Assembly Bill A2364

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2364
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 16, 2025
                                ___________
 
 Introduced  by  M.  of  A.  GALLAGHER  --  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
   protecting community services affected by the sale, mortgage and lease
   of real property of religious corporations

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subparagraph 9 of paragraph (a) of section 511 of the  not-
 for-profit  corporation  law  is  renumbered  subparagraph  10 and a new
 subparagraph 9 is added to read as follows:
   9. IN THE CASE OF A RELIGIOUS CORPORATION, AS SUCH TERM IS DEFINED  IN
 SECTION  TWO  OF  THE  RELIGIOUS  CORPORATIONS LAW, A DESCRIPTION OF THE
 COMMUNITY SERVICES FOR WHICH THE CORPORATE ASSETS ARE USED, IF  ANY,  AT
 THE  TIME  OF THE PETITION AND AT ANY TIME IN THE PRECEDING THREE YEARS,
 LISTING THE REGULARITY OF  SUCH  USE,  THE  ORGANIZATION  SPONSORING  OR
 ORGANIZING  SUCH  USE,  IF ANY, THE AVERAGE ATTENDANCE OF SUCH COMMUNITY
 SERVICES OR THE NUMBER OF INDIVIDUALS ROUTINELY SERVED,  THE  TERMS  AND
 CONDITIONS OF SUCH USE, IF ANY, AND WHETHER SUCH COMMUNITY SERVICE ENDED
 AND  FOR  WHAT  REASON.  THE  CORPORATION SHALL AFFIX TO THE PETITION AN
 AFFIRMATION SIGNED BY A MEMBER, MANAGER, OR DIRECTOR OF  EACH  ORGANIZA-
 TION  SPONSORING  OR  ORGANIZING  SUCH COMMUNITY SERVICES, INCLUDING THE
 CORPORATION IF APPLICABLE, ATTESTING TO THE ACCURACY OF THE  INFORMATION
 DESCRIBED THEREIN. FOR THE PURPOSES OF THIS SECTION, THE TERM "COMMUNITY
 SERVICES" SHALL INCLUDE, WITHOUT LIMITATION, SOCIAL SERVICES, CHILDCARE,
 FOOD  PANTRIES, DONATION COLLECTION AND DISTRIBUTION, DIRECT AID, DISAS-
 TER RELIEF,  TRAININGS,  TAX  PREPARATION,  IMMIGRATION  SERVICES,  SOUP
 KITCHENS,  REFERRALS,  TOWN  HALLS  AND  COMMUNITY  MEETINGS, SUPPORT OR
 AFFINITY GROUPS, SAFE HAVEN  OR  ASYLEE  SHELTER,  SHOWERS,  CHOIRS  AND
 MUSICAL PERFORMANCES, AND RECREATIONAL ACTIVITIES.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03260-01-5
 A. 2364                             2
 
              

   §  2.  Paragraph  (d) of section 511 of the not-for-profit corporation
 law, as amended by chapter 961 of the laws of 1972, is amended and a new
 paragraph (e) is added to read as follows:
   (d)  If  it  shall  appear, to the satisfaction of the court, that the
 consideration and the terms of the transaction are fair  and  reasonable
 to  the  corporation  [and], that the purposes of the corporation or the
 interests of the members will be promoted, AND, IN THE CASE A  RELIGIOUS
 CORPORATION,  AS  SUCH  TERM  IS DEFINED IN SECTION TWO OF THE RELIGIOUS
 CORPORATIONS LAW, THAT ANY DISRUPTION OF COMMUNITY SERVICES BY THE TRAN-
 SACTION IS NOT IRREVERSIBLE OR IMMEDIATELY HARMFUL  TO  SIGNIFICANT  AND
 SENSITIVE  COMMUNITY  INTERESTS,  it  may  authorize  the  sale,  lease,
 exchange or other disposition of all or substantially all the assets  of
 the  corporation,  as  described in the petition, for such consideration
 and upon such terms as the court may prescribe. The order of  the  court
 shall  direct the disposition of the consideration to be received there-
 under by the corporation.
   (E) IN THE CASE OF A RELIGIOUS CORPORATION, AS SUCH TERM IS DEFINED IN
 SECTION TWO OF THE RELIGIOUS CORPORATIONS LAW,  IF  THE  COURT  SUSPECTS
 THAT  THE  TRANSACTION MAY CAUSE A DISRUPTION TO COMMUNITY SERVICES THAT
 IS IRREVERSIBLE OR IMMEDIATELY  HARMFUL  TO  SIGNIFICANT  AND  SENSITIVE
 COMMUNITY  INTERESTS, THE COURT MAY, IN ITS DISCRETION, SCHEDULE A SEPA-
 RATE HEARING ON THE QUESTION AND INVITE TESTIMONY  OR  SUBMISSIONS  FROM
 AFFECTED MEMBERS OF THE COMMUNITY. IF THE COURT FINDS, WITH OR WITHOUT A
 SEPARATE  HEARING  ON  THE  QUESTION, THAT THE TRANSACTION SHALL CAUSE A
 DISRUPTION TO COMMUNITY SERVICES THAT  IS  IRREVERSIBLE  OR  IMMEDIATELY
 HARMFUL TO SIGNIFICANT AND SENSITIVE COMMUNITY INTERESTS, THE COURT MAY,
 IN  ITS  DISCRETION AND AS AN ALTERNATIVE TO DENYING THE PETITION, ORDER
 THE TRANSACTION TO BE DELAYED UNTIL A REASONABLE DATE CERTAIN  BY  WHICH
 AFFECTED  COMMUNITY  ORGANIZATIONS CAN MAKE AN OFFER FOR THE PURCHASE OF
 THOSE ASSETS NECESSARY TO CONTINUE THE PROVISION OF  COMMUNITY  SERVICES
 IDENTIFIED  BY  THE COURT AS SERVING SIGNIFICANT AND SENSITIVE COMMUNITY
 INTERESTS OR ACCEPT FROM THE CORPORATION A STIPULATION ENTERED INTO WITH
 AFFECTED COMMUNITY ORGANIZATIONS TO MAKE AVAILABLE SUITABLE  ALTERNATIVE
 SPACE  OR  ANY  OTHER  APPROPRIATE  FORM  OF GUARANTEE OR SURETY FOR THE
 CONTINUED PROVISION OF THOSE COMMUNITY SERVICES IDENTIFIED BY THE  COURT
 AS SERVING SIGNIFICANT AND SENSITIVE COMMUNITY INTERESTS.
   § 3. This act shall take effect immediately.