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A03546 Summary:

BILL NOA03546
 
SAME ASSAME AS S06483
 
SPONSORBurke
 
COSPNSRLee, Ra
 
MLTSPNSR
 
Amd §§1006, 209, 802, 1203, 1306 & 1101, rpld §206, §1101 sub (s), §802 sub (b), §1203 sub (c) ¶2, §1306 sub (d), §102 subs (a-1) & (e-1), Lim Lil L; rpld §121-201 sub (c), §121-902 sub (d), §121-1500 sub (a) ¶(II), §121-1502 sub (f) ¶(II), §121-1300 sub (f), §121-101 subs (a-1) & (a-2), amd §§121-201, 121-902, 121-1500, 121-1502 & 121-1300, Partn L; rpld §23.03 sub 4, Arts & Cul L; add §89-l, St Fin L
 
Eliminates the requirement that limited liability companies publish their articles of organization and that certain partnerships publish their registrations; establishes the department of state modernization fund.
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A03546 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          3546
 
                               2025-2026 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 28, 2025
                                       ___________
 
        Introduced  by M. of A. BURKE -- read once and referred to the Committee
          on Corporations, Authorities and Commissions
 
        AN ACT to amend the limited liability company law  and  the  partnership
          law,  in  relation  to  certain  publication requirements and fees; to
          amend the state finance law, in relation to establishing  the  depart-
          ment  of  state  modernization  fund;  to  repeal subdivision (a-1) of
          section 102 and section 206 of the limited liability company  law  and
          subdivision  (a-1) of section 121-101 of the partnership law, relating
          to affidavits of publication; to repeal  subdivision  (s)  of  section
          1101  of  the  limited  liability  company  law and subdivision (f) of
          section 121-1300 of the partnership law, relating to fees  for  filing
          certificates of publication; to repeal subdivision (b) of section 802,
          paragraph  2 of subdivision (c) of section 1203 and subdivision (d) of
          section 1306 of the limited liability company law and subdivision  (c)
          of section 121-201, subdivision (d) of section 121-902, paragraph (II)
          of  subdivision (a) of section 121-1500 and paragraph (II) of subdivi-
          sion (f) of section 121-1502 of the partnership law,  in  relation  to
          publication  requirements;  to repeal subdivision (e-1) of section 102
          of the limited liability company law and subdivision (a-2) of  section
          121-101  of  the partnership law, relating to certificates of publica-
          tion; and to repeal subdivision 4 of section 23.03  of  the  arts  and
          cultural affairs law, relating to theatrical production company publi-
          cation requirements
 
          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 subdivision (e) of section 1006 of
     2  the limited liability company law, as amended by chapter 375 of the laws
     3  of 1998, is amended to read as follows:
     4    In connection with any conversion approved under  subdivision  (c)  of
     5  this section, the partnership or limited partnership shall file with the
     6  department  of  state  a  signed  certificate  entitled  "Certificate of
     7  Conversion of ... (name partnership or limited partnership) to ... (name
     8  of limited liability company) under section  one  thousand  six  of  the
     9  Limited  Liability  Company Law" [and shall also satisfy the publication

