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S07762 Summary:

S07762 Actions:

S07762 Floor Votes:

S07762 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          7762
 
                    IN SENATE
 
                                      June 5, 2014
                                       ___________
 
        Introduced  by  Sen.  RANZENHOFER -- read twice and ordered printed, and
          when printed to be committed to the Committee on Corporations, Author-
          ities and Commissions
 
        AN ACT relating to authorizing certain corporations to  elect  to  be  a
          non-charitable corporation
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 

     1    Section 1.  On or after July 1, 2014, any corporation formed  pursuant
     2  to  chapter  880  of the laws of 1937 or chapter 124 of the laws of 1952
     3  may elect, notwithstanding that it may have both charitable and business
     4  purposes and notwithstanding subdivision (c) of section 201 of the  not-
     5  for-profit  corporation  law,  to be a non-charitable corporation under,
     6  and as defined in section 102 of the not-for-profit corporation law,  by
     7  providing  written  notice  of such election to the attorney general and
     8  certifying in such written notice that it is  not  exempt  from  federal
     9  income  tax,  but  rather  is  taxable  as a corporation pursuant to the
    10  United States internal revenue code of 1986, as amended,  and  does  not
    11  solicit  or  receive  charitable  contributions,  or  accept  receipt of
    12  donations of assets, for charitable purposes, as contemplated by article

    13  7-A of the executive law and section 8-1.4 of the  estates,  powers  and
    14  trusts  law, and regulations adopted thereunder. Every such notice shall
    15  have endorsed thereon or annexed thereto the approval of  a  justice  of
    16  the  supreme  court of the judicial district in which the office of such
    17  corporation is located. Ten days' written notice of the application  for
    18  such  approval  shall  be given to the attorney general. Any such corpo-
    19  ration will be subject to the provisions of section 513 and section  908
    20  of  the  not-for-profit corporation law as a non-charitable corporation,
    21  provided that no certificate shall be filed pursuant to section  908  of
    22  the  not-for-profit  corporation  law  unless  (a) the supreme court has
    23  granted an order approving the  plan  of  merger  or  consolidation  and
    24  authorizing  the  filing of the certificate as provided in section 907-a

    25  of the not-for-profit corporation law as  if  such  section  applied  to
    26  mergers  and consolidations effected pursuant to section 908 of the not-
    27  for-profit corporation law, or (b) the attorney general has approved the
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD15511-01-4
        S. 7762                             2
 
     1  plan of merger or consolidation and authorized the filing of the certif-
     2  icate as provided in section 907-b of the not-for-profit corporation law
     3  as if such section applied to mergers and consolidations effected pursu-
     4  ant to section 908 of the not-for-profit corporation law. In addition to
     5  the  foregoing  requirements, any such corporation shall also be subject

     6  to all other provisions of articles 1, 5, 6, 7, 8, 9 and 10 of the  not-
     7  for-profit corporation law that would have been applicable to the corpo-
     8  ration  were  it a charitable corporation. Nothing in this section shall
     9  be deemed to modify the charter of, or prevent any  future  modification
    10  of the charter of, any corporation formed pursuant to chapter 880 of the
    11  laws  of  1937  or  chapter 124 of the laws of 1952, as such charter may
    12  have been amended from time to time since the enactment of  chapter  880
    13  of the laws of 1937 or chapter 124 of the laws of 1952, as applicable.
    14    § 2. This act shall take effect immediately.