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S3348Senate2019-2020 SessionSame asA3300

Let NYC Accept Legal Papers

Official title

“Relates to expanding service of process to the department of state in the city of New York”

Sponsor Brad Hoylman-SigalSD-27Affects Finance
Status
In Assembly Committee
Ways And Means
Impact
3/10
Low
Passage
0%

Bill progress

Step 5 of 7

In Assembly · Ways And Means

What's happening

This bill allows legal service of process to the New York Department of State to be made in either Albany or New York City.

Why it matters

  1. Expands access to legal procedures. By allowing service of process at the Department of State in either Albany or New York City, the bill makes it easier for individuals, businesses, and legal representatives—especially those based in or near New York City—to initiate legal proceedings or serve legal documents, potentially reducing travel time and costs.

  2. Streamlines legal compliance for businesses. Many types of entities (including corporations, LLCs, partnerships, nonprofits, and foreign businesses) are required to accept service of process through the Secretary of State. This change provides them with greater flexibility and could improve efficiency in handling legal notices.

  3. Impacts a wide range of laws and sectors. The bill amends numerous statutes across business, tax, real property, navigation, and vehicle and traffic laws, demonstrating broad applicability. This means the reform will touch a significant portion of legal and commercial activity conducted in New York.

  4. May reduce delays and court backlogs. By enabling service in two locations, the bill could help avoid bottlenecks, facilitate faster resolution of legal matters, and improve access to justice for parties throughout the state.

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Who cares

Headline styles

Let NYC Accept Legal Papers

Plain English, a few words. Used as the page title.

Sponsors

Primary sponsor
Brad Hoylman-Sigal

Senator · Senate District 27

Chair, Judiciary

No co-sponsors yet.

History

  1. Referred to ways and means
  2. Delivered to assembly
  3. Passed senateVote 46–14
  4. Advanced to third reading
  5. 2nd report cal.
  6. 1st report cal.431
  7. Referred to corporations, authorities and commissions
  8. Returned to senate
  9. Died in assembly
  10. Referred to judiciary
  11. Delivered to assembly
  12. Passed senateVote 46–15
Show 4 earlier actions
  1. Advanced to third reading
  2. 2nd report cal.
  3. 1st report cal.289
  4. Referred to corporations, authorities and commissions

Companion bill

The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.

A3300Assembly

Allow Process Serving in NYC

In Assembly Committee · Ways And Means · Sponsor Jeffrey Dinowitz

Impact 4 · Low0% to pass

Full text

16 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗

STATE OF NEW YORK

3348

2019-2020 Regular Sessions

IN SENATE

February 5, 2019

Introduced by Sen. HOYLMAN -- read twice and ordered printed, and when printed to be committed to the Committee on Corporations, Authorities and Commissions

AN ACT to amend the business corporation law, the executive law, the general associations law, the limited liability company law, the notfor-profit corporation law, the partnership law, the tax law, the administrative 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

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

Section 1. Paragraph 1 of subdivision (b) of section 306 of the business corporation law, as amended by chapter 419 of the laws of 1990, is amended to read as follows:

(1) Service of process on the secretary of state as agent of a domestic or authorized foreign corporation shall be made by personally delivering to and leaving with the secretary of state or a deputy, or with any person authorized by the secretary of state to receive such service, at the office of the department of state in either the city of Albany or New York, duplicate copies of such process together with the statutory fee, which fee shall be a taxable disbursement. Service of process on such corporation shall be complete when the secretary of state is so served. The secretary of state shall promptly send one of such copies by certified mail, return receipt requested, to such corporation, at the post office address, on file in the department of state, specified for the purpose. If a domestic or authorized foreign corporation has no such address on file in the department of state, the secretary of state shall so mail such copy, in the case of a domestic corporation, in care of any director named in its certificate of incorporation at the director's 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.

LBD01341-01-9

S. 3348 2

ration, to such corporation at the address of its office within this state on file in the department.

