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S5708Senate2019-2020 SessionSame asA10425

Remove Out-of-State Lawyer Ban

Official title

“Repeals section 470 of the judiciary law relating to allowing attorneys having offices in the state to reside in an adjoining state”

Sponsor Brad Hoylman-SigalSD-27+1 co-sponsorAffects Legal
Status
In Senate Committee
Judiciary
Impact
4/10
Low
Passage
0%

Bill progress

Step 2 of 7

In committee · Judiciary

What's happening

This bill repeals the law allowing New York attorneys to reside in neighboring states if they have an office in New York.

Why it matters

  1. Could limit career flexibility. for attorneys who live in New Jersey, Connecticut, or Pennsylvania but currently work in New York, as they would no longer be able to practice in NY unless they also reside there, potentially forcing them to move or give up NY clients.

  2. May reduce the pool of available legal talent. in New York, especially in border areas where lawyers often commute from neighboring states, possibly impacting access to legal services for clients.

  3. Signals a shift in professional licensing policy. moving away from accommodating cross-border professionals—which could set a precedent affecting other licensed professions or reciprocal arrangements between states.

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Who cares

Headline styles

Remove Out-of-State Lawyer Ban

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

Sponsors

Primary sponsor
Brad Hoylman-Sigal

Senator · Senate District 27

Chair, Judiciary

1 Co-sponsor

History

  1. Referred to judiciary
  2. Referred to judiciary

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.

A10425Assembly

End Lawyer Residency Rule

In Assembly Committee · Judiciary · Sponsor David Weprin

Impact 4 · Low0% to pass

Full text

1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗

STATE OF NEW YORK

5708

2019-2020 Regular Sessions

IN SENATE

May 13, 2019

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

AN ACT to repeal section 470 of the judiciary law, relating to allowing attorneys having offices in the state to reside in an adjoining state

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

Section 1. Section 470 of the judiciary law is REPEALED.

§ 2. This act shall take effect immediately.

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD11516-01-9

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

Sponsor's memo

Title of bill

An act to repeal section 470 of the judiciary law, relating to allowing attorneys having offices in the state to reside in an adjoining state

Purpose or general idea of bill

The purpose of this bill is to remove the current inability of lawyers admitted in New York to practice in the State if they neither reside nor have an office in the state.

Summary of specific provisions

Section 1 of the bill repeals section 470 of the Judiciary law.

Section 2 of the bill is the effective date.

Justification

Section 470 of the Judiciary Law, as interpreted by the New York State Court of Appeals in Schoenefeld v. State of New York, 25 N.Y.3d 22 (2015), requires "nonresident attorneys practicing in New York to main- tain a physical law officer here." (Pg. 27 of decision). The Court of Appeals reaffirmed this requirement in Arrowhead Capital Finance, Ltd. v. Cheyne Specialty Finance Fund L.P. (2019).

Section 470 was enacted in its current form in 1909 following predeces- sor statutes dating from 1862. A central concern at the time was the difficulty in serving attorneys not located in New York. The Court of Appeals noted in the Schoenefeld decision that New York has "an interest in ensuring that personal service can be accomplished on nonresident attorneys admitted to practice here."

The Court then considered current law, citing provisions of the CPLR, including 2103(b), and said that there are "currently several means of service upon a nonresident attorney, including mail, overnight delivery, fax and (where permitted) email...." It also noted that Court of Appeals Rule 520.13(a), dealing with admissions to the Bar, requires nonresident attorneys to designate the clerk of an Appellate Division as their agent for service for actions related to legal services offered within the state. It concluded, "the legislature always remains free to take any additional action deemed necessary."

While the Court in Schoenefled was concerned with service on an out-of- state attorney in a pending action, which is governed by CPLR 2103(b), the law regarding service on an out-of-service party, including an attorney named as a party, has changed significantly since 1909. Until the mid-1940s, there was a significant challenge to obtaining personal jurisdiction over an attorney who resided and maintained an office out of state who performed legal services within the state. Since the advent of "Long Arm Jurisdiction," and the enactment of CPLR 302(a), obtaining jurisdiction over such an attorney is no longer problematic.

With modern day mechanisms for serving papers on attorneys not located in the state and CPLR 302(a) providing a jurisdictional basis for service outside the state, there is no reason to require a bricks and mortar office as specified in section 470. The concerns that led to the adoption of this section more than a century ago no longer exist, and the current statutory prohibition serves no purpose in today's global environment. Its repeal would not create any significant difficulties arising from the lack of an attorney's physical office within the state.

Legislative history

None, new bill.

Fiscal implications

None.

Effective date

This act shall take effect immediately.

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