S T A T E O F N E W Y O R K
________________________________________________________________________
4887
2015-2016 Regular Sessions
I N A S S E M B L Y
February 9, 2015
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Introduced by M. of A. GALEF -- read once and referred to the Committee
on Governmental Operations
AN ACT to amend the executive law and the estates, powers and trusts
law, in relation to providing for the issuance of a certificate of
ethics course completion to professional fundraisers and charitable
organizations who complete a course of instruction in the law and
ethics of fundraising; and providing for the repeal of certain
provisions upon expiration thereof
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The executive law is amended by adding a new section 178 to
read as follows:
S 178. COURSE OF INSTRUCTION IN THE LAW OF ETHICS IN FUNDRAISING AND
PHILANTHROPY, AND NOT-FOR-PROFIT CORPORATION GOVERNANCE. 1. ANY PROFES-
SIONAL FUNDRAISER, PROFESSIONAL SOLICITOR OR FUNDRAISING COUNSEL, WHO IS
AN INDIVIDUAL AND IS REQUIRED TO REGISTER PURSUANT TO SECTION ONE
HUNDRED SEVENTY-THREE OF THIS ARTICLE, WHO SHALL HAVE COMPLETED AN
ACCEPTABLE FUNDRAISING ETHICS COURSE SHALL BE ENTITLED TO A WAIVER OF
THE ANNUAL REGISTRATION FEE BY THE ATTORNEY GENERAL FOR THE YEAR IMME-
DIATELY FOLLOWING THE YEAR IN WHICH SUCH COURSE WAS COMPLETED. SUCH
INDIVIDUALS SHALL VERIFY ON THEIR REGISTRATION OR RE-REGISTRATION FORM
THAT THEY HAVE COMPLETED SUCH COURSE AND SHALL PROVIDE A COPY OF THE
CERTIFICATE OF COMPLETION AT THE REQUEST OF THE ATTORNEY GENERAL.
2. ANY CHARITABLE ORGANIZATION REQUIRED TO REGISTER PURSUANT TO
SECTION ONE HUNDRED SEVENTY-TWO OF THIS ARTICLE WHOSE VOLUNTEERS OR
EMPLOYEES RESPONSIBLE FOR THE HIRING, TRAINING OR SUPERVISION OF EMPLOY-
EES ENGAGED IN THE FUNDRAISING ACTIVITIES OF THE CHARITABLE ORGANIZATION
COMPLETE AN ACCEPTABLE FUNDRAISING ETHICS COURSE, SHALL BE ENTITLED TO A
WAIVER OF THE ANNUAL REGISTRATION FEES REQUIRED BY THIS ARTICLE IN THE
YEAR IMMEDIATELY FOLLOWING THE YEAR IN WHICH SUCH COURSE WAS COMPLETED
BY SUCH VOLUNTEERS OR EMPLOYEES. SUCH CHARITABLE ORGANIZATION SHALL
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00047-01-5
A. 4887 2
VERIFY ON ITS REGISTRATION OR RE-REGISTRATION FORM THAT SUCH VOLUNTEERS
OR EMPLOYEES HAVE COMPLETED SUCH COURSE AND SHALL PROVIDE A COPY OF A
CERTIFICATE OF COMPLETION OF SUCH A COURSE TO THE ATTORNEY GENERAL UPON
THE REQUEST OF THE DEPARTMENT OF LAW.
3. ANY CHARITABLE ORGANIZATION REQUIRED TO REGISTER PURSUANT TO
SECTION ONE HUNDRED SEVENTY-TWO OF THIS ARTICLE THAT IS AFFILIATED WITH
A DIRECTOR OR EMPLOYS A KEY EMPLOYEE, AS SUCH TERMS ARE DEFINED IN
SUBDIVISION (A) OF SECTION ONE HUNDRED TWO OF THE NOT-FOR-PROFIT CORPO-
RATION LAW, WHO COMPLETES AN ACCEPTABLE FUNDRAISING ETHICS COURSE OR
ACCEPTABLE GOVERNANCE COURSE, SHALL BE ENTITLED TO A WAIVER OF THE ANNU-
AL REGISTRATION FEES REQUIRED BY THIS ARTICLE IN THE YEAR IMMEDIATELY
FOLLOWING THE YEAR IN WHICH SUCH COURSE WAS COMPLETED BY SUCH VOLUNTEERS
OR EMPLOYEES. SUCH CHARITABLE ORGANIZATION SHALL VERIFY ON ITS REGISTRA-
TION OR RE-REGISTRATION FORM THAT SUCH DIRECTORS OR KEY EMPLOYEES HAVE
COMPLETED ANY SUCH COURSE AND SHALL PROVIDE A COPY OF A CERTIFICATE OF
COMPLETION OF SUCH A COURSE TO THE ATTORNEY GENERAL UPON THE REQUEST OF
THE DEPARTMENT OF LAW.
