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A11390 Summary:

BILL NOA11390
 
SAME ASSAME AS S08397
 
SPONSORRules (Braunstein)
 
COSPNSR
 
MLTSPNSR
 
Amd §306, BC L; amd §19, Gen Assoc L; amd §303, Lim Lil L; amd §306, N-PC L; amd §§121-109 & 121-1505, Partn L; amd §339-n, RP L
 
Permits process to be served electronically by certain entities on the secretary of state for certain purposes.
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A11390 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          11390
 
                   IN ASSEMBLY
 
                                      May 15, 2026
                                       ___________
 
        Introduced  by COMMITTEE ON RULES -- (at request of M. of A. Braunstein)
          -- (at request of the Department of State) -- read once  and  referred
          to the Committee on Corporations, Authorities and Commissions
 
        AN  ACT to amend the business corporation law, general associations law,
          limited liability company law, not-for-profit corporation  law,  part-
          nership  law  and real property law, in relation to electronic service
          of process
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section 1. The opening paragraph of subparagraph 1 of paragraph (b) of
     2  section  306 of the business corporation law, as amended by section 2 of
     3  part KK of chapter 56 of the laws of 2021, is amended and a  new  clause
     4  (iii) is added to read as follows:
     5    Service of process on the secretary of state as agent of a domestic or
     6  authorized  foreign  corporation shall be made in the manner provided by
     7  clause (i) [or], (ii) or  (iii)  of  this  subparagraph.  [Either]  Each
     8  option  of  service  authorized  pursuant  to this subparagraph shall be
     9  available at no extra cost to the consumer.
    10    (iii) Provided process is served by or on behalf of  the  state  or  a
    11  city,  town,  village  or  other  political subdivision of the state, by
    12  electronically submitting a copy of the process  to  the  department  of
    13  state,  through  an  electronic system operated by and with capabilities
    14  determined by the department of state, together with the statutory  fee,
    15  if required, which fee shall be a taxable disbursement. Service of proc-
    16  ess  on  such  corporation shall be complete when the secretary of state
    17  has reviewed and accepted service of  such  process.  The  secretary  of
    18  state  shall  promptly either: (A) send a copy of such process by certi-
    19  fied mail, return receipt requested, to such corporation,  at  the  post
    20  office  address,  on  file in the department of state, specified for the
    21  purpose or, if a domestic or authorized foreign corporation has no  such
    22  address on file in the department of state, the secretary of state shall
    23  so mail such copy, in the case of a domestic corporation, in care of any
    24  director  named  in  its  certificate of incorporation at the director's
    25  address stated therein or, in the case of an authorized  foreign  corpo-
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10422-01-5

        A. 11390                            2

     1  ration,  to  such  corporation  at the address of its office within this
     2  state on file in the department; or (B) email a notice of the fact  that
     3  process  against  the  corporation has been served electronically on the
     4  secretary  of  state  to  the email address on file in the department of
     5  state, specified for the purpose and shall make a copy  of  the  process
     6  available to such corporation.
     7    § 2. Section 19 of the general associations law, as amended by section
     8  16  of  part KK of chapter 56 of the laws of 2021, is amended to read as
     9  follows:
    10    § 19. Service of process. Service of process  against  an  association
    11  upon  the  secretary  of  state  shall be made in the manner provided by
    12  subdivision one [or], two or three of this section. [Either] Each option
    13  of service authorized pursuant to this section shall be available at  no
    14  extra cost to the consumer.
    15    [(1)]  1.  Personally  delivering to and leaving with [him or her] the
    16  secretary of state or with a person authorized by the secretary of state
    17  to receive such service, duplicate copies of such process at the  office
    18  of  the  department  of state in the city of Albany. At the time of such
    19  service the plaintiff shall pay a fee of forty dollars to the  secretary
    20  of  state  which shall be a taxable disbursement. The secretary of state
    21  shall promptly send by certified mail one of such copies to the  associ-
    22  ation at the address fixed for that purpose, as herein provided.
    23    [(2)]  2.  Electronically  submitting  a  copy  of  the process to the
    24  department of state together with the statutory fee, which fee shall  be
    25  a  taxable  disbursement,  through  an electronic system operated by the
    26  department of state, provided the association has an  email  address  on
    27  file  in  the  department of state to which the secretary of state shall
    28  email a notice of the fact that process has been  served  electronically
    29  on  the secretary of state. Service of process on such association shall
    30  be complete when the  secretary  of  state  has  reviewed  and  accepted
    31  service  of  such  process. The secretary of state shall promptly send a
    32  notice of the fact that process against such association has been served
    33  electronically upon [him or her] the secretary of state, to such associ-
    34  ation at the email address on file in the department of state, specified
    35  for the purpose and shall make a copy of the process available  to  such
    36  association.  If  the  action  or proceeding is instituted in a court of
    37  limited jurisdiction, service of process  may  be  made  in  the  manner
    38  provided  in this section if the cause of action arose within the terri-
    39  torial jurisdiction of the court and the office of the defendant, as set
    40  forth in its statement filed pursuant to section eighteen of this  chap-
    41  ter, is within such territorial jurisdiction.
    42    3.  Provided process is served by or on behalf of the state or a city,
    43  town, village or other political subdivision of the state, by  electron-
    44  ically  submitting  a  copy  of  the process to the department of state,
    45  through an electronic system operated by and  with  capabilities  deter-
    46  mined  by  the  department of state, together with the statutory fee, if
    47  required, which fee shall be a taxable disbursement. Service of  process
    48  on  such  association  shall be complete when the secretary of state has
    49  reviewed and accepted service of such process. The  secretary  of  state
    50  shall  promptly  either:  (a)  send  a copy of such process by certified
    51  mail, return receipt requested, to such association, at the post  office
    52  address,  on file in the department of state, specified for the purpose;
    53  or (b) email a notice of the fact that process against  the  association
    54  has  been  served  electronically on the secretary of state to the email
    55  address on file in the department of state, specified  for  the  purpose
    56  and shall make a copy of the process available to such association.

