PA 09-38—sHB 6643

Judiciary Committee

AN ACT CONCERNING THE RESIGNATION OR ABSENCE OF AN AGENT FOR SERVICE OF PROCESS FOR CERTAIN BUSINESS ENTITIES

SUMMARY: This act eliminates the requirement that the authority of certain out-of-state business entities to conduct business in Connecticut be automatically revoked for failing to have an agent for service of process. This applies to foreign (1) limited partnerships, (2) limited liability companies, and (3) statutory trusts. Instead, the act authorizes the secretary of the state to revoke the entity's authority for failing to have an agent for at least 60 days. The secretary must give the entity at least 20 days written notice, by registered or certified mail, of intent to revoke the certificate and the reasons for doing so. The certificate is revoked on the date specified in the notice unless the business entity shows that the reason for the revocation did not exist or has been cured. These revocation procedures apply under existing law when an entity (1) willfully misrepresents a material matter in an application, report, affidavit, or document or (2) exceeds its authority.

The act eliminates the requirement that (1) the copy of an agent's resignation statement that the secretary sends to the entity be sent by certified mail and (2) a notice be sent with the statement that the entity's authority to conduct business will be revoked.

For these foreign entities and domestic limited partnerships, the act makes the resignation of an agent for service of process effective 30 days, instead of 120, after filing a resignation statement with the secretary.

The act also eliminates the requirement that the secretary revoke a foreign statutory trust's certificate of registration to transact business for failure to file an annual report with the secretary.

EFFECTIVE DATE: October 1, 2009

BACKGROUND

Agent for Service of Process

The law requires out-of-state business entities conducting business in Connecticut to designate an agent to receive legal papers on their behalf. Service of legal papers on the agent constitutes service on the business.

OLR Tracking: CR: KM: JM: ts