NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A3419
SPONSOR: Dinowitz TITLE OF BILL:
An act to amend the business corporation law, the executive law, the
general associations law, the limited liability company law, the not-
for-profit corporation law, the partnership law, the tax law, the admin-
istrative code of the city of New York, the real property law, the
general business law, the navigation law, and the vehicle and traffic
law, in relation to expanding service of process to the department of
state in the city of New York
PURPOSE:
The purpose of this bill is to allow service of process on the Secretary
of State in New York City in addition to Albany.
SUMMARY OF PROVISIONS:
This bill would amend various sections of law to allow service of proc-
ess on the Secretary of State at the New York City office of the Depart-
ment of State in addition to the Department of State's Albany office.
JUSTIFICATION:
Currently, persons or entities bringing suit against a corporation may
serve the legal papers on the Secretary of State as the agent for the
defendant corporate entity. The Secretary must then mail copies of such
process documents to the defendant entity. There are many offices for
the Secretary of State located throughout New York State. However, the
only location that accepts service of process for the
Secretary of State is the Albany office of the Department of State.
This creates a hardship for persons located the southern areas of the
state where there is a significant concentration of courts, businesses
and commerce. By allowing service of process on the
Secretary of State in New York City corporations, municipalities and
litigants located close to the city will save time and money.
FISCAL IMPACT ON THE STATE:
To be determined.
LEGISLATIVE HISTORY:
2022: A.1488 - Judiciary / S.1728 - Corporations, Authorities and
Commissions 2021: A.1488 - Judiciary / S.1728 - Passed Senate
2019-20 - A.3300 - Reported to Ways and Means / S.3348 - Passed Senate
2018-18- A.10357 - Reported to Ways and Means / S.8631 - Corporations,
Authorities and Commissions
EFFECTIVE DATE:
This act shall take effect on the one hundred eightieth day after it
shall have become a law.
