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

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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: Bipartisan Bill

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

Download: New_York-2015-S05996-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                         5996--B
            Cal. No. 364
                               2015-2016 Regular Sessions
                    IN SENATE
                                      June 18, 2015
                                       ___________
        Introduced  by  Sens.  COMRIE, GOLDEN -- read twice and ordered printed,
          and when printed to be committed to the Committee on Rules --  commit-
          tee  discharged, bill amended, ordered reprinted as amended and recom-
          mitted to said committee -- recommitted to  the  Committee  on  Corpo-
          rations, 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 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
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11296-14-6
        S. 5996--B                          2
     1    (4) the office of the attorney  general  has  provided  written  indi-
     2  cations  that  either  it  does  not  object  to, or it approves of, the
     3  proposed conversion.
     4    §  2.  This  act shall take effect immediately and shall expire and be
     5  deemed repealed one hundred eighty days after such date.