PRIOR PRINTER'S NO. 1036                      PRINTER'S NO. 1540

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 949 Session of 1981


        INTRODUCED BY SPENCER AND BERSON, MARCH 23, 1981

        AS REPORTED FROM COMMITTEE ON JUDICIARY, HOUSE OF
           REPRESENTATIVES, AS AMENDED, MAY 5, 1981

                                     AN ACT

     1  Amending Title 59 (Partnerships) of the Pennsylvania
     2     Consolidated Statutes, adding provisions relating to foreign
     3     limited partnerships and making a conforming amendment to
     4     Title 42 as to foreign partnerships and other entities.

     5     The General Assembly of the Commonwealth of Pennsylvania
     6  hereby enacts as follows:
     7     Section 1.  Chapter 5 of Title 59, act of November 25, 1970
     8  (P.L.707, No.230), known as the Pennsylvania Consolidated
     9  Statutes, is amended by adding a subchapter to read:
    10                            SUBCHAPTER E
    11                    FOREIGN LIMITED PARTNERSHIPS
    12  Sec.
    13  561.  Foreign limited partnership defined.
    14  562.  Governing law.
    15  563.  Registration.
    16  564.  Issuance of registration. EFFECT OF FILING.                 <--
    17  565.  Name.
    18  566.  Changes and amendments.

