Governor James H. Douglas is flanked by Senate bill sponsor Susan Bartlett, DRM client Robert Lang of the Mary Elizabeth and Gordon B. Mannweiler Foundation, and members of the House Commerce Committee at the signing of H.775, the first law in the nation to establish low-profit limited liability companies (L3Cs) for socially responsible investing. The foundation worked with DRM's Government and Public Affairs Group to help guide the bill through the legislature. House sponsor Michele Kupersmith stands at the Governor's left.
(Burlington, Vt.) On April 30, Governor James H. Douglas signed legislation (H.775) making Vermont the first state in the nation to authorize the creation of L3Cs or low-profit, limited liability companies. The L3C is intended to bridge the gap between non-profit and for-profit investing by providing a structure that facilitates investments in socially beneficial, for-profit ventures while simplifying compliance with IRS rules for Program Related Investments.
Thomas H. Moody, chair of Downs Rachlin Martin’s Business Law Practice Group, and Wm. Roger Prescott, chair of the firm’s Tax Law Practice Group, have formed an L3C subspecialty group at DRM to assist with the formation of low-profit, limited liability companies. Through an L3C, foundations and philanthropic investors can promote job creation and economic growth while supporting socially responsible efforts in the communities where they choose to invest.
The L3C legislation was sponsored by Sen. Susan Bartlett, D-Lamoille, and Rep. Michele Kupersmith, D-S.Burlington. The bill was the brainchild of Robert Lang of the Mannweiler Foundation. The Hartland Group, the Castanea Foundation, Ashoka, Deutsche Bank and Caplin & Drysdale were among the organizations testifying in support of the L3C before the House Commerce and Senate Finance Committees. Effective pre-session research and groundwork laid by DRM Lobbyists John H. Hollar and Joseph L. Choquette III enabled the bill to move smoothly through the legislative process, and Hollar played an instrumental role in shepherding the bills through the legislature and communicating the potential opportunities that L3Cs can offer for Vermont communities. As the first state to recognize the potential of this enabling legislation, Vermont is poised to attract socially responsible investors from across the country seeking to avoid the complexities associated with Program Related Investments.
DRM, with more than 85 attorneys and legal professionals in seven offices in Vermont, New Hampshire and New York, provides legal services to local, national and international clients in practice areas that include litigation, business law, labor and employment, captive insurance, environmental law, trust and estates, family law, tax law, public utilities, real estate, health care, intellectual property, insolvency and creditors rights, venture capital and insurance defense. The firm represents clients in legislative, regulatory and public affairs through the Government Affairs group. DRM is the law firm member for Vermont of Lex Mundi, the world's leading association of independent law firms.