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07035-01-5

        A. 3546                             2

     1  requirements of section two hundred six of this chapter].  Such  certif-
     2  icate shall include either:
     3    § 2. Section 206 of the limited liability company law is REPEALED.
     4    §  3. Subdivision (s) of section 1101 of the limited liability company
     5  law is REPEALED.
     6    § 4. Section 209 of the limited liability company law  is  amended  to
     7  read as follows:
     8    §  209.  Filing with the department of state. (a) A signed articles of
     9  organization and any signed certificate of amendment  or  other  certif-
    10  icates  filed  pursuant  to  this  chapter  or of any judicial decree of
    11  amendment or cancellation shall be delivered to the department of state.
    12  If the instrument that is delivered  to  the  department  of  state  for
    13  filing  complies  as to form with the requirements of law and the filing
    14  fee required by any statute of this state in  connection  therewith  has
    15  been  paid,  the instrument shall be filed and indexed by the department
    16  of state. The department of state shall  not  review  such  articles  or
    17  certificates  for  legal  sufficiency;  its  review  shall be limited to
    18  determining that the form has been completed.
    19    (b) The department of state shall make such instruments  available  on
    20  its  state  register website, and must maintain electronic copies of the
    21  instruments in a fully  searchable  format  that  is  available  to  the
    22  public.    The  department  of  state shall also transmit a copy of such
    23  instrument to the department of law within seven  days  of  filing.  The
    24  department  of  law shall publish the instrument on its "NY Open Govern-
    25  ment" website or analogous website no more than seven days after receipt
    26  from the department of state.
    27    (c) The department of state shall publish notice  of  article  filings
    28  and  any  signed  certificate  of  amendment or other certificates filed
    29  pursuant to this chapter on its  state  register  website,  which  shall
    30  include without limitation: (1) the name of the limited liability compa-
    31  ny;  (2)  the  date  of  filing of the articles of organization with the
    32  department of state and, if the date of the formation is not the date of
    33  filing of the articles of organization, the date  of  formation  of  the
    34  limited liability company; (3) the county within the state, in which the
    35  office  of  the  limited  liability  company  is located; (4) the street
    36  address of the principal business location, if any; (5) a statement that
    37  the secretary of state has been  designated  as  agent  of  the  limited
    38  liability  company  upon  whom  process against it may be served and the
    39  post office address within or without the state to which  the  secretary
    40  of  state  shall mail a copy of any process against it served upon them;
    41  (6) if the limited liability company is  to  have  a  registered  agent,
    42  their  name and address within the state and a statement that the regis-
    43  tered agent is to be the agent of the  limited  liability  company  upon
    44  whom  process  against  it  may  be served; (7) if the limited liability
    45  company is to have a specific date of dissolution  in  addition  to  the
    46  events  of  dissolution  set  forth in section seven hundred one of this
    47  chapter, the latest date upon which the limited liability company is  to
    48  dissolve;  and  (8)  the  character  or  purpose of the business of such
    49  limited liability company.
    50    § 5. Subdivision (b) of section 802 of the limited  liability  company
    51  law is REPEALED and a new subdivision (b) is added to read as follows:
    52    (b)(i)  The  department of state shall make such instruments available
    53  on its state register website, and must maintain  electronic  copies  of
    54  the  instruments  in  a fully searchable format that is available to the
    55  public. The department of state shall  also  transmit  a  copy  of  such
    56  instrument  to  the  department  of law within seven days of filing. The

