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NY State Legislature· A11390-2025Signed by Governor

Relates to electronic service of process, the official text

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S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   11390
 
                           I N  A S S E M B L Y
 
                               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:
 
   Section 1. The opening paragraph of subparagraph 1 of paragraph (b) of
 section  306 of the business corporation law, as amended by section 2 of
 part KK of chapter 56 of the laws of 2021, is amended and a  new  clause
 (iii) is added to read as follows:
   Service of process on the secretary of state as agent of a domestic or
 authorized  foreign  corporation shall be made in the manner provided by
 clause (i) [or], (ii) OR  (III)  of  this  subparagraph.  [Either]  EACH
 option  of  service  authorized  pursuant  to this subparagraph shall be
 available at no extra cost to the consumer.
   (III) PROVIDED PROCESS IS SERVED BY OR ON BEHALF OF  THE  STATE  OR  A
 CITY,  TOWN,  VILLAGE  OR  OTHER  POLITICAL SUBDIVISION OF THE STATE, BY
 ELECTRONICALLY SUBMITTING A COPY OF THE PROCESS  TO  THE  DEPARTMENT  OF
 STATE,  THROUGH  AN  ELECTRONIC SYSTEM OPERATED BY AND WITH CAPABILITIES
 DETERMINED BY THE DEPARTMENT OF STATE, TOGETHER WITH THE STATUTORY  FEE,
 IF REQUIRED, WHICH FEE SHALL BE A TAXABLE DISBURSEMENT. SERVICE OF PROC-
 ESS  ON  SUCH  CORPORATION SHALL BE COMPLETE WHEN THE SECRETARY OF STATE
 HAS REVIEWED AND ACCEPTED SERVICE OF  SUCH  PROCESS.  THE  SECRETARY  OF
 STATE  SHALL  PROMPTLY EITHER: (A) SEND A COPY OF SUCH PROCESS BY CERTI-
 FIED MAIL, RETURN RECEIPT REQUESTED, TO SUCH CORPORATION,  AT  THE  POST
 OFFICE  ADDRESS,  ON  FILE IN THE DEPARTMENT OF STATE, SPECIFIED FOR THE
 PURPOSE OR, 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.
                                                            LBD10422-01-5
 A. 11390                            2

