NY State Senate Bill 2023-S1711

Current Bill Status - In Senate Committee Corporations, Authorities And Commissions Committee

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

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to corporations, authorities and commissions
Jan 13, 2023	referred to corporations, authorities and commissions

2023-S1711 (ACTIVE) - Details

Current Committee:: Senate Corporations, Authorities And Commissions
Law Section:: Not-for-Profit Corporation Law
Laws Affected:: Amd §906, N-PC L; amd §12, Rel Corp L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S5720
2021-2022: S3664

2023-S1711 (ACTIVE) - Summary

Relates to the correction of tax errors made by the nonprofit revitalization act.

2023-S1711 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S1711

SPONSOR: COMRIE
 
TITLE OF BILL:

An act to amend the not-for-profit corporation law and the religious
corporations law, in relation to the correction of tax errors made by
the nonprofit revitalization act

 
SUMMARY OF MAJOR PROVISIONS:

SECTION ONE WOULD CORRECT AN OBVIOUS ERROR IN NOT-FOR-PROFIT CORPORATION
LAW SECTION 906(A) (1)(D) TO CHANGE THE CROSS REFERENCE FROM PARAGRAPH
(C) OF SECTION 607 TO PARAGRAPH (B). THERE IS NO PARAGRAPH (C).

SECTION TWO WOULD AMEND RELIGIOUS CORPORATIONS LAW SECTION 12.1 TO
DELETE A REFERENCE TO SECTION 511-A OF THE NOT-FOR-PROFIT CORPORATION 1
LAW. SECTION 12.1 WAS AMENDED TO ADD THE PHRASE PROPOSED TO BE DELETED
BY SECTION 17 CHAPTER 555 OF THE 2015 LAWS.

SECTION THREE PROVIDES THE EFFECTIVE DATE:.

JUSTIFICATION:

Prior to its amendment, Section 12.1 was unequivocal in requiring court
approval of any religious corporation's proposed sale, lease or mortgage
of "any of its real property" (subject to certain minor exceptions),
pursuant to Not-for-Profit corporation Law Section 511 which in turn
provides for the Attorney General approval in the Court's discretion.

Moreover, under Religious Corporations Law Section 2-b (d-1), which
"borrows" certain provisions of the Not-for-Profit Corporation Law, the
churches specified therein are exempt even from the Section 511 Court
approval requirement. Religious Corporation Law section 2-b.1 estab-
lishes in general the primacy of the Religious Corporation Law over the
Not-for-Profit Corporation Law.

The purpose of Not-for-Profit Corporation Law Section 511-a was to
provide for not-for-profit corporations the alternative of Attorney
General approval for Court approval.

As amended by Section 17 of Chapter 555 of the 2015 Laws, Sections 12.1
and 2-b(d-1) are in conflict. As the annotators of 2018 McKinney's Not-
for-Profit Corporation Law pocket part concluded:

Given the primacy afforded to the RCL, the mandatory breadth of section
12, the public policy favoring the protection of religious corporation
property and the exemption of hierarchical (as contrasted with congre-
ciaional) churches from the Attorney- General notice requirement, the
better view would. seem to be that NE,C1, section 511-a should be inap-
plicable to the hierarchical religious corporations (arid perhaps even
to congregational ones)....The RCL should be amended to delete the
amendment made by Chapter 555.

 
LEGISLATIVE HISTORY:

2022: S3664

 
FISCAL IMPLICATIONS:
None.

 
EFFECTIVE DATE:
Immediate.

2023-S1711 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1711
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 13, 2023
                                ___________
 
 Introduced  by  Sen.  COMRIE -- read twice and ordered printed, and when
   printed to be committed to the Committee on Corporations,  Authorities
   and Commissions
 
 AN  ACT  to  amend  the not-for-profit corporation law and the religious
   corporations law, in relation to the correction of tax errors made  by
   the nonprofit revitalization act

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Clause (D) of subparagraph 2 of paragraph  (d)  of  section
 906 of the not-for-profit corporation law, as amended by chapter 1058 of
 the laws of 1971, is amended to read as follows:
   (D)  An  agreement  that  the surviving or consolidated foreign corpo-
 ration may be served with process in this state in any action or special
 proceeding for the enforcement of any liability  or  obligation  of  any
 domestic  corporation or of any foreign corporation, previously amenable
 to suit in this state, which is a constituent corporation in such merger
 or consolidation, and an agreement that the  surviving  or  consolidated
 foreign corporation may be sued in this state in respect of any property
 transferred  or  conveyed  to  it  as provided in paragraph [(c)] (B) of
 section 907 (Approval by the supreme court), or the  use  made  of  such
 property, or any transaction in connection therewith.
   § 2. Subdivision 1 of section 12 of the religious corporations law, as
 amended  by  chapter  555  of  the  laws  of 2015, is amended to read as
 follows:
   1. A religious corporation shall not sell, mortgage  or  lease  for  a
 term  exceeding five years any of its real property without applying for
 and obtaining leave of the court or the attorney general therefor pursu-
 ant to section five hundred eleven of the not-for-profit corporation law
 as that section is modified by paragraph (d-1)  of  subdivision  one  of
 section  two-b  of this chapter [or section five hundred eleven-a of the
 not-for-profit corporation law], except that a religious corporation may
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03511-01-3

 S. 1711                             2
 
 execute a purchase money mortgage or a purchase money security agreement
 creating a security interest in personal property purchased by it  with-
 out obtaining leave of the court therefor.
   § 3. This act shall take effect immediately.

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Senate Bill S1711

Sponsored By

Current Bill Status - In Senate Committee Corporations, Authorities And Commissions Committee

2023-S1711 (ACTIVE) - Details

2023-S1711 (ACTIVE) - Summary

2023-S1711 (ACTIVE) - Sponsor Memo

2023-S1711 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S1711

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Sponsored By

Leroy Comrie

Current Bill Status - In Senate Committee Corporations, Authorities And Commissions Committee

2023-S1711 (ACTIVE) - Details

2023-S1711 (ACTIVE) - Summary

2023-S1711 (ACTIVE) - Sponsor Memo

2023-S1711 (ACTIVE) - Bill Text download pdf

Comments