Bill Text: NY A01891 | 2021-2022 | General Assembly | Amended
Bill Title: Provides for expanded ownership in design professional corporations by employee stock ownership plans and non-licensed employees.
Spectrum: Slight Partisan Bill (Democrat 6-3)
Status: (Introduced - Dead) 2022-05-03 - substituted by s5261b [A01891 Detail]
Download: New_York-2021-A01891-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 1891--D 2021-2022 Regular Sessions IN ASSEMBLY January 11, 2021 ___________ Introduced by M. of A. LUPARDO, THIELE, SANTABARBARA, STECK, FAHY, WOER- NER -- Multi-Sponsored by -- M. of A. LAWLER, McDONOUGH, B. MILLER -- read once and referred to the Committee on Higher Education -- commit- tee discharged, bill amended, ordered reprinted as amended and recom- mitted to said committee -- recommitted to the Committee on Higher Education in accordance with Assembly Rule 3, sec. 2 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- again reported from said committee with amend- ments, ordered reprinted as amended and recommitted to said committee -- recommitted to the Committee on Higher Education in accordance with Assembly Rule 3, sec. 2 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the business corporation law, in relation to providing for expanded ownership in design professional corporations by employee stock ownership plans and non-licensed employees The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subparagraphs (i) and (ii) of paragraph (b-1) of section 2 1503 of the business corporation law, as added by chapter 550 of the 3 laws of 2011, are amended to read as follows: 4 (i) greater than seventy-five percent of the outstanding shares of 5 stock of the corporation are owned by design professionals and an ESOP 6 (or ESOPs) with greater than seventy-five percent of the plan's voting 7 trustees or greater than seventy-five percent of the plan's committee 8 members being design professionals, 9 (ii) an ESOP, either in part or in its entirety, shall not constitute 10 part of the greater than seventy-five percent owned by design profes- 11 sionals unless greater than seventy-five percent of the plan's voting 12 trustees or greater than seventy-five percent of the plan's committee 13 members are design professionals, EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD02875-10-2A. 1891--D 2 1 § 2. Subparagraphs (i) and (ii) of paragraph (b) of section 1507 of 2 the business corporation law, as added by chapter 550 of the laws of 3 2011, are amended to read as follows: 4 (i) greater than seventy-five percent of the outstanding shares of 5 stock of the corporation are owned by design professionals and an ESOP 6 (or ESOPs) with greater than seventy-five percent of the plan's voting 7 trustees or greater than seventy-five percent of the plan's committee 8 members being design professionals, 9 (ii) an ESOP, either in part or in its entirety, shall not constitute 10 part of the greater than seventy-five percent owned by design profes- 11 sionals unless greater than seventy-five percent of the plan's voting 12 trustees or greater than seventy-five percent of the plan's committee 13 members are design professionals, 14 § 3. Subparagraph (i) of paragraph (b) of section 1514 of the business 15 corporation law, as added by chapter 550 of the laws of 2011, is amended 16 to read as follows: 17 (i) greater than seventy-five percent of the outstanding shares of 18 stock of the corporation are and were owned by design professionals and 19 an ESOP (or ESOPs) with greater than seventy-five percent of the plan's 20 voting trustees or greater than seventy-five percent of the plan's 21 committee members being design professionals, 22 § 4. Paragraph (a) of section 1505 of the business corporation law, as 23 amended by chapter 550 of the laws of 2011, is amended to read as 24 follows: 25 (a) (i) Each shareholder, employee or agent of a professional service 26 corporation and a design professional service corporation shall be 27 personally and fully liable and accountable for any negligent or wrong- 28 ful act or misconduct committed by him or by any person under his direct 29 supervision and control while rendering professional services on behalf 30 of such corporation. 31 (ii) An employee stock ownership plan owning greater than twenty-five 32 percent of the outstanding shares of a design professional service 33 corporation organized under paragraph (b-1) of section fifteen hundred 34 three of this article shall be under the supervision of the regents of 35 the university of the state of New York, shall register with the state 36 education department and shall be issued a certificate granting such 37 employee stock ownership plan the authority to hold shares of such 38 corporation. Such certificate shall be subject to professional miscon- 39 duct provisions as set forth in article one hundred thirty of the educa- 40 tion law. In addition, the failure to maintain an active registration 41 with the state education department shall also subject such certificate 42 to discipline as provided above. The secretary of state shall be the 43 designated agent for service of process in any disciplinary matter 44 involving a registered employee stock ownership plan. 45 (iii) Any such employee stock ownership plan shall not influence, or 46 attempt to influence, any decisions that fall within a design profes- 47 sional's scope of practice. 48 § 5. This act shall take effect two years after it shall have become a 49 law.
