Bill Text: NY S05310 | 2015-2016 | General Assembly | Introduced

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Bill Title: Prohibits certain employees of a not-for-profit corporation from serving on the corporation's governing board or from hiring family members.

Sponsorship: Partisan Bill (Republican 1)

Status: (Introduced - Dead) 2016-01-06 - REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS [S05310 Detail]

Download: New_York-2015-S05310-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         5310
                              2015-2016 Regular Sessions
                                   I N  S E N A T E
                                     May 13, 2015
                                      ___________
       Introduced  by  Sen.  MARCELLINO  -- read twice and ordered printed, and
         when printed to be committed to the Committee on Corporations, Author-
         ities and Commissions
       AN ACT to amend the  not-for-profit  corporation  law,  in  relation  to
         prohibiting  certain  employees  of  a not-for-profit corporation from
         serving on the corporation's governing board  or  from  hiring  family
         members
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Section  602  of  the  not-for-profit  corporation  law  is
    2  amended by adding five new paragraphs (g), (h), (i), (j) and (k) to read
    3  as follows:
    4    (G)  THE  BY-LAWS  OF  A  NOT-FOR-PROFIT  CORPORATION  SHALL CONTAIN A
    5  PROVISION ON:
    6    (1) EMPLOYEES SERVING ON SUCH GOVERNING BODY AND THE PERCENTAGE OF THE
    7  MEMBERSHIP OF THE GOVERNING BODY THAT MUST BE INDEPENDENT OF THE  ORGAN-
    8  IZATION;
    9    (2)  HIRING OF FAMILY MEMBERS OF EMPLOYEES AND GOVERNING BODY MEMBERS;
   10  AND
   11    (3) CONFLICT OF INTEREST COVERING BUSINESS INTERESTS.
   12    (H) ALL BY-LAWS REQUIRED IN THIS SECTION SHALL BE AVAILABLE FOR REVIEW
   13  BY THE ATTORNEY GENERAL UPON REQUEST.
   14    (I) EMPLOYEES OF A  NOT-FOR-PROFIT  CORPORATION  ARE  PROHIBITED  FROM
   15  SERVING  AS  THE  CHAIR  OF  SUCH ORGANIZATION'S GOVERNING BODY AND FROM
   16  SERVING AS A VOTING MEMBER OF SUCH ORGANIZATION'S GOVERNING BODY.
   17    (J) NO PERSON WHO IS RELATED TO THE CHIEF EXECUTIVE OR ANY MEMBER OF A
   18  GOVERNING BODY BY BLOOD OR MARRIAGE SHALL BE EMPLOYED BY SUCH  ORGANIZA-
   19  TION,  EXCEPT  WITH  THE  APPROVAL  OF  TWO-THIRDS OF THE MEMBERS OF THE
   20  GOVERNING BODY.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD11030-01-5
       S. 5310                             2
    1    (K) NOTWITHSTANDING ANY PROVISION TO THE CONTRARY, THE  PROVISIONS  OF
    2  PARAGRAPHS  (G), (I) AND (J) OF THIS SECTION SHALL NOT APPLY TO CEMETERY
    3  CORPORATIONS THAT MUST COMPLY WITH ARTICLE FIFTEEN OF THIS CHAPTER.
    4    S  2. This act shall take effect one year after it shall have become a
    5  law.