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 funding.
Why it matters
Could increase board diversity and representation. By requiring boards to mirror the ethnic makeup of their service communities, the law aims to ensure that leadership decisions are more informed by the experiences and perspectives of those affected, potentially leading to more equitable and effective programs.
May impact funding and operations for nonprofits. Organizations seeking state funds will need to assess and, if necessary, change the composition of their boards, possibly incurring costs or facing delays in receiving funding if they cannot comply.
Promotes accountability and aligns with broader equity efforts. The bill reflects a statewide push for greater inclusivity and responsiveness in publicly funded organizations, holding nonprofits accountable to the populations they are intended to serve.
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Who cares
Headline styles
Diverse Nonprofit Boards Required
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to rules
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.
Boards Must Reflect Community Diversity
In Assembly Committee · Corporations, Authorities And Commissions · Sponsor Pamela J. Hunter
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
8873
IN SENATE
August 3, 2020
Introduced by Sen. PARKER -- read twice and ordered printed, and when printed to be committed to the Committee on Rules
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.
Sponsor's memo
Title of bill
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
Purpose or general idea of bill
This bill would require non-profits that receive funding from the state to have boards that reflect the ethnic makeup of the communities that they serve.
Summary of provisions
Section 1: Non-profit shall not accept state funds unless the board of directors consists of directors which reflect the ethnic demographics of the communities that that non-profit serves.
Section 2: Effective date.
Justification
By receiving state funds, non-profits are entrusted to fulfill a vital duty for the communities that they serve in. In order to fully under- stand the needs of those communities and remain accountable to them, it would assist in the execution of those duties if the boards of non-pro- fits accepting state funds were demographically similar to those commu- nities. By having boards that are as ethnically diverse as the communi- ties they serve in, they may be better able to relate to shared experiences of those communities and better identify problems and solutions that are within their scope of service to address. As data bears out that ethnically diverse police departments provide better service to ethnically diverse communities, the same may be true for non-profits that use public resources.
Prior legislative history
None.
Fiscal implications for state and local governments
There is no fiscal impact to the State.
Effective date
This act shall take effect one year after it shall have become law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.