Senate Bill S5996B

Signed By Governor
2015-2016 Legislative Session

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

download bill text pdf

Sponsored By

Archive: Last Bill Status Via A8116 - Signed by Governor

  • Introduced
    • In Committee Assembly
    • In Committee Senate
    • On Floor Calendar Assembly
    • On Floor Calendar Senate
    • Passed Assembly
    • Passed Senate
  • Delivered to Governor
  • Signed By Governor

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Bill Amendments

2015-S5996 - Details

See Assembly Version of this Bill:
A8116
Law Section:
Corporations

2015-S5996 - Summary

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

2015-S5996 - Sponsor Memo

2015-S5996 - Bill Text download pdf 

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  5996

                       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

AN ACT to amend a chapter of the laws of 2015, amending the not-for-pro-
  fit corporation law relating to allowing certain entities  to  convert
  their  status of filing as a not-for-profit organization to a for-pro-
  fit entity, as  proposed  in  legislative  bills  numbers  S.5848  and
  A.8116,  in  relation  to  providing for the repeal of such provisions
  upon the expiration thereof

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Section  2 of a chapter of the laws of 2015, amending the
not-for-profit corporation law relating to allowing certain entities  to
convert  their  status  of  filing as a not-for-profit organization to a
for-profit entity, as proposed in legislative bills numbers  S.5848  and
A.8116, is amended to read as follows:
  S  2.  This  act shall take effect on the thirtieth day after it shall
have become a law, AND SHALL EXPIRE AND  BE  DEEMED  REPEALED  180  DAYS
AFTER IT SHALL TAKE EFFECT.
  S  2.  This  act  shall  take  effect on the same date and in the same
manner as a chapter of the laws of  2015,  amending  the  not-for-profit
corporation  law  relating to allowing certain entities to convert their
status of filing as a not-for-profit organization to a for-profit  enti-
ty,  as  proposed  in legislative bills numbers S.5848 and A.8116, takes
effect.



 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11296-07-5

co-Sponsors

2015-S5996A - Details

See Assembly Version of this Bill:
A8116
Law Section:
Corporations

2015-S5996A - Summary

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

2015-S5996A - Sponsor Memo

2015-S5996A - Bill Text download pdf 

                            
                    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:

  Section 1. Notwithstanding any provision of law  to  the  contrary,  a
business incorrectly incorporated, as a not-for-profit corporation under
section  four hundred two of the not-for-profit corporation law shall be
permitted to convert its status of filing  as  a  not-for-profit  corpo-
ration to a for-profit corporation under section four hundred two of the
business  corporation law if the incorporator or incorporators submit to
the attorney general sworn statements under  the  penalties  of  perjury
certifying the following:
  (1) that legal advice had not been sought or received as to the appro-
priate course of action that would have resulted in correct registration
allowing for the intended for-profit operation of the entity;
  (2)  the  entity at no time received the benefits and/or privileges of
being recognized as a not-for-profit corporation, such as  being  exempt
from incurring any local, state, or federal taxes;
  (3)  the  entity  throughout  its operation as a not-for-profit corpo-
ration did not at any time solicit and/or  receive  any  private  and/or
public grants or charitable donations; and
  (4)  the  office of the attorney general has not raised any objections
to the proposed conversion.
  S 2. This act shall take effect immediately and shall  expire  and  be
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

co-Sponsors

2015-S5996B (ACTIVE) - Details

See Assembly Version of this Bill:
A8116
Law Section:
Corporations

2015-S5996B (ACTIVE) - Summary

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

2015-S5996B (ACTIVE) - Bill Text download pdf 

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 5996--B
    Cal. No. 364

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                              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:

  Section  1.  Notwithstanding  any  provision of law to the contrary, a
business incorrectly incorporated, as a not-for-profit corporation under
section four hundred two of the not-for-profit corporation law shall  be
permitted  to  convert  its  status of filing as a not-for-profit corpo-
ration to a for-profit corporation under section four hundred two of the
business corporation law if the incorporator or incorporators submit  to
the  attorney  general  sworn  statements under the penalties of perjury
certifying the following:
  (1) that legal advice had not been sought or received as to the appro-
priate course of action that would have resulted in correct registration
allowing for the intended for-profit operation of the entity;
  (2) the entity at no time received the benefits and/or  privileges  of
being  recognized  as a not-for-profit corporation, such as being exempt
from incurring any local, state, or federal taxes;
  (3) the entity throughout its operation  as  a  not-for-profit  corpo-
ration  did  not  at  any time solicit and/or receive any private and/or
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

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