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.
Summary
This bill would change New York law to make clear that when certain foreign business organizations apply for authority to do business in the state, they are deemed to consent to the jurisdiction of New York courts for specified lawsuits. The bill applies this rule across several entity types, including foreign corporations, foreign limited liability companies, foreign limited partnerships, foreign limited liability partnerships, and certain foreign not-for-profit corporations and associations. It also provides that if the organization later surrenders, withdraws, or revokes its New York registration or designation, that consent to jurisdiction ends at that time.
The bill amends multiple statutes to align this rule across the Civil Practice Law and Rules, Business Corporation Law, General Associations Law, Limited Liability Company Law, Not-for-Profit Corporation Law, and Partnership Law. In practical terms, it would affect where these foreign entities can be sued in New York, especially in actions brought by New York residents, domestic business entities, and other foreign entities authorized to do business in the state. The measure is intended to standardize jurisdictional consent rules tied to doing business in New York and to clarify when that consent begins and ends.
Impact
The bill would create a new CPLR section and add parallel provisions to several entity-specific laws, making an application for authority or designation to do business in New York operate as consent to personal jurisdiction in New York courts for covered actions. It would also specify that surrender, withdrawal, or revocation of the filing terminates that consent. As a result, foreign business organizations authorized to operate in New York would face clearer jurisdictional exposure while registered, and a clearer endpoint to that exposure once they leave the state or revoke their authorization.
Sentiment
Based on the bill text and context, the measure appears technical and administrative rather than politically contentious. It was introduced at the request of the Unified Court System, which suggests institutional support for clarifying court jurisdiction rules. No committee transcript or vote record was provided, so there is no evidence of recorded opposition or debate in the available materials.
Contention
The main substantive issue is jurisdiction: the bill treats doing business in New York as consent to be sued in New York courts by specified plaintiffs, which could be viewed as expanding forum access for residents and in-state entities. Potential concerns would likely come from foreign corporations and other business organizations that may prefer narrower exposure to New York litigation, especially because the bill ties consent to the mere filing for authority. The bill also includes a special limitation for certain not-for-profit entities that are exempt from designating the secretary of state as agent for service of process, indicating an effort to avoid overbroad application in that context.
Same As
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.
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.
Authorizes an expedited application review process for certain health care professionals licensed to practice in other jurisdictions to practice in this state in connection with Double H Ranch; provides such application fee shall be waived.
Authorizes an expedited application review process for certain health care professionals licensed to practice in other jurisdictions to practice in this state in connection with Double H Ranch; provides such application fee shall be waived.
A joint resolution rescinding prior applications of the legislature to Congress for a constitutional convention under Article V of the Constitution of the United States.
Relates to project applications and advisory opinions of the public authorities control board; requires that any application made concerning a proposed project involving a loan, to the extent practicable, shall include the terms, conditions and dates of the repayment of state appropriations; makes related provisions.