A 11390: Permits process to be served electronically by certain entities on the secretary of state for certain purposes.

  
  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.