Relates to the effectiveness of provisions of law relating to prohibiting employees of a not-for-profit corporation from serving as chair of the board.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A7641
SPONSOR: Brennan
 
TITLE OF BILL:
An act to amend chapter 549 of the laws of 2013, amending the executive
law and other laws relating to reform of charitable organizations, in
relation to the effectiveness of certain provisions of such chapter
 
PURPOSE OR GENERAL IDEA OF BILL:
To change the effective date of the prohibition on not-for-profit
employees serving as chairperson of the board of directors of the corpo-
ration.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section one change the effective date of paragraph (f) of section 713 of
not-for-profit law from January 1, 2016 to January 1, 2017.
Section two of the bill establishes the effective date.
 
JUSTIFICATION:
Paragraph (f) of section 713 of the Not-For-Profit Law was added in the
Not-For-Profit Revitalization Act of 2013 and will become effective on
January 1, 2016.
The intent of paragraph (f) is to prevent employees of a not-for-profit
corporation from serving as chair of the not-for-profit's board of
directors. While this intention is a worthy policy goal, the Legislature
requires more time to study the impact of this prohibition on not-for-
profit corporations.
 
PRIOR LEGISLATIVE HISTORY:
This is a new bill.
 
FISCAL IMPLICATIONS:
None
 
EFFECTIVE DATE:
This act shall take effect immediately.