NY State Senate Bill S6652A

Archive: Last Bill Status Via A8261 - Signed by Governor

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

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Actions

view actions (12)

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Sep 13, 2017	approval memo.6
Sep 12, 2017	signed chap.305
Aug 31, 2017	delivered to governor
Jun 21, 2017	returned to assembly passed senate 3rd reading cal.2180 substituted for s6652a
Jun 21, 2017	substituted by a8261a ordered to third reading cal.2180
Jun 16, 2017	print number 6652a
Jun 16, 2017	amend (t) and recommit to rules
Jun 09, 2017	referred to rules

Votes

Bill Amendments

Original

A (Active)

Original

A (Active)

S6652 - Details

See Assembly Version of this Bill:: A8261
Law Section:: Not-for-Profit Corporation Law
Laws Affected:: Add §519-a, N-PC L; add §727, BC L

S6652 - Summary

Requires condominium and cooperative housing corporations to submit an annual report to the members of the governing board regarding information about contracts entered into that were subject to certain transactions.

S6652 - Sponsor Memo

 BILL NUMBER:  S6652

 TITLE OF BILL :  An act to amend the real property law, in relation
to conflicts of interests for cooperative housing

 PURPOSE OR GENERAL IDEA OF BILL :

The purpose of this bill is to ensure that cooperative housing boards
of directors are aware of certain laws relating to conflicts of
interest.

 SUMMARY OF PROVISIONS :

Section one of the bill establishes the requirement that, each year,
boards of director receive a copy of applicable state laws governing
interested parties or related party transactions, as the case may be.
In addition, all cooperative housing corporations incorporated under
the Business Corporation Law or the Not-for-Profit Law would need to
submit an annual report to the Attorney General identifying any votes
on contracts that were subject to such state law.

Section two of the bill establishes the effective date.

 DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE) :

N/A

 JUSTIFICATION :

Cooperative housing boards of directors are supposed to be
representative of the housing development and are trusted with
promoting the best interest of the co-op tenants. However, that is not
always the case. In some instances, a member of the board may be
benefiting financially or by other means when a contract between a
cooperative housing development and a third party is entered into.
This bill would establish a notification requirement so members of a
co-op board are aware of existing laws. In addition, the bill would
require disclosure of any contracts that were voted on that were
subject to the existing laws governing interested party transactions
or related party transactions. That way, co-op tenants as well as the
board directors can be sure of the integrity of the management as it
relates to voting on contracts.

 PRIOR LEGISLATIVE HISTORY :

New bill.

 FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS :

None.

 EFFECTIVE DATE :
The First of January next succeeding the date on which it shall have
become a law.

S6652 - Bill Text download pdf


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

                                  6652

                       2017-2018 Regular Sessions

                            I N  S E N A T E

                              June 9, 2017
                               ___________

Introduced  by  Sen.  GOLDEN -- read twice and ordered printed, and when
  printed to be committed to the Committee on Rules

AN ACT to amend the real property  law,  in  relation  to  conflicts  of
  interests for cooperative housing

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

  Section 1. The real property law is amended by adding  a  new  article
9-C to read as follows:
                               ARTICLE 9-C
                           COOPERATIVE HOUSING
SECTION 341. ANNUAL REPORTS FOR CERTAIN TRANSACTIONS REQUIRED.
  §  341.  ANNUAL  REPORTS  FOR  CERTAIN TRANSACTIONS REQUIRED. 1. EVERY
COOPERATIVE HOUSING CORPORATION, INCORPORATED PURSUANT TO  THE  NOT-FOR-
PROFIT CORPORATION LAW, SHALL, AT LEAST ONCE EACH YEAR:
  (A)  REQUIRE THAT EACH DIRECTOR, AS DEFINED IN PARAGRAPH SIX OF SUBDI-
VISION (A) OF SECTION ONE HUNDRED TWO OF THE NOT-FOR-PROFIT  CORPORATION
LAW, RECEIVE A COPY OF SECTION SEVEN HUNDRED FIFTEEN OF THE NOT-FOR-PRO-
FIT CORPORATION LAW; AND
  (B)  SUBMIT  AN  ANNUAL REPORT TO THE ATTORNEY GENERAL OF THE STATE OF
NEW YORK, WHICH SHALL BE SIGNED BY EACH SUCH DIRECTOR, CONTAINING INFOR-
MATION ON ANY CONTRACTS MADE, ENTERED INTO, OR OTHERWISE VOTED ON BY THE
BOARD OF DIRECTORS THAT WERE SUBJECT TO SECTION SEVEN HUNDRED FIFTEEN OF
THE NOT-FOR-PROFIT CORPORATION LAW.
  2. EVERY COOPERATIVE HOUSING CORPORATION, INCORPORATED PURSUANT TO THE
BUSINESS CORPORATION LAW, SHALL, AT LEAST ONCE EACH YEAR:
  (A) REQUIRE THAT EACH DIRECTOR, AS DEFINED IN PARAGRAPH FIVE OF SUBDI-
VISION (A) OF SECTION ONE HUNDRED TWO OF THE BUSINESS  CORPORATION  LAW,
RECEIVE  A COPY OF SECTION SEVEN HUNDRED THIRTEEN OF THE BUSINESS CORPO-
RATION LAW; AND
  (B) SUBMIT AN ANNUAL REPORT TO THE ATTORNEY GENERAL OF  THE  STATE  OF
NEW YORK, WHICH SHALL BE SIGNED BY EACH SUCH DIRECTOR, CONTAINING INFOR-

