STATE OF NEW YORK
________________________________________________________________________
5310
2015-2016 Regular Sessions
IN SENATE
May 13, 2015
___________
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:
1 Section 1. Section 602 of the not-for-profit corporation law is
2 amended by adding five new paragraphs (g), (h), (i), (j) and (k) to read
3 as follows:
4 (g) The by-laws of a not-for-profit corporation shall contain a
5 provision on:
6 (1) employees serving on such governing body and the percentage of the
7 membership of the governing body that must be independent of the organ-
8 ization;
9 (2) hiring of family members of employees and governing body members;
10 and
11 (3) conflict of interest covering business interests.
12 (h) All by-laws required in this section shall be available for review
13 by the attorney general upon request.
14 (i) Employees of a not-for-profit corporation are prohibited from
15 serving as the chair of such organization's governing body and from
16 serving as a voting member of such organization's governing body.
17 (j) No person who is related to the chief executive or any member of a
18 governing body by blood or marriage shall be employed by such organiza-
19 tion, except with the approval of two-thirds of the members of the
20 governing body.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD11030-01-5
S. 5310 2
1 (k) Notwithstanding any provision to the contrary, the provisions of
2 paragraphs (g), (i) and (j) of this section shall not apply to cemetery
3 corporations that must comply with article fifteen of this chapter.
4 § 2. This act shall take effect one year after it shall have become a
5 law.
