The New York State Senate

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

                                 3460--A

                       2017-2018 Regular Sessions

                          I N  A S S E M B L Y

                            January 27, 2017
                               ___________

Introduced  by M. of A. LUPARDO -- read once and referred to the Commit-
  tee on Higher Education -- committee discharged, bill amended, ordered
  reprinted as amended and recommitted to said committee

AN ACT to amend the business corporation law, in relation  to  providing
  for expanded ownership in design professional corporations by employee
  stock ownership plans and non-licensed employees

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

  Section 1. Subparagraphs (i) and (ii) of paragraph  (b-1)  of  section
1503  of  the  business  corporation law, as added by chapter 550 of the
laws of 2011, are amended to read as follows:
  (i) greater than seventy-five percent of  the  outstanding  shares  of
stock  of  the corporation are owned by design professionals AND AN ESOP
(OR ESOPS) WITH GREATER THAN SEVENTY-FIVE PERCENT OF THE  PLAN'S  VOTING
TRUSTEES  AND  GREATER THAN SEVENTY-FIVE PERCENT OF THE PLAN'S COMMITTEE
MEMBERS BEING DESIGN PROFESSIONALS,
  (ii) an ESOP, either in part or in its entirety, shall not  constitute
part  of  the  greater than seventy-five percent owned by design profes-
sionals UNLESS GREATER THAN SEVENTY-FIVE PERCENT OF  THE  PLAN'S  VOTING
TRUSTEES  AND  GREATER THAN SEVENTY-FIVE PERCENT OF THE PLAN'S COMMITTEE
MEMBERS ARE DESIGN PROFESSIONALS,
  § 2. Subparagraphs (i) and (ii) of paragraph (b) of  section  1507  of
the  business  corporation  law,  as added by chapter 550 of the laws of
2011, are amended to read as follows:
  (i) greater than seventy-five percent of  the  outstanding  shares  of
stock  of  the corporation are owned by design professionals AND AN ESOP
(OR ESOPS) WITH GREATER THAN SEVENTY-FIVE PERCENT OF THE  PLAN'S  VOTING
TRUSTEES  AND  GREATER THAN SEVENTY-FIVE PERCENT OF THE PLAN'S COMMITTEE
MEMBERS BEING DESIGN PROFESSIONALS,
  (ii) an ESOP, either in part or in its entirety, shall not  constitute
part  of  the  greater than seventy-five percent owned by design profes-

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

                                                           LBD09308-02-7

A. 3460--A                          2

sionals UNLESS GREATER THAN SEVENTY-FIVE PERCENT OF  THE  PLAN'S  VOTING
TRUSTEES  AND  GREATER THAN SEVENTY-FIVE PERCENT OF THE PLAN'S COMMITTEE
MEMBERS ARE DESIGN PROFESSIONALS,
  § 3. Subparagraph (i) of paragraph (b) of section 1514 of the business
corporation law, as added by chapter 550 of the laws of 2011, is amended
to read as follows:
  (i)  greater  than  seventy-five  percent of the outstanding shares of
stock of the corporation are and were owned by design professionals  AND
AN  ESOP (OR ESOPS) WITH GREATER THAN SEVENTY-FIVE PERCENT OF THE PLAN'S
VOTING TRUSTEES AND GREATER THAN  SEVENTY-FIVE  PERCENT  OF  THE  PLAN'S
COMMITTEE MEMBERS BEING DESIGN PROFESSIONALS,
  § 4. This act shall take effect immediately.