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A10232 Summary:

BILL NOA10232
 
SAME ASNo Same As
 
SPONSORRules (Gallagher)
 
COSPNSR
 
MLTSPNSR
 
Amd §511, N-PC L
 
Protects valuable community services affected by the sale, mortgage and lease of real property of religious corporations.
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A10232 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          10232
 
                   IN ASSEMBLY
 
                                      May 15, 2024
                                       ___________
 
        Introduced  by  COMMITTEE ON RULES -- (at request of M. of A. Gallagher)
          -- read once and referred to the Committee on  Corporations,  Authori-
          ties 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:
 
     1    Section  1. Subparagraph 9 of paragraph (a) of section 511 of the not-
     2  for-profit corporation law is  renumbered  subparagraph  10  and  a  new
     3  subparagraph 9 is added to read as follows:
     4    9.  In the case of a religious corporation, as such term is defined in
     5  section two of the religious corporations  law,  a  description  of  the
     6  community  services  for which the corporate assets are used, if any, at
     7  the time of the petition and at any time in the preceding  three  years,
     8  listing  the  regularity  of  such  use,  the organization sponsoring or
     9  organizing such use, if any, the average attendance  of  such  community
    10  services  or  the  number of individuals routinely served, the terms and
    11  conditions of such use, if any, and whether such community service ended
    12  and for what reason. The corporation shall  affix  to  the  petition  an
    13  affirmation  signed  by a member, manager, or director of each organiza-
    14  tion sponsoring or organizing such  community  services,  including  the
    15  corporation  if applicable, attesting to the accuracy of the information
    16  described therein. For the purposes of this section, the term "community
    17  services" shall include, without limitation, social services, childcare,
    18  food pantries, donation collection and distribution, direct aid,  disas-
    19  ter  relief,  trainings,  tax  preparation,  immigration  services, soup
    20  kitchens, referrals, town  halls  and  community  meetings,  support  or
    21  affinity  groups,  safe  haven  or  asylee  shelter, showers, choirs and
    22  musical performances, and recreational activities.
    23    § 2. Paragraph (d) of section 511 of  the  not-for-profit  corporation
    24  law, as amended by chapter 961 of the laws of 1972, is amended and a new
    25  paragraph (e) is added to read as follows:
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD15518-02-4

        A. 10232                            2
 
     1    (d)  If  it  shall  appear, to the satisfaction of the court, that the
     2  consideration and the terms of the transaction are fair  and  reasonable
     3  to  the  corporation  [and], that the purposes of the corporation or the
     4  interests of the members will be promoted, and, in the case a  religious
     5  corporation,  as  such  term  is defined in section two of the religious
     6  corporations law, that any disruption of community services by the tran-
     7  saction is not irreversible or immediately harmful  to  significant  and
     8  sensitive  community  interests,  it  may  authorize  the  sale,  lease,
     9  exchange or other disposition of all or substantially all the assets  of
    10  the  corporation,  as  described in the petition, for such consideration
    11  and upon such terms as the court may prescribe. The order of  the  court
    12  shall  direct the disposition of the consideration to be received there-
    13  under by the corporation.
    14    (e) In the case of a religious corporation, as such term is defined in
    15  section two of the religious corporations law,  if  the  court  suspects
    16  that  the  transaction may cause a disruption to community services that
    17  is irreversible or immediately  harmful  to  significant  and  sensitive
    18  community  interests, the court may, in its discretion, schedule a sepa-
    19  rate hearing on the question and invite testimony  or  submissions  from
    20  affected members of the community. If the court finds, with or without a
    21  separate  hearing  on  the  question, that the transaction shall cause a
    22  disruption to community services that  is  irreversible  or  immediately
    23  harmful to significant and sensitive community interests, the court may,
    24  in  its  discretion and as an alternative to denying the petition, order
    25  the transaction to be delayed until a reasonable date certain  by  which
    26  affected  community  organizations can make an offer for the purchase of
    27  those assets necessary to continue the provision of  community  services
    28  identified  by  the court as serving significant and sensitive community
    29  interests or accept from the corporation a stipulation entered into with
    30  affected community organizations to make available suitable  alternative
    31  space  or  any  other  appropriate  form  of guarantee or surety for the
    32  continued provision of those community services identified by the  court
    33  as serving significant and sensitive community interests.
    34    § 3. This act shall take effect immediately.
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