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

                                  10053

                          I N  A S S E M B L Y

                              June 10, 2014
                               ___________

Introduced  by COMMITTEE ON RULES -- (at request of M. of A. Brennan) --
  read once and referred to the Committee on  Corporations,  Authorities
  and Commissions

AN  ACT  relating  to  authorizing certain corporations to elect to be a
  non-charitable corporation

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

  Section  1.  On or after July 1, 2014, any corporation formed pursuant
to chapter 880 of the laws of 1937 or chapter 124 of the  laws  of  1952
may elect, notwithstanding that it may have both charitable and business
purposes  and notwithstanding subdivision (c) of section 201 of the not-
for-profit corporation law, to be a  non-charitable  corporation  under,
and  as defined in section 102 of the not-for-profit corporation law, by
providing written notice of such election to the  attorney  general  and
certifying  in  such  written  notice that it is not exempt from federal
income tax, but rather is taxable  as  a  corporation  pursuant  to  the
United  States  internal  revenue code of 1986, as amended, and does not
solicit or  receive  charitable  contributions,  or  accept  receipt  of
donations of assets, for charitable purposes, as contemplated by article
7-A  of  the  executive law and section 8-1.4 of the estates, powers and
trusts law, and regulations adopted thereunder. Every such notice  shall
have  endorsed  thereon  or annexed thereto the approval of a justice of
the supreme court of the judicial district in which the office  of  such
corporation  is located. Ten days' written notice of the application for
such approval shall be given to the attorney general.  Any  such  corpo-
ration  will be subject to the provisions of section 513 and section 908
of the not-for-profit corporation law as a  non-charitable  corporation,
provided  that  no certificate shall be filed pursuant to section 908 of
the not-for-profit corporation law unless  (a)  the  supreme  court  has
granted  an  order  approving  the  plan  of merger or consolidation and
authorizing the filing of the certificate as provided in  section  907-a
of  the  not-for-profit  corporation  law  as if such section applied to
mergers and consolidations effected pursuant to section 908 of the  not-
for-profit corporation law, or (b) the attorney general has approved the

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

                                                           LBD15511-01-4

A. 10053                            2

plan of merger or consolidation and authorized the filing of the certif-
icate as provided in section 907-b of the not-for-profit corporation law
as if such section applied to mergers and consolidations effected pursu-
ant to section 908 of the not-for-profit corporation law. In addition to
the  foregoing  requirements, any such corporation shall also be subject
to all other provisions of articles 1, 5, 6, 7, 8, 9 and 10 of the  not-
for-profit corporation law that would have been applicable to the corpo-
ration  were  it a charitable corporation. Nothing in this section shall
be deemed to modify the charter of, or prevent any  future  modification
of the charter of, any corporation formed pursuant to chapter 880 of the
laws  of  1937  or  chapter 124 of the laws of 1952, as such charter may
have been amended from time to time since the enactment of  chapter  880
of the laws of 1937 or chapter 124 of the laws of 1952, as applicable.
  S 2. This act shall take effect immediately.