1995 Wisconsin Act 400

400,56 Section 56 . 183.1101 (1) (b) of the statutes is repealed.

400,57 Section 57 . 183.1101 (2) of the statutes is amended to read:

183.1101 (2) In an action brought on behalf of a limited liability company, the member or manager bringing the action shall be a member or manager at the time of bringing the action and at the time of the transaction which is the subject of the action or, in the case of a member, the person's status as a member devolved upon that person by operation of law or under the terms of an operating agreement from a person who was a member at the time of the transaction.

400,58 Section 58 . 183.1101 (3) of the statutes is amended to read:

183.1101 (3) In an action brought on behalf of a limited liability company, the complaint shall describe with particularity the authorization of the member or manager to bring the action and the determination of the authorization.

400,59 Section 59 . 183.1101 (4) of the statutes is amended to read:

183.1101 (4) If an action brought on behalf of a limited liability company is successful, in whole or in part, as a result of a judgment, compromise or settlement of the action, the court may award the member or manager bringing the action reasonable expenses, including reasonable attorney fees, from any recovery in the action or from the limited liability company.

400,60 Section 60 . 183.1102 of the statutes is amended to read:

183.1102 Effect of lack of authority to sue. The lack of authority of a member or manager to sue on behalf of a limited liability company may not be asserted by the limited liability company as a basis for bringing a subsequent suit on the same cause of action.

400,61 Section 61 . 183.1203 (2) (c) of the statutes is amended to read:

183.1203 (2) (c) The manner and basis of converting the interests in each limited liability company that is a party to the merger into limited liability company interests, cash or obligations of the surviving limited liability company or into cash or other property.

400,62 Section 62 . 185.95 of the statutes is amended to read:

185.95 Discrimination against association. Whenever any corporation has discriminated against any association transacting business in this state, its charter may be vacated or its existence annulled, or its license to do business in this state may be revoked in the manner provided in s. 776.36.

400,63 Section 63 . 188.26 of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:

188.26 Veterans; corporations. Whenever any corporation is formed under ch. 180 or 181 or this chapter for the purpose of assisting any veteran, as defined in s. 45.37 (1a), or operating social clubs in which the name “veteran” appears, the department of financial institutions shall investigate the same to ascertain the character thereof, and whether or not the same has been procured by fraudulent representation or concealment of any material fact relating to such veteran's name, purpose, membership, organization, management or control or other material fact. If the department of financial institutions so finds, such findings, misrepresentation or concealment shall be reported to the attorney general, and the attorney general thereupon shall as provided in s. 776.35 bring an action to vacate or annul the corporate charter.

400,64 Section 64 . 215.02 (15) (e) of the statutes is repealed.

400,65 Section 65 . 215.26 (1) of the statutes is repealed.

400,66b Section 66b. 452.01 (3j) of the statutes is created to read:

452.01 (3j) “Business entity” means any organization or enterprise, other than a sole proprietorship, which is operated for profit or that is nonprofit and nongovernmental, including an association, business trust, corporation, joint venture, limited liability company, limited liability partnership, partnership or syndicate.

400,66e Section 66e. 452.01 (3k) of the statutes is created to read:

452.01 (3k) “Business representative” means a director, manager, member, officer, owner or partner of a business entity.

400,66f Section 66f. 452.09 (1) (b) of the statutes is amended to read:

452.09 (1) (b) The name and address of the applicant; if the applicant is a partnership business entity, the name and address of each member; and if the applicant is a corporation, the name and address of each of its officers business representative.

400,66h Section 66h. 452.09 (1) (d) of the statutes is amended to read:

452.09 (1) (d) The business or occupation engaged in by the applicant, or if a partnership business entity, by each member, or if a corporation, by each officer business representative, for a period of at least 2 years immediately preceding the date of the application.

400,66k Section 66k. 452.09 (1) (e) of the statutes is amended to read:

452.09 (1) (e) Any other information which the department may reasonably require to enable it to determine the competency of each applicant, including each member business representative of the partnership, or each officer of the corporation business entity, to transact the business of a broker or salesperson in a manner which safeguards the interests of the public.

400,66L Section 66L. 452.10 (1) of the statutes is amended to read:

452.10 (1) An application shall be verified by the applicant. If made by a partnership business entity it shall be verified by at least 2 members. If made by a corporation it shall be verified by the president and secretary a business representative.

400,66m Section 66m. 452.12 (2) (a) of the statutes is amended to read:

452.12 (2) (a) A license may be issued to a corporation business entity if the corporation business entity has at least one officer business representative licensed as a broker. The license issued to the corporation business entity entitles each officer business representative of the corporation business entity who is a licensed broker to act as a broker on behalf of the corporation business entity.

400,66p Section 66p. 452.12 (2) (b) of the statutes is repealed.

400,66q Section 66q. 452.12 (2) (c) of the statutes is amended to read:

452.12 (2) (c) Application for a corporate or partnership business entity license shall be made on forms prescribed by the department, listing the names and addresses of all officers and partners business representatives, and shall be accompanied by the fee specified in s. 440.05 (1). If there is a change in any of the officers or partners business representatives, the change shall be reported to the department, on the same form, within 30 days after the effective date of the change.

400,66r Section 66r. 452.133 (3) (b) of the statutes is amended to read:

452.133 (3) (b) Act in a transaction on the broker's own behalf, on behalf of the broker's immediate family or firm, or on behalf of any organization or business entity in which the broker has an interest, unless the broker has the written consent of all parties to the transaction.

