RELATING TO ELECTRONIC SERVICE OF PROCESS.

2025 Regular Session Introduced by Stanley Chang and 2 co-sponsors

SB 1213 allows electronic delivery of legal documents to business entities, streamlining processes and improving efficiency for corporations and partnerships.

Carried over to 2026 Regular Session.

#businessentities #forprofitcorporations #limitedliabilitycompanies #limitedpartnerships #nonprofitcorporations #partnerships #registeredagents #serviceofprocess

Bill Overview

Bill Number: SB 1213
Introduced On: January 21, 2025
Current Status: Deferred by the committee on CPN (Consumer Protection and Commerce) on February 10, 2025.
Classification: Legislative Bill
Subject Areas: Business Entities, For Profit Corporations, Limited Liability Companies, Limited Partnerships, Nonprofit Corporations, Partnerships, Registered Agents, Service of Process

Purpose and Intent

The primary purpose of SB 1213 is to modernize the process of serving legal documents to business entities, including corporations and partnerships, by allowing electronic service of process. This bill aims to streamline legal communications and enhance efficiency in the legal system, particularly for businesses that operate in a digital environment.

Key Provisions

Electronic Service: The bill proposes to permit the electronic delivery of legal documents to registered agents of business entities, which includes corporations, limited liability companies, and partnerships.

Regulatory Framework: It establishes guidelines for how electronic service should be conducted, ensuring that it meets legal standards for notification and documentation.

Implementation: The bill outlines the necessary steps for businesses to comply with electronic service requirements, including maintaining updated contact information for registered agents.

Impact

Affected Parties: The legislation would primarily impact business entities registered in the state, including for-profit corporations, limited liability companies, and nonprofit organizations. Registered agents who receive legal documents on behalf of these entities would also be directly affected.

Legal Efficiency: By allowing electronic service, the bill aims to reduce delays in legal proceedings and improve access to justice for businesses, particularly those that may be located out of state or operate primarily online.

Procedural Timeline

January 21, 2025: Bill introduced and pending introduction.

January 23, 2025: Passed First Reading.

January 27, 2025: Referred to the committees on CPN and JDC (Judiciary).

February 6, 2025: Public hearing scheduled for February 10, 2025, at 9:35 AM in Conference Room 229 and via videoconference.

February 10, 2025: The committee on CPN deferred the measure, indicating further consideration is needed before moving forward.

Conclusion

SB 1213 represents a significant step towards modernizing legal processes for business entities by embracing electronic communication methods. While the bill is currently deferred, its potential to enhance the efficiency of service of process could have lasting implications for how businesses interact with the legal system. Further discussions and revisions may occur as stakeholders evaluate the proposed changes.

Bill