Louisiana Revised Statutes 12:1604 – A. A converting entity that holds a license immediately before a nonprofit conversion or entity conversion continues to hold the license as a surviving entity unless the surviving en
Terms Used In Louisiana Revised Statutes 12:1604
- Allowed update rule: means a rule of a licensing body allowed by R. See Louisiana Revised Statutes 12:1602
- Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
- Business entity: means any of the following business organizations: business corporation, limited liability company, partnership, partnership in commendam, and registered limited liability partnership. See Louisiana Revised Statutes 12:1602
- Contract: A legal written agreement that becomes binding when signed.
- Converting entity: means a domestic business corporation or domestic unincorporated entity as it exists before the effective date of an entity conversion under the Business Corporation Act. See Louisiana Revised Statutes 12:1602
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- License: means any license, permit, or certificate issued by any board, commission, or agency of the state or any of its political subdivisions. See Louisiana Revised Statutes 12:1602
- Licensing body: means the board, commission, or agency of the state or any of its political subdivisions that issues a license. See Louisiana Revised Statutes 12:1602
- Surviving entity: means a domestic business corporation or domestic unincorporated entity as it exists immediately after the consummation of an entity conversion under the Business Corporation Act. See Louisiana Revised Statutes 12:1602
A. A converting entity that holds a license immediately before a nonprofit conversion or entity conversion continues to hold the license as a surviving entity unless the surviving entity fails to comply with an allowed update rule, or is not a form of business entity that may hold that kind of license. The continued holding of a license under this Subsection does not affect the expiration date or any of the terms or conditions of the license. The license continues to be held, and may be suspended, restricted, or revoked, as if the conversion had not occurred.
B. The rules of a licensing body may require a surviving entity to update its licensing information by delivering a copy of any of the following documents to the licensing body within ninety days after the effective date of the conversion, or by a later date set by those rules:
(1) The articles of entity conversion, acknowledged as filed by the secretary of state as provided in the Business Corporation Act.
(2) The license being updated.
(3) A bond or certificate of insurance in the name of the surviving entity for any coverage required for the issuance of the kind of license being updated.
(4) An amendment or amended version of any contract or other agreement required for the issuance of the kind of license being updated, naming the surviving entity as a party to the required contract or agreement.
C. The rules of a licensing body may require the surviving entity to pay a fee of up to twenty-five dollars to update the license.
D. An updated license shall be issued by the licensing body within thirty days of its receipt of the documents and fee required by its allowed update rules, but if a surviving entity has complied with the allowed update rules of the licensing body, a failure by the licensing body to issue an updated license does not affect the continued holding of the license as provided in Subsection A of this Section.
E. A license held by a converting entity terminates on the effective date of the conversion if the surviving entity in the conversion is a form of business entity that may not hold the license.
F. If a surviving entity fails to comply with an allowed update rule concerning a license, the license terminates at the end of the ninetieth day after the effective date of the conversion or, if a later date for compliance is set by the allowed update rule, at the end of the later date.
G. Except for publicly traded entities, the provisions of this Section shall not apply to a surviving entity seeking an updated license that has any change in ownership interests or has changed ownership by including an individual or entity that did not have an ownership interest in the surviving entity immediately prior to the conversion.
Acts 2006, No. 153, §1, eff. June 2, 2006; Acts 2014, No. 328, §1, eff. Jan. 1, 2015.