Bill Text: NY A10469 | 2021-2022 | General Assembly | Introduced

---

Bill Title: Provides that a foreign corporation's application for authority to do business in this state constitutes consent to jurisdiction of the courts of this state and a surrender of such application constitutes withdrawal of such consent.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2022-05-26 - referred to judiciary [A10469 Detail]

Download: New_York-2021-A10469-Introduced.html

---

                STATE OF NEW YORK
        ________________________________________________________________________

                                          10469

                   IN ASSEMBLY

                                      May 26, 2022
                                       ___________

        Introduced  by  COMMITTEE ON RULES -- (at request of M. of A. Weinstein)
          -- (at request of the Office of Court Administration) -- read once and
          referred to the Committee on Judiciary

        AN ACT to amend the civil practice law and rules,  the  business  corpo-
          ration law, the general associations law, the limited liability compa-
          ny law, the not-for-profit corporation law and the partnership law, in
          relation  to consent to jurisdiction by foreign business organizations
          authorized to do business in New York

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

     1    Section 1. The civil practice law and rules is amended by adding a new
     2  section 301-a to read as follows:
     3    §  301-a.  Termination  of  consent  to jurisdiction in certain cases.
     4  Where a business organization registered, authorized or designated to do
     5  business in this state surrenders, withdraws or  otherwise  revokes  its
     6  registration,  authorization  or certificate of designation, its consent
     7  to jurisdiction terminates on the date of such surrender, withdrawal  or
     8  revocation.
     9    § 2. Section 1301 of the business corporation law is amended by adding
    10  a new paragraph (e) to read as follows:
    11    (e)  A  foreign corporation's application for authority to do business
    12  in this state, whenever filed, constitutes consent to  the  jurisdiction
    13  of  the courts of this state for all actions against such corporation. A
    14  surrender of such application shall constitute a withdrawal  of  consent
    15  to jurisdiction.
    16    § 3. Section 18 of the general associations law is amended by adding a
    17  new subdivision 5 to read as follows:
    18    5.  An  association's  certificate  of  designation prescribed by this
    19  section, whenever filed, constitutes consent to the jurisdiction of  the
    20  courts of this state for all actions against such association. A revoca-
    21  tion  of  such  designation  shall constitute a withdrawal of consent to
    22  jurisdiction.
    23    § 4. Section 802 of the limited liability company law  is  amended  by
    24  adding a new subdivision (c) to read as follows:

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD15697-01-2
        A. 10469                            2

     1    (c) A foreign limited liability company's application for authority to
     2  do  business  in  this state, whenever filed, constitutes consent to the
     3  jurisdiction of the courts of this state for all  actions  against  such
     4  limited liability company. A surrender of such application shall consti-
     5  tute a withdrawal of consent to jurisdiction.
     6    §  5. Section 1301 of the not-for-profit corporation law is amended by
     7  adding a new paragraph (e) to read as follows:
     8    (e) A foreign  corporation's  application  for  authority  to  conduct
     9  activities  in  this  state,  whenever filed, constitutes consent to the
    10  jurisdiction of the courts of this state for all  actions  against  such
    11  corporation  unless such corporation is exempt from any law requiring it
    12  to designate the secretary of state as agent  of  the  corporation  upon
    13  whom  process  against  it  may be served and it has made no such desig-
    14  nation. A surrender of such application shall constitute a withdrawal of
    15  consent to jurisdiction.
    16    § 6. Section 121-902 of the partnership law is amended by adding a new
    17  subdivision (e) to read as follows:
    18    (e) A foreign limited partnership's application for  authority  to  do
    19  business  in  this  state,  whenever  filed,  constitutes consent to the
    20  jurisdiction of the courts of this state for all  actions  against  such
    21  foreign  limited  partnership.  A  surrender  of  such application shall
    22  constitute a withdrawal of consent to jurisdiction.
    23    § 7. Section 121-1502 of the partnership law is amended  by  adding  a
    24  new subdivision (r) to read as follows:
    25    (r)  A  foreign  limited liability partnership's notice to carry on or
    26  conduct or transact business or activities  as  a  New  York  registered
    27  foreign  limited  liability  partnership  in this state, whenever filed,
    28  constitutes consent to the jurisdiction of the courts of this state  for
    29  all  actions against such foreign limited liability partnership. A with-
    30  drawal of such notice shall constitute a withdrawal of consent to juris-
    31  diction.
    32    § 8. This act shall take effect on the first of January next  succeed-
    33  ing the date on which it shall have become a law.