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

                                                           LBD13036-01-7

S. 6652                             2

MATION ON ANY CONTRACTS MADE, ENTERED INTO, OR OTHERWISE VOTED ON BY THE
BOARD  OF  DIRECTORS THAT WERE SUBJECT TO SECTION SEVEN HUNDRED THIRTEEN
OF THE BUSINESS CORPORATION LAW.
  3.  THE  ANNUAL REPORT REQUIRED EITHER BY PARAGRAPH (B) OF SUBDIVISION
ONE OR PARAGRAPH (B) OF SUBDIVISION TWO OF THIS SECTION  SHALL  INCLUDE,
BUT NOT BE LIMITED TO, THE FOLLOWING:
  (A)  A  LIST  OF  ALL  CONTRACTS  VOTED  ON BY THE BOARD OF DIRECTORS,
INCLUDING INFORMATION ON THE CONTRACT RECIPIENT,  CONTRACT  AMOUNT,  AND
THE PURPOSE OF ENTERING INTO THE CONTRACT;
  (B)  THE  RECORD OF EACH MEETING INCLUDING DIRECTOR ATTENDANCE, VOTING
RECORDS FOR CONTRACTS, AND HOW EACH DIRECTOR VOTED  ON  SUCH  CONTRACTS;
AND
  (C)  THE DATE OF EACH VOTE ON EACH CONTRACT, AND THE DATE THE CONTRACT
WOULD BE AND REMAIN VALID.
  4. IF THE ANNUAL REPORT REQUIRED EITHER BY PARAGRAPH (B)  OF  SUBDIVI-
SION  ONE  OR  PARAGRAPH  (B)  OF SUBDIVISION TWO OF THIS SECTION WOULD,
NOTWITHSTANDING THE REQUIREMENTS OF THIS SECTION, CONTAIN NO INFORMATION
BECAUSE OF THE ABSENCE OF ANY ACTIONS TAKEN  BY  THE  BOARD  THAT  WOULD
OTHERWISE  QUALIFY  FOR  INCLUSION IN SUCH ANNUAL REPORT, THEN THE BOARD
SHALL INSTEAD SUBMIT TO THE ATTORNEY GENERAL OF THE STATE OF NEW YORK  A
DOCUMENT,  SIGNED BY EACH DIRECTOR, INDICATING: "NO ACTIONS TAKEN BY THE
BOARD WERE SUBJECT TO THE ANNUAL REPORT REQUIRED PURSUANT TO SECTION 341
OF THE REAL PROPERTY LAW".
  § 2. This act shall take effect on the first of January next  succeed-
ing the date on which it shall have become a law.

S6652A (ACTIVE) - Details

See Assembly Version of this Bill:: A8261
Law Section:: Not-for-Profit Corporation Law
Laws Affected:: Add §519-a, N-PC L; add §727, BC L

S6652A (ACTIVE) - Summary

S6652A (ACTIVE) - Sponsor Memo

 BILL NUMBER:  S6652A

 TITLE OF BILL :  An act to amend the not-for-profit corporation law
and the business corporation law, in relation to conflicts of
interests for condominium and cooperative housing

 PURPOSE OR GENERAL IDEA OF BILL :

The purpose of this bill is to ensure that cooperative and condominium
housing boards of directors are aware of certain laws relating to
conflicts of interest.

 SUMMARY OF PROVISIONS :

Section one of the bill adds a new section to the Not-For-Profit
Corporation Law requiring annual reports for cooperative and
condominium housing incorporated under such laws to be submitted to
the members or the governing board (if there are no members)
identifying any votes on contracts that were subject to laws relating
to related party transactions.

Section two of the bill adds a new section to the Business Corporation
Law requiring annual reports for cooperative and condominium housing
incorporated under such laws to be submitted to shareholders
identifying any votes on contracts that were subject to laws relating
to related party transactions.

