S T A T E O F N E W Y O R K
________________________________________________________________________
3460
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
AN ACT to amend the business corporation law, in relation to allowing
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. Paragraphs (i) and (ii) of subdivision (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 IN THE
CASE OF AN ESOP, 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,
(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. Paragraphs (i) and (ii) of subdivision (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 IN THE
CASE OF AN ESOP, 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,
(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
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09308-01-7
A. 3460 2
TRUSTEES AND GREATER THAN SEVENTY-FIVE PERCENT OF THE PLAN'S COMMITTEE
MEMBERS ARE DESIGN PROFESSIONALS,
§ 3. Paragraph (i) of subdivision (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
IN THE CASE OF AN ESOP, 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,
§ 4. This act shall take effect immediately.