Bill
HD 1691
The bill establishes a legal framework for joint ventures, defining requirements, governance, liability, and registration - aiming to encourage business collaboration and economic activity in the state.
This proposed bill, introduced on November 29, 2025, aims to establish a legal framework for joint venture agreements in the state. The main purpose of the legislation is to provide clarity and guidelines for businesses and organizations that wish to enter into collaborative partnerships.
The bill outlines the following key provisions:
Definition of Joint Venture: The legislation defines a joint venture as a contractual agreement between two or more parties to undertake a specific business activity or project together.
Formation Requirements: The bill specifies the minimum requirements for forming a valid joint venture, including written agreements, identification of participating parties, and clear delineation of each party's rights, responsibilities, and equity interests.
Governance and Management: The bill establishes guidelines for the governance and management structure of joint ventures, including decision-making processes, dispute resolution mechanisms, and procedures for adding or removing partners.
Liability and Taxation: The legislation clarifies the liability and tax implications for joint ventures, addressing issues such as joint and several liability, pass-through taxation, and the treatment of profits and losses.
Registration and Reporting: The bill mandates the registration of joint ventures with a central state registry and requires periodic reporting on the venture's activities, financial performance, and compliance with the law.
The proposed legislation would primarily impact:
By providing a clear legal framework, the bill aims to encourage more widespread use of joint ventures, which could lead to increased economic activity, innovation, and collaboration among businesses in the state.
The bill has been introduced in the state legislature and is currently undergoing the standard legislative process, which includes committee hearings, public comments, and votes in both the House and Senate. If passed, the legislation would take effect 90 days after the governor's signature.
Compiled from official sources — confirm details with the bill’s official record.
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