 53-3-805, Idaho Code, a person not a partner is 39 not deemed to know of a limitation on the authority of a partner merely 40 because the limitation is contained in a filed statement. 41 SECTION 5. That Section 53-643C, Idaho Code, be, and the same is hereby 42 amended to read as follows: 43 53-643C. REINSTATEMENT FOLLOWING ADMINISTRATIVE DISSOLUTION. (1) A lim- 44 ited liability company administratively dissolved under section 53-643B, Idaho 45 Code, may apply to the secretary of state for reinstatement within ten (10) 46 years after the effective date of dissolution. The application must: 47 (a) Recite the name of the limited liability company at the time of its 48 dissolution and the date of its organization; 49 (b) State that the limited liability company applies for reinstatement; 50 (c)If the limited liability company's name or one deceptively similar51thereto has been appropriated by another entity whose organizational docu-52ments are filed with the secretary of state, be accompanied either by a53consent to the use of a deceptively similar name executed by the other5 1entity or by articles of amendment by which the limited liability company2adopts a new name which complies withState that the proposed name of the 3 limited liability company satisfies the requirements of section 53-602, 4 Idaho Code; and 5 (d) Be accompanied by a current annual report or appointment of regis- 6 tered agent, as appropriate to the reason for administrative dissolution. 7 (2) If the secretary of state determines that the application contains 8 the information required by subsection (1) of this section and that the infor- 9 mation is correct, he shall cancel the dissolution and prepare a certificate 10 of reinstatement that recites the fact and effective date of the reinstate- 11 ment, file a copy thereof and return the original to the limited liability 12 company. 13 (3) When the reinstatement is effective, it relates back to and takes 14 effect as of the effective date of the administrative dissolution and the lim- 15 ited liability company resumes carrying on its business as if the administra- 16 tive dissolution had never occurred. 17 SECTION 6. Sections 1, 2, 3 and 5 of this act shall be in full force and 18 effect on and after July 1, 2000; and Section 4 of this act shall be in full 19 force and effect on and after January 1, 2001.
STATEMENT OF PURPOSE RS 10033 The intent of this legislation is to make the basis for rejecting business names by the Secretary of State uniform among all types of business entities organized in Idaho or authorized by the Secretary of State to transact business in Idaho. (This does not include Assumed Business Names.) The forms of business entity in the bill may, at present, have their names rejected if the name is 'deceptively similar' to a business name already organized or authorized by the Secretary of State. Under the bill, these businesses could not have their chosen name rejected unless the name cannot be distinguished from the name of another entity already filed in the records of the Secretary of State. This is follow-up legislation to House Bill 222 of 1999. FISCAL IMPACT None. Contact: Chuck Goodenough Deputy Secretary of State, Commercial Division (208) 334-2301 STATEMENT OF PURPOSE/FISCAL NOTE H 617