What's happening
Writing a plain-English summary… Track this bill to get it by email.
Why it matters
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
Sponsors
No co-sponsors yet.
History
- 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 Assembly Committee · Corporations, Authorities And Commissions · Sponsor Audrey Pheffer
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
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 employees or 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 § 720-a of the Not-For-Profit Corporation Law. This bill would accomplish this.
Fiscal implication
None.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.