PROPOSED RULEMAKING
STATE ARCHITECTS LICENSURE BOARD
[49 PA. CODE CH. 9]
Firm Practice
[33 Pa.B. 1116] The State Architects Licensure Board (Board) proposes to amend §§ 9.161--9.164 by adding the requirements for registration as a limited liability company or limited liability partnership to read as set forth in Annex A.
A. Effective Date
The proposed amendments will be effective upon publication of the final-form rulemaking in the Pennsylvania Bulletin.
B. Statutory Authority
The proposed amendments are authorized under sections 6(a) and 13(j) of the Architects Licensure Law (act) (63 P. S. §§ 34.6(a) and 34.13(j)).
C. Background and Purpose
Prior to 1998, section 13 of the act, regarding firm practice, listed the following entities permitted to engage in the practice of architecture: sole proprietorships, partnerships, professional associations, professional corporations and business corporations. In 1998, section 13 of the act was amended to include limited liability companies and limited liability partnerships as acceptable entities. The Board's regulations have not been updated to reflect the changes in the act relating to firm practice. Hence, this proposed rulemaking.
D. Description of the Proposed
The Board proposes to amend § 9.161 (relating to compliance with applicable statutes) by adding limited liability companies and limited liability partnerships as entities permitted to engage in the practice of architecture and by requiring compliance with 15 Pa.C.S. Chapters 82 and 89 (relating to limited liability partnerships; and limited liability companies).
The amendment to § 9.162(2) (relating to firm practice) would clarify that its requirements apply to both general partnerships and limited liability partnerships. Section 9.162(5) adds the requirements for registering as a limited liability company, by mirroring the requirements set forth in the act and by adding the additional requirement that at least one member or manager of the company is be a licensee of the Board.
Section 9.163 (relating to prior approval by the Board) requires that the applicant seeking registration for an entity permitted to practice architecture in this Commonwealth shall complete a formal application provided by the Board.
Section 9.164 (relating to exception for two owners) adds limited liability companies and limited liability partnerships to the list of entities which may be wholly owned by only two persons.
E. Fiscal Impact and Paperwork Requirements
The proposed amendments should have no fiscal impact on the Commonwealth or its political subdivisions. Likewise, the proposed amendments should not necessitate legal, accounting, reporting or other paperwork requirements.
F. Sunset Date
The Board continuously monitors the cost effectiveness of its regulations. Therefore, no sunset date has been assigned.
G. Regulatory Review
Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), on January 27, 2003, the Board submitted a copy of this proposed rulemaking to the Independent Regulatory Review Commission (IRRC), the Senate Consumer Protection and Professional Licensure Committhe (SCP/PLC) and the House Professional Licensure Committee (HPLC). In addition to submitting the proposed rulemaking, the Board has provided IRRC, the SCP/PLC and the HPLC with a copy of a detailed Regulatory Analysis Form prepared by the Board. A copy of this material is available to the public upon request.
Under section 5(g) of the Regulatory Review Act (71 P. S. § 745.5(g)), if IRRC has objections to any portion of the proposed rulemaking, it will notify the Board within 30 days of the close of the public comment period. The notification shall specify the regulatory review criteria which have not been met. The Regulatory Review Act specifies detailed procedures for review of objections by the Board, the General Assembly and the Governor prior to final publication of the rulemaking.
I. Public Comment
Interested persons are invited to submit written comments, suggestions or objections regarding this proposed rulemaking to Dorna Thorpe, State Architects Licensure Board, 116 Pine Street, P. O. Box 2649, Harrisburg, PA 17105-2649 dothorpe@state.pa.us within 30 days following publication of this proposed rulemaking in the Pennsylvania Bulletin.
ANN SHEPARD HOUSTON,
PresidentFiscal Note: 16A-417. No fiscal impact; (8) recommends adoption.
Annex A
TITLE 49. PROFESSIONAL AND VOCATIONAL STANDARDS
PART I. DEPARTMENT OF STATE
Subpart A. PROFESSIONAL AND OCCUPATIONAL AFFAIRS
CHAPTER 9. STATE ARCHITECTS LICENSURE BOARD
PROFESSIONAL AND CORPORATE PRACTICE § 9.161. Compliance with applicable statutes.
An architect or group of architects may elect to practice architecture professionally as a sole proprietorship, a partnership, a professional association, a professional corporation, a limited liability company, a limited liability partnership or a business corporation. A practice so elected shall be formed and conducted under the act and this chapter. In addition, the practice shall comply as follows:
* * * * * (6) In the case of a limited liability company, with 15 Pa.C.S. Chapter 89 (relating to limited liability companies).
(7) In the case of a limited liability partnership, with 15 Pa.C.S. Chapter 82 (relating to limited liability partnerships).
(8) * * *
§ 9.162. Firm practice.
The practice of architecture may be conducted in one of the following business forms:
* * * * * (2) A partnership (general or limited liability) or professional association, when the following exist:
* * * * * (5) A limited liability company, when the following exist:
(i) At least two-thirds of the members if managed by members or at least two-thirds of the managers if managed by managers are licensed under the laws of any state to practice architecture, engineering or landscape architecture.
(ii) At least one-third of the members if managed by members or at least one-third of the managers if managed by managers are licensed under the laws of any state to practice architecture.
(iii) At least one member or manager is a licensee of the Board.
(iv) At least two-thirds of all classes of voting membership at any one time shall be owned by an individual licensed under the laws of any state to practice architecture, engineering or landscape architecture.
(v) At least one-third of all classes of voting membership at any one time shall be owned by an individual licensed under the laws of any state to practice architecture.
§ 9.163. Prior approval by the Board.
The practice of architecture may not be conducted in one of the business forms specified [at] in § 9.162 (relating to firm practice) without first receiving the written approval of the Board. Written approval shall be sought by [filing] submitting a completed application on forms provided by the Board along with the following documents [with the Board]:
* * * * * § 9.164. Exception for two owners.
Section 9.162 (relating to firm practice) will not be construed to prevent the practice of architecture in a business form which is wholly owned by only two persons. The partnership, professional association, professional corporation, limited liability company, limited liability partnership or business corporation shall have at least one owner who is a licensee of the Board, and who owns at least 50% of the business.
[Pa.B. Doc. No. 03-349. Filed for public inspection February 28, 2003, 9:00 a.m.]
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