Secretary of State
Secretary of State Announces Proposed Business Organizations Legislation
On Friday, February 24, 2012, the Kentucky House of Representatives passed, in a 94-0 vote, House Bill 341, “An Act Relating to Business Organizations.” Secretary of State Alison Lundergan Grimes, Kentucky’s Chief Business Official; Rep. Thomas Kerr; and attorney Tom Rutledge previously testified regarding the bill before the House Standing Committee on Judiciary on February 22, 2012, at which time the Committee unanimously passed the bill to the House for its full consideration.
House Bill 341 would achieve greater clarity and consistency in Kentucky’s business laws. Significantly, the act sets forth the adoption of the Uniform Statutory Trust Act, corrects typographical mistakes found in business entity laws from prior years, seeks to ensure that Kentucky laws remain consistent with court precedent, and provides clarity with respect to existing statutory language. Kerr, who is co-sponsoring the bill with Rep. John Tilley and Rep. Jesse Crenshaw, noted that if House Bill 341 is passed, Kentucky would be among the first states to enact statutory trust laws that accommodate mutual funds.
The Division of Business within the Secretary of State’s office, also known as the “Kentucky Business Law Program,” oversees Kentucky’s business entity laws. In testifying before the House Judiciary Committee, Secretary Grimes noted, “House Bill 341 is a continuation of bipartisan efforts to move Kentucky toward greater efficiency and effectiveness so it can truly be open for business. This bill is the product of the combined efforts of members of the legal community, the Finance and Administration Cabinet, and the Secretary of State’s office. It also enjoys the support of members of the faculty from each of Kentucky’s law schools. I hope we can count on members of the General Assembly to support this important step to modernize and streamline Kentucky’s business statutes.”
Additional information concerning the status of House Bill 341 is available at http://www.lrc.ky.gov/record/12RS/HB341.htm.