S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  2040

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            January 15, 2009
                               ___________

Introduced  by  M. of A. CALHOUN, BURLING, ERRIGO, KOLB, McDONOUGH, OAKS
  -- Multi-Sponsored by -- M. of A. ALFANO -- read once and referred  to
  the Committee on Governmental Operations

AN  ACT  to amend the executive law, in relation to charitable organiza-
  tions

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Subdivision  1  of  section  172  of the executive law is
amended by adding a new paragraph (k) to read as follows:
  (K) A DETAILED STATEMENT SETTING FORTH HOW  THE  PERCENTAGE  OF  FUNDS
CONTRIBUTED TO THAT CHARITABLE ORGANIZATION ARE ALLOCATED TO EACH OF THE
FOLLOWING:  (I)  ADMINISTRATIVE  AND OPERATING EXPENSES, AND (II) DIRECT
CHARITABLE PURPOSES CONSISTENT WITH THOSE STATED IN THAT  ORGANIZATION'S
REGISTRATION AS REQUIRED BY PARAGRAPH (E) OF THIS SUBDIVISION.
  S  2.  Subdivision 2 of section 172-d of the executive law, as amended
by chapter 43 of the laws of 2002, is amended to read as follows:
  2. Engage in any fraudulent or illegal act, device,  scheme,  artifice
to  defraud  or  for  obtaining  money  or  property by means of a false
pretense,  representation  or  promise,  transaction  or  enterprise  in
connection with any solicitation or with the registration, reporting and
disclosure  provisions  of  this  article,  INCLUDING ANY STATEMENT THAT
COULD REASONABLY BE DEEMED TO FALSELY IMPLY  THAT  A  PROFESSIONAL  FUND
RAISER  AS  DEFINED  IN  THIS ARTICLE IS NOT IN FACT A PROFESSIONAL FUND
RAISER BUT IS RATHER A MEMBER OR OFFICER OF THE ORGANIZATION  WHICH  HAS
CONTRACTED  WITH  SUCH  PROFESSIONAL  FUND  RAISER.  The term "fraud" or
"fraudulent" as used herein shall include those acts which may be  char-
acterized as misleading or deceptive including, but not limited to those
acts  covered  by  the  term  "fraud"  or "fraudulent" under subdivision
twelve of section sixty-three of this chapter  AND  ALSO  INCLUDING  ANY
VERBAL  OR  WRITTEN  STATEMENT  THAT  FALSELY  INDICATES  THAT A GREATER
PERCENTAGE OF FUNDS COLLECTED BY THE PROFESSIONAL FUND  RAISER  WILL  BE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02421-01-9
              

A. 2040                             2

FORWARDED  TO  THE  ORGANIZATION  WHICH HAS CONTRACTED WITH SUCH PROFES-
SIONAL FUND RAISER THAN IS IN FACT THE CASE, WHERE THE PROFESSIONAL FUND
RAISER EITHER MAKES SUCH A FALSE STATEMENT KNOWINGLY OR IN SUCH A MANNER
AS  TO  CONFUSE OR DECEIVE THE PUBLIC. To establish fraud neither intent
to defraud nor injury need to be shown; or
  S 3. This act shall take effect on the one hundred eightieth day after
it shall have become a law.