 RATION,  TO  SUCH  CORPORATION  AT THE ADDRESS OF ITS OFFICE WITHIN THIS
 STATE ON FILE IN THE DEPARTMENT; OR (B) EMAIL A NOTICE OF THE FACT  THAT
 PROCESS  AGAINST  THE  CORPORATION HAS BEEN SERVED ELECTRONICALLY ON THE
 SECRETARY  OF  STATE  TO  THE EMAIL ADDRESS ON FILE IN THE DEPARTMENT OF
 STATE, SPECIFIED FOR THE PURPOSE AND SHALL MAKE A COPY  OF  THE  PROCESS
 AVAILABLE TO SUCH CORPORATION.
   § 2. Section 19 of the general associations law, as amended by section
 16  of  part KK of chapter 56 of the laws of 2021, is amended to read as
 follows:
   § 19. Service of process. Service of process  against  an  association
 upon  the  secretary  of  state  shall be made in the manner provided by
 subdivision one [or], two OR THREE of this section. [Either] EACH option
 of service authorized pursuant to this section shall be available at  no
 extra cost to the consumer.
   [(1)]  1.  Personally  delivering to and leaving with [him or her] THE
 SECRETARY OF STATE or with a person authorized by the secretary of state
 to receive such service, duplicate copies of such process at the  office
 of  the  department  of state in the city of Albany. 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. The secretary of state
 shall promptly send by certified mail one of such copies to the  associ-
 ation at the address fixed for that purpose, as herein provided.
   [(2)]  2.  Electronically  submitting  a  copy  of  the process to the
 department of state together with the statutory fee, which fee shall  be
 a  taxable  disbursement,  through  an electronic system operated by the
 department of state, provided the association has an  email  address  on
 file  in  the  department of state to which the secretary of state shall
 email a notice of the fact that process has been  served  electronically
 on  the secretary of state. Service of process on such association shall
 be complete when the  secretary  of  state  has  reviewed  and  accepted
 service  of  such  process. The secretary of state shall promptly send a
 notice of the fact that process against such association has been served
 electronically upon [him or her] THE SECRETARY OF STATE, to such associ-
 ation at the email address on file in the department of state, specified
 for the purpose and shall make a copy of the process available  to  such
 association.  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 terri-
 torial jurisdiction of the court and the office of the defendant, as set
 forth in its statement filed pursuant to section eighteen of this  chap-
 ter, is within such territorial jurisdiction.
   3.  PROVIDED PROCESS IS SERVED BY OR ON BEHALF OF THE STATE OR A CITY,
 TOWN, VILLAGE OR OTHER POLITICAL SUBDIVISION OF THE STATE, BY  ELECTRON-
 ICALLY  SUBMITTING  A  COPY  OF  THE PROCESS TO THE DEPARTMENT OF STATE,
 THROUGH AN ELECTRONIC SYSTEM OPERATED BY AND  WITH  CAPABILITIES  DETER-
 MINED  BY  THE  DEPARTMENT OF STATE, TOGETHER WITH THE STATUTORY FEE, IF
 REQUIRED, WHICH FEE SHALL BE A TAXABLE DISBURSEMENT. SERVICE OF  PROCESS
 ON  SUCH  ASSOCIATION  SHALL BE COMPLETE WHEN THE SECRETARY OF STATE HAS
 REVIEWED AND ACCEPTED SERVICE OF SUCH PROCESS. THE  SECRETARY  OF  STATE
 SHALL  PROMPTLY  EITHER:  (A)  SEND  A COPY OF SUCH PROCESS BY CERTIFIED
 MAIL, RETURN RECEIPT REQUESTED, TO SUCH ASSOCIATION, AT THE POST  OFFICE
 ADDRESS,  ON FILE IN THE DEPARTMENT OF STATE, SPECIFIED FOR THE PURPOSE;
 OR (B) EMAIL A NOTICE OF THE FACT THAT PROCESS AGAINST  THE  ASSOCIATION
 HAS  BEEN  SERVED  ELECTRONICALLY ON THE SECRETARY OF STATE TO THE EMAIL
 ADDRESS ON FILE IN THE DEPARTMENT OF STATE, SPECIFIED  FOR  THE  PURPOSE
 AND SHALL MAKE A COPY OF THE PROCESS AVAILABLE TO SUCH ASSOCIATION.
 A. 11390                            3
 