§ 2. The executive law is amended by adding a new section 92-a to read as follows:

§ 92-a. Service of process. In any case in which service of process on the secretary of state as agent or attorney of an organization, association, partnership, corporation, company, trust or other person or entity is authorized by law at the office of the department of state in the city of Albany, service of process on the secretary of state may be made by personal delivery to the secretary of state or a deputy, or any person authorized by the secretary of state to receive such service, at the office of the department of state in the city of New York. The secretary of state shall so authorize appropriate persons at such office.

§ 3. Subdivision 2 of section 172-c of the executive law, as amended by chapter 43 of the laws of 2002, is amended to read as follows:

2. Service of such process upon the secretary of state shall be made by personally delivering to and leaving with the secretary of state or any person authorized by the secretary of state to accept such service a copy thereof at the office of the department of state in either the city of Albany or New York, and such service shall be sufficient service provided that notice of such service and a copy of such process are forthwith sent by the attorney general or any other party to such charitable organization by certified mail with return receipt requested, at its office as set forth in the registration form required to be filed with the attorney general pursuant to section one hundred seventy-two of this article, or in default of the filing of such form, at the last address known to the attorney general or any other party. Service of such process shall be complete upon the receipt by the attorney general or any other party of a return receipt purporting to be signed by the addressee or a person qualified to receive its certified mail, in accordance with the rules and customs of the post office department, or, if acceptance was refused by the addressee or its agent, ten days after the return to the attorney general or any other party of a notation by the postal authorities that receipt thereof was refused.

§ 4. Subdivision 2 of section 173-c of the executive law, as amended by chapter 43 of the laws of 2002, is amended to read as follows:

2. Service of such process or notice upon the secretary of state shall be made by personally delivering to and leaving with the secretary of state or any person authorized by the secretary of state to accept such service a copy thereof at the office of the department of state in either the city of Albany or New York, and such service shall be sufficient service provided that notice of such service and a copy of such process are forthwith sent by the attorney general or other party as the case may be to such professional fund raiser, fund raising counsel, professional solicitor or commercial co-venturer by certified mail with return receipt requested, at the office address as set forth in the registration form required to be filed with the attorney general pursuant to sections one hundred seventy-three and one hundred seventy-three-b of this article, or in default of the filing of such form, at the last address known to the attorney general or other party. Service of such process shall be complete ten days after the receipt by the attorney general or other party of a return receipt purporting to be signed by the addressee or a person qualified to receive the addressee's certified mail, in accordance with the rules and customs of the post office department, or, if acceptance was refused by the addressee or the

S. 3348 3

agent, ten days after the return to the attorney general or other party of the original envelope bearing a notation by the postal authorities that receipt thereof was refused.

§ 5. Section 19 of the general associations law, as amended by chapter 166 of the laws of 1991, is amended to read as follows:

§ 19. Service of process. Service of process against an association upon the secretary of state shall be made by personally delivering to and leaving with him or a deputy secretary of state or an associate attorney, senior attorney or attorney in the corporation division of the department of state, duplicate copies of such process at the office of the department of state in either the city of Albany or New York. At the time of such service the plaintiff shall pay a fee of forty dollars to the secretary of state which shall be a taxable disbursement. If the cost of registered mail for transmitting a copy of the process shall exceed two dollars, an additional fee equal to such excess shall be paid at the time of the service of such process. The secretary of state shall forthwith send by registered mail one of such copies to the association at the address fixed for that purpose, as herein provided. If the action or proceeding is instituted in a court of limited jurisdiction, service of process may be made in the manner provided in this section if the cause of action arose within the territorial jurisdiction of the court and the office of the defendant, as set forth in its statement filed pursuant to section eighteen of this [chapter] article, is within such territorial jurisdiction.

§ 6. Subdivision (b) of section 304 of the limited liability company law is amended to read as follows:

(b) Service of such process upon the secretary of state shall be made by personally delivering to and leaving with the secretary of state or his or her deputy, or with any person authorized by the secretary of state to receive such service, at the office of the department of state in either the city of Albany or New York, a copy of such process together with the statutory fee, which fee shall be a taxable disbursement.

