§ 12:1604 — Continuation and updating of professional or other license

§1604. Continuation and updating of professional or other license
A. A converting entity that holds a license immediately before a nonprofit conversion
or entity conversion continues to hold the license as a surviving entity unless the surviving
entity fails to comply with an allowed update rule, or is not a form of business entity that may
hold that kind of license. The continued holding of a license under this Subsection does not
affect the expiration date or any of the terms or conditions of the license. The license
continues to be held, and may be suspended, restricted, or revoked, as if the conversion had
not occurred.
B. The rules of a licensing body may require a surviving entity to update its licensing
information by delivering a copy of any of the following documents to the licensing body
within ninety days after the effective date of the conversion, or by a later date set by those
rules:
(1) The articles of entity conversion, acknowledged as filed by the secretary of state
as provided in the Business Corporation Act.
(2) The license being updated.
(3) A bond or certificate of insurance in the name of the surviving entity for any
coverage required for the issuance of the kind of license being updated.
(4) An amendment or amended version of any contract or other agreement required
for the issuance of the kind of license being updated, naming the surviving entity as a party
to the required contract or agreement.
C. The rules of a licensing body may require the surviving entity to pay a fee of up
to twenty-five dollars to update the license.
D. An updated license shall be issued by the licensing body within thirty days of its
receipt of the documents and fee required by its allowed update rules, but if a surviving entity
has complied with the allowed update rules of the licensing body, a failure by the licensing
body to issue an updated license does not affect the continued holding of the license as
provided in Subsection A of this Section.
E. A license held by a converting entity terminates on the effective date of the
conversion if the surviving entity in the conversion is a form of business entity that may not
hold the license.
F. If a surviving entity fails to comply with an allowed update rule concerning a
license, the license terminates at the end of the ninetieth day after the effective date of the
conversion or, if a later date for compliance is set by the allowed update rule, at the end of
the later date.
G. Except for publicly traded entities, the provisions of this Section shall not apply
to a surviving entity seeking an updated license that has any change in ownership interests
or has changed ownership by including an individual or entity that did not have an ownership
interest in the surviving entity immediately prior to the conversion.

Legislative History

Acts 2006, No. 153, §1, eff. June 2, 2006; Acts 2014, No. 328, §1, eff. Jan. 1, 2015.