        A. 3546                             3
 
     1  department of law shall publish the instrument on its "NY  Open  Govern-
     2  ment" website or analogous website no more than seven days after receipt
     3  from the department of state.
     4    (ii)  The  department of state shall publish notice of article filings
     5  and any signed certificate of  amendment  or  other  certificates  filed
     6  pursuant  to  this  chapter  on  its state register website, which shall
     7  include without limitation: (1) the name of the foreign limited  liabil-
     8  ity company; (2) the date of filing of the articles of organization with
     9  the  department  of  state  and, if the date of the formation is not the
    10  date of filing of the articles of organization, the date of formation of
    11  the foreign limited liability company; (3) the county within the  state,
    12  in which the office of the foreign limited liability company is located;
    13  (4) the street address of the principal business location, if any; (5) a
    14  statement  that  the  secretary of state has been designated as agent of
    15  the foreign limited liability company upon whom process against  it  may
    16  be  served  and  the  post office address within or without the state to
    17  which the secretary of state shall mail a copy of any process against it
    18  served upon them; (6) if the foreign limited  liability  company  is  to
    19  have  a  registered agent, their name and address within the state and a
    20  statement that the registered agent is to be the agent  of  the  foreign
    21  limited  liability  company  upon whom process against it may be served;
    22  (7) if the foreign limited liability company is to have a specific  date
    23  of  dissolution  in  addition  to the events of dissolution set forth in
    24  section seven hundred one of this chapter, the latest  date  upon  which
    25  the  foreign limited liability company is to dissolve; and (8) the char-
    26  acter or purpose of the  business  of  such  foreign  limited  liability
    27  company.
    28    §  6.  Paragraph  2  of subdivision (c) of section 1203 of the limited
    29  liability company law is REPEALED and a new paragraph 2 is added to read
    30  as follows:
    31    (2) (A) The department of state shall make such instruments  available
    32  on  its  state  register website, and must maintain electronic copies of
    33  the instruments in a fully searchable format that is  available  to  the
    34  public.  The  department  of  state  shall  also transmit a copy of such
    35  instrument to the department of law within seven  days  of  filing.  The
    36  department  of  law shall publish the instrument on its "NY Open Govern-
    37  ment" website or analogous website no more than seven days after receipt
    38  from the department of state.
    39    (B) The department of state shall publish notice  of  article  filings
    40  and  any  signed  certificate  of  amendment or other certificates filed
    41  pursuant to this chapter on its  state  register  website,  which  shall
    42  include  without  limitation:  (1)  the name of the professional service
    43  limited liability company; (2) the date of filing  of  the  articles  of
    44  organization with the department of state and, if the date of the forma-
    45  tion is not the date of filing of the articles of organization, the date
    46  of  formation of the professional service limited liability company; (3)
    47  the county within the state, in which the  office  of  the  professional
    48  service  limited liability company is located; (4) the street address of
    49  the principal business location, if any; (5) a statement that the secre-
    50  tary of state has been designated as agent of the  professional  service
    51  limited liability company upon whom process against it may be served and
    52  the  post office address within or without the state to which the secre-
    53  tary of state shall mail a copy of any process against  it  served  upon
    54  them;  (6)  if  the professional service limited liability company is to
    55  have a registered agent, their name and address within the state  and  a
    56  statement  that  the  registered agent is to be the agent of the profes-

        A. 3546                             4
 
     1  sional service limited liability company upon whom  process  against  it
     2  may be served; (7) if the professional service limited liability company
     3  is  to  have a specific date of dissolution in addition to the events of
     4  dissolution  set forth in section seven hundred one of this chapter, the
     5  latest date upon which the professional service limited liability compa-
     6  ny is to dissolve; and (8) the character or purpose of the  business  of
     7  such professional service limited liability company.
     8    §  7. Subdivision (d) of section 1306 of the limited liability company
     9  law is REPEALED and a new subdivision (d) is added to read as follows:
    10    (d)(i) The department of state shall make such  instruments  available
    11  on  its  state  register website, and must maintain electronic copies of
    12  the instruments in a fully searchable format that is  available  to  the
    13  public.  The  department  of  state  shall  also transmit a copy of such
    14  instrument to the department of law within seven  days  of  filing.  The
    15  department  of  law shall publish the instrument on its "NY Open Govern-
    16  ment" website or analogous website no more than seven days after receipt
    17  from the department of state.
    18    (ii) The department of state shall publish notice of  article  filings
    19  and  any  signed  certificate  of  amendment or other certificates filed
    20  pursuant to this chapter on its  state  register  website,  which  shall
    21  include  without  limitation:  (1)  the name of the foreign professional
    22  service limited liability company; (2) the date of filing of  the  arti-
    23  cles  of  organization  with the department of state and, if the date of
    24  the formation is not the date of filing of the articles of organization,
    25  the date of  formation  of  the  foreign  professional  service  limited
    26  liability  company; (3) the county within the state, in which the office
    27  of  the  foreign  professional  service  limited  liability  company  is
    28  located;  (4)  the street address of the principal business location, if
    29  any; (5) a statement that the secretary of state has been designated  as
    30  agent of the foreign professional service limited liability company upon
    31  whom process against it may be served and the post office address within
    32  or  without  the state to which the secretary of state shall mail a copy
    33  of any process against it served upon them; (6) if the  foreign  profes-
    34  sional  service limited liability company is to have a registered agent,
    35  their name and address within the state and a statement that the  regis-
    36  tered  agent  is  to  be  the  agent of the foreign professional service
    37  limited liability company upon whom process against it  may  be  served;
    38  (7)  if the foreign professional service limited liability company is to
    39  have a specific date of dissolution in addition to the events of dissol-
    40  ution set forth in section seven hundred one of this chapter, the latest
    41  date upon which  the  foreign  professional  service  limited  liability
    42  company is to dissolve; and (8) the character or purpose of the business
    43  of such foreign professional service limited liability company.
    44    §  8.  Section 1101 of the limited liability company law is amended by
    45  adding a new subdivision (w) to read as follows:
    46    (w) For the electronic publication of any  documents  required  to  be
    47  filed  with  the  department pursuant to section two hundred nine, eight
    48  hundred two, twelve hundred three or thirteen hundred six of this  chap-
    49  ter, fifty dollars.
    50    §  9.  Subdivisions  (a-1)  and  (e-1)  of  section 102 of the limited
    51  liability company law are REPEALED.
    52    § 10. Subdivision (c) of section 121-201 of  the  partnership  law  is
    53  REPEALED and a new subdivision (c) is added to read as follows:
    54    (c)(i)  The  department of state shall make such instruments available
    55  on its state register website, and must maintain  electronic  copies  of
    56  the  instruments  in  a fully searchable format that is available to the

