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S08397 Summary:

BILL NOS08397
 
SAME ASNo Same As
 
SPONSORMARTINEZ
 
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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S08397 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          8397
 
                               2025-2026 Regular Sessions
 
                    IN SENATE
 
                                      June 8, 2025
                                       ___________
 
        Introduced  by  Sen. MARTINEZ -- (at request of the Department of State)
          -- read twice and ordered printed, and when printed to be committed to
          the Committee on Rules
 
        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
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10422-01-5

        S. 8397                             2
 
     1  so mail such copy, in the case of a domestic corporation, in care of any
     2  director named in its certificate of  incorporation  at  the  director's
     3  address  stated  therein or, in the case of an authorized foreign corpo-
     4  ration,  to  such  corporation  at the address of its office within this
     5  state on file in the department; or (B) email a notice of the fact  that
     6  process  against  the  corporation has been served electronically on the
     7  secretary of state to the email address on file  in  the  department  of
     8  state,  specified  for  the purpose and shall make a copy of the process
     9  available to such corporation.
    10    § 2. Section 19 of the general associations law, as amended by section
    11  16 of part KK of chapter 56 of the laws of 2021, is amended to  read  as
    12  follows:
    13    §  19.  Service  of process. Service of process against an association
    14  upon the secretary of state shall be made  in  the  manner  provided  by
    15  subdivision one [or], two or three of this section. [Either] Each option
    16  of  service authorized pursuant to this section shall be available at no
    17  extra cost to the consumer.
    18    [(1)] 1. Personally delivering to and leaving with [him  or  her]  the
    19  secretary of state or with a person authorized by the secretary of state
    20  to  receive such service, duplicate copies of such process at the office
    21  of the department of state in the city of Albany. At the  time  of  such
    22  service  the plaintiff shall pay a fee of forty dollars to the secretary
    23  of state which shall be a taxable disbursement. The secretary  of  state
    24  shall  promptly send by certified mail one of such copies to the associ-
    25  ation at the address fixed for that purpose, as herein provided.
    26    [(2)] 2. Electronically submitting  a  copy  of  the  process  to  the
    27  department  of state together with the statutory fee, which fee shall be
    28  a taxable disbursement, through an electronic  system  operated  by  the
    29  department  of  state,  provided the association has an email address on
    30  file in the department of state to which the secretary  of  state  shall
    31  email  a  notice of the fact that process has been served electronically
    32  on the secretary of state. Service of process on such association  shall
    33  be  complete  when  the  secretary  of  state  has reviewed and accepted
    34  service of such process. The secretary of state shall  promptly  send  a
    35  notice of the fact that process against such association has been served
    36  electronically upon [him or her] the secretary of state, to such associ-
    37  ation at the email address on file in the department of state, specified
    38  for  the  purpose and shall make a copy of the process available to such
    39  association. If the action or proceeding is instituted  in  a  court  of
    40  limited  jurisdiction,  service  of  process  may  be made in the manner
    41  provided in this section if the cause of action arose within the  terri-
    42  torial jurisdiction of the court and the office of the defendant, as set
    43  forth  in its statement filed pursuant to section eighteen of this chap-
    44  ter, is within such territorial jurisdiction.
    45    3. Provided process is served by or on behalf of the state or a  city,
    46  town,  village or other political subdivision of the state, by electron-
    47  ically submitting a copy of the process  to  the  department  of  state,
    48  through  an  electronic  system operated by and with capabilities deter-
    49  mined by the department of state, together with the  statutory  fee,  if
    50  required,  which fee shall be a taxable disbursement. Service of process
    51  on such association shall be complete when the secretary  of  state  has
    52  reviewed  and  accepted  service of such process. The secretary of state
    53  shall promptly either: (a) send a copy  of  such  process  by  certified
    54  mail,  return receipt requested, to such association, at the post office
    55  address, on file in the department of state, specified for the  purpose;
    56  or  (b)  email a notice of the fact that process against the association

