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Senate Bill S6221

2017-2018 Legislative Session

Prohibits certain employees of a not-for-profit corporation from serving on the corporation's governing board or from hiring family members

download bill text pdf

Sponsored By

Archive: Last Bill Status - In Senate Committee Corporations, Authorities And Commissions Committee

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2017-S6221 (ACTIVE) - Details

Current Committee:
Senate Corporations, Authorities And Commissions
Law Section:
Not-for-Profit Corporation Law
Laws Affected:
Amd §602, N-PC L
Versions Introduced in Other Legislative Sessions:
2013-2014: S5315
2015-2016: S5310

2017-S6221 (ACTIVE) - Summary

Prohibits certain employees of a not-for-profit corporation from serving on the corporation's governing board or from hiring family members.

2017-S6221 (ACTIVE) - Sponsor Memo

2017-S6221 (ACTIVE) - Bill Text download pdf 

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6221
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                               May 11, 2017
                                ___________
 
 Introduced  by  Sen.  MARCELLINO  -- read twice and ordered printed, and
   when printed to be committed to the Committee on Corporations, Author-
   ities and Commissions
 
 AN ACT to amend the  not-for-profit  corporation  law,  in  relation  to
   prohibiting  certain  employees  of  a not-for-profit corporation from
   serving on the corporation's governing board  or  from  hiring  family
   members
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section  602  of  the  not-for-profit  corporation  law  is
 amended by adding five new paragraphs (g), (h), (i), (j) and (k) to read
 as follows:
   (G)  THE  BY-LAWS  OF  A  NOT-FOR-PROFIT  CORPORATION  SHALL CONTAIN A
 PROVISION ON:
   (1) EMPLOYEES SERVING ON SUCH GOVERNING BODY AND THE PERCENTAGE OF THE
 MEMBERSHIP OF THE GOVERNING BODY THAT MUST BE INDEPENDENT OF THE  ORGAN-
 IZATION;
   (2)  HIRING OF FAMILY MEMBERS OF EMPLOYEES AND GOVERNING BODY MEMBERS;
 AND
   (3) CONFLICT OF INTEREST COVERING BUSINESS INTERESTS.
   (H) ALL BY-LAWS REQUIRED IN THIS SECTION SHALL BE AVAILABLE FOR REVIEW
 BY THE ATTORNEY GENERAL UPON REQUEST.
   (I) EMPLOYEES OF A  NOT-FOR-PROFIT  CORPORATION  ARE  PROHIBITED  FROM
 SERVING  AS  THE  CHAIR  OF  SUCH ORGANIZATION'S GOVERNING BODY AND FROM
 SERVING AS A VOTING MEMBER OF SUCH ORGANIZATION'S GOVERNING BODY.
   (J) NO PERSON WHO IS RELATED TO THE CHIEF EXECUTIVE OR ANY MEMBER OF A
 GOVERNING BODY BY BLOOD OR MARRIAGE SHALL BE EMPLOYED BY SUCH  ORGANIZA-
 TION,  EXCEPT  WITH  THE  APPROVAL  OF  TWO-THIRDS OF THE MEMBERS OF THE
 GOVERNING BODY.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11689-01-7

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