   §  3.  The  opening paragraph of subdivision (a) of section 303 of the
 limited liability company law, as amended by section 21 of  part  KK  of
 chapter  56  of  the  laws  of 2021, is amended and a new paragraph 3 is
 added to read as follows:
   Service  of  process  on the secretary of state as agent of a domestic
 limited liability company or authorized foreign limited liability compa-
 ny shall be made in the manner provided by paragraph one  [or],  two  OR
 THREE  of  this  subdivision. [Either] EACH option of service authorized
 pursuant to this subdivision shall be available at no extra cost to  the
 consumer.
   (3) PROVIDED PROCESS IS SERVED BY OR ON BEHALF OF THE STATE OR A CITY,
 TOWN,  VILLAGE OR OTHER POLITICAL SUBDIVISION OF THE STATE, BY ELECTRON-
 ICALLY SUBMITTING A COPY OF THE PROCESS  TO  THE  DEPARTMENT  OF  STATE,
 THROUGH  AN  ELECTRONIC  SYSTEM OPERATED BY AND WITH CAPABILITIES DETER-
 MINED BY THE DEPARTMENT OF STATE, TOGETHER WITH THE  STATUTORY  FEE,  IF
 REQUIRED,  WHICH FEE SHALL BE A TAXABLE DISBURSEMENT. SERVICE OF PROCESS
 ON SUCH LIMITED LIABILITY COMPANY SHALL BE COMPLETE WHEN  THE  SECRETARY
 OF  STATE  HAS REVIEWED AND ACCEPTED SERVICE OF SUCH PROCESS. THE SECRE-
 TARY OF STATE SHALL PROMPTLY EITHER: (A) SEND A COPY OF SUCH PROCESS  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 THE PURPOSE; OR (B) EMAIL A NOTICE OF THE FACT THAT  PROC-
 ESS AGAINST THE LIMITED LIABILITY COMPANY HAS BEEN SERVED ELECTRONICALLY
 ON THE SECRETARY OF STATE TO THE EMAIL ADDRESS ON FILE IN THE DEPARTMENT
 OF STATE, SPECIFIED FOR THE PURPOSE AND SHALL MAKE A COPY OF THE PROCESS
 AVAILABLE TO SUCH LIMITED LIABILITY COMPANY.
   §  4.    The  opening paragraph of paragraph (b) of section 306 of the
 not-for-profit corporation law, as amended by section 30 of part  KK  of
 chapter  56  of the laws of 2021, is amended and a new subparagraph 3 is
 added to read as follows:
   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 in the manner provided by subparagraph
 one [or], two OR THREE of this paragraph.
   (3) PROVIDED PROCESS IS SERVED BY OR ON BEHALF OF THE STATE OR A CITY,
 TOWN, VILLAGE OR OTHER POLITICAL SUBDIVISION OF THE STATE, BY  ELECTRON-
 ICALLY  SUBMITTING  A  COPY  OF  THE PROCESS TO THE DEPARTMENT OF STATE,
 THROUGH AN ELECTRONIC SYSTEM OPERATED BY AND  WITH  CAPABILITIES  DETER-
 MINED  BY  THE  DEPARTMENT OF STATE, TOGETHER WITH THE STATUTORY FEE, IF
 REQUIRED, WHICH FEE SHALL BE A TAXABLE DISBURSEMENT. SERVICE OF  PROCESS
 ON  SUCH  CORPORATION  SHALL BE COMPLETE WHEN THE SECRETARY OF STATE HAS
 REVIEWED AND ACCEPTED SERVICE OF SUCH PROCESS. THE  SECRETARY  OF  STATE
 SHALL  PROMPTLY  EITHER:  (A)  SEND  A COPY OF SUCH PROCESS 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
 OR, 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; OR (B) EMAIL  A  NOTICE  OF  THE  FACT  THAT  PROCESS
 AGAINST  THE CORPORATION HAS BEEN SERVED ELECTRONICALLY ON THE SECRETARY
 OF STATE TO THE EMAIL ADDRESS ON FILE IN THE DEPARTMENT OF STATE, SPECI-
 FIED FOR THE PURPOSE AND SHALL MAKE A COPY OF THE PROCESS  AVAILABLE  TO
 SUCH CORPORATION.
   §  5.  The  opening paragraph of subdivision (a) of section 121-109 of
 the partnership law, as amended by section 41 of part KK of  chapter  56
 A. 11390                            4
 
