S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10232
 
                           I N  A S S E M B L Y
 
                               May 15, 2024
                                ___________
 
 Introduced  by  COMMITTEE ON RULES -- (at request of M. of A. Gallagher)
   -- read once and referred to the Committee on  Corporations,  Authori-
   ties and Commissions
 
 AN  ACT  to  amend  the  not-for-profit  corporation law, in relation to
   protecting community services affected by the sale, mortgage and lease
   of real property of religious corporations

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Subparagraph 9 of paragraph (a) of section 511 of the not-
 for-profit corporation law is  renumbered  subparagraph  10  and  a  new
 subparagraph 9 is added to read as follows:
   9.  IN THE CASE OF A RELIGIOUS CORPORATION, AS SUCH TERM IS DEFINED IN
 SECTION TWO OF THE RELIGIOUS CORPORATIONS  LAW,  A  DESCRIPTION  OF  THE
 COMMUNITY  SERVICES  FOR WHICH THE CORPORATE ASSETS ARE USED, IF ANY, AT
 THE TIME OF THE PETITION AND AT ANY TIME IN THE PRECEDING  THREE  YEARS,
 LISTING  THE  REGULARITY  OF  SUCH  USE,  THE ORGANIZATION SPONSORING OR
 ORGANIZING SUCH USE, IF ANY, THE AVERAGE ATTENDANCE  OF  SUCH  COMMUNITY
 SERVICES  OR  THE  NUMBER OF INDIVIDUALS ROUTINELY SERVED, THE TERMS AND
 CONDITIONS OF SUCH USE, IF ANY, AND WHETHER SUCH COMMUNITY SERVICE ENDED
 AND FOR WHAT REASON. THE CORPORATION SHALL  AFFIX  TO  THE  PETITION  AN
 AFFIRMATION  SIGNED  BY A MEMBER, MANAGER, OR DIRECTOR OF EACH ORGANIZA-
 TION SPONSORING OR ORGANIZING SUCH  COMMUNITY  SERVICES,  INCLUDING  THE
 CORPORATION  IF APPLICABLE, ATTESTING TO THE ACCURACY OF THE INFORMATION
 DESCRIBED THEREIN. FOR THE PURPOSES OF THIS SECTION, THE TERM "COMMUNITY
 SERVICES" SHALL INCLUDE, WITHOUT LIMITATION, SOCIAL SERVICES, CHILDCARE,
 FOOD PANTRIES, DONATION COLLECTION AND DISTRIBUTION, DIRECT AID,  DISAS-
 TER  RELIEF,  TRAININGS,  TAX  PREPARATION,  IMMIGRATION  SERVICES, SOUP
 KITCHENS, REFERRALS, TOWN  HALLS  AND  COMMUNITY  MEETINGS,  SUPPORT  OR
 AFFINITY  GROUPS,  SAFE  HAVEN  OR  ASYLEE  SHELTER, SHOWERS, CHOIRS AND
 MUSICAL PERFORMANCES, AND RECREATIONAL ACTIVITIES.
   § 2. Paragraph (d) of section 511 of  the  not-for-profit  corporation
 law, as amended by chapter 961 of the laws of 1972, is amended and a new
 paragraph (e) is added to read as follows:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD15518-02-4
              

 A. 10232                            2
 
   (d)  If  it  shall  appear, to the satisfaction of the court, that the
 consideration and the terms of the transaction are fair  and  reasonable
 to  the  corporation  [and], that the purposes of the corporation or the
 interests of the members will be promoted, AND, IN THE CASE A  RELIGIOUS
 CORPORATION,  AS  SUCH  TERM  IS DEFINED IN SECTION TWO OF THE RELIGIOUS
 CORPORATIONS LAW, THAT ANY DISRUPTION OF COMMUNITY SERVICES BY THE TRAN-
 SACTION IS NOT IRREVERSIBLE OR IMMEDIATELY HARMFUL  TO  SIGNIFICANT  AND
 SENSITIVE  COMMUNITY  INTERESTS,  it  may  authorize  the  sale,  lease,
 exchange or other disposition of all or substantially all the assets  of
 the  corporation,  as  described in the petition, for such consideration
 and upon such terms as the court may prescribe. The order of  the  court
 shall  direct the disposition of the consideration to be received there-
 under by the corporation.
   (E) IN THE CASE OF A RELIGIOUS CORPORATION, AS SUCH TERM IS DEFINED IN
 SECTION TWO OF THE RELIGIOUS CORPORATIONS LAW,  IF  THE  COURT  SUSPECTS
 THAT  THE  TRANSACTION MAY CAUSE A DISRUPTION TO COMMUNITY SERVICES THAT
 IS IRREVERSIBLE OR IMMEDIATELY  HARMFUL  TO  SIGNIFICANT  AND  SENSITIVE
 COMMUNITY  INTERESTS, THE COURT MAY, IN ITS DISCRETION, SCHEDULE A SEPA-
 RATE HEARING ON THE QUESTION AND INVITE TESTIMONY  OR  SUBMISSIONS  FROM
 AFFECTED MEMBERS OF THE COMMUNITY. IF THE COURT FINDS, WITH OR WITHOUT A
 SEPARATE  HEARING  ON  THE  QUESTION, THAT THE TRANSACTION SHALL CAUSE A
 DISRUPTION TO COMMUNITY SERVICES THAT  IS  IRREVERSIBLE  OR  IMMEDIATELY
 HARMFUL TO SIGNIFICANT AND SENSITIVE COMMUNITY INTERESTS, THE COURT MAY,
 IN  ITS  DISCRETION AND AS AN ALTERNATIVE TO DENYING THE PETITION, ORDER
 THE TRANSACTION TO BE DELAYED UNTIL A REASONABLE DATE CERTAIN  BY  WHICH
 AFFECTED  COMMUNITY  ORGANIZATIONS CAN MAKE AN OFFER FOR THE PURCHASE OF
 THOSE ASSETS NECESSARY TO CONTINUE THE PROVISION OF  COMMUNITY  SERVICES
 IDENTIFIED  BY  THE COURT AS SERVING SIGNIFICANT AND SENSITIVE COMMUNITY
 INTERESTS OR ACCEPT FROM THE CORPORATION A STIPULATION ENTERED INTO WITH
 AFFECTED COMMUNITY ORGANIZATIONS TO MAKE AVAILABLE SUITABLE  ALTERNATIVE
 SPACE  OR  ANY  OTHER  APPROPRIATE  FORM  OF GUARANTEE OR SURETY FOR THE
 CONTINUED PROVISION OF THOSE COMMUNITY SERVICES IDENTIFIED BY THE  COURT
 AS SERVING SIGNIFICANT AND SENSITIVE COMMUNITY INTERESTS.
   § 3. This act shall take effect immediately.