        A. 3546                             5
 
     1  public. The department of state shall  also  transmit  a  copy  of  such
     2  instrument  to  the  department  of law within seven days of filing. The
     3  department of law shall publish the instrument on its "NY  Open  Govern-
     4  ment" website or analogous website no more than seven days after receipt
     5  from the department of state.
     6    (ii)  The  department of state shall publish notice of article filings
     7  and any signed certificate of  amendment  or  other  certificates  filed
     8  pursuant  to  this  chapter  on  its state register website, which shall
     9  include without limitation: (1) the name of the limited partnership; (2)
    10  the date of filing of the articles of organization with  the  department
    11  of  state and, if the date of the formation is not the date of filing of
    12  the articles of organization, the date of formation of the limited part-
    13  nership; (3) the county within the state, in which  the  office  of  the
    14  limited  partnership is located; (4) the street address of the principal
    15  business location, if any; (5) a statement that the secretary  of  state
    16  has  been designated as agent of the limited partnership upon whom proc-
    17  ess against it may be served and the post office address within or with-
    18  out the state to which the secretary of state shall mail a copy  of  any
    19  process  against  it served upon them; (6) if the limited partnership is
    20  to have a registered agent, their name and address within the state  and
    21  a  statement that the registered agent is to be the agent of the limited
    22  partnership upon whom process against it  may  be  served;  (7)  if  the
    23  limited  partnership  is to have a specific date of dissolution in addi-
    24  tion to the events of dissolution set forth in article six of this chap-
    25  ter, the latest date upon which the limited partnership is to  dissolve;
    26  and  (8)  the character or purpose of the business of such limited part-
    27  nership.
    28    § 11. Subdivision (d) of section 121-902 of  the  partnership  law  is
    29  REPEALED and a new subdivision (d) is added to read as follows:
    30    (d)  (i) The department of state shall make such instruments available
    31  on its state register website, and must maintain  electronic  copies  of
    32  the  instruments  in  a fully searchable format that is available to the
    33  public. The department of state shall  also  transmit  a  copy  of  such
    34  instrument  to  the  department  of law within seven days of filing. The
    35  department of law shall publish the instrument on its "NY  Open  Govern-
    36  ment" website or analogous website no more than seven days after receipt
    37  from the department of state.
    38    (ii)  The  department of state shall publish notice of article filings
    39  and any signed certificate of  amendment  or  other  certificates  filed
    40  pursuant  to  this  chapter  on  its state register website, which shall
    41  include without limitation: (1) the name of the foreign limited partner-
    42  ship; (2) the date of filing of the articles of  organization  with  the
    43  department of state and, if the date of the formation is not the date of
    44  filing  of  the  articles  of organization, the date of formation of the
    45  foreign limited partnership; (3) the county within the state,  in  which
    46  the office of the foreign limited partnership is located; (4) the street
    47  address of the principal business location, if any; (5) a statement that
    48  the  secretary  of  state  has  been  designated as agent of the foreign
    49  limited partnership upon whom process against it may be served  and  the
    50  post  office  address within or without the state to which the secretary
    51  of state shall mail a copy of any process against it served  upon  them;
    52  (6)  if  the  foreign limited partnership is to have a registered agent,
    53  their name and address within the state and a statement that the  regis-
    54  tered  agent  is to be the agent of the foreign limited partnership upon
    55  whom process against it may be served; (7) if the foreign limited  part-
    56  nership  is  to  have  a specific date of dissolution in addition to the

