Bill Text: NY A08116 | 2015-2016 | General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Allows certain entities to convert their status of filing as a not-for-profit organization to a for-profit entity.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2016-11-28 - signed chap.451 [A08116 Detail]

Download: New_York-2015-A08116-Amended.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                        8116--A
                              2015-2016 Regular Sessions
                                 I N  A S S E M B L Y
                                     June 9, 2015
                                      ___________
       Introduced  by M. of A. PERRY -- read once and referred to the Committee
         on Corporations, Authorities and Commissions -- committee  discharged,
         bill  amended,  ordered  reprinted  as amended and recommitted to said
         committee
       AN ACT to amend the  not-for-profit  corporation  law,  in  relation  to
         allowing  certain entities to convert their status of filing as a not-
         for-profit organization to a for-profit entity
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section  1.  Section  104  of  the  not-for-profit  corporation law is
    2  amended by adding a new paragraph (h) to read as follows:
    3    (H) A BUSINESS INCORRECTLY INCORPORATED, AS  A  NOT-FOR-PROFIT  CORPO-
    4  RATION UNDER SECTION FOUR HUNDRED TWO OF THIS CHAPTER SHALL BE PERMITTED
    5  TO  CONVERT  ITS  STATUS  OF FILING AS A NOT-FOR-PROFIT CORPORATION TO A
    6  FOR-PROFIT CORPORATION UNDER SECTION FOUR HUNDRED TWO  OF  THE  BUSINESS
    7  CORPORATION  LAW  IF  THE  INCORPORATOR  OR  INCORPORATORS SUBMIT TO THE
    8  ATTORNEY GENERAL SWORN STATEMENTS UNDER THE PENALTIES OF PERJURY  CERTI-
    9  FYING THE FOLLOWING:
   10    (1) THAT LEGAL ADVICE HAD NOT BEEN SOUGHT OR RECEIVED AS TO THE APPRO-
   11  PRIATE COURSE OF ACTION THAT WOULD HAVE RESULTED IN CORRECT REGISTRATION
   12  ALLOWING FOR THE INTENDED FOR-PROFIT OPERATION OF THE ENTITY;
   13    (2)  THE  ENTITY AT NO TIME RECEIVED THE BENEFITS AND/OR PRIVILEGES OF
   14  BEING RECOGNIZED AS A NOT-FOR-PROFIT CORPORATION, SUCH AS  BEING  EXEMPT
   15  FROM INCURRING ANY LOCAL, STATE, OR FEDERAL TAXES;
   16    (3)  THE  ENTITY  THROUGHOUT  ITS OPERATION AS A NOT-FOR-PROFIT CORPO-
   17  RATION DID NOT AT ANY TIME SOLICIT AND/OR  RECEIVE  ANY  PRIVATE  AND/OR
   18  PUBLIC GRANTS OR CHARITABLE DONATIONS; AND
   19    (4)  THE  OFFICE OF THE ATTORNEY GENERAL HAS NOT RAISED ANY OBJECTIONS
   20  TO THE PROPOSED CONVERSION.
   21    S 2. This act shall take effect on the thirtieth day  after  it  shall
   22  have become a law.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD11296-05-5