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

                                  10754

                          I N  A S S E M B L Y

                            December 23, 2016
                               ___________

Introduced  by  COMMITTEE ON RULES -- (at request of M. of A. Titone) --
  read once and referred to the Committee on Ways and Means

AN ACT to amend the arts  and  cultural  affairs  law,  in  relation  to
  prohibiting  the New York state council on the arts from awarding arts
  and cultural grants when an organization  has  no  place  of  business
  within  the  state and does not apply awarded monies to New York state
  programs

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

  Section 1. Section 3.19 of the arts and cultural affairs law, as added
by  a chapter of the laws of 2016 amending the arts and cultural affairs
law relating to prohibiting the New York state council on the arts  from
awarding  arts  and cultural grants when an organization has no place of
business within the state and does not apply awarded monies to New  York
state programs as proposed in legislative bills numbers S. 3339-B and A.
3420-B, is amended to read as follows:
  S 3.19. Prohibition. 1. (A) The council on the arts shall be prohibit-
ed  from [issuing] AWARDING grants to an organization unless such organ-
ization is incorporated as a nonprofit organization either in the  state
or, if an organization is incorporated elsewhere, such organization must
be  registered  to  do  business  in the state through the department of
state and must have its principal place of business located  within  the
state. [Grant recipients shall also be prohibited from using grant fund-
ing  received  from  the  council  on  the arts to fund components of an
organization's budget that are not  directed  towards  programs  in  the
state.   If an organization is found to have violated this section, they
shall (1) be required to reimburse back to the council on the arts,  all
monies  received under the particular grant within thirty days or face a
fine to be determined by the department of state, and (2) not be allowed
to reapply for future funding until they provide proof to the council on
the arts of their subsequent filing of articles  of  incorporation  with
the department of state in New York.]
  (B)  ANY  ORGANIZATION APPLYING FOR GRANT FUNDING SHALL PROVIDE TO THE
COUNCIL ON THE ARTS DOCUMENTATION  DEMONSTRATING  COMPLIANCE  WITH  THIS

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

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A. 10754                            2

PROVISION. ANY APPLICANT WHICH FAILS TO PROVIDE SUCH DOCUMENTATION SHALL
BE  DEEMED  INELIGIBLE TO RECEIVE GRANT FUNDING UNDER THIS ARTICLE. SUCH
DOCUMENTATION SHALL BE CONSIDERED VALID FOR A PERIOD OF TWO  YEARS  FROM
THE  DATE  IT WAS PROVIDED OR UNTIL THE ORGANIZATION UNDERTAKES A CHANGE
IN STATUS, WHICHEVER OCCURS SOONER.
  (C) ANY ORGANIZATION THAT IS INCORPORATED ELSEWHERE BUT REGISTERED  TO
DO BUSINESS IN THE STATE, WHEN APPLYING FOR GRANT FUNDING, SHALL CERTIFY
TO  THE  COUNCIL  ON  THE ARTS AS PART OF ITS GRANT APPLICATION THAT ITS
PRINCIPAL PLACE OF BUSINESS IS LOCATED WITHIN THE STATE.  ANY  APPLICANT
WHICH  FAILS TO PROVIDE SUCH CERTIFICATION SHALL BE DEEMED INELIGIBLE TO
RECEIVE GRANT FUNDING UNDER THIS ARTICLE.
  (D) ANY APPLICANT WHICH FAILS TO DEMONSTRATE THAT GRANT FUNDS  ARE  TO
BE  USED  TOWARD  PROGRAMS  IN  THE  STATE SHALL BE DEEMED INELIGIBLE TO
RECEIVE GRANT FUNDING UNDER THIS ARTICLE.  ANY ORGANIZATION, WHEN APPLY-
ING FOR GRANT FUNDING, SHALL PROVIDE IN ITS GRANT APPLICATION  MATERIALS
DOCUMENTATION DEMONSTRATING COMPLIANCE WITH THIS PROVISION.
  S  2.  This  act  shall  take  effect on the same date and in the same
manner as a chapter of the laws of 2016 amending the arts  and  cultural
affairs  law  relating  to prohibiting the New York state council on the
arts from awarding arts and cultural grants when an organization has  no
place  of business within the state and does not apply awarded monies to
New York  state  programs  as  proposed  in  legislative  bills  numbers
S.3339-B and A. 3420-B takes effect.