4. A PERSON OR ORGANIZATION SHALL BE ELIGIBLE FOR ONLY ONE FEE WAIVER
DURING ANY THREE YEAR PERIOD PURSUANT TO THIS SECTION.
5. (A) FOR THE PURPOSE OF THIS SECTION, "ACCEPTABLE FUNDRAISING ETHICS
COURSE" SHALL MEAN A COURSE OF INSTRUCTION, OF AT LEAST THREE HOURS IN
LENGTH, APPROVED BY THE DEPARTMENT OF EDUCATION IN CONSULTATION WITH THE
ATTORNEY GENERAL, IN RELATION TO THE LAW AND ETHICS OF FUNDRAISING AND
PHILANTHROPY.
(B) FOR THE PURPOSE OF THIS SECTION, "ACCEPTABLE GOVERNANCE COURSE"
SHALL MEAN A COURSE OF INSTRUCTION, OF AT LEAST THREE HOURS IN LENGTH,
APPROVED BY THE DEPARTMENT OF EDUCATION IN CONSULTATION WITH THE ATTOR-
NEY GENERAL, IN RELATION TO THE LAW AND ETHICS OF NOT-FOR-PROFIT CORPO-
RATION GOVERNANCE.
(C) UNIVERSITIES AND COLLEGES STATEWIDE, AND PROFESSIONAL TRADE ASSO-
CIATIONS THAT ESTABLISH PROFESSIONAL STANDARDS AND PROVIDE TRAINING AND
RESOURCES FOR INDIVIDUALS ENGAGING IN PROFESSIONAL FUNDRAISING OR
NOT-FOR-PROFIT CORPORATE GOVERNANCE MAY OFFER ANY COURSE DESCRIBED IN
THIS SUBDIVISION THROUGH CLASSROOM TRAINING AND/OR BY DISTANCE LEARNING,
AND SHALL PROVIDE A CERTIFICATE OF COMPLETION TO THOSE WHO COMPLETE ANY
SUCH COURSE. ANY PERSON TAKING SUCH A COURSE MAY ELECT TO DO SO BY
EITHER METHOD OFFERED.
S 2. Section 8-1.4 of the estates, powers and trusts law is amended by
adding a new paragraph (t) to read as follows:
(T) (1) ANY ORGANIZATION REQUIRED TO FILE A PERIODIC REPORT PURSUANT
TO THIS ARTICLE AND REGISTER PURSUANT TO SECTION ONE HUNDRED SEVENTY-TWO
OF THE EXECUTIVE LAW (A) THAT HAS A DIRECTOR OR KEY EMPLOYEE, AS SUCH
TERMS ARE DEFINED IN SUBDIVISION (A) OF SECTION ONE HUNDRED TWO OF THE
NOT-FOR-PROFIT CORPORATION LAW, WHO HAS COMPLETED AN ACCEPTABLE
FUNDRAISING ETHICS COURSE OR ACCEPTABLE GOVERNANCE COURSE, (B) THAT
ENGAGES, RETAINS OR CONTRACTS WITH A PROFESSIONAL FUNDRAISER, PROFES-
SIONAL SOLICITOR OR FUNDRAISING COUNSEL, WHO IS AN INDIVIDUAL, HAS
REGISTERED PURSUANT TO SECTION ONE HUNDRED SEVENTY-THREE OF THE EXECU-
TIVE LAW, AND HAS COMPLETED AN ACCEPTABLE FUNDRAISING ETHICS COURSE, OR
(C) WHOSE VOLUNTEERS OR EMPLOYEES RESPONSIBLE FOR THE HIRING, TRAINING
OR SUPERVISION OF EMPLOYEES ENGAGED IN THE FUNDRAISING ACTIVITIES OF THE
CHARITABLE ORGANIZATION COMPLETE AN ACCEPTABLE FUNDRAISING ETHICS
COURSE, SHALL BE ENTITLED TO A WAIVER OF THE FEE REQUIRED BY PARAGRAPH
(P) OF THIS SECTION IN THE YEAR IMMEDIATELY FOLLOWING THE YEAR IN WHICH
SUCH COURSE WAS COMPLETED BY SUCH DIRECTORS OR KEY EMPLOYEES. SUCH
ORGANIZATION SHALL VERIFY ON THE PERIODIC FILING OF SUCH ORGANIZATION
A. 4887 3
THAT THE APPROPRIATE PERSONS EMPLOYED BY OR AFFILIATED WITH SUCH ORGAN-
IZATION HAVE COMPLETED ANY SUCH COURSE AND SHALL PROVIDE A COPY OF A
CERTIFICATE OF COMPLETION OF SUCH COURSE TO THE ATTORNEY GENERAL UPON
THE REQUEST OF THE DEPARTMENT OF LAW. A PERSON OR ORGANIZATION SHALL BE
ELIGIBLE FOR ONLY ONE FEE WAIVER DURING ANY THREE YEAR PERIOD PURSUANT
TO THIS PARAGRAPH.