        A. 11390                            3
 
     1    §  3.  The  opening paragraph of subdivision (a) of section 303 of the
     2  limited liability company law, as amended by section 21 of  part  KK  of
     3  chapter  56  of  the  laws  of 2021, is amended and a new paragraph 3 is
     4  added to read as follows:
     5    Service  of  process  on the secretary of state as agent of a domestic
     6  limited liability company or authorized foreign limited liability compa-
     7  ny shall be made in the manner provided by paragraph one  [or],  two  or
     8  three  of  this  subdivision. [Either] Each option of service authorized
     9  pursuant to this subdivision shall be available at no extra cost to  the
    10  consumer.
    11    (3) Provided process is served by or on behalf of the state or a city,
    12  town,  village or other political subdivision of the state, by electron-
    13  ically submitting a copy of the process  to  the  department  of  state,
    14  through  an  electronic  system operated by and with capabilities deter-
    15  mined by the department of state, together with the  statutory  fee,  if
    16  required,  which fee shall be a taxable disbursement. Service of process
    17  on such limited liability company shall be complete when  the  secretary
    18  of  state  has reviewed and accepted service of such process. The secre-
    19  tary of state shall promptly either: (A) send a copy of such process  by
    20  certified  mail,  return  receipt  requested,  to such limited liability
    21  company, at the post office address, on file in the department of state,
    22  specified for the purpose; or (B) email a notice of the fact that  proc-
    23  ess against the limited liability company has been served electronically
    24  on the secretary of state to the email address on file in the department
    25  of state, specified for the purpose and shall make a copy of the process
    26  available to such limited liability company.
    27    §  4.    The  opening paragraph of paragraph (b) of section 306 of the
    28  not-for-profit corporation law, as amended by section 30 of part  KK  of
    29  chapter  56  of the laws of 2021, is amended and a new subparagraph 3 is
    30  added to read as follows:
    31    Service of process on the secretary of state as agent  of  a  domestic
    32  corporation  formed  under article four of this chapter or an authorized
    33  foreign corporation shall be made in the manner provided by subparagraph
    34  one [or], two or three of this paragraph.
    35    (3) Provided process is served by or on behalf of the state or a city,
    36  town, village or other political subdivision of the state, by  electron-
    37  ically  submitting  a  copy  of  the process to the department of state,
    38  through an electronic system operated by and  with  capabilities  deter-
    39  mined  by  the  department of state, together with the statutory fee, if
    40  required, which fee shall be a taxable disbursement. Service of  process
    41  on  such  corporation  shall be complete when the secretary of state has
    42  reviewed and accepted service of such process. The  secretary  of  state
    43  shall  promptly  either:  (A)  send  a copy of such process by certified
    44  mail, return receipt requested, to such corporation, at the post  office
    45  address,  on  file in the department of state, specified for the purpose
    46  or, if a domestic corporation formed under article four of this  chapter
    47  or  an authorized foreign corporation has no such address on file in the
    48  department of state, the secretary of state shall so mail such  copy  to
    49  such  corporation at the address of its office within this state on file
    50  in the department; or (B) email  a  notice  of  the  fact  that  process
    51  against  the corporation has been served electronically on the secretary
    52  of state to the email address on file in the department of state, speci-
    53  fied for the purpose and shall make a copy of the process  available  to
    54  such corporation.
    55    §  5.  The  opening paragraph of subdivision (a) of section 121-109 of
    56  the partnership law, as amended by section 41 of part KK of  chapter  56