 of  the  laws of 2021, is amended and a new paragraph 3 is added to read
 as follows:
   Service of process on the secretary of state as agent of a domestic or
 authorized  foreign  limited  partnership  shall  be  made in the manner
 provided by paragraph one  [or],  two  OR  THREE  of  this  subdivision.
 [Either]  EACH option of service authorized pursuant to this subdivision
 shall be available at no extra cost to the consumer.
   (3) PROVIDED PROCESS IS SERVED BY OR ON BEHALF OF THE STATE OR A CITY,
 TOWN, VILLAGE OR OTHER POLITICAL SUBDIVISION OF THE STATE, BY  ELECTRON-
 ICALLY  SUBMITTING  A  COPY  OF  THE PROCESS TO THE DEPARTMENT OF STATE,
 THROUGH AN ELECTRONIC SYSTEM OPERATED BY AND  WITH  CAPABILITIES  DETER-
 MINED  BY  THE  DEPARTMENT OF STATE, TOGETHER WITH THE STATUTORY FEE, IF
 REQUIRED, WHICH FEE SHALL BE A TAXABLE DISBURSEMENT. SERVICE OF  PROCESS
 ON  SUCH  LIMITED  PARTNERSHIP  SHALL  BE COMPLETE WHEN THE SECRETARY OF
 STATE HAS REVIEWED AND ACCEPTED SERVICE OF SUCH PROCESS.  THE  SECRETARY
 OF  STATE  SHALL  PROMPTLY  EITHER:  (A)  SEND A COPY OF SUCH PROCESS BY
 CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO SUCH  LIMITED  PARTNERSHIP,
 AT  THE  POST OFFICE ADDRESS, ON FILE IN THE DEPARTMENT OF STATE, SPECI-
 FIED FOR THE PURPOSE; OR (B) EMAIL A NOTICE OF  THE  FACT  THAT  PROCESS
 AGAINST  THE  LIMITED  PARTNERSHIP HAS BEEN SERVED ELECTRONICALLY ON THE
 SECRETARY OF STATE TO THE EMAIL ADDRESS ON FILE  IN  THE  DEPARTMENT  OF
 STATE,  SPECIFIED  FOR  THE PURPOSE AND SHALL MAKE A COPY OF THE PROCESS
 AVAILABLE TO SUCH LIMITED PARTNERSHIP.
   § 6. The opening paragraph of subdivision (a) of section  121-1505  of
 the  partnership  law, as amended by section 52 of part KK of chapter 56
 of the laws of 2021, is amended and a new paragraph 3 is added  to  read
 as follows:
   Service  of process on the secretary of state as agent of a registered
 limited liability partnership or New  York  registered  foreign  limited
 liability  partnership  under  this  article shall be made in the manner
 provided by paragraph one  [or],  two  OR  THREE  of  this  subdivision.
 [Either]  EACH option of service authorized pursuant to this subdivision
 shall be available at no extra cost to the consumer.
   (3) PROVIDED PROCESS IS SERVED BY OR ON BEHALF OF THE STATE OR A CITY,
 TOWN, VILLAGE OR OTHER POLITICAL SUBDIVISION OF THE STATE, BY  ELECTRON-
 ICALLY  SUBMITTING  A  COPY  OF  THE PROCESS TO THE DEPARTMENT OF STATE,
 THROUGH AN ELECTRONIC SYSTEM OPERATED BY AND  WITH  CAPABILITIES  DETER-
 MINED  BY  THE  DEPARTMENT OF STATE, TOGETHER WITH THE STATUTORY FEE, IF
 REQUIRED, WHICH FEE SHALL BE A TAXABLE DISBURSEMENT. SERVICE OF  PROCESS
 ON  SUCH LIMITED LIABILITY PARTNERSHIP SHALL BE COMPLETE WHEN THE SECRE-
 TARY OF STATE HAS REVIEWED AND ACCEPTED SERVICE  OF  SUCH  PROCESS.  THE
 SECRETARY  OF STATE SHALL PROMPTLY EITHER: (A) SEND A COPY OF SUCH PROC-
 ESS BY CERTIFIED MAIL, RETURN  RECEIPT  REQUESTED,  TO  SUCH  REGISTERED
 LIMITED  LIABILITY  PARTNERSHIP  OR  NEW YORK REGISTERED FOREIGN LIMITED
 LIABILITY PARTNERSHIP, AT THE  POST  OFFICE  ADDRESS,  ON  FILE  IN  THE
 DEPARTMENT OF STATE, SPECIFIED FOR THE PURPOSE; OR (B) EMAIL A NOTICE OF
 THE  FACT THAT PROCESS AGAINST THE REGISTERED LIMITED LIABILITY PARTNER-
 SHIP OR NEW  YORK REGISTERED FOREIGN LIMITED LIABILITY  PARTNERSHIP  HAS
 BEEN  SERVED  ELECTRONICALLY  ON  THE  SECRETARY  OF  STATE TO THE EMAIL
 ADDRESS ON FILE IN THE DEPARTMENT OF STATE, SPECIFIED  FOR  THE  PURPOSE
 AND SHALL MAKE A COPY OF THE PROCESS AVAILABLE TO SUCH REGISTERED LIMIT-
 ED LIABILITY PARTNERSHIP OR NEW  YORK REGISTERED FOREIGN LIMITED LIABIL-
 ITY PARTNERSHIP.
   §  7.  The  opening paragraph of subdivision 7 of section 339-n of the
 real property law, as amended by section 53 of part KK of chapter 56  of
 A. 11390                            5
 
