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--B
                              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 allow certain entities to convert their status of filing as  a
         not-for-profit  organization to a for-profit entity; and providing for
         the repeal of such provisions upon expiration thereof
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section  1.  Notwithstanding  any  provision of law to the contrary, a
    2  business incorrectly incorporated, as a not-for-profit corporation under
    3  section four hundred two of the not-for-profit corporation law shall  be
    4  permitted  to  convert  its  status of filing as a not-for-profit corpo-
    5  ration to a for-profit corporation under section four hundred two of the
    6  business corporation law if the incorporator or incorporators submit  to
    7  the  attorney  general  sworn  statements under the penalties of perjury
    8  certifying the following:
    9    (1) that legal advice had not been sought or received as to the appro-
   10  priate course of action that would have resulted in correct registration
   11  allowing for the intended for-profit operation of the entity;
   12    (2) the entity at no time received the benefits and/or  privileges  of
   13  being  recognized  as a not-for-profit corporation, such as being exempt
   14  from incurring any local, state, or federal taxes;
   15    (3) the entity throughout its operation  as  a  not-for-profit  corpo-
   16  ration  did  not  at  any time solicit and/or receive any private and/or
   17  public grants or charitable donations; and
   18    (4) the office of the attorney general has not raised  any  objections
   19  to the proposed conversion.
   20    S  2.  This  act shall take effect immediately and shall expire and be
   21  deemed repealed one hundred eighty days after such date.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD11296-11-5