        A. 11390                            4
 
     1  of  the  laws of 2021, is amended and a new paragraph 3 is added to read
     2  as follows:
     3    Service of process on the secretary of state as agent of a domestic or
     4  authorized  foreign  limited  partnership  shall  be  made in the manner
     5  provided by paragraph one  [or],  two  or  three  of  this  subdivision.
     6  [Either]  Each option of service authorized pursuant to this subdivision
     7  shall be available at no extra cost to the consumer.
     8    (3) Provided process is served by or on behalf of the state or a city,
     9  town, village or other political subdivision of the state, by  electron-
    10  ically  submitting  a  copy  of  the process to the department of state,
    11  through an electronic system operated by and  with  capabilities  deter-
    12  mined  by  the  department of state, together with the statutory fee, if
    13  required, which fee shall be a taxable disbursement. Service of  process
    14  on  such  limited  partnership  shall  be complete when the secretary of
    15  state has reviewed and accepted service of such process.  The  secretary
    16  of  state  shall  promptly  either:  (A)  send a copy of such process by
    17  certified mail, return receipt requested, to such  limited  partnership,
    18  at  the  post office address, on file in the department of state, speci-
    19  fied for the purpose; or (B) email a notice of  the  fact  that  process
    20  against  the  limited  partnership has been served electronically on the
    21  secretary of state to the email address on file  in  the  department  of
    22  state,  specified  for  the purpose and shall make a copy of the process
    23  available to such limited partnership.
    24    § 6. The opening paragraph of subdivision (a) of section  121-1505  of
    25  the  partnership  law, as amended by section 52 of part KK of chapter 56
    26  of the laws of 2021, is amended and a new paragraph 3 is added  to  read
    27  as follows:
    28    Service  of process on the secretary of state as agent of a registered
    29  limited liability partnership or New  York  registered  foreign  limited
    30  liability  partnership  under  this  article shall be made in the manner
    31  provided by paragraph one  [or],  two  or  three  of  this  subdivision.
    32  [Either]  Each option of service authorized pursuant to this subdivision
    33  shall be available at no extra cost to the consumer.
    34    (3) Provided process is served by or on behalf of the state or a city,
    35  town, village or other political subdivision of the state, by  electron-
    36  ically  submitting  a  copy  of  the process to the department of state,
    37  through an electronic system operated by and  with  capabilities  deter-
    38  mined  by  the  department of state, together with the statutory fee, if
    39  required, which fee shall be a taxable disbursement. Service of  process
    40  on  such limited liability partnership shall be complete when the secre-
    41  tary of state has reviewed and accepted service  of  such  process.  The
    42  secretary  of state shall promptly either: (A) send a copy of such proc-
    43  ess by certified mail, return  receipt  requested,  to  such  registered
    44  limited  liability  partnership  or  New York registered foreign limited
    45  liability partnership, at the  post  office  address,  on  file  in  the
    46  department of state, specified for the purpose; or (B) email a notice of
    47  the  fact that process against the registered limited liability partner-
    48  ship or New  York registered foreign limited liability  partnership  has
    49  been  served  electronically  on  the  secretary  of  state to the email
    50  address on file in the department of state, specified  for  the  purpose
    51  and shall make a copy of the process available to such registered limit-
    52  ed liability partnership or New  York registered foreign limited liabil-
    53  ity partnership.
    54    §  7.  The  opening paragraph of subdivision 7 of section 339-n of the
    55  real property law, as amended by section 53 of part KK of chapter 56  of

        A. 11390                            5
 
     1  the laws of 2021, is amended and a new paragraph (c) is added to read as
     2  follows:
     3    A designation of the secretary of state as agent of the corporation or
     4  board  of  managers  upon  whom process against it may be served and the
     5  post office address within or without this state to which the  secretary
     6  of state shall mail a copy of any process against it served upon [him or
     7  her]  the  secretary  of  state.  The  designation  may include an email
     8  address to which the secretary of state shall email a notice of the fact
     9  that process against it has been electronically served upon [him or her]
    10  the secretary of state. Service of process on the secretary of state  as
    11  agent  of  such  corporation  or  board of managers shall be made in the
    12  manner provided by paragraph (a) [or], (b) or (c) of  this  subdivision.
    13  [Either]  Each option of service authorized pursuant to this subdivision
    14  shall be available at no extra cost to the consumer.
    15    (c) Provided process is served by or on behalf of the state or a city,
    16  town, village or other political subdivision of the state, by  electron-
    17  ically  submitting  a  copy  of  the process to the department of state,
    18  through an electronic system operated by and  with  capabilities  deter-
    19  mined  by  the  department of state, together with the statutory fee, if
    20  required, which fee shall be a taxable disbursement. Service of  process
    21  on  such  corporation  or  board  of managers shall be complete when the
    22  secretary of state has reviewed and accepted service  of  such  process.
    23  The  secretary  of  state shall promptly either: (i) send a copy of such
    24  process by certified mail, return receipt requested, to such corporation
    25  or board of managers, at the post office address, on file in the depart-
    26  ment of state, specified for the purpose; or (ii) email a notice of  the
    27  fact  that process against the corporation or board of managers has been
    28  served electronically on the secretary of state to the email address  on
    29  file  in  the  department  of state, specified for the purpose and shall
    30  make a copy of the process available to such  corporation  or  board  of
    31  managers.
    32    § 8. This act shall take effect on the one hundred eightieth day after
    33  it  shall have become a law. Effective immediately, the addition, amend-
    34  ment and/or repeal of any rule or regulation necessary for the implemen-
    35  tation of this act on its effective date are authorized to be  made  and
    36  completed on or before such effective date.
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