Assembly Bill A7420

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7420
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              April 25, 2017
                                ___________
 
 Introduced  by M. of A. TITONE, JAFFEE -- Multi-Sponsored by -- M. of A.
   CUSICK -- 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 the
   sale of real property

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.    Section  509  of the not-for-profit corporation law, as
 amended by chapter 549 of the laws  of  2013,  is  amended  to  read  as
 follows:
 § 509. Purchase, sale, mortgage and lease of real property.
   (a)  1.  No  corporation  shall  purchase  real  property  unless such
 purchase is authorized by the vote of a majority  of  directors  of  the
 board  or of a majority of a committee authorized by the board, provided
 that if such property would, upon purchase thereof, constitute  all,  or
 substantially  all,  of  the assets of the corporation, then the vote of
 two-thirds of the entire board shall be required, or, if there are twen-
 ty-one or more directors, the vote of a majority  of  the  entire  board
 shall be sufficient.
   [(b)]  2.  No  corporation  shall  sell,  mortgage, lease, exchange or
 otherwise dispose of its real property unless authorized by the vote  of
 a  majority  of  directors  of the board or of a majority of a committee
 authorized by the board; provided that if such property constitutes all,
 or substantially all, of the assets of the corporation, then the vote of
 two-thirds of the entire board shall be required, or, if there are twen-
 ty-one or more directors, the vote of a majority  of  the  entire  board
 shall be sufficient.
   [(c)]  3.  If  a corporation authorizes a committee to act pursuant to
 [paragraphs (a) and (b)] SUBPARAGRAPHS ONE AND  TWO  of  this  [section]
 PARAGRAPH,  the committee shall promptly report any actions taken to the

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11033-01-7
              

 A. 7420                             2
 
 board, and in no event after the next regularly scheduled meeting of the
 board.
   (B)  1.  A  CORPORATION  WHICH SELLS REAL PROPERTY TO ANY ENTITY OTHER
 THAN THE STATE OR ANOTHER NOT-FOR-PROFIT CORPORATION WHICH IS SUBJECT TO
 THE PROVISIONS OF THIS CHAPTER SHALL REIMBURSE THE STATE AND/OR A  MUNI-
 CIPALITY  FOR  ANY CAPITAL FUNDING, GRANTS OR FINANCING RECEIVED THROUGH
 THE STATE OR A MUNICIPAL AGENCY OR PUBLIC BENEFIT CORPORATION WITHIN THE
 TEN YEARS PRECEDING SUCH SALE.
   2. A SALE OF REAL PROPERTY BY  A  NOT-FOR-PROFIT  CORPORATION  TO  ANY
 ENTITY  OTHER THAN THE STATE OR ANOTHER NOT-FOR-PROFIT CORPORATION WHICH
 IS SUBJECT TO THE PROVISIONS OF THIS CHAPTER SHALL NOT  BE  EXEMPT  FROM
 THE  PAYMENT  OF THE REAL PROPERTY TRANSFER TAX IMPOSED BY SECTION FOUR-
 TEEN HUNDRED TWO OF THE TAX LAW.
   3. ANY CORPORATION WHICH HAS RECEIVED A REAL  PROPERTY  TAX  ABATEMENT
 WITHIN THE LAST TEN YEARS FOR REAL PROPERTY TAXES ASSESSED ON SUCH PROP-
 ERTY  SHALL  REIMBURSE THE TAXING AUTHORITY THE TOTAL AMOUNT OF ANY SUCH
 ABATEMENT UPON THE SALE OF SUCH REAL PROPERTY TO ANY ENTITY  OTHER  THAN
 THE  STATE OR ANOTHER NOT-FOR-PROFIT CORPORATION WHICH IS SUBJECT TO THE
 PROVISIONS OF THIS CHAPTER.
   § 2. This act shall take effect immediately.