Bill S5533-2011

Relates to service of process upon the secretary of state

Relates to service of process upon the secretary of state.

Details

  • Same as:
  • Versions
  • Sponsor:
  • Law Section:
  • Law:

Actions

  • Aug 1, 2012: VETOED MEMO.137
  • Jul 20, 2012: DELIVERED TO GOVERNOR
  • Mar 1, 2012: returned to senate
  • Mar 1, 2012: passed assembly
  • Mar 1, 2012: ordered to third reading cal.294
  • Mar 1, 2012: substituted for a8455
  • Feb 29, 2012: referred to judiciary
  • Feb 29, 2012: DELIVERED TO ASSEMBLY
  • Feb 29, 2012: PASSED SENATE
  • Feb 6, 2012: ADVANCED TO THIRD READING
  • Jan 31, 2012: 2ND REPORT CAL.
  • Jan 30, 2012: 1ST REPORT CAL.141
  • Jan 4, 2012: REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
  • Jun 24, 2011: COMMITTED TO RULES
  • Jun 13, 2011: ADVANCED TO THIRD READING
  • Jun 7, 2011: 2ND REPORT CAL.
  • Jun 6, 2011: 1ST REPORT CAL.1019
  • May 31, 2011: REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS

Meetings

Calendars

Votes

VOTE: COMMITTEE VOTE: - Corporations, Authorities and Commissions - Jun 6, 2011
Ayes (6): Ranzenhofer, Flanagan, Larkin, Martins, Perkins, Squadron
VOTE: COMMITTEE VOTE: - Corporations, Authorities and Commissions - Jan 30, 2012
Ayes (6): Ranzenhofer, Flanagan, Larkin, Martins, Perkins, Squadron

Memo

BILL NUMBER:S5533

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, and the real property law, in relation to service of process

SUMMARY OF PROVISIONS: This bill would amend certain provisions of the Business Corporation Law, Executive Law, General Associations Law, Limited Liability Company Law, Not-for-Profit Corporation Law, Partnership Law, and Real Property Law to allow for service of process on the Secretary of State either at the office of the Department of State in the City of Albany or at any of his or her regularly established offices.

REASONS FOR SUPPORT: Whenever summonses against corporate entities cannot be served at those entities' principal place of business, or where determining the principal place of business is impracticable, the Secretary of State is served in Albany as the corporate entity's authorized agent for service of process pursuant to the laws that would be amended by this bill. Three New York City agencies alone the Department of Transportation (NYCDOT), Department of Buildings (DOB), and Fire Department (FDNY) - spend approximately $188,000 annually on service of summonses on the Secretary of State in Albany, either by their own employees traveling to Albany, or by contracting with a vendor to perform service. Further, each trip to Albany requires that weather conditions are feasible for travel to and from the city.

Enabling service at the Secretary of State's established office in New York City would decrease the operational cost and administrative burden of service and would increase City agencies' ability to issue summonses in order to have non-compliant conditions rectified.

Accordingly, the Mayor urges the earliest possible favorable consideration of this proposal by the Legislature.


