Bill Text: NY A00456 | 2019-2020 | General Assembly | Amended

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Bill Title: Requires the board of directors of certain cooperative corporations and not-for-profit corporations to provide tenants with changes to the by-laws in writing within ten days of adoption; requires notification to tenants of changes affecting occupancy or the rules of the building.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2019-11-25 - SIGNED CHAP.558 [A00456 Detail]

Download: New_York-2019-A00456-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                         456--A
                                                                Cal. No. 163

                               2019-2020 Regular Sessions

                   IN ASSEMBLY

                                       (Prefiled)

                                     January 9, 2019
                                       ___________

        Introduced  by M. of A. L. ROSENTHAL, BLAKE -- read once and referred to
          the Committee on Housing -- advanced to a  third  reading,  passed  by
          Assembly  and  delivered to the Senate, recalled from the Senate, vote
          reconsidered, bill amended, ordered reprinted, retaining its place  on
          the order of third reading

        AN  ACT  to  amend  the  business corporation law and the not-for-profit
          corporation law, in relation to requiring the board  of  directors  of
          residential  cooperative  corporations and not-for-profit corporations
          to provide tenants with changes to the by-laws in writing  within  ten
          days  of  adoption;  in relation to notification to tenants of changes
          affecting occupancy or the rules of the building

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  Section 708 of the business corporation law is amended by
     2  adding two new subdivisions (e) and (f) to read as follows:
     3    (e) In the case of corporations owning or leasing residential premises
     4  and operating the same on a cooperative  basis,  changes  including  the
     5  adoption,  amendment  or repeal of the by-laws by the board of directors
     6  shall be provided to the members, stockholders, and  delegates  of  such
     7  corporation in writing, by physical or electronic means, within ten days
     8  of such adoption.
     9    (f)  Upon the adoption, amendment or repeal of by-laws by the board of
    10  directors of a corporation owning or leasing  residential  premises  and
    11  operating the same on a cooperative basis pursuant to subdivision (e) of
    12  this  section, where such change would have a direct effect on the resi-
    13  dent's occupancy or the rules of the building, the  board  of  directors
    14  shall  post  the  adopted, amended, or repealed by-laws conspicuously to
    15  ensure tenants will be aware of such adoption.
    16    § 2. Section 602 of the not-for-profit corporation law is  amended  by
    17  adding a new paragraph (g) to read as follows:

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01517-04-9
        A. 456--A                           2

     1    (g)  In  the  case of residential not-for-profit corporations, changes
     2  including the adoption, amendment or repeal of the by-laws by the  board
     3  of  directors shall be provided to the members, stockholders, and deleg-
     4  ates of such corporation in writing, by physical  or  electronic  means,
     5  within ten days of such adoption.
     6    §  3.  The  not-for-profit  corporation law is amended by adding a new
     7  section 624 to read as follows:
     8  § 624. Notification to tenants.
     9    Upon the adoption, amendment or repeal of the by-laws by the board  of
    10  directors pursuant to paragraph (g) of section 602 (By-laws), where such
    11  change  would  have  a  direct effect on the resident's occupancy or the
    12  rules of the building, the board of directors shall  post  the  adopted,
    13  amended,  or  repealed  by-laws  conspicuously to ensure tenants will be
    14  aware of such adoption.
    15    § 4. This act shall take effect on the sixtieth  day  after  it  shall
    16  have become a law.