     1  567.  Cancellation of registration.
     2  568.  Transaction of business without registration.
     3  569.  Action by Attorney General.
     4  § 561.  Foreign limited partnership defined.
     5     A foreign limited partnership is a limited partnership formed
     6  under the laws of any jurisdiction other than this Commonwealth.
     7  § 562.  Governing law.
     8     Subject to the Constitution of Pennsylvania and public policy
     9  of this Commonwealth:
    10         (1)  The laws of the jurisdiction under which a foreign
    11     limited partnership is organized govern its organization and
    12     internal affairs and the liability of its limited partners.
    13         (2)  A foreign limited partnership may not be denied
    14     registration by reason of any difference between those laws
    15     and the laws of this Commonwealth.
    16  § 563.  Registration.
    17     Before transacting business in this Commonwealth, a foreign
    18  limited partnership shall register with the Department of State.
    19  In order to register, a foreign limited partnership shall submit
    20  to the Department of State an application for registration as a
    21  foreign limited partnership, signed by a general partner and
    22  setting forth:
    23         (1)  The name of the foreign limited partnership and, if
    24     different, the name under which it proposes to transact
    25     business and register in this Commonwealth.
    26         (2)  The jurisdiction and date of its formation.
    27         (3)  The general character of the business it proposes to
    28     transact in this Commonwealth, which shall not be one which a
    29     domestic limited partnership may not lawfully do in this
    30     Commonwealth.
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     1         (4)  The address of the office required to be maintained
     2     in the jurisdiction of its organization by the laws of that
     3     jurisdiction or, if not so required, of the principal office
     4     of the foreign limited partnership.
     5         (5)  If the certificate of limited partnership filed in
     6     the jurisdiction of organization of the foreign limited
     7     partnership is not required to include the names and business
     8     addresses of the partners, a list of the names and business
     9     addresses of all partners.
    10  § 564.  Issuance of registration. EFFECT OF FILING.               <--
    11     Upon the filing of the application for registration as a
    12  foreign limited partnership, the Department of State shall issue  <--
    13  to the partnership a certificate of registration THE PARTNERSHIP  <--
    14  SHALL BE AUTHORIZED to transact business in this Commonwealth.
    15  § 565.  Name.
    16     A foreign limited partnership may register with the
    17  Department of State under any name (whether or not it is the
    18  name under which it is registered in its jurisdiction of
    19  organization) that could be used by a domestic limited
    20  partnership.
    21  § 566.  Changes and amendments.
    22     If any statement in the application for registration of a
    23  foreign limited partnership was false when made or any
    24  arrangements or other facts described have changed, making the
    25  application inaccurate in any respect, the foreign limited
    26  partnership shall promptly file in the office of the Department
    27  of State a certificate, signed by a general partner, correcting
    28  the statement.
    29  § 567.  Cancellation of registration.
    30     A foreign limited partnership may cancel its registration by
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     1  filing with the Department of State a certificate of
     2  cancellation signed by a general partner.
     3  § 568.  Transaction of business without registration.
     4     (a)  Maintenance of actions prohibited.--A foreign limited
     5  partnership transacting business in this Commonwealth may not
     6  maintain any action in any court of this Commonwealth until it
     7  has registered in this Commonwealth.
     8     (b)  Contracts and defense of actions.--The failure of a
     9  foreign limited partnership to register in this Commonwealth
    10  does not impair the validity of any contract or act of the
    11  foreign limited partnership or prevent the foreign limited
    12  partnership from defending any action in any court of this
    13  Commonwealth.
    14     (c)  Liability of limited partner.--A limited partner of a
    15  foreign limited partnership is not liable as a general partner
    16  of the foreign limited partnership solely by reason of the
    17  foreign limited partnership having transacted business in this
    18  Commonwealth without registration.
    19  § 569.  Action by Attorney General.
    20     The Attorney General may bring an action to restrain a
    21  foreign limited partnership from transacting business in this
    22  Commonwealth in violation of this subchapter.
    23     Section 2.  Section 5301 of Title 42 is amended to read:
    24  § 5301.  Persons.
    25     (a)  General rule.--The existence of any of the following
    26  relationships between a person and this Commonwealth shall
    27  constitute a sufficient basis of jurisdiction to enable the
    28  tribunals of this Commonwealth to exercise general personal
    29  jurisdiction over such person, or his personal representative in
    30  the case of an individual, and to enable such tribunals to
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     1  render personal orders against such person or representative:
     2         (1)  Individuals.--
     3             (i)  Presence in this Commonwealth at the time when
     4         process is served.
     5             (ii)  Domicile in this Commonwealth at the time when
     6         process is served.
     7             (iii)  Consent, to the extent authorized by the
     8         consent.
     9         (2)  Corporations.--
    10             (i)  Incorporation under or qualification as a
    11         foreign corporation under the laws of this Commonwealth.
    12             (ii)  Consent, to the extent authorized by the
    13         consent.
    14             (iii)  The carrying on of a continuous and systematic
    15         part of its general business within this Commonwealth.
    16         (3)  Partnerships, limited partnerships, partnership
    17     associations, professional associations, unincorporated
    18     associations and similar entities.--
    19             (i)  Formation under or qualification as a foreign
    20         entity under the laws of this Commonwealth.
    21             (ii)  Consent, to the extent authorized by the
    22         consent.
    23             (iii)  The carrying on of a continuous and systematic
    24         part of its general business within this Commonwealth.
    25     (b)  Scope of jurisdiction.--When jurisdiction over a person
    26  is based upon this section any cause of action may be asserted
    27  against him, whether or not arising from acts enumerated in this
    28  section. Discontinuance of the acts enumerated in subsection
    29  (a)(2)(i) and (iii) and (a)(3)(i) and (iii) shall not affect
    30  jurisdiction with respect to any act, transaction or omission
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     1  occurring during the period such status existed.
     2     Section 3.  This act shall take effect in 60 days.             <--
     3     SECTION 3.  FILING UNDER SUBCHAPTER E OF CHAPTER 5 OF TITLE    <--
     4  59 SHALL BE SUFFICIENT NOTICE TO THE PUBLIC SO AS TO NOT REQUIRE
     5  THE LIMITED PARTNERSHIP TO FILE UNDER THE ACT OF MAY 24, 1945
     6  (P.L.967,NO.380), REFERRED TO AS THE FICTITIOUS NAME ACT.
     7     SECTION 4.  THIS ACT SHALL TAKE EFFECT IN 60 DAYS.
















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