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Assembly Bill A7726A

2013-2014 Legislative Session

Prohibits certain employees of a not-for-profit corporation from serving on the corporation's governing board or from hiring family members

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Archive: Last Bill Status - In Assembly Committee

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Bill Amendments

co-Sponsors

multi-Sponsors

2013-A7726 - Details

Current Committee:
Assembly Corporations, Authorities And Commissions
Law Section:
Not-for-Profit Corporation Law
Laws Affected:
Amd §602, N-PC L

2013-A7726 - Summary

Prohibits certain employees of a not-for-profit corporation from serving on the corporation's governing board or from hiring family members.

2013-A7726 - Bill Text download pdf 

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

                                  7726

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                              May 31, 2013
                               ___________

Introduced  by  M. of A. PAULIN, GALEF, MAISEL, MOSLEY, ROBERTS, ROSA --
  Multi-Sponsored by -- M. of A. GABRYSZAK, GIBSON, SCARBOROUGH, WEISEN-
  BERG -- read once and  referred  to  the  Committee  on  Corporations,
  Authorities and Commissions

AN  ACT  to  amend  the  not-for-profit  corporation law, in relation to
  prohibiting certain employees of  a  not-for-profit  corporation  from
  serving  on  the  corporation's  governing board or from hiring family
  members

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

  Section  1.  Section  602  of  the  not-for-profit  corporation law is
amended by adding four new paragraphs (g), (h), (i) and (j) to  read  as
follows:
  (G) THE BY-LAWS OF A NOT-FOR-PROFIT CORPORATION SHALL CONTAIN A POLICY
ON:
  (1)  EMPLOYEES  SERVING  ON  SUCH GOVERNING BODY, THEIR VOTING RIGHTS,
RECUSAL FROM DECISIONS OF THE GOVERNING BODY, AND THE PERCENTAGE OF  THE
MEMBERSHIP  OF THE GOVERNING BODY THAT MUST BE INDEPENDENT OF THE ORGAN-
IZATION;
  (2) HIRING OF FAMILY MEMBERS OF EMPLOYEES AND GOVERNING BODY  MEMBERS;
AND
  (3) CONFLICT OF INTEREST COVERING BUSINESS INTERESTS.
  (H) ALL BY-LAWS REQUIRED IN THIS SECTION SHALL BE AVAILABLE FOR REVIEW
BY THE ATTORNEY GENERAL UPON REQUEST.
  (I) EMPLOYEES OF A NOT-FOR-PROFIT CORPORATION ARE PROHIBITED FROM:
  (1) SERVING AS THE CHAIR OF SUCH ORGANIZATION'S GOVERNING BODY; AND
  (2) SERVING AS A VOTING MEMBER OF SUCH ORGANIZATION'S GOVERNING BODY.
  (J)  NO  PERSON  WHO  IS  RELATED  TO ANY EXECUTIVE OR ANY MEMBER OF A
GOVERNING BODY BY BLOOD OR MARRIAGE SHALL BE EMPLOYED BY SUCH  ORGANIZA-
TION,  EXCEPT  WITH  THE  APPROVAL  OF  TWO-THIRDS OF THE MEMBERS OF THE
GOVERNING BODY.
  S 2. This act shall take effect one year after it shall have become  a
law.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

co-Sponsors

multi-Sponsors

2013-A7726A (ACTIVE) - Details

Current Committee:
Assembly Corporations, Authorities And Commissions
Law Section:
Not-for-Profit Corporation Law
Laws Affected:
Amd §602, N-PC L

2013-A7726A (ACTIVE) - Summary

Prohibits certain employees of a not-for-profit corporation from serving on the corporation's governing board or from hiring family members.

2013-A7726A (ACTIVE) - Bill Text download pdf 

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

                                 7726--A

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                              May 31, 2013
                               ___________

Introduced  by  M.  of  A. PAULIN, GALEF, MAISEL, MOSLEY, ROBERTS, ROSA,
  HOOPER, SCHIMEL -- Multi-Sponsored by -- M. of A.  GABRYSZAK,  GIBSON,
  SCARBOROUGH,  WEISENBERG -- read once and referred to the Committee on
  Corporations, Authorities and  Commissions  --  committee  discharged,
  bill  amended,  ordered  reprinted  as amended and recommitted to said
  committee

AN ACT to amend the  not-for-profit  corporation  law,  in  relation  to
  prohibiting  certain  employees  of  a not-for-profit corporation from
  serving on the corporation's governing board  or  from  hiring  family
  members

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

  Section 1. Section  602  of  the  not-for-profit  corporation  law  is
amended  by  adding four new paragraphs (g), (h), (i) and (j) to read as
follows:
  (G) THE BY-LAWS  OF  A  NOT-FOR-PROFIT  CORPORATION  SHALL  CONTAIN  A
PROVISION ON:
  (1) EMPLOYEES SERVING ON SUCH GOVERNING BODY AND THE PERCENTAGE OF THE
MEMBERSHIP  OF THE GOVERNING BODY THAT MUST BE INDEPENDENT OF THE ORGAN-
IZATION;
  (2) HIRING OF FAMILY MEMBERS OF EMPLOYEES AND GOVERNING BODY  MEMBERS;
AND
  (3) CONFLICT OF INTEREST COVERING BUSINESS INTERESTS.
  (H) ALL BY-LAWS REQUIRED IN THIS SECTION SHALL BE AVAILABLE FOR REVIEW
BY THE ATTORNEY GENERAL UPON REQUEST.
  (I)  EMPLOYEES  OF  A  NOT-FOR-PROFIT  CORPORATION ARE PROHIBITED FROM
SERVING AS THE CHAIR OF SUCH  ORGANIZATION'S  GOVERNING  BODY  AND  FROM
SERVING AS A VOTING MEMBER OF SUCH ORGANIZATION'S GOVERNING BODY.
  (J) NO PERSON WHO IS RELATED TO THE CHIEF EXECUTIVE OR ANY MEMBER OF A
GOVERNING  BODY BY BLOOD OR MARRIAGE SHALL BE EMPLOYED BY SUCH ORGANIZA-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10937-03-3

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