 the laws of 2021, is amended and a new paragraph (c) is added to read as
 follows:
   A designation of the secretary of state as agent of the corporation or
 board  of  managers  upon  whom process against it may be served and the
 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 [him or
 her]  THE  SECRETARY  OF  STATE.  The  designation  may include an email
 address to which the secretary of state shall email a notice of the fact
 that process against it has been electronically served upon [him or her]
 THE SECRETARY OF STATE. Service of process on the secretary of state  as
 agent  of  such  corporation  or  board of managers shall be made in the
 manner provided by paragraph (a) [or], (b) OR (C) of  this  subdivision.
 [Either]  EACH option of service authorized pursuant to this subdivision
 shall be available at no extra cost to the consumer.
   (C) PROVIDED PROCESS IS SERVED BY OR ON BEHALF OF THE STATE OR A CITY,
 TOWN, VILLAGE OR OTHER POLITICAL SUBDIVISION OF THE STATE, BY  ELECTRON-
 ICALLY  SUBMITTING  A  COPY  OF  THE PROCESS TO THE DEPARTMENT OF STATE,
 THROUGH AN ELECTRONIC SYSTEM OPERATED BY AND  WITH  CAPABILITIES  DETER-
 MINED  BY  THE  DEPARTMENT OF STATE, TOGETHER WITH THE STATUTORY FEE, IF
 REQUIRED, WHICH FEE SHALL BE A TAXABLE DISBURSEMENT. SERVICE OF  PROCESS
 ON  SUCH  CORPORATION  OR  BOARD  OF MANAGERS SHALL BE COMPLETE WHEN THE
 SECRETARY OF STATE HAS REVIEWED AND ACCEPTED SERVICE  OF  SUCH  PROCESS.
 THE  SECRETARY  OF  STATE SHALL PROMPTLY EITHER: (I) SEND A COPY OF SUCH
 PROCESS BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO SUCH CORPORATION
 OR BOARD OF MANAGERS, AT THE POST OFFICE ADDRESS, ON FILE IN THE DEPART-
 MENT OF STATE, SPECIFIED FOR THE PURPOSE; OR (II) EMAIL A NOTICE OF  THE
 FACT  THAT PROCESS AGAINST THE CORPORATION OR BOARD OF MANAGERS HAS BEEN
 SERVED ELECTRONICALLY ON THE SECRETARY OF STATE TO THE EMAIL ADDRESS  ON
 FILE  IN  THE  DEPARTMENT  OF STATE, SPECIFIED FOR THE PURPOSE AND SHALL
 MAKE A COPY OF THE PROCESS AVAILABLE TO SUCH  CORPORATION  OR  BOARD  OF
 MANAGERS.
   § 8. This act shall take effect on the one hundred eightieth day after
 it  shall have become a law. Effective immediately, the addition, amend-
 ment and/or repeal of any rule or regulation necessary for the implemen-
 tation of this act on its effective date are authorized to be  made  and
 completed on or before such effective date.
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