Americans for Community Development is working with legislators across the country to enact the legal framework necessary to permit the formation of the L3C.
L3C legislation is pending in Vermont and North Carolina and is being actively considered in Michigan, Georgia, and Montana. Once one of these states adopts the L3C concept, it will be available to foundations and other socially motivated investors across the country.
Vermont
The House version of the bill, H.B. 0775, was
approved by the full House on February 27 and by the Senate on April
11. The legislation now awaits approval by Governor Lynch, expected on April 30.
Originally introduced in January, 2007, legislation to enact the L3C has been championed by Representative Michelle Kupersmith and Senator Susan Bartlett, and cosponsored by Representatives Judith Livingston, Warren Kitzmiller, Bill Botzow, Ernest Shand, Michael Marcotte, Michele Kupersmith, Clement Bissonnette, Michel Consejo, Susan Davis, and John Clerkin. Organizations testifying in support of the L3C before the committee include the Mannweiler Foundation, the Hartland Group, the Castanea Foundation, Ashoka, Deutsche Bank, and Caplin & Drysdale.
The legislative text for H.0775 can be found here.
North Carolina
L3C legislation was introduced on February 7, 2007 in the North Carolina legislature by State Senator Jim Jacumin. Entitled “The Endangered Manufacturing and Jobs Act,” the bill would, among other items, modify existing rules governing the Limited Liability Company for allow for the formation of the L3C.
The bill was adopted 49-1 by the North Carolina State Senate on July 31st and sent to the House, where it was referred to the House Finance Committee. It awaits action there.
The legislative history and text of Senate Bill 91 can be found here.