New York Assembly Bill 6128 (Prior Session Legislation)

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Spectrum: Partisan Bill (Democrat 12-0)
Status: Introduced on February 25 2009 - 25% progression, died in committee
Action: 2010-01-06 - referred to judiciary
Pending: Assembly Judiciary Committee
Text: Latest bill text (Introduced) [HTML]

This bill establishes the "Business Trust Law" as a new consolidated law regulating domestic and foreign business trusts. A "business" trust would function as an unincorporated organization created by a trust instrument, under which property would be held, managed, invested or operated, or business activities conducted by a trustee for the benefit of one or more beneficial owners. For federal tax purposes, business trusts can be made tax transparent so that the beneficial owners rather than the entity will be taxed. The bill would allow for the formation of domestic business trusts in New York, as well as clarify requirements applicable to foreign business trusts seeking to do business in the state. Business trusts are widely used in securitization transactions and are also often used to hold and operate assets such as real estate. Business trusts are also often used for mutual funds and for real estate investment trusts. A principal reason for these uses is that business trusts can be more effectively rendered bankruptcy-remote than other types of entities. The use of common-law trusts in New York is already well established. The bill would provide a statutory framework for the creation and operation of domestic business trusts, and would clarify the filing and other requirement applicable to foreign business trusts doing business here. It should also be noted that this legislation would add New York to the roster of over ten other states including Delaware, Ohio and Pennsylvania that permit business trusts. Additionally, Massachusetts business trusts have long been recognized.

An act to establish a business trust law, constituting chapter 4-A of the consolidated laws; and to amend the general associations law, in relation to business trusts

Asm. Barbara Clark [D]	Asm. Vivian Cook [D]	Asm. Earlene Hooper [D]	Asm. Susan John [D]
Asm. William Magee [D]	Asm. John McEneny [D]	Asm. Joan Millman [D]	Asm. Felix Ortiz [D]
Asm. Audrey Pheffer [D]	Asm. Robin Schimminger [D]	Asm. Anthony Seminerio [D]	Asm. Darryl Towns [D]

Date	Chamber	Action
2010-01-06		referred to judiciary
2009-02-25		referred to judiciary

Type	Source
Summary	https://assembly.state.ny.us/leg/?default_fld=&bn=A06128&term=2009&Summary=Y&Actions=Y&Text=Y&Committee%26nbspVotes=Y&Floor%26nbspVotes=Y
Text	https://assembly.state.ny.us/leg/?default_fld=&bn=A06128&term=2009&Summary=Y&Actions=Y&Text=Y&Committee%26nbspVotes=Y&Floor%26nbspVotes=Y#A06128