New York S 9986: Relates to a review of filing with the department of state; relates to filing fees; and relates to administrative procedure to address fraudulent entity filings

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S09986 Summary:

BILL NOS09986 

&nbsp

SAME ASNo Same As

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SPONSORSCARCELLA-SPANTON

&nbsp

COSPNSR

&nbsp

MLTSPNSR

&nbsp

Amd §209, Lim Lil L; amd §104-a, BC L: add §111, Exec L

&nbsp

Requires the department of state to review filings for fraud; provides that the department of state shall charge no fee for the dissolution or modification of a business corporation created by fraud; provides an administrative procedure to address fraudulent entity filings.

Go to top S09986 Actions:

BILL NOS09986 

&nbsp

04/21/2026REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS

Go to topS09986 Committee&nbspVotes:

Go to topS09986 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topS09986 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 9986

 IN SENATE

 April 21, 2026
 ___________

 Introduced by Sen. SCARCELLA-SPANTON -- read twice and ordered printed,
 and when printed to be committed to the Committee on Corporations,
 Authorities and Commissions

 AN ACT to amend the limited liability company law, in relation to a
 review of filing with the department of state; to amend the business
 corporations law, in relation to filing fees; and to amend the execu-
 tive law, in relation to administrative procedure to address fraudu-
 lent entity filings

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

 1 Section 1. This act shall be known and may be cited as the "Fraudulent
 2 Entities Elimination Act" or the "FEEA Act".
 3 § 2. Legislative findings and intent. The Legislature declares that
 4 the creation of fraudulent business entities is a significant problem
 5 for many New Yorkers. Nefarious actors have created business entities,
 6 including corporations and limited liability companies, using the name,
 7 address, contact information and other personal information of unaffil-
 8 iated New Yorkers, to enable them to engage in a host of illegal
 9 conduct, including identity theft, deed theft, check kiting, wire fraud,
 10 money laundering, and smuggling.
 11 Currently, there is no mechanism for the department of state or the
 12 office of the New York state attorney general to efficiently dissolve
 13 fraudulently created business entities. There are also few barriers
 14 stopping bad actors from promptly creating a new fraudulent business
 15 entity.
 16 The state must deter the creation of fraudulent business entities and
 17 protect consumers from those who would use such entities for illegal
 18 purposes.
 19 § 3. Section 209 of the limited liability company law is amended to
 20 read as follows:
 21 § 209. Filing with the department of state. 1. A signed articles of
 22 organization and any signed certificate of amendment or other certif-
 23 icates filed pursuant to this chapter or of any judicial decree of
 24 amendment or cancellation shall be delivered to the department of state.

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD13931-01-5

 S. 9986 2

 1 If the instrument that is delivered to the department of state for
 2 filing complies as to form with the requirements of law and the filing
 3 fee required by any statute of this state in connection therewith has
 4 been paid, the instrument shall be filed and indexed by the department
 5 of state. The department of state shall not review such articles or
 6 certificates for legal sufficiency; its review shall be limited to
 7 determining that the form has been completed.
 8 2. Notwithstanding the provisions of subdivision one of this section,
 9 the department of state may review filings based on fraud, including
 10 filings that use the name, address, contact information or personal
 11 information of a person with no affiliation with the company.
 12 § 4. Section 104-a of the business corporation law is amended by
 13 adding a new subdivision (t) to read as follows:
 14 (t) The department of state shall charge no fee for the dissolution or
 15 modification of a business corporation created by fraud including a
 16 certificate, instrument or filing that uses the name, address, contact
 17 information or personal information of a person with no affiliation with
 18 the corporation.
 19 §