        A. 3546                             6

     1  events of dissolution set forth in article  six  of  this  chapter,  the
     2  latest  date  upon which the foreign limited partnership is to dissolve;
     3  and (8) the character or purpose of the business of such foreign limited
     4  partnership.
     5    §  12.  Paragraph  (II)  of subdivision (a) of section 121-1500 of the
     6  partnership law is REPEALED and a new paragraph (II) is added to read as
     7  follows:
     8    (II)(A) The department of state shall make such instruments  available
     9  on  its  state  register website, and must maintain electronic copies of
    10  the instruments in a fully searchable format that is  available  to  the
    11  public.  The  department  of  state  shall  also transmit a copy of such
    12  instrument to the department of law within seven  days  of  filing.  The
    13  department  of  law shall publish the instrument on its "NY Open Govern-
    14  ment" website or analogous website no more than seven days after receipt
    15  from the department of state.
    16    (B) The department of state shall publish notice  of  article  filings
    17  and  any  signed  certificate  of  amendment or other certificates filed
    18  pursuant to this chapter on its  state  register  website,  which  shall
    19  include  without limitation: (1) the name of the limited liability part-
    20  nership; (2) the date of filing of the articles of organization with the
    21  department of state and, if the date of the formation is not the date of
    22  filing of the articles of organization, the date  of  formation  of  the
    23  limited liability partnership; (3) the county within the state, in which
    24  the  office  of  the  limited  liability partnership is located; (4) the
    25  street address of the principal business location, if any; (5) a  state-
    26  ment  that  the  secretary  of state has been designated as agent of the
    27  limited liability partnership upon whom process against it may be served
    28  and the post office address within or without the  state  to  which  the
    29  secretary  of  state  shall mail a copy of any process against it served
    30  upon them; (6) if the limited liability partnership is to have a  regis-
    31  tered  agent,  their  name  and address within the state and a statement
    32  that the registered agent is to be the agent of  the  limited  liability
    33  partnership  upon  whom  process  against  it  may be served; (7) if the
    34  limited liability partnership is to have a specific date of  dissolution
    35  in  addition  to  the  events of dissolution set forth in article six of
    36  this chapter, the latest date upon which the limited liability  partner-
    37  ship is to dissolve; and (8) the character or purpose of the business of
    38  such limited liability partnership.
    39    §  13.  Paragraph  (II)  of subdivision (f) of section 121-1502 of the
    40  partnership law is REPEALED and a new paragraph (II) is added to read as
    41  follows:
    42    (II)(A) The department of state shall make such instruments  available
    43  on  its  state  register website, and must maintain electronic copies of
    44  the instruments in a fully searchable format that is  available  to  the
    45  public.  The  department  of  state  shall  also transmit a copy of such
    46  instrument to the department of law within seven  days  of  filing.  The
    47  department  of  law shall publish the instrument on its "NY Open Govern-
    48  ment" website or analogous website no more than seven days after receipt
    49  from the department of state.
    50    (B) The department of state shall publish notice  of  article  filings
    51  and  any  signed  certificate  of  amendment or other certificates filed
    52  pursuant to this chapter on its  state  register  website,  which  shall
    53  include  without limitation: (1) the name of the foreign limited liabil-
    54  ity partnership; (2) the date of filing of the articles of  organization
    55  with  the  department  of state and, if the date of the formation is not
    56  the date of filing of the articles of organization, the date  of  forma-