Section three of the bill establishes the effective date.

 JUSTIFICATION :

The original version of this bill related only to cooperative housing
and it also required the annual report to be submitted to the Attorney
General. The amended version is now applicable to condominiums (as
well as cooperative housing), requires the annual report to be
submitted to the members or shareholders, whichever the case may be,
and also makes specific reference to the laws governing related party
transactions or interested parties. In addition, the amended version
adds a new section containing the bill's provisions within the
Not-For-Profit Corporation Law and the Business Corporation Law
instead of adding a section to the Real Property Law.

 PRIOR LEGISLATIVE HISTORY :

New bill.

 FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
This act shall take effect on January 1St following enactment.

S6652A (ACTIVE) - Bill Text download pdf


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

                                 6652--A

                       2017-2018 Regular Sessions

                            I N  S E N A T E

                              June 9, 2017
                               ___________

Introduced  by  Sen.  GOLDEN -- read twice and ordered printed, and when
  printed to be  committed  to  the  Committee  on  Rules  --  committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN  ACT  to  amend  the  not-for-profit corporation law and the business
  corporation law, in relation to conflicts of interests for condominium
  and cooperative housing

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

  Section  1.  The not-for-profit corporation law is amended by adding a
new section 519-a to read as follows:
§ 519-A. ANNUAL REPORTS FOR CERTAIN TRANSACTIONS REQUIRED.
  (A) EVERY CONDOMINIUM OR COOPERATIVE HOUSING CORPORATION, INCORPORATED
PURSUANT TO THIS CHAPTER, SHALL, AT LEAST ONCE EACH YEAR:
  (1) REQUIRE THAT EACH DIRECTOR, AS DEFINED IN PARAGRAPH SIX OF  SUBDI-
VISION (A) OF SECTION ONE HUNDRED TWO OF THIS CHAPTER, RECEIVE A COPY OF
SECTION SEVEN HUNDRED FIFTEEN OF THIS CHAPTER; AND
  (2) PROVIDE AN ANNUAL REPORT TO THE MEMBERS OR TO THE GOVERNING BOARD,
IF  THERE  ARE  NO MEMBERS, WHICH SHALL BE SIGNED BY EACH SUCH DIRECTOR,
CONTAINING INFORMATION ON ANY CONTRACTS MADE, ENTERED INTO, OR OTHERWISE
VOTED ON BY THE BOARD OF DIRECTORS THAT WERE CONSIDERED A RELATED  PARTY
TRANSACTION PURSUANT TO SECTION SEVEN HUNDRED FIFTEEN OF THIS CHAPTER.
  (B)  THE  ANNUAL  REPORT  REQUIRED  BY SUBDIVISION (A) OF THIS SECTION
SHALL INCLUDE, BUT NOT BE LIMITED TO, THE FOLLOWING:
  (1) A LIST OF ALL CONTRACTS  VOTED  ON  BY  THE  BOARD  OF  DIRECTORS,
INCLUDING  INFORMATION  ON  THE CONTRACT RECIPIENT, CONTRACT AMOUNT, AND
THE PURPOSE OF ENTERING INTO THE CONTRACT;
  (2) THE RECORD OF EACH MEETING INCLUDING DIRECTOR  ATTENDANCE,  VOTING
RECORDS  FOR  CONTRACTS,  AND HOW EACH DIRECTOR VOTED ON SUCH CONTRACTS;
AND

