Relates to the effectiveness of provisions of law relating to prohibiting employees of a not-for-profit corporation from serving as chair of the board.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A7641
SPONSOR: Brennan
 
TITLE OF BILL:
An act to amend chapter 549 of the laws of 2013, amending the executive
law and other laws relating to reform of charitable organizations, in
relation to the effectiveness of certain provisions of such chapter
 
PURPOSE OR GENERAL IDEA OF BILL:
To change the effective date of the prohibition on not-for-profit
employees serving as chairperson of the board of directors of the corpo-
ration.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section one change the effective date of paragraph (f) of section 713 of
not-for-profit law from January 1, 2016 to January 1, 2017.
Section two of the bill establishes the effective date.
 
JUSTIFICATION:
Paragraph (f) of section 713 of the Not-For-Profit Law was added in the
Not-For-Profit Revitalization Act of 2013 and will become effective on
January 1, 2016.
The intent of paragraph (f) is to prevent employees of a not-for-profit
corporation from serving as chair of the not-for-profit's board of
directors. While this intention is a worthy policy goal, the Legislature
requires more time to study the impact of this prohibition on not-for-
profit corporations.
 
PRIOR LEGISLATIVE HISTORY:
This is a new bill.
 
FISCAL IMPLICATIONS:
None
 
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
7641
2015-2016 Regular Sessions
IN ASSEMBLY
May 20, 2015
___________
Introduced by M. of A. BRENNAN -- read once and referred to the Commit-
tee on Corporations, Authorities and Commissions
AN ACT to amend chapter 549 of the laws of 2013, amending the executive
law and other laws relating to reform of charitable organizations, in
relation to the effectiveness of certain provisions of such chapter
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 132 of chapter 549 of the laws of 2013, amending
2 the executive law and other laws relating to reform of charitable organ-
3 izations, as amended by chapter 81 of the laws of 2014, is amended to
4 read as follows:
5 § 132. This act shall take effect July 1, 2014, provided, however,
6 that the amendments to section 172-b of the executive law made by
7 section three of this act shall expire and be deemed repealed June 30,
8 2017; provided further that the amendments to section 172-b of the exec-
9 utive law made by section three-a of this act shall take effect July 1,
10 2017 and shall expire and be deemed repealed June 30, 2021; provided
11 further that the amendments to section 172-b of the executive law made
12 by section three-b of this act shall take effect July 1, 2021; provided
13 further that the amendments to paragraph (a) of section 713 of the not-
14 for-profit corporation law made by section seventy-three of this act
15 shall take effect January 1, 2015; provided further that paragraph (f)
16 of section 713 of the not-for-profit corporation law added by section
17 seventy-three of this act shall take effect January 1, [2016] 2017;
18 provided further that section seventy-two of this act and paragraph (b)
19 of section 8-1.9 of the estates, powers and trusts law as added by
20 section one hundred thirty of this act shall not be applicable until
21 January 1, 2015 for any corporation or trust that had annual revenues of
22 less than 10,000,000 dollars in the last fiscal year ending prior to
23 January 1, 2014.
24 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD11266-01-5