senate Bill S7799A

Signed By Governor
2013-2014 Legislative Session

Relates to the effectiveness of provisions of law relating to prohibiting employees of a not-for-profit corporation from serving as chair of the board

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Archive: Last Bill Status - Signed by Governor


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

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jun 30, 2014 signed chap.81
delivered to governor
Jun 18, 2014 returned to senate
passed assembly
ordered to third reading rules cal.381
substituted for a10027a
Jun 17, 2014 referred to corporations, authorities and commissions
delivered to assembly
passed senate
ordered to third reading cal.1481
committee discharged and committed to rules
Jun 11, 2014 print number 7799a
amend (t) and recommit to corporations, authorities and commissions
Jun 10, 2014 referred to corporations, authorities and commissions

Votes

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Bill Amendments

Original
A (Active)
Original
A (Active)

S7799 - Bill Details

See Assembly Version of this Bill:
A10027A
Law Section:
Corporations
Laws Affected:
Amd §132, Chap 549 of 2013

S7799 - Bill Texts

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Relates to the effectiveness of provisions relating to prohibiting employees of a not-for-profit corporation from serving as chair of the board.

view sponsor memo
BILL NUMBER:S7799

TITLE OF BILL: An act to repeal paragraph (f) of section 713 of the
not-for-profit corporation law, in relation to prohibiting employees
of a not-for-profit corporation from serving as chair of the board or
hold any other title with similar responsibilities

PURPOSE OR GENERAL IDEA OF BILL: To repeal the prohibition on
not-for-profit employees serving as chairperson of the board of
directors of the corporation.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1 repeals paragraph (f) of section 713 of not-for-profit
corporation law.

Section 2 of the bill establishes the effective date.

JUSTIFICATION: Paragraph (f) of section 713 of the Not-For-Profit Law
was added in the Not-For-Profit Revitalization Act of 2013 and will
become effective on January 1, 2015.

While the intent of paragraph (f) is to separate the Board of
Directors from the staffing of the Not-for-Profit Corporation and
thereby have an autonomous Board of Directors, the impact on many
not-for-profits may be profound and unintended.

This bill would repeal paragraph (f) in order to allow the legislature
additional time to hear feedback from the various not-for-profit
corporations that currently have employees and to draft a more nuanced
bill that focuses on the intended abuses while permitting current
good-faith not-for-profit corporations to continue their current
practice.

PRIOR LEGISLATIVE HISTORY: This is a new bill.

FISCAL IMPLICATIONS: None

EFFECTIVE DATE: This act shall take effect immediately.

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

                                  7799

                            I N  S E N A T E

                              June 10, 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 to repeal paragraph (f) of  section  713  of  the  not-for-profit
  corporation  law,  in  relation to prohibiting employees of a not-for-
  profit corporation from serving as chair of  the  board  or  hold  any
  other title with similar responsibilities

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

  Section 1. Paragraph (f) of section 713 of the  not-for-profit  corpo-
ration law is REPEALED.
  S 2. This act shall take effect immediately.








 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15545-01-4

S7799A (ACTIVE) - Bill Details

See Assembly Version of this Bill:
A10027A
Law Section:
Corporations
Laws Affected:
Amd §132, Chap 549 of 2013

S7799A (ACTIVE) - Bill Texts

view summary

Relates to the effectiveness of provisions relating to prohibiting employees of a not-for-profit corporation from serving as chair of the board.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 7799--A

                            I N  S E N A T E

                              June 10, 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 -- committee discharged, bill  amended,  ordered
  reprinted as amended and recommitted to said committee

AN  ACT to amend chapter 549 of the laws of 2013, amending the executive
  law and other laws relating to reform of charitable organizations,  in
  relation to the effectiveness of certain provisions of such chapter

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

  Section 1. Section 132 of chapter 549 of the laws  of  2013,  amending
the executive law and other laws relating to reform of charitable organ-
izations, is amended to read as follows:
  S  132.  This  act  shall take effect July 1, 2014, provided, however,
that the amendments to section  172-b  of  the  executive  law  made  by
section  three  of this act shall expire and be deemed repealed June 30,
2017; provided further that the amendments to section 172-b of the exec-
utive law made by section three-a of this act shall take effect July  1,
2017  and  shall  expire  and be deemed repealed June 30, 2021; provided
further that the amendments to section 172-b of the executive  law  made
by  section three-b of this act shall take effect July 1, 2021; provided
further that THE AMENDMENTS TO PARAGRAPH (A) OF SECTION 713 OF THE  NOT-
FOR-PROFIT  CORPORATION  LAW  MADE  BY section seventy-three of this act
shall take effect January 1, 2015; PROVIDED FURTHER THAT  PARAGRAPH  (F)
OF  SECTION  713  OF THE NOT-FOR-PROFIT CORPORATION LAW ADDED BY SECTION
SEVENTY-THREE OF THIS ACT SHALL TAKE EFFECT JANUARY  1,  2016;  provided
further  that  section  seventy-two  of  this  act  and paragraph (b) of
section 8-1.9 of the estates, powers and trusts law as added by  section
one  hundred thirty of this act shall not be applicable until January 1,
2015 for any corporation or trust that had annual revenues of less  than
10,000,000  dollars  in  the last fiscal year ending prior to January 1,
2014.
  S 2. This act shall take effect immediately.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15545-03-4

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