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Sponsors
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History
- Held for consideration in corporations, authorities and commissions
- Referred to corporations, authorities and commissions
- Referred to corporations, authorities and commissions
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Protects directors, officers and trustees of certain corporations from liability
In Senate Committee · Corporations, Authorities And Commissions · Sponsor Carl Kruger
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:A279
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 of specific provisions
This bill would amend not-for-profit corporation law Section 720-a to expand New York State's limited liability of directors, officers and trustees of non-profit corporations to include organizations prescribed in the Federal Internal Revenue Code Section 501(c)(4). Present law applies only to organizations described in Section 501(c)(3) of the Internal Revenue Code.
Justification
Section 501(c)(3) of the IRC exempts from federal taxation those organ- izations operated exclusively for charitable, scientific, testing for public safety, literary or educational purposes as well as those designed 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 exclu- sively for the promotion of social welfare, or local associations of employees, the membership of which is limited to the employees of a designated person or persons in a particular municipality, and the net earnings of which are devoted exclusively to charitable, educational or recreational purposes.
Given the similarity between 501(c)(3) and 501(c)(4) organizations, there is no apparent reason why both forms should not be eligible for the protections accorded by Section 720-a of the Not-For-Profit Corpo- ration Law. This bill would accomplish this.
Prior legislative history
2007-2008: A.68 - Referred to Corporations, Authorities, and Commis- sions. 2005-2006: A.633 - Referred to Corporations, Authorities, and Commis- sions. 2003-2004: A.4931/S.1494 - Referred to Corporations, Authorities, and Commissions.
Fiscal implications
None.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.