NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A7892
SPONSOR: Braunstein TITLE OF BILL:
An act to amend the religious corporations law, in relation to the court
approval process for the sale, mortgage and lease of real property of a
religious corporation
PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this bill is to expedite the process by which the Greek
Orthodox Archdiocese obtains court approval for the disposition of its
assets.
SUMMARY OF PROVISIONS:
Section 1 of the bill amends section 2-b of the Religious Corporations
Law to exempt the Greek Orthodox Archdiocese from having to provide
notice to the Attorney General when it is seeking court approval for the
disposition of its assets.
Section 2 of the bill amends section 12 of the Religious Corporations
Law by adding a new subdivision (5-d) requiring the trustees of the
Greek Orthodox Archdiocese to first obtain approval from its archbishop
prior to petitioning the court for approval to dispose its real proper-
ty.
Section 3 of the bill amends subdivision 6 of section 12 of the Reli-
gious Corporations Law to require the Greek Orthodox Church to certify
that it has complied with this section in its petition to the court.
JUSTIFICATION:
This bill seeks to expedite the process by which the Greek Orthodox
Archdiocese obtains court approval for the disposition of its assets.
Pursuant to section 12 of the Religious Corporations Law, religious
corporations seeking to sell, mortgage or lease for a term exceeding
five years any of their real property must obtain either court approval
or Attorney General approval. Section 511(b) of Not-for-Profit Corpo-
ration Law provides that when seeking court approval, the Attorney
General must be given at least 15 days notice before a court hearing on
the petition for approval. Unfortunately, the current process can add
thousands of dollars in extra costs and delay the ability of the Greek
Orthodox Archdiocese to obtain court approval in an expeditious manner.
Currently, section 2-b of the Religious Corporations Law exempts certain
religious corporations from having to provide notice to the Attorney
General when they petition for court approval. Churches currently
exempted from this requirement include the Protestant Episcopal Church,
the Roman Catholic Church, the Ruthenian Catholic Church, the Ruthenian
Catholic Church, the African Methodist Church, the Presbyterian Church,
the United Methodist Church, and the Reformed Church of America. These
churches were exempted because they are hierarchical. The Greek Orthodox
Archdiocese is also a hierarchical church. Accordingly, this bill amends
the list of exempted religious corporations to include the Greek Ortho-
dox Archdiocese, and requires that the church first obtain approval from
its archbishop prior to petitioning the court. This ensures the proper
safeguards are in place without the need for notice to the Attorney
General.
LEGISLATIVE HISTORY:
New Bill.
FISCAL IMPLICATIONS:
None.
EFFECTIVE DATE:
This act shall take effect immediately.
