Bill Text: NY S03771 | 2017-2018 | General Assembly | Amended


Bill Title: Provides for expanded ownership in design professional corporations by employee stock ownership plans and non-licensed employees.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Engrossed - Dead) 2018-06-06 - referred to higher education [S03771 Detail]

Download: New_York-2017-S03771-Amended.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                         3771--A
                               2017-2018 Regular Sessions
                    IN SENATE
                                    January 26, 2017
                                       ___________
        Introduced  by  Sen. VALESKY -- read twice and ordered printed, and when
          printed to be committed 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 business corporation law, in relation  to  providing
          for expanded ownership in design professional corporations by employee
          stock ownership plans and non-licensed employees
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Subparagraphs (i) and (ii) of paragraph  (b-1)  of  section
     2  1503  of  the  business  corporation law, as added by chapter 550 of the
     3  laws of 2011, are amended to read as follows:
     4    (i) greater than seventy-five percent of  the  outstanding  shares  of
     5  stock  of  the corporation are owned by design professionals and an ESOP
     6  (or ESOPs) with greater than seventy-five percent of the  plan's  voting
     7  trustees  and  greater than seventy-five percent of the plan's committee
     8  members being design professionals,
     9    (ii) an ESOP, either in part or in its entirety, shall not  constitute
    10  part  of  the  greater than seventy-five percent owned by design profes-
    11  sionals unless greater than seventy-five percent of  the  plan's  voting
    12  trustees  and  greater than seventy-five percent of the plan's committee
    13  members are design professionals,
    14    § 2. Subparagraphs (i) and (ii) of paragraph (b) of  section  1507  of
    15  the  business  corporation  law,  as added by chapter 550 of the laws of
    16  2011, are amended to read as follows:
    17    (i) greater than seventy-five percent of  the  outstanding  shares  of
    18  stock  of  the corporation are owned by design professionals and an ESOP
    19  (or ESOPs) with greater than seventy-five percent of the  plan's  voting
    20  trustees  and  greater than seventy-five percent of the plan's committee
    21  members being design professionals,
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09028-02-7

        S. 3771--A                          2
     1    (ii) an ESOP, either in part or in its entirety, shall not  constitute
     2  part  of  the  greater than seventy-five percent owned by design profes-
     3  sionals unless greater than seventy-five percent of  the  plan's  voting
     4  trustees  and  greater than seventy-five percent of the plan's committee
     5  members are design professionals,
     6    § 3. Subparagraph (i) of paragraph (b) of section 1514 of the business
     7  corporation law, as added by chapter 550 of the laws of 2011, is amended
     8  to read as follows:
     9    (i)  greater  than  seventy-five  percent of the outstanding shares of
    10  stock of the corporation are and were owned by design professionals  and
    11  an  ESOP (or ESOPs) with greater than seventy-five percent of the plan's
    12  voting trustees and greater than  seventy-five  percent  of  the  plan's
    13  committee members being design professionals,
    14    § 4. This act shall take effect immediately.
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