What's happening
This bill requires annual conflict-of-interest reports by condominium and cooperative housing boards, detailing related-party transactions and board votes.
Why it matters
Increases transparency and accountability. by requiring boards to disclose all contracts involving potential conflicts of interest, so residents and shareholders can see if board members are doing business with themselves or associates.
Mandates documentation of board decision-making. , including who attended meetings, how each director voted on related-party contracts, and when those votes occurred—making it harder for boards to hide questionable dealings.
Creates a paper trail for potential disputes or legal actions. by requiring signed annual statements from all directors, which can clarify whether any conflict-of-interest transactions took place or affirm none occurred.
Empowers residents and shareholders. with information to better assess how their building is managed, potentially deterring self-dealing or favoritism in contract awards by making such actions more visible.
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Who cares
Headline styles
Disclose Co-op Board Conflicts
Plain English, a few words. Used as the page title.
Sponsors
2 Co-sponsors
History
- Approval memo.6
- Signed chap.305
- Delivered to governor
- Returned to assembly
- Passed senateVote 62–0
- 3rd reading cal.2180
- Substituted for S6652A
- Recommitted to rules
- Returned to senate
- Repassed assembly
- Amended on third reading (t) 8261a
- Vote reconsidered - restored to third reading
Show 10 earlier actions
- Returned to assembly
- Recalled from senate
- Referred to rules
- Delivered to senate
- Passed assembly
- Ordered to third reading rules cal.269
- Rules report cal.269
- Reported
- Reported referred to rules
- Referred to housing
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.
Disclose Coop Board Conflicts
Senate Floor Calendar · Sponsor Martin J. Golden
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
8261--A R. R. 269
2017-2018 Regular Sessions
IN ASSEMBLY
June 2, 2017
Introduced by M. of A. CYMBROWITZ, BARRON -- read once and referred to the Committee on Housing -- reported and referred to the Committee on Rules -- ordered to a third reading, passed by Assembly and delivered to the Senate, recalled from the Senate, vote reconsidered, bill amended, ordered reprinted, retaining its place on the special order of third reading
AN ACT to amend the not-for-profit corporation law and the business corporation law, in relation to conflicts of interests for condominium and cooperative housing
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The not-for-profit corporation law is amended by adding a new section 519-a to read as follows: § 519-a. Annual reports for certain transactions required.
(a) Every condominium or cooperative housing corporation, incorporated pursuant to this chapter, shall, at least once each year:
(1) require that each director, as defined in paragraph six of subdivision (a) of section one hundred two of this chapter, receive a copy of section seven hundred fifteen of this chapter; and
(2) provide an annual report to the members or to the governing board, if there are no members, which shall be signed by each such director, containing information on any contracts made, entered into, or otherwise voted on by the board of directors that were considered a related party transaction pursuant to section seven hundred fifteen of this chapter.
(b) The annual report required by subdivision (a) of this section shall include, but not be limited to, the following:
(1) a list of all contracts voted on by the board of directors, including information on the contract recipient, contract amount, and the purpose of entering into the contract;
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13036-04-7
A. 8261--A 2
(2) the record of each meeting including director attendance, voting records for contracts, and how each director voted on such contracts; and
(3) the date of each vote on each contract, and the date the contract would be and remain valid.
(c) If the annual report required by paragraph two of subdivision (a) of this section would, notwithstanding the requirements of this section, contain no information because of the absence of any actions taken by the board that would otherwise qualify for inclusion in such annual report, then the board shall instead submit to the members or to the governing board, if there are no members, a document, signed by each director, indicating: "No actions taken by the board were subject to the annual report required pursuant to section 519-a of the Not-for-Profit Corporation Law".
§ 2. The business corporation law is amended by adding a new section 727 to read as follows: § 727. Annual reports for certain transactions required.
(a) Every condominium or cooperative housing corporation, incorporated pursuant to this chapter, shall, at least once each year:
(1) require that each director, as defined in paragraph five of subdivision (a) of section one hundred two of this chapter, receive a copy of section seven hundred thirteen of this chapter; and
(2) submit an annual report to the shareholders, which shall be signed by each such director, containing information on any contracts made, entered into, or otherwise voted on by the board of directors where one or more of the directors was an interested director, pursuant to section seven hundred thirteen of this chapter.
(b) The annual report required by subdivision (a) of this section shall include, but not be limited to, the following:
(1) a list of all contracts voted on by the board of directors, including information on the contract recipient, contract amount, and the purpose of entering into the contract;
(2) the record of each meeting including director attendance, voting records for contracts, and how each director voted on such contracts; and
(3) the date of each vote on each contract, and the date the contract would be and remain valid.
(c) If the annual report required by subdivision (a) of this section would, notwithstanding the requirements of this section, contain no information because of the absence of any actions taken by the board that would otherwise qualify for inclusion in such annual report, then the board shall instead submit to the shareholders a document, signed by each director, indicating: "No actions taken by the board were subject to the annual report required pursuant to section 727 of the Business Corporation Law".
§ 3. This act shall take effect on the first of January next succeeding the date on which it shall have become a law.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.