        S. 8397                             3
 
     1  has been served electronically on the secretary of state  to  the  email
     2  address  on  file  in the department of state, specified for the purpose
     3  and shall make a copy of the process available to such association.
     4    §  3.  The  opening paragraph of subdivision (a) of section 303 of the
     5  limited liability company law, as amended by section 21 of  part  KK  of
     6  chapter  56  of  the  laws  of 2021, is amended and a new paragraph 3 is
     7  added to read as follows:
     8    Service of process on the secretary of state as agent  of  a  domestic
     9  limited liability company or authorized foreign limited liability compa-
    10  ny  shall  be  made in the manner provided by paragraph one [or], two or
    11  three of this subdivision. [Either] Each option  of  service  authorized
    12  pursuant  to this subdivision shall be available at no extra cost to the
    13  consumer.
    14    (3) Provided process is served by or on behalf of the state or a city,
    15  town, village or other political subdivision of the state, by  electron-
    16  ically  submitting  a  copy  of  the process to the department of state,
    17  through an electronic system operated by and  with  capabilities  deter-
    18  mined  by  the  department of state, together with the statutory fee, if
    19  required, which fee shall be a taxable disbursement. Service of  process
    20  on  such  limited liability company shall be complete when the secretary
    21  of state has reviewed and accepted service of such process.  The  secre-
    22  tary  of state shall promptly either: (A) send a copy of such process by
    23  certified mail, return receipt  requested,  to  such  limited  liability
    24  company, at the post office address, on file in the department of state,
    25  specified  for the purpose; or (B) email a notice of the fact that proc-
    26  ess against the limited liability company has been served electronically
    27  on the secretary of state to the email address on file in the department
    28  of state, specified for the purpose and shall make a copy of the process
    29  available to such limited liability company.
    30    § 4.  The opening paragraph of paragraph (b) of  section  306  of  the
    31  not-for-profit  corporation  law, as amended by section 30 of part KK of
    32  chapter 56 of the laws of 2021, is amended and a new subparagraph  3  is
    33  added to read as follows:
    34    Service  of  process  on the secretary of state as agent of a domestic
    35  corporation formed under article four of this chapter or  an  authorized
    36  foreign corporation shall be made in the manner provided by subparagraph
    37  one [or], two or three of this paragraph.
    38    (3) Provided process is served by or on behalf of the state or a city,
    39  town,  village or other political subdivision of the state, by electron-
    40  ically submitting a copy of the process  to  the  department  of  state,
    41  through  an  electronic  system operated by and with capabilities deter-
    42  mined by the department of state, together with the  statutory  fee,  if
    43  required,  which fee shall be a taxable disbursement. Service of process
    44  on such corporation shall be complete when the secretary  of  state  has
    45  reviewed  and  accepted  service of such process. The secretary of state
    46  shall promptly either: (A) send a copy  of  such  process  by  certified
    47  mail,  return receipt requested, to such corporation, at the post office
    48  address, on file in the department of state, specified for  the  purpose
    49  or,  if a domestic corporation formed under article four of this chapter
    50  or an authorized foreign corporation has no such address on file in  the
    51  department  of  state, the secretary of state shall so mail such copy to
    52  such corporation at the address of its office within this state on  file
    53  in  the  department;  or  (B)  email  a  notice of the fact that process
    54  against the corporation has been served electronically on the  secretary
    55  of state to the email address on file in the department of state, speci-

