What's happening
This bill requires not-for-profit corporations to have boards reflecting the ethnic demographics of the communities they serve to receive state funds.
Why it matters
Shifts accountability. By tying state funding to board composition, the bill compels not-for-profit organizations to actively ensure their leadership represents the racial and ethnic diversity of the communities they serve, making diversity a financial and governance priority.
Potential for structural change. This could lead to significant restructuring of existing boards, requiring organizations to recruit and include more diverse members, thereby potentially changing decision-making dynamics and priorities within these organizations.
Emphasis on representation. The law recognizes that leadership diversity is crucial for equitable service delivery, aiming to align organizational governance more closely with the lived experiences and needs of their target populations.
Possible impact on state funding access. Organizations that do not meet these requirements may lose eligibility for state funds, which could particularly impact larger or established nonprofits that have not prioritized board diversity, potentially shifting funding toward organizations already reflective of their communities.
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Who cares
Headline styles
Boards Must Reflect Community Diversity
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- 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.
Diverse Nonprofit Boards Required
In Senate Committee · Rules · Sponsor Kevin S. Parker
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
10929
IN ASSEMBLY
August 17, 2020
Introduced by COMMITTEE ON RULES -- (at request of M. of A. Hunter) -read once and referred to the Committee on Corporations, Authorities and Commissions
AN ACT to amend the not-for-profit corporation law, in relation to requiring certain not-for-profit corporations have a board of directors which reflects the ethnic demographics of the communities that they serve
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 701 of the not-for-profit corporation law is amended by adding a new paragraph (c) to read as follows:
(c) No corporation shall accept state funds unless the board of directors of such corporation consists of directors which reflect the ethnic demographics of the communities that such corporation serves.
§ 2. This act shall take effect one year after it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD16880-01-0
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.