NY Assembly Bill 8116 is signed into law concerning not-for-profit organizations
New York Assembly Bill 8116 was signed by New York Governor Andrew Cuomo on November 28, 2016. NY A8116 allows certain not-for-profit corporations to convert to a for-profit corporation. The bill became effective November 28, 2016, and is repealed 180 days after its enactment, May 28, 2017.
In order to convert, the not-for-profit corporation is required to obtain consent from the NYS A
ttorney General. To obtain consent, the incorporator or incorporators must submit to the attorney general sworn statements under the penalties of perjury certifying the following:
(1) that legal advice had not been sought or received as to the appropriate course of action that would have resulted in correct registration allowing for the intended for-profit operation of the entity.
(2) the entity at no time received the benefits and/or privileges of being recognized as a not-for-profit corporation, such as being exempt from incurring any local, state, or federal taxes.
(3) the entity throughout its operation as a not-for-profit corporation did not at any time solicit and/or receive any private and/or public grants or charitable donations.
(4) the office of the attorney general has provided written indication that either it does not object to, or it approves of, the proposed conversion.
Please reference the bel
ow hyperlink to view the entire bill:http://nyassembly.gov/leg/?default_fld=&leg_video=&bn=A08116&term=2015&Summary=Y&Actions=Y&Memo=Y&Text=Y