S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4956
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               April 2, 2019
                                ___________
 
 Introduced  by Sen. BENJAMIN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Corporations,  Authorities
   and Commissions
 
 AN  ACT to amend the cooperative corporations law and the not-for-profit
   corporation law, in relation to requiring the board  of  directors  of
   residential  cooperative  corporations and not-for-profit corporations
   to provide tenants with changes to the by-laws in writing  within  ten
   days  of  adoption;  in relation to notification to tenants of changes
   affecting occupancy or the rules of the building
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section 16 of the cooperative corporations law is amended
 to read as follows:
   § 16. By-laws. 1. The by-laws may provide for their amendment  by  the
 board  of  directors;  but  any  amendment adopted by the board shall be
 reported to the annual meeting of the corporation and, if  not  affirma-
 tively  approved  thereat,  shall  cease to be in effect. By-laws may be
 adopted, repealed or amended on the affirmative vote  of  two-thirds  of
 the  members, stockholders or delegates voting thereon at a meeting held
 after due written notice setting  forth  the  proposed  action  and  the
 purpose of the meeting.
   2.  IN  THE  CASE  OF  RESIDENTIAL  COOPERATIVE  CORPORATIONS, CHANGES
 INCLUDING THE ADOPTION, AMENDMENT OR REPEAL OF THE BY-LAWS BY THE  BOARD
 OF  DIRECTORS SHALL BE PROVIDED TO THE MEMBERS, STOCKHOLDERS, AND DELEG-
 ATES OF SUCH CORPORATION IN WRITING, BY PHYSICAL  OR  ELECTRONIC  MEANS,
 WITHIN TEN DAYS OF SUCH ADOPTION.
   §  2.    The  cooperative  corporations law is amended by adding a new
 section 78 to read as follows:
   § 78. NOTIFICATION TO  RESIDENTS.  UPON  THE  ADOPTION,  AMENDMENT  OR
 REPEAL  OF BY-LAWS BY THE BOARD OF DIRECTORS PURSUANT TO SUBDIVISION TWO
 OF SECTION SIXTEEN OF THIS CHAPTER,  WHERE  SUCH  CHANGE  WOULD  HAVE  A
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD01517-01-9

 S. 4956                             2
 
 DIRECT  EFFECT ON THE RESIDENT'S OCCUPANCY OR THE RULES OF THE BUILDING,
 THE BOARD OF DIRECTORS SHALL POST  THE  ADOPTED,  AMENDED,  OR  REPEALED
 BY-LAWS CONSPICUOUSLY TO ENSURE TENANTS WILL BE AWARE OF SUCH ADOPTION.
   §  3.  Section 602 of the not-for-profit corporation law is amended by
 adding a new paragraph (g) to read as follows:
   (G) IN THE CASE OF RESIDENTIAL  NOT-FOR-PROFIT  CORPORATIONS,  CHANGES
 INCLUDING  THE ADOPTION, AMENDMENT OR REPEAL OF THE BY-LAWS BY THE BOARD
 OF DIRECTORS SHALL BE PROVIDED TO THE MEMBERS, STOCKHOLDERS, AND  DELEG-
 ATES  OF  SUCH  CORPORATION IN WRITING, BY PHYSICAL OR ELECTRONIC MEANS,
 WITHIN TEN DAYS OF SUCH ADOPTION.
   § 4. The not-for-profit corporation law is amended  by  adding  a  new
 section 624 to read as follows:
 § 624. NOTIFICATION TO TENANTS.
   UPON  THE ADOPTION, AMENDMENT OR REPEAL OF THE BY-LAWS BY THE BOARD OF
 DIRECTORS PURSUANT TO PARAGRAPH (G) OF SECTION 602 (BY-LAWS), WHERE SUCH
 CHANGE WOULD HAVE A DIRECT EFFECT ON THE  RESIDENT'S  OCCUPANCY  OR  THE
 RULES  OF  THE  BUILDING, THE BOARD OF DIRECTORS SHALL POST THE ADOPTED,
 AMENDED, OR REPEALED BY-LAWS CONSPICUOUSLY TO  ENSURE  TENANTS  WILL  BE
 AWARE OF SUCH ADOPTION.
   §  5.  This  act  shall take effect on the sixtieth day after it shall
 have become a law.