S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  7762

                            I N  S E N A T E

                              June 5, 2014
                               ___________

Introduced  by  Sen.  RANZENHOFER -- read twice and ordered printed, and
  when printed to be committed to the Committee on Corporations, Author-
  ities and Commissions

AN ACT relating to authorizing certain corporations to  elect  to  be  a
  non-charitable corporation

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1.  On or after July 1, 2014, any corporation formed  pursuant
to  chapter  880  of the laws of 1937 or chapter 124 of the laws of 1952
may elect, notwithstanding that it may have both charitable and business
purposes and notwithstanding subdivision (c) of section 201 of the  not-
for-profit  corporation  law,  to be a non-charitable corporation under,
and as defined in section 102 of the not-for-profit corporation law,  by
providing  written  notice  of such election to the attorney general and
certifying in such written notice that it is  not  exempt  from  federal
income  tax,  but  rather  is  taxable  as a corporation pursuant to the
United States internal revenue code of 1986, as amended,  and  does  not
solicit  or  receive  charitable  contributions,  or  accept  receipt of
donations of assets, for charitable purposes, as contemplated by article
7-A of the executive law and section 8-1.4 of the  estates,  powers  and
trusts  law, and regulations adopted thereunder. Every such notice shall
have endorsed thereon or annexed thereto the approval of  a  justice  of
the  supreme  court of the judicial district in which the office of such
corporation is located. Ten days' written notice of the application  for
such  approval  shall  be given to the attorney general. Any such corpo-
ration will be subject to the provisions of section 513 and section  908
of  the  not-for-profit corporation law as a non-charitable corporation,
provided that no certificate shall be filed pursuant to section  908  of
the  not-for-profit  corporation  law  unless  (a) the supreme court has
granted an order approving the  plan  of  merger  or  consolidation  and
authorizing  the  filing of the certificate as provided in section 907-a
of the not-for-profit corporation law as  if  such  section  applied  to
mergers  and consolidations effected pursuant to section 908 of the not-
for-profit corporation law, or (b) the attorney general has approved the

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

                                                           LBD15511-01-4

S. 7762                             2

plan of merger or consolidation and authorized the filing of the certif-
icate as provided in section 907-b of the not-for-profit corporation law
as if such section applied to mergers and consolidations effected pursu-
ant to section 908 of the not-for-profit corporation law. In addition to
the  foregoing  requirements, any such corporation shall also be subject
to all other provisions of articles 1, 5, 6, 7, 8, 9 and 10 of the  not-
for-profit corporation law that would have been applicable to the corpo-
ration  were  it a charitable corporation. Nothing in this section shall
be deemed to modify the charter of, or prevent any  future  modification
of the charter of, any corporation formed pursuant to chapter 880 of the
laws  of  1937  or  chapter 124 of the laws of 1952, as such charter may
have been amended from time to time since the enactment of  chapter  880
of the laws of 1937 or chapter 124 of the laws of 1952, as applicable.
  S 2. This act shall take effect immediately.