Bill Text: NY S05996 | 2015-2016 | General Assembly | Amended

New York Senate Bill 5996 (Prior Session Legislation)

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

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

Spectrum: Bipartisan Bill

Status: (Engrossed - Dead) 2016-06-15 - SUBSTITUTED BY A8116C [S05996 Detail]

Download: New_York-2015-S05996-Amended.html

                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                        5996--A
                              2015-2016 Regular Sessions
                                   I N  S E N A T E
                                     June 18, 2015
                                      ___________
       Introduced  by  Sen.  COMRIE -- read twice and ordered printed, and when
         printed to be  committed  to  the  Committee  on  Rules  --  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.
                                                                  LBD11296-13-5