Text

STATE OF NEW YORK ________________________________________________________________________ 5533 2011-2012 Regular Sessions IN SENATE May 31, 2011 ___________
Introduced by Sen. BONACIC -- 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 not- for-profit corporation law, the partnership law, and the real property law, in relation to service of process THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Paragraph 1 of subdivision b of section 306 of the busi- ness 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 domes- tic or authorized foreign corporation shall be made by personally deliv- ering 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 the city of Albany OR AT ONE OF HIS OR HER REGULARLY ESTABLISHED OFFICES, 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 corporation, to such corpo- ration at the address of its office within this state on file in the department.
S 2. The opening paragraph of subparagraph 2 of paragraph (e) of section 306-A of the business corporation law, as added by chapter 469 of the laws of 1997, 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 the city of Albany OR AT ONE OF HIS OR HER REGULARLY ESTABLISHED OFFICES, a copy of such process togeth- er 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: S 3. The opening paragraph of paragraph (b) of section 307 of the business corporation law 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 the city of Albany OR AT ONE OF HIS OR HER REGULARLY ESTABLISHED OFFICES, a copy of such process togeth- er 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: S 4. 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 the city of Albany OR AT ONE OF HIS OR HER REGULARLY ESTABLISHED OFFICES, 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 purport- ing 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. S 5. Section 19 of the general associations law, as amended by chapter 166 of the laws of 1991, is amended to read as follows: S 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 the city of Albany OR AT ONE OF HIS OR HER REGULARLY ESTABLISHED OFFICES. At the time of such service the plain- tiff 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 addi- tional 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 regis- tered 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 eigh- teen of this chapter, is within such territorial jurisdiction. S 6. The opening paragraph of paragraph 2 of subdivision (e) of section 301-A of the limited liability company 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 the city of Albany OR AT ONE OF HIS OR HER REGULARLY ESTABLISHED OFFICES, a copy of such process togeth- er 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: S 7. Subdivision (a) of section 303 of the limited liability company law, as relettered by chapter 341 of the laws of 1999, is amended to read as follows: (a) Service of process on the secretary of state as agent of a domes- tic limited liability company or authorized foreign limited liability company 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 the city of Albany OR AT ONE OF HIS OR HER REGU- LARLY ESTABLISHED OFFICES, duplicate copies of such process together with the statutory fee, which fee shall be a taxable disbursement. Service of process on such limited liability company 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 limited liability company at the post office address on file in the department of state specified for that purpose. S 8. 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 the city of Albany OR AT ONE OF HIS OR HER REGULARLY ESTABLISHED OFFICES, a copy of such process together with the statutory fee, which fee shall be a taxable disbursement. S 9. Paragraph (b) of section 306 of the not-for-profit corporation law, as amended by chapter 168 of the laws of 1982, is amended to read as follows: (b) Service of process on the secretary of state as agent of a domes- tic corporation formed under article four of this chapter or an author- ized foreign corporation 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 depart- ment of state in the city of Albany OR AT ONE OF HIS OR HER REGULARLY ESTABLISHED OFFICES, 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 corpo- ration, at the post office address, on file in the department of state, specified for the purpose. If a domestic corporation formed under arti- cle 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. S 10. The opening paragraph of paragraph (b) of section 307 of the not-for-profit corporation law 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 the city of Albany OR AT ONE OF HIS OR HER REGULARLY ESTABLISHED OFFICES, a copy of such process togeth- er 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: S 11. 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: 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 the city of Albany OR AT ONE OF HIS OR HER REGULARLY ESTABLISHED OFFICES, a copy of such process togeth- er 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: S 12. Paragraph 1 of subdivision (a) of section 121-109 of the part- nership law, as added by chapter 950 of the laws of 1990 and such subdi- vision 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 the city of Albany OR AT ONE OF HIS OR HER REGULARLY ESTABLISHED OFFICES, duplicate copies of such process together with the statutory fee, which fee shall be a taxable disbursement. S 13. The opening paragraph of subdivision (b) of section 121-109 of the partnership law, as added by chapter 950 of the laws of 1990 and as relettered by chapter 341 of the laws of 1999, is amended to read as follows: In any case in which a non-domiciliary would be subject to the personal or other jurisdiction of the courts of this state under article three of the civil practice law and rules, a foreign limited partnership not authorized to do business in this state is subject to a like juris- diction. In any such case, process against such foreign limited partner- ship may be served upon the secretary of state as its agent. Such proc- ess may issue in any court in this state having jurisdiction of the subject matter. Service of 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 the city of Albany OR AT ONE OF HIS OR HER REGULARLY ESTABLISHED OFFICES, 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: S 14. 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 regis- tered 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 the city of Albany OR AT ONE OF HIS OR HER REGULARLY ESTABLISHED OFFICES, duplicate copies of such process together with the statutory fee, which fee shall be a taxable disbursement. Service of process on such regis- tered 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 regis- tered limited liability partnership, at the post office address on file in the department of state specified for such purpose. S 15. 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 the city of Albany OR AT ONE OF HIS OR HER REGULARLY ESTABLISHED OFFICES, a copy of such process togeth- er 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: S 16. Subdivision 7 of section 339-n of the real property law, as amended by chapter 346 of the laws of 1997, is amended to read as follows: 7. A designation of the secretary of state as agent of the corporation or board of managers upon whom process against it may be served. Service of process on the secretary of state as agent of such corpo- ration or board of managers shall be made personally delivering to and leaving with him or her or his or her deputy, or with any person author- ized by the secretary of state to receive such service, at the office of the department of state in the city of Albany OR AT ONE OF HIS OR HER REGULARLY ESTABLISHED OFFICES, duplicate copies of such process together with the statutory fee, which shall be a taxable disbursement. Service of process on such corporation or board of managers 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 or board of managers, at the post office address, on file in the department of state, specified for such purpose. Nothing in this subdivision shall affect the right to serve process in any other manner permitted by law. The corporation or board of managers shall also file with the secretary of state the name and post office address within or without this state to which the secretary of state shall mail a copy of any process against it served upon the secretary of state and shall update the filing as necessary. S 17. This act shall take effect immediately.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Discuss!

blog comments powered by Disqus