        A. 3546                             7
 
     1  tion of the foreign limited liability partnership; (3) the county within
     2  the state, in which the office of the foreign limited liability partner-
     3  ship  is  located;  (4)  the  street  address  of the principal business
     4  location,  if  any; (5) a statement that the secretary of state has been
     5  designated as agent of the foreign limited  liability  partnership  upon
     6  whom process against it may be served and the post office address within
     7  or  without  the state to which the secretary of state shall mail a copy
     8  of any process against it served upon them; (6) if the  foreign  limited
     9  liability  partnership  is  to  have  a registered agent, their name and
    10  address within the state and a statement that the registered agent is to
    11  be the agent of the foreign  limited  liability  partnership  upon  whom
    12  process  against  it may be served; (7) if the foreign limited liability
    13  partnership is to have a specific date of dissolution in addition to the
    14  events of dissolution set forth in article  six  of  this  chapter,  the
    15  latest  date  upon which the foreign limited liability partnership is to
    16  dissolve; and (8) the character or  purpose  of  the  business  of  such
    17  foreign limited liability partnership.
    18    §  14.  Subdivision  (f) of section 121-1300 of the partnership law is
    19  REPEALED.
    20    § 15. Section 121-1300 of the partnership law is amended by  adding  a
    21  new subdivision (t) to read as follows:
    22    (t)  For  the  electronic  publication of any documents required to be
    23  filed with the department pursuant to section 121-202, 121-902, 121-1500
    24  or 121-1502 of this chapter, fifty dollars.
    25    § 16. Subdivisions (a-1) and (a-2) of section 121-101 of the  partner-
    26  ship law are REPEALED.
    27    §  17. Subdivision 4 of section 23.03 of the arts and cultural affairs
    28  law is REPEALED.
    29    § 18. The state finance law is amended by adding a new section 89-l to
    30  read as follows:
    31    § 89-l. Department of state modernization fund.  1.  There  is  hereby
    32  established in the custody of the comptroller a special fund to be known
    33  as the "department of state modernization fund". The moneys in such fund
    34  shall  be  available  for  payment of any and all costs and expenditures
    35  incurred in performing modernization and security of the  department  of
    36  state's  public-facing website, and for developing alternatives to phys-
    37  ical publication of documents required to be filed pursuant  to  article
    38  eleven  of  the  limited  liability  company  law,  including  costs and
    39  expenses incidental and appurtenant thereto.
    40    2. Moneys in the fund shall be kept separately from and shall  not  be
    41  commingled  with  any  other  moneys  in  the custody of the state comp-
    42  troller.
    43    3. The fund shall consist of the revenues  required  to  be  deposited
    44  therein  pursuant to the provisions of subdivision (w) of section eleven
    45  hundred one of the limited liability company law and subdivision (t)  of
    46  section  121-1300  of the partnership law, and all other moneys credited
    47  or transferred thereto from any other fund or source pursuant to law.
    48    4. The moneys in such fund shall be appropriated  by  the  legislature
    49  and paid out on the warrant of the state comptroller.
    50    §  19.  This  act  shall  take effect on the one hundred eightieth day
    51  after it shall have become a law. Effective  immediately  the  addition,
    52  amendment  and/or  repeal  of  any  rule or regulation necessary for the
    53  implementation of this act on its effective date are  authorized  to  be
    54  made and completed on or before such effective date.
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