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13036-05-7

S. 6652--A                          2

  (3) THE DATE OF EACH VOTE ON EACH CONTRACT, AND THE DATE THE  CONTRACT
WOULD BE AND REMAIN VALID.
  (C)  IF THE ANNUAL REPORT REQUIRED BY PARAGRAPH TWO OF SUBDIVISION (A)
OF THIS SECTION WOULD, NOTWITHSTANDING THE REQUIREMENTS OF THIS SECTION,
CONTAIN NO INFORMATION BECAUSE OF THE ABSENCE OF ANY  ACTIONS  TAKEN  BY
THE  BOARD  THAT  WOULD  OTHERWISE  QUALIFY FOR INCLUSION IN SUCH ANNUAL
REPORT, THEN THE BOARD SHALL INSTEAD SUBMIT TO THE  MEMBERS  OR  TO  THE
GOVERNING  BOARD,  IF  THERE  ARE NO MEMBERS, A DOCUMENT, SIGNED BY EACH
DIRECTOR, INDICATING: "NO ACTIONS TAKEN BY THE BOARD WERE SUBJECT TO THE
ANNUAL REPORT REQUIRED PURSUANT TO SECTION 519-A OF  THE  NOT-FOR-PROFIT
CORPORATION LAW".
  §  2.  The business corporation law is amended by adding a new section
727 to read as follows:
§ 727. ANNUAL REPORTS FOR CERTAIN TRANSACTIONS REQUIRED.
  (A) EVERY CONDOMINIUM OR COOPERATIVE HOUSING CORPORATION, INCORPORATED
PURSUANT TO THIS CHAPTER, SHALL, AT LEAST ONCE EACH YEAR:
  (1) REQUIRE THAT EACH DIRECTOR, AS DEFINED IN PARAGRAPH FIVE OF SUBDI-
VISION (A) OF SECTION ONE HUNDRED TWO OF THIS CHAPTER, RECEIVE A COPY OF
SECTION SEVEN HUNDRED THIRTEEN OF THIS CHAPTER; AND
  (2) SUBMIT AN ANNUAL REPORT TO THE SHAREHOLDERS, WHICH SHALL BE SIGNED
BY EACH SUCH DIRECTOR, CONTAINING INFORMATION  ON  ANY  CONTRACTS  MADE,
ENTERED  INTO, OR OTHERWISE VOTED ON BY THE BOARD OF DIRECTORS WHERE ONE
OR MORE OF THE DIRECTORS WAS AN INTERESTED DIRECTOR, PURSUANT TO SECTION
SEVEN HUNDRED THIRTEEN OF THIS CHAPTER.
  (B) THE ANNUAL REPORT REQUIRED BY  SUBDIVISION  (A)  OF  THIS  SECTION
SHALL INCLUDE, BUT NOT BE LIMITED TO, THE FOLLOWING:
  (1)  A  LIST  OF  ALL  CONTRACTS  VOTED  ON BY THE BOARD OF DIRECTORS,
INCLUDING INFORMATION ON THE CONTRACT RECIPIENT,  CONTRACT  AMOUNT,  AND
THE PURPOSE OF ENTERING INTO THE CONTRACT;
  (2)  THE  RECORD OF EACH MEETING INCLUDING DIRECTOR ATTENDANCE, VOTING
RECORDS FOR CONTRACTS, AND HOW EACH DIRECTOR VOTED  ON  SUCH  CONTRACTS;
AND
  (3)  THE DATE OF EACH VOTE ON EACH CONTRACT, AND THE DATE THE CONTRACT
WOULD BE AND REMAIN VALID.
  (C) IF THE ANNUAL REPORT REQUIRED BY SUBDIVISION (A) OF  THIS  SECTION
WOULD,  NOTWITHSTANDING  THE  REQUIREMENTS  OF  THIS SECTION, CONTAIN NO
INFORMATION BECAUSE OF THE ABSENCE OF ANY ACTIONS  TAKEN  BY  THE  BOARD
THAT  WOULD  OTHERWISE QUALIFY FOR INCLUSION IN SUCH ANNUAL REPORT, THEN
THE BOARD SHALL INSTEAD SUBMIT TO THE SHAREHOLDERS A DOCUMENT, SIGNED BY
EACH DIRECTOR, INDICATING: "NO ACTIONS TAKEN BY THE BOARD  WERE  SUBJECT
TO  THE  ANNUAL  REPORT REQUIRED PURSUANT TO SECTION 727 OF THE BUSINESS
CORPORATION LAW".
  § 3. This act shall take effect on the first of January next  succeed-
ing the date on which it shall have become a law.

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The New York State Senate

senate Bill S6652A

Sponsored By

Archive: Last Bill Status Via A8261 - Signed by Governor

Your Voice

Actions

Votes

Jun 21, 2017 - floor Vote

Floor Vote: Jun 21, 2017

Jun 21, 2017 - Rules committee Vote

Rules Committee Vote: Jun 21, 2017

Bill Amendments

S6652 - Details

S6652 - Summary

S6652 - Sponsor Memo

S6652 - Bill Text download pdf

S6652A (ACTIVE) - Details

S6652A (ACTIVE) - Summary

S6652A (ACTIVE) - Sponsor Memo

S6652A (ACTIVE) - Bill Text download pdf

Comments

senate Bill S6652A

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Sponsored By

Martin J. Golden

Archive: Last Bill Status Via A8261 - Signed by Governor

Your Voice

Actions

Votes

Jun 21, 2017 - floor Vote

Floor Vote: Jun 21, 2017

Jun 21, 2017 - Rules committee Vote

Rules Committee Vote: Jun 21, 2017

Bill Amendments

S6652 - Details

S6652 - Summary

S6652 - Sponsor Memo

S6652 - Bill Text download pdf

S6652A (ACTIVE) - Details

S6652A (ACTIVE) - Summary

S6652A (ACTIVE) - Sponsor Memo

S6652A (ACTIVE) - Bill Text download pdf

Comments