Requires not-for-profit corporations have a board of directors which reflects the ethnic demographics of the communities that they serve to be able to receive state funds.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A753
SPONSOR: Hunter 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:
2020: A.10929
2021-22 A3620
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.
STATE OF NEW YORK
________________________________________________________________________
753
2023-2024 Regular Sessions
IN ASSEMBLY
January 11, 2023
___________
Introduced by M. of A. HUNTER, GONZALEZ-ROJAS -- 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 direc-
tors which reflects the ethnic demographics of the communities that
they serve
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 701 of the not-for-profit corporation law is
2 amended by adding a new paragraph (c) to read as follows:
3 (c) No corporation shall accept state funds unless the board of direc-
4 tors of such corporation consists of directors which reflect the ethnic
5 demographics of the communities that such corporation serves.
6 § 2. This act shall take effect one year after it shall have become a
7 law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD02614-01-3