400,66t Section 66t. 452.14 (4) of the statutes is amended to read:

452.14 (4) If a broker is a company business entity it shall be sufficient cause for reprimand or for the limitation, suspension or revocation of a broker's license that any officer, director or trustee business representative of the company, or any member of a partnership business entity, or anyone who has a financial interest in or is in any way connected with the operation of a brokerage business, has been guilty of any act or omission which would be cause for refusing a broker's license to such person as an individual.

400,66y Section 66y. 452.22 (2) of the statutes is amended to read:

452.22 (2) The certificate of the secretary or his or her designee to the effect that a specified individual, partnership or corporation business entity is not or was not on a specified date the holder of a broker's, salesperson's or time-share salesperson's license or registration, or that a specified license or registration was not in effect on a date specified, or as to the issuance, limitation, suspension or revocation of any license or registration or the reprimand of any holder thereof, the filing or withdrawal of any application or its existence or nonexistence, is prima facie evidence of the facts therein stated for all purposes in any action or proceedings.

400,76 Section 76 . 551.02 (13) (b) of the statutes is amended to read:

551.02 (13) (b) “Security” does not include any fixed or variable insurance or endowment policy or annuity contract under which an insurer promises to pay money either in a lump sum or periodically for life or some other specified period; any beneficial interest in any voluntary inter vivos trust not created for the purpose of carrying on any business or solely for the purpose of voting; or any beneficial interest in any testamentary trust; or any member's interest that includes all of the rights set forth in s. 183.0102 (11) in a limited liability company organized under ch. 183 if the aggregate number of members of the limited liability company, after the interest is transferred sold, does not exceed 15 and the right to manage, and the articles of organization do not vest management of the limited liability company is vested in its members in one or more managers.

400,77 Section 77 . 551.02 (13) (c) of the statutes is amended to read:

551.02 (13) (c) “Security” Except as provided in par. (b), “security” is presumed to include an a member's interest in a limited liability company organized under ch. 183 if the right to manage articles of organization vest management of the limited liability company is vested in, or if the operating agreement delegates the essential managerial responsibility of the limited liability company to, one or more managers who are not members, or if the aggregate number of members of the limited liability company, after the interest is sold, exceeds 35. “Security” is not presumed not to include an a member's interest in a limited liability company organized under ch. 183 if the aggregate number of members of the limited liability company, after the interest is sold, does not exceed 35 and the right to manage articles of organization do not vest management of the limited liability company is vested in, nor does the operating agreement delegate the essential managerial responsibilities of the limited liability company to its members one or more managers who are not members.

400,78 Section 78 . 628.04 (1) (b) 1. of the statutes is amended to read:

628.04 (1) (b) 1. That if a natural person, the applicant has the intent in good faith to do business as an intermediary or, if a corporation, partnership or limited liability company, has that intent and has included that purpose in the articles of incorporation, association or organization certificate of limited partnership or general partnership agreement or limited liability company operating agreement;

400,79 Section 79 . Chapter 776 of the statutes, as affected by 1995 Wisconsin Act 27, is repealed.

400,80 Section 80 . 813.02 (3) of the statutes is repealed.

400,81 Section 81 . 813.09 of the statutes is repealed.

400,82 Section 82 . 891.20 of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:

891.20 Articles of incorporation, presumptions. Any Except as provided in s. 180.0203 (2), any charter or patent of incorporation which shall have been issued by the governor, secretary of state or department of financial institutions, or by any combination, to any corporation under any law of the state; any certificate of organization or association of any corporation or joint stock company; the articles of organization of a limited liability company; the articles of association or organization of any corporation, or a certified copy thereof, which shall have been filed or recorded in the office of the secretary of state or with the department of financial institutions, or recorded in the office of any register of deeds or filed or recorded in the office of any clerk of the circuit court under any law of the state; any certificate or resolution for the purpose of amendment, and every amendment in any form, of the charter, patent, certificate or articles of association or organization or of the name, corporate powers or purposes of any corporation or limited liability company, filed or recorded in any of the departments or offices and a certified copy of any such document so filed or recorded shall be received as conclusive evidence of the existence of the corporation, limited liability company or joint stock company mentioned therein, or of the due amendment of the charter, patent, certificate or articles of association or organization thereof in all cases where such facts are only collaterally involved; and as presumptive evidence thereof and of the facts therein stated in all other cases.

400,83 Section 83 . 972.085 of the statutes is amended to read:

972.085 Immunity; use standard. Immunity from criminal or forfeiture prosecution under ss. 13.35, 17.16 (7), 77.61 (12), 93.17, 111.07 (2) (b), 128.16, 133.15, 139.20, 139.39 (5), 195.048, 196.48, 551.56 (3), 553.55 (3), 601.62 (5), 767.47 (4), 767.65 (21), 776.23, 885.15, 885.24, 885.25 (2), 891.39 (2), 968.26, 972.08 (1) and 979.07 (1), provides immunity only from the use of the compelled testimony or evidence in subsequent criminal or forfeiture proceedings, as well as immunity from the use of evidence derived from that compelled testimony or evidence.

400,84 Section 84 . Initial applicability.

(1)  The treatment of sections 71.07 (7) (b) and 71.21 (5) of the statutes first applies to a taxable year of a limited liability company that begins on January 1, 1996, and first applies to the appropriate taxable year of a member of a limited liability company to conform the member's treatment of the credit to the limited liability company's treatment.

(2)  The renumbering and amendment of section 180.1915 of the statutes and the creation of section 180.1915 (1) and (2) of the statutes first apply to civil actions commenced on the effective date of this subsection.

400,85 Section 85. Effective date.

(1)  This act takes effect on July 1, 1996, or on the day after publication, whichever is later.