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S05848 Summary:

Amd S104, N-PC L
Allows certain entities to convert their status of filing as a not-for-profit organization to a for-profit entity.
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S05848 Memo:

Memo not available
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S05848 Text:

                STATE OF NEW YORK
                               2015-2016 Regular Sessions
                    IN SENATE
                                      June 8, 2015
        Introduced  by  Sens.  COMRIE, GOLDEN -- read twice and ordered printed,
          and when printed to be committed to the Committee on Rules
        AN ACT to amend the  not-for-profit  corporation  law,  in  relation  to
          allowing  certain entities to convert their status of filing as a not-
          for-profit organization to a for-profit entity
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1.  Section  104  of  the  not-for-profit  corporation law is
     2  amended by adding a new paragraph (h) to read as follows:
     3    (h) A business inadvertently incorporated, as a not-for-profit  corpo-
     4  ration under section four hundred two of this chapter shall be permitted
     5  to  convert  its  status  of filing as a not-for-profit corporation to a
     6  for-profit corporation under section four hundred two  of  the  business
     7  corporation law if the incorporator or incorporators submit sworn state-
     8  ments under the penalties of perjury certifying the following:
     9    (1)  the  inadvertent  filing was due to ignorance of the law and that
    10  legal advice had not been sought  or  received  as  to  the  appropriate
    11  course of action that would have resulted in correct registration allow-
    12  ing for the intended for-profit operation of the entity;
    13    (2)  the  entity at no time received the benefits and/or privileges of
    14  being recognized as a not-for-profit corporation, such as  being  exempt
    15  from incurring any local, state, or federal taxes;
    16    (3) the entity throughout its operation registered as a not-for-profit
    17  corporation  did  not  at  any  time  solicit and/or receive any private
    18  and/or public grants or charitable donations; and
    19    (4) the office of the attorney general has not filed an  objection  to
    20  the conversion.
    21    §  2.  This  act shall take effect on the thirtieth day after it shall
    22  have become a law.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
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