Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
|
---|---|
Feb 07, 2011 |
referred to corporations, authorities and commissions |
Senate Bill S3003
2011-2012 Legislative Session
Sponsored By
(D) Senate District
Archive: Last Bill Status - In Senate Committee Corporations, Authorities And Commissions Committee
- 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
Actions
2011-S3003 (ACTIVE) - Details
- Current Committee:
- Senate Corporations, Authorities And Commissions
- Law Section:
- Not-for-Profit Corporation Law
- Laws Affected:
- Amd §720-a, N-PC L
- Versions Introduced in 2009-2010 Legislative Session:
-
S213
2011-S3003 (ACTIVE) - Sponsor Memo
BILL NUMBER:S3003 TITLE OF BILL: An act to amend the not-for-profit corporation law, in relation to liability of directors, officers and trustees of certain corporations SUMMARY: This bill would amend Not-For-Profit Corporation law § 720-a to expand New York State's limited liability of directors, officers and trustees of non-profit corporations to include corporations described in the Federal Internal Revenue Code § 501(c)(3) of the Internal Revenue Code. JUSTIFICATION: Section 501(c)(3) of the IRC exempts from federal taxation those organizations operated exclusively for charitable, scientific, testing for public safety, literary or educational purposes as well as those designated for the prevention of cruelty to children or animals. It was these types of organizations whose directors and officers were given limited liability protection by the Legislature in 1986. Section 501(c)(4) exempts from taxation non-profit organizations operated exclusively for the promotion of social welfare, or local associations of employees, the membership of which is limited to the
2011-S3003 (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 3003 2011-2012 Regular Sessions I N S E N A T E February 7, 2011 ___________ Introduced by Sen. KRUGER -- read twice and ordered printed, and when printed to be committed to the Committee on Corporations, Authorities and Commissions AN ACT to amend the not-for-profit corporation law, in relation to liability of directors, officers and trustees of certain corporations THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 720-a of the not-for-profit corporation law, as added by chapter 220 of the laws of 1986, is amended to read as follows: S 720-a. Liability of directors, officers and trustees. Except as provided in sections seven hundred nineteen and seven hundred twenty of this [chapter] ARTICLE, and except any action or proceeding brought by the attorney general or, in the case of a chari- table trust, an action or proceeding against a trustee brought by a beneficiary of such trust, no person serving without compensation as a director, officer or trustee of a corporation, association, organization or trust described in section 501 (c) (3) OR 501 (C) (4) of the United States internal revenue code shall be liable to any person other than such corporation, association, organization or trust based solely on his or her conduct in the execution of such office unless the conduct of such director, officer or trustee with respect to the person asserting liability constituted gross negligence or was intended to cause the resulting harm to the person asserting such liability. For purposes of this section, such a director, officer or trustee shall not be consid- ered compensated solely by reason of payment of his or her actual expenses incurred in attending meetings or otherwise in the execution of such office. S 2. This act shall take effect immediately. EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD00368-01-1
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