§ 7. Paragraph (b) of section 306 of the not-for-profit corporation law, as amended by chapter 23 of the laws of 2014, is amended to read as follows:

(b) Service of process on the secretary of state as agent of a domestic corporation formed under article four of this chapter or an authorized foreign corporation shall be made by personally delivering to and leaving with the secretary of state or his or her deputy, or with any person authorized by the secretary of state to receive such service, at the office of the department of state in either the city of Albany or New York, duplicate copies of such process together with the statutory fee, which fee shall be a taxable disbursement. Service of process on such corporation shall be complete when the secretary of state is so served. The secretary of state shall promptly send one of such copies by certified mail, return receipt requested, to such corporation, at the post office address, on file in the department of state, specified for the purpose. If a domestic corporation formed under article four of this chapter or an authorized foreign corporation has no such address on file in the department of state, the secretary of state shall so mail such copy to such corporation at the address of its office within this state on file in the department.

§ 8. The opening paragraph of paragraph 2 of subdivision (e) of section 121-104-A of the partnership law, as added by chapter 448 of the laws of 1998, is amended to read as follows:

S. 3348 4

Service of such process upon the secretary of state shall be made by personally delivering to and leaving with him or his deputy, or with any person authorized by the secretary of state to receive such service, at the office of the department of state in either the city of Albany or New York, a copy of such process together with the statutory fee, which fee shall be a taxable disbursement. Such service shall be sufficient if notice thereof and a copy of the process are:

§ 9. Paragraph 1 of subdivision (a) of section 121-109 of the partnership law, as added by chapter 950 of the laws of 1990, such subdivision as relettered by chapter 341 of the laws of 1999, is amended to read as follows:

(1) By personally delivering to and leaving with him or his deputy, or with any person authorized by the secretary of state to receive such service, at the office of the department of state in either the city of Albany or New York, duplicate copies of such process together with the statutory fee, which fee shall be a taxable disbursement.

§ 10. Subdivision (a) of section 121-1505 of the partnership law, as added by chapter 470 of the laws of 1997, is amended to read as follows:

(a) Service of process on the secretary of state as agent of a registered limited liability partnership under this article shall be made by personally delivering to and leaving with the secretary of state or a deputy, or with any person authorized by the secretary of state to receive such service, at the office of the department of state in either the city of Albany or New York, duplicate copies of such process together with the statutory fee, which fee shall be a taxable disbursement. Service of process on such registered limited liability partnership shall be complete when the secretary of state is so served. The secretary of state shall promptly send one of such copies by certified mail, return receipt requested, to such registered limited liability partnership, at the post office address on file in the department of state specified for such purpose.

§ 11. The opening paragraph of paragraph 2 of subdivision (f) of section 121-1506 of the partnership law, as added by chapter 448 of the laws of 1998, is amended to read as follows:

Service of such process upon the secretary of state shall be made by personally delivering to and leaving with him or his deputy, or with any person authorized by the secretary of state to receive such service, at the office of the department of state in either the city of Albany or New York, a copy of such process together with the statutory fee, which fee shall be a taxable disbursement. Such service shall be sufficient if notice thereof and a copy of the process are:

§ 12. Subdivision 2 of section 203 of the tax law, as amended by chapter 100 of the laws of 1964, is amended to read as follows:

2. Every foreign corporation (other than a moneyed corporation) subject to the provisions of this article, except a corporation having a certificate of authority under former section two hundred twelve of the general corporation law or having authority to do business by virtue of section thirteen hundred five of the business corporation law, shall file in the department of state a certificate of designation in its corporate name, signed and acknowledged by its president or a vice-president or its secretary or treasurer, under its corporate seal, designating the secretary of state as its agent upon whom process in any action provided for by this article may be served within this state, and setting forth an address to which the secretary of state shall mail a copy of any such process against the corporation which may be served upon him. In case any such corporation shall have failed to file such

S. 3348 5

Reflowed for reading: line numbers and page breaks removed. Cite the official text.

Sponsor's memo

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 hard- ship 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

Unknown, to be determined.

Legislative history

2018: S.8631 (Lanza) - Died in Corporations, Authorities and Commissions

Effective date

This act shall take effect on the one hundred eightieth day after it shall have become a law.

Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.