The Utah Uniform Limited Partnership Act (Utah Code Title 48, new Chapter 2d) and the Utah Revised Uniform Limited Liability Company Act (Utah Code Title 48, new Chapter 3), both of which were enacted in 2011 and were scheduled to become effective July 1, 2012, will not become effective until July 1, 2013. Moreover, it is likely that neither Act will become the law in Utah at all. Rather, it is expected that new “harmonized” uniform acts will be introduced in the 2013 legislative session, which will replace the Acts that were passed in 2011 before the 2011 Acts ever become law.
In 2011, Utah enacted the Uniform Limited Partnership Act (2001 version) and the Revised Uniform Limited Liability Company Act (2006 version). Both Acts were scheduled to become effective July 1, 2012. However, in July 2011, the National Conference of Commissioners on Uniform State Laws (NCCUSL) adopted new uniform acts for many forms of business entities. Expressly designated as the “harmonized” uniform acts, the stated purpose was “(i) to harmonize the language of all of the unincorporated entity laws, and (ii) to revise the language of each of those acts in a manner that permits their integration into a single code of entity laws.”
Senator Lyle Hillyard, who is a commissioner of NCCUSL, plans to introduce the new harmonized uniform acts for LLCs and limited partnerships in the 2013 legislative session. In anticipation of the introduction of the harmonized uniform acts, the legislature has postponed the effective date of both 2011 Acts to July 1, 2013. If the harmonized uniform acts are approved, it is anticipated that they will become effective July 1, 2013 in lieu of the Acts that were enacted in 2011.
Rust Tippett is the author of this blog post.
Copyright 2012 UNLEPI, LLC, a Utah limited liability company. All Rights Reserved.
This blog post in no way creates an attorney-client relationship between the reader and either Robert S. (Rust) Tippett or Bennett Tueller Johnson & Deere, P.C. The reader should consult with his or her own estate planning attorney regarding his or her particular circumstances.