S7378A-2011 Actions

• Jun 11, 2012: SUBSTITUTED BY A10281
• Jun 4, 2012: ADVANCED TO THIRD READING
• May 31, 2012: 2ND REPORT CAL.
• May 30, 2012: 1ST REPORT CAL.946
• May 17, 2012: PRINT NUMBER 7378A
• May 17, 2012: AMEND AND RECOMMIT TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
• May 2, 2012: REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS

S7378A-2011 Meetings

S7378A-2011 Calendars

S7378A-2011 Votes

S7378A-2011 Memo

BILL NUMBER:S7378A

TITLE OF BILL:
An act
to amend the business corporation law, in relation to design
professional service corporations

PURPOSE:
To clarify the law regarding design professional services corporations
by allowing professional corporations (P.C.'s) to convert to design
professional service corporations (D.P.C's) without having to create
a separate corporation while converting from the original corporation.

SUMMARY OF PROVISIONS:
Section 1503 of the business corporation law is amended by adding a
new paragraph (b-5) to allow an existing professional service
corporation to convert to a design professional service corporation.

JUSTIFICATION:
Chapter 550 of the Laws of 2011 created a new type of professional
corporation-a design professional service corporation or D.P.C. Under
this new law, design firms are given the option of offering an
ownership interest in the corporation to non-licensed employees
through an Employee Stock Ownership Olan (ESOP). However, it has
become unclear whether or not professional corporations wishing to
offer this ESOP can easily transition to D.P.C's without the need to
reincorporate as a new entity. This amendment will clarify the
conversion process for professional corporations by allowing
corporations in good standing to simply convert to D.P.C's.

LEGISLATIVE HISTORY:
New legislation.

FISCAL IMPLICATIONS:
None to the State.

EFFECTIVE DATE:
Immediately.

S7378A-2011 Text

 S T A T E   O F   N E W   Y O R K
 
 7378--A
 I N  SENATE
 May 2, 2012
 
 Introduced  by  Sen. LAVALLE -- read twice and ordered printed, and when
 printed to be committed to the Committee on Corporations,  Authorities
 and   Commissions  --  committee  discharged,  bill  amended,  ordered
 reprinted as amended and recommitted to said committee
 

AN ACT to amend the business corporation  law,  in  relation  to  design
 professional service corporations
 

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

 

Section 1.

Section 1503 of the business corporation law is amended  by
 adding a new paragraph (b-5) to read as follows:

 (B-5) ON OR AFTER JANUARY FIRST, TWO THOUSAND TWELVE, THE STATE EDUCA
 TION  DEPARTMENT  AND  THE  DEPARTMENT  OF STATE SHALL ALLOW AN EXISTING
 PROFESSIONAL SERVICE CORPORATION IN GOOD STANDING TO CONVERT TO A DESIGN
 PROFESSIONAL SERVICE CORPORATION AS DEFINED IN  THIS  ARTICLE,  PROVIDED
 THE  DESIGN  PROFESSIONAL  SERVICE CORPORATION MEETS ALL OF THE REQUIRE
 MENTS TO BECOME A DESIGN  PROFESSIONAL  SERVICE  CORPORATION,  INCLUDING
 THAT ITS NAME SHALL END WITH THE WORDS "DESIGN PROFESSIONAL CORPORATION"
 OR THE ABBREVIATION "D.P.C.".
 

S 2. This act shall take effect immediately.
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD15709-02-2

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