        S. 8397                             4
 
     1  fied  for  the purpose and shall make a copy of the process available to
     2  such corporation.
     3    §  5.  The  opening paragraph of subdivision (a) of section 121-109 of
     4  the partnership law, as amended by section 41 of part KK of  chapter  56
     5  of  the  laws of 2021, is amended and a new paragraph 3 is added to read
     6  as follows:
     7    Service of process on the secretary of state as agent of a domestic or
     8  authorized foreign limited partnership  shall  be  made  in  the  manner
     9  provided  by  paragraph  one  [or],  two  or  three of this subdivision.
    10  [Either] Each option of service authorized pursuant to this  subdivision
    11  shall be available at no extra cost to the consumer.
    12    (3) Provided process is served by or on behalf of the state or a city,
    13  town,  village or other political subdivision of the state, by electron-
    14  ically submitting a copy of the process  to  the  department  of  state,
    15  through  an  electronic  system operated by and with capabilities deter-
    16  mined by the department of state, together with the  statutory  fee,  if
    17  required,  which fee shall be a taxable disbursement. Service of process
    18  on such limited partnership shall be  complete  when  the  secretary  of
    19  state  has  reviewed and accepted service of such process. The secretary
    20  of state shall promptly either: (A) send  a  copy  of  such  process  by
    21  certified  mail,  return receipt requested, to such limited partnership,
    22  at the post office address, on file in the department of  state,  speci-
    23  fied  for  the  purpose;  or (B) email a notice of the fact that process
    24  against the limited partnership has been served  electronically  on  the
    25  secretary  of  state  to  the email address on file in the department of
    26  state, specified for the purpose and shall make a copy  of  the  process
    27  available to such limited partnership.
    28    §  6.  The opening paragraph of subdivision (a) of section 121-1505 of
    29  the partnership law, as amended by section 52 of part KK of  chapter  56
    30  of  the  laws of 2021, is amended and a new paragraph 3 is added to read
    31  as follows:
    32    Service of process on the secretary of state as agent of a  registered
    33  limited  liability  partnership  or  New York registered foreign limited
    34  liability partnership under this article shall be  made  in  the  manner
    35  provided  by  paragraph  one  [or],  two  or  three of this subdivision.
    36  [Either] Each option of service authorized pursuant to this  subdivision
    37  shall be available at no extra cost to the consumer.
    38    (3) Provided process is served by or on behalf of the state or a city,
    39  town,  village or other political subdivision of the state, by electron-
    40  ically submitting a copy of the process  to  the  department  of  state,
    41  through  an  electronic  system operated by and with capabilities deter-
    42  mined by the department of state, together with the  statutory  fee,  if
    43  required,  which fee shall be a taxable disbursement. Service of process
    44  on such limited liability partnership shall be complete when the  secre-
    45  tary  of  state  has  reviewed and accepted service of such process. The
    46  secretary of state shall promptly either: (A) send a copy of such  proc-
    47  ess  by  certified  mail,  return  receipt requested, to such registered
    48  limited liability partnership or New  York  registered  foreign  limited
    49  liability  partnership,  at  the  post  office  address,  on file in the
    50  department of state, specified for the purpose; or (B) email a notice of
    51  the fact that process against the registered limited liability  partner-
    52  ship  or New   York registered foreign limited liability partnership has
    53  been served electronically on  the  secretary  of  state  to  the  email
    54  address  on  file  in the department of state, specified for the purpose
    55  and shall make a copy of the process available to such registered limit-

        S. 8397                             5
 
     1  ed liability partnership or New  York registered foreign limited liabil-
     2  ity partnership.
     3    §  7.  The  opening paragraph of subdivision 7 of section 339-n of the
     4  real property law, as amended by section 53 of part KK of chapter 56  of
     5  the laws of 2021, is amended and a new paragraph (c) is added to read as
     6  follows:
     7    A designation of the secretary of state as agent of the corporation or
     8  board  of  managers  upon  whom process against it may be served and the
     9  post office address within or without this state to which the  secretary
    10  of state shall mail a copy of any process against it served upon [him or
    11  her]  the  secretary  of  state.  The  designation  may include an email
    12  address to which the secretary of state shall email a notice of the fact
    13  that process against it has been electronically served upon [him or her]
    14  the secretary of state. Service of process on the secretary of state  as
    15  agent  of  such  corporation  or  board of managers shall be made in the
    16  manner provided by paragraph (a) [or], (b) or (c) of  this  subdivision.
    17  [Either]  Each option of service authorized pursuant to this subdivision
    18  shall be available at no extra cost to the consumer.
    19    (c) Provided process is served by or on behalf of the state or a city,
    20  town, village or other political subdivision of the state, by  electron-
    21  ically  submitting  a  copy  of  the process to the department of state,
    22  through an electronic system operated by and  with  capabilities  deter-
    23  mined  by  the  department of state, together with the statutory fee, if
    24  required, which fee shall be a taxable disbursement. Service of  process
    25  on  such  corporation  or  board  of managers shall be complete when the
    26  secretary of state has reviewed and accepted service  of  such  process.
    27  The  secretary  of  state shall promptly either: (i) send a copy of such
    28  process by certified mail, return receipt requested, to such corporation
    29  or board of managers, at the post office address, on file in the depart-
    30  ment of state, specified for the purpose; or (ii) email a notice of  the
    31  fact  that process against the corporation or board of managers has been
    32  served electronically on the secretary of state to the email address  on
    33  file  in  the  department  of state, specified for the purpose and shall
    34  make a copy of the process available to such  corporation  or  board  of
    35  managers.
    36    § 8. This act shall take effect on the one hundred eightieth day after
    37  it  shall have become a law. Effective immediately, the addition, amend-
    38  ment and/or repeal of any rule or regulation necessary for the implemen-
    39  tation of this act on its effective date are authorized to be  made  and
    40  completed on or before such effective date.
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