(2)(A) FOR THE PURPOSE OF THIS SECTION, "ACCEPTABLE FUNDRAISING ETHICS
COURSE" SHALL MEAN A COURSE OF INSTRUCTION, OF AT LEAST THREE HOURS IN
LENGTH, APPROVED BY THE DEPARTMENT OF EDUCATION IN CONSULTATION WITH THE
ATTORNEY GENERAL, IN RELATION TO THE LAW AND ETHICS OF FUNDRAISING AND
PHILANTHROPY.
(B) FOR THE PURPOSE OF THIS SECTION, "ACCEPTABLE GOVERNANCE COURSE"
SHALL MEAN A COURSE OF INSTRUCTION, OF AT LEAST THREE HOURS IN LENGTH,
APPROVED BY THE DEPARTMENT OF EDUCATION IN CONSULTATION WITH THE ATTOR-
NEY GENERAL, IN RELATION TO THE LAW AND ETHICS OF NOT-FOR-PROFIT CORPO-
RATION GOVERNANCE.
(C) UNIVERSITIES AND COLLEGES STATEWIDE, AND PROFESSIONAL TRADE ASSO-
CIATIONS THAT ESTABLISH PROFESSIONAL STANDARDS AND PROVIDE TRAINING AND
RESOURCES FOR INDIVIDUALS ENGAGING IN PROFESSIONAL FUNDRAISING OR
NOT-FOR-PROFIT CORPORATE GOVERNANCE MAY OFFER ANY COURSE DESCRIBED IN
THIS PARAGRAPH THROUGH CLASSROOM TRAINING AND/OR BY DISTANCE LEARNING,
AND SHALL PROVIDE A CERTIFICATE OF COMPLETION TO THOSE WHO COMPLETE ANY
SUCH COURSE. ANY PERSON TAKING SUCH A COURSE MAY ELECT TO DO SO BY
EITHER METHOD OFFERED.
S 3. The department of education shall establish regulations to ensure
the quality of the courses offered by distance learning, the satisfac-
tion of course attendance or participation requirements, and the proper
keeping of records related to such attendance or participation for
courses offered pursuant to paragraph (c) of subdivision 5 of section
178 of the executive law and clause (C) of subparagraph 2 of paragraph
(t) of section 8-1.4 of the estates, powers and trusts law.
S 4. The attorney general shall issue a report to the governor, the
temporary president of the senate and the speaker of the assembly six
years after the effective date of this act that shall include a state-
ment of the number of persons and organizations that were granted a
waiver of fee pursuant to this act and the number of persons having
completed an acceptable course for the purpose of obtaining such a waiv-
er, and a statement by the attorney general as to the efficacy of the
provisions of section one of this act in promoting the understanding of,
and adherence to, the law and ethics of fundraising and philanthropy and
the law of the governance of not-for-profit organizations. Such report
shall also include a description of acceptable not-for-profit fundrais-
ing and governance ethics curricula, an assessment of the adequacy of
the availability of acceptable courses statewide and registrant satis-
faction with such courses, and recommendations with respect to develop-
ing legislation mandating the completion of such courses by professional
fundraisers, professional solicitors, fundraising counsels, key employ-
ees of charitable organizations, or volunteers or employees responsible
for the hiring, training or supervision of employees engaged in the
fundraising activities of the charitable organization.
S 5. This act shall take effect April 1, 2016; provided that sections
one, two and three of this act shall expire and be deemed repealed March
31, 2021.