Published on The National Law Review http://www.natlawreview.com/print/article/additional-clarifying-amendments-to-nonprofit-revitalization-act-signed-law
On November 28, 2016, Governor Cuomo signed into law Chapter 466 of the Laws of New York of 2016 (Assemb. Bill 10365B) (the “2016 Amendment”). The 2016 Amendment is intended to “improve and make clarifying amendments to the Nonprofit Revitalization Act of 2013” (the “NPRA”)1 in order to “correct certain inconsistencies, and . . . make the statute operate more smoothly and efficiently,”2 most notably to the “related party” provisions and the prohibition in the NPRA against employees serving as the chair of the board of a corporation organized under the New York Not-for-Profit Corporation Law (“NPCL”). The 2016 Amendment amends certain provisions of the NPCL and corresponding provisions of the Estates, Powers and Trusts Law.3 The changes go into effect on May 27, 2017, 180 days after the Governor signed the law, except for the amendment to NPCL § 713(f), described below, relating to the chair of the board, which is effective on January 1, 2017.
Set forth below is a summary of certain of the most substantive changes made to the NPCL by the 2016 Amendment.
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