Bill would let non‑licensed assistant managers operate a single‑member PLLC temporarily to preserve practice value

2115763 · January 15, 2025

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Summary

Rep. Eric Turr and a physician’s spouse told the committee HB 98 would allow a non‑licensed assistant manager to step in for a solo professional limited liability company (PLLC) for up to a year to preserve operations and enable orderly sale, winding up or recruitment of a licensed replacement.

Representative Eric Turr introduced HB 98, a bill that would permit a non‑licensed assistant manager to be appointed temporarily to operate a single‑member professional limited liability company (PLLC) if the licensed owner and manager dies or otherwise becomes unavailable.

Turr described the issue as a succession problem for solo professional practices that must be managed and directed by licensed professionals. “If there are more than one member, the remaining professional is authorized to continue operating the corporation. But if you’re the sole member, it falls into essentially a gray area,” he told the committee.

Roger Gown, who testified as the spouse of a retired veterinarian, described a real‑world example: as executor of an estate he would have had no authority to pay staff, hire a replacement veterinarian, sell or wind up the practice because he was not a licensed veterinarian and therefore could not be named assistant manager under current law. Gown said the measure would allow a trusted family member or spouse to be named assistant manager with strictly limited powers and time — a maximum of one year — and expressly barred from performing professional functions such as providing veterinary services.

The amendment developed in interim work clarified that creditor and lien rights are not altered and that an assistant manager cannot perform professional work; HB 98 would preserve the owner’s ability to specify succession terms within the entity’s operating agreement.

Ending: Supporters said the bill is narrowly tailored to preserve the value of small professional practices, give families time to transition or sell a practice and avoid abrupt dissolution. The committee closed the hearing without recorded opposition and will take drafting and finalization steps in later committee work.