senate Bill S5097A

2013-2014 Legislative Session

Relates to enacting provisions relating to the formation of low-profit limited liability companies

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Sponsored By

Archive: Last Bill Status -


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

view actions (4)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Mar 03, 2014 print number 5097a
amend and recommit to corporations, authorities and commissions
Jan 08, 2014 referred to corporations, authorities and commissions
May 08, 2013 referred to corporations, authorities and commissions

S5097 - Details

Law Section:
Limited Liability Company Law
Laws Affected:
Amd §§102, 203, 204, 211 & 701, Lim Lil L

S5097 - Summary

Enacts provisions relating to the formation of low-profit limited liability companies which further the accomplishment of one or more charitable or educational purposes.

S5097 - Sponsor Memo

S5097 - Bill Text download pdf

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

                                  5097

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               May 8, 2013
                               ___________

Introduced  by  Sen.  GOLDEN -- 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 low-
  profit limited liability companies

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

  Section 1. Section 102 of the limited liability company law is amended
by adding a new subdivision (ii) to read as follows:
  (II)  "LOW-PROFIT LIMITED LIABILITY COMPANY" MEANS A LIMITED LIABILITY
COMPANY THAT HAS SET FORTH IN ITS ARTICLES OF  ORGANIZATION  A  BUSINESS
PURPOSE  THAT  SATISFIES,  AND THAT IS AT ALL TIMES OPERATED TO SATISFY,
EACH OF THE FOLLOWING REQUIREMENTS:
  (I) THE LIMITED LIABILITY COMPANY SIGNIFICANTLY  FURTHERS  THE  ACCOM-
PLISHMENT  OF  ONE OR MORE CHARITABLE OR EDUCATIONAL PURPOSES WITHIN THE
MEANING OF SECTION 170(C)(2)(B) OF THE INTERNAL REVENUE CODE OF 1986 (26
U.S.C. S 170(C)(2)(B)), AND WOULD NOT  HAVE  BEEN  FORMED  BUT  FOR  ITS
RELATIONSHIP   TO   THE  ACCOMPLISHMENT  OF  CHARITABLE  OR  EDUCATIONAL
PURPOSES;
  (II) NO SIGNIFICANT PURPOSE OF THE LIMITED LIABILITY  COMPANY  IS  THE
PRODUCTION OF INCOME OR THE APPRECIATION OF PROPERTY; PROVIDED, HOWEVER,
THAT  THE  FACT  THAT THE LIMITED LIABILITY COMPANY PRODUCES SIGNIFICANT
INCOME OR CAPITAL APPRECIATION  SHALL  NOT,  IN  THE  ABSENCE  OF  OTHER
FACTORS,  BE  CONCLUSIVE EVIDENCE OF A SIGNIFICANT PURPOSE INVOLVING THE
PRODUCTION OF INCOME OR THE APPRECIATION OF PROPERTY; AND
  (III) NO PURPOSE OF THE LIMITED LIABILITY COMPANY IS TO ACCOMPLISH ONE
OR MORE POLITICAL OR LEGISLATIVE PURPOSES WITHIN THE MEANING OF  SECTION
170(C)(2)(D)  OF  THE  INTERNAL  REVENUE  CODE  OF  1986  (26  U.S.C.  S
170(C)(2)(D)).

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10810-01-3

S. 5097                             2

S5097A (ACTIVE) - Details

Law Section:
Limited Liability Company Law
Laws Affected:
Amd §§102, 203, 204, 211 & 701, Lim Lil L

S5097A (ACTIVE) - Summary

Enacts provisions relating to the formation of low-profit limited liability companies which further the accomplishment of one or more charitable or educational purposes.

S5097A (ACTIVE) - Sponsor Memo

S5097A (ACTIVE) - Bill Text download pdf

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

                                 5097--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               May 8, 2013
                               ___________

Introduced  by  Sen.  GOLDEN -- read twice and ordered printed, and when
  printed to be committed to the Committee on Corporations,  Authorities
  and  Commissions  --  recommitted  to  the  Committee on Corporations,
  Authorities and Commissions in accordance with Senate Rule 6,  sec.  8
  --  committee  discharged,  bill amended, ordered reprinted as amended
  and recommitted to said committee

AN ACT to amend the limited liability company law, in relation  to  low-
  profit limited liability companies

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

  Section 1. Section 102 of the limited liability company law is amended
by adding a new subdivision (ii) to read as follows:
  (II) "LOW-PROFIT LIMITED LIABILITY COMPANY" MEANS A LIMITED  LIABILITY
COMPANY  THAT  HAS  SET FORTH IN ITS ARTICLES OF ORGANIZATION A BUSINESS
PURPOSE THAT SATISFIES, AND THAT IS AT ALL TIMES  OPERATED  TO  SATISFY,
EACH OF THE FOLLOWING REQUIREMENTS:
  (I)  THE  LIMITED  LIABILITY COMPANY SIGNIFICANTLY FURTHERS THE ACCOM-
PLISHMENT OF  ONE  OR  MORE  PURPOSES  WITHIN  THE  MEANING  OF  SECTION
170(C)(2)(B)  OF  THE  INTERNAL  REVENUE  CODE  OF  1986  (26  U.S.C.  S
170(C)(2)(B)), AND WOULD NOT HAVE BEEN FORMED BUT FOR  ITS  RELATIONSHIP
TO THE ACCOMPLISHMENT OF SUCH PURPOSES;
  (II)  NO  SIGNIFICANT  PURPOSE OF THE LIMITED LIABILITY COMPANY IS THE
PRODUCTION OF INCOME OR THE APPRECIATION OF PROPERTY; PROVIDED, HOWEVER,
THAT THE FACT THAT THE LIMITED LIABILITY  COMPANY  PRODUCES  SIGNIFICANT
INCOME  OR  CAPITAL  APPRECIATION  SHALL  NOT,  IN  THE ABSENCE OF OTHER
FACTORS, BE CONCLUSIVE EVIDENCE OF A SIGNIFICANT PURPOSE  INVOLVING  THE
PRODUCTION OF INCOME OR THE APPRECIATION OF PROPERTY; AND
  (III) NO PURPOSE OF THE LIMITED LIABILITY COMPANY IS TO ACCOMPLISH ONE
OR  MORE POLITICAL OR LEGISLATIVE PURPOSES WITHIN THE MEANING OF SECTION
170(C)(2)(D)  OF  THE  INTERNAL  REVENUE  CODE  OF  1986  (26  U.S.C.  S
170(C)(2)(D)).

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10810-03-4

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