LEGISLATURE PASSES HOLMES’ BETTER BUSINESS BILL HB 57 is about market efficiency and removing unnecessary hurdles
Saturday, April 13, 2013, Juneau, Alaska – The Alaska Legislature today voted to send a bill to the Governor making Alaska a better place to do business, modernizing state laws on how businesses do business. The Alaska Senate passed House Bill 57, sponsored by Representative Lindsey Holmes, R-Anchorage.
The bill amends statutes to conform to the Uniform Commissioners’ Model Entity Transaction Act, or META. The Act was put forth to help entrepreneurs and businesses have a simplified, efficient and uniform framework in place, and relieve complex and unnecessary hurdles.
“HB 57 is about making Alaska a better place to do business,” Holmes said. “It’s a long bill, but the concept is simple: marketplace efficiency. We propose streamlining the laws that govern business transactions in Alaska, creating a uniform playbook for them to use.”
There are many different types of “entities” that do business in Alaska. Examples are professional corporations, limited liability companies, limited liability partnerships, and limited liability limited partnerships. All of these businesses engage in transactions with each other, through mergers, conversions, interest exchanges and domestications. Right now, each of these types of business has to operate under different rules and it creates difficulties for transactions between different business-types. The changes within HB 57 bring Alaska more into the mainstream of widely accepted statutory business law.
“I am happy to be a co-prime sponsor of this legislation and that our peers in the Legislature voted on our side. Removing obstacles for business makes sense on every level,” House Labor & Commerce Committee Chair Kurt Olson, R-Soldotna/Kenai, said.
HB 57 passed the House April 10 and now heads to the Governor for signature. Transition language to help DCCED make needed regulatory changes to conform to the bill takes effect immediately, and the sections carrying out META take effect July 1, 2014.