Bill Text: NY S05315 | 2013-2014 | General Assembly | Amended

New York Senate Bill 5315 (Prior Session Legislation)

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

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2014-06-20 - COMMITTED TO RULES [S05315 Detail]

Download: New_York-2013-S05315-Amended.html

                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                        5315--B
           Cal. No. 605
                              2013-2014 Regular Sessions
                                   I N  S E N A T E
                                     May 16, 2013
                                      ___________
       Introduced  by  Sen.  MARCELLINO  -- read twice and ordered printed, and
         when printed to be committed to the Committee on Corporations, Author-
         ities and Commissions -- committee discharged, bill  amended,  ordered
         reprinted  as amended and recommitted to said committee -- recommitted
         to the Committee  on  Corporations,  Authorities  and  Commissions  in
         accordance  with Senate Rule 6, sec. 8 -- reported favorably from said
         committee, ordered to first and second  report,  ordered  to  a  third
         reading,  amended  and  ordered  reprinted, retaining its place in the
         order of third reading
       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.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD10937-04-4
       S. 5315--B                          2
    1    (J) NO PERSON WHO IS RELATED TO THE CHIEF EXECUTIVE OR ANY MEMBER OF A
    2  GOVERNING BODY BY BLOOD OR MARRIAGE SHALL BE EMPLOYED BY SUCH  ORGANIZA-
    3  TION,  EXCEPT  WITH  THE  APPROVAL  OF  TWO-THIRDS OF THE MEMBERS OF THE
    4  GOVERNING BODY.
    5    (K)  NOTWITHSTANDING  ANY PROVISION TO THE CONTRARY, THE PROVISIONS OF
    6  PARAGRAPHS (G), (I) AND (J) OF THIS SECTION SHALL NOT APPLY TO  CEMETERY
    7  CORPORATIONS THAT MUST COMPLY WITH ARTICLE FIFTEEN OF THIS CHAPTER.
    8    S  2. This act shall take effect one year after it shall have become a
    9  law.