NY State Senate Bill 2019-S3213

Senate Bill S3213

2019-2020 Legislative Session

Requires certain employees of charitable organizations to complete a course of instruction in the law and ethics of fundraising

download bill text pdf

Archive: Last Bill Status - In Senate Committee Finance Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2020	referred to finance
Feb 04, 2019	referred to finance

2019-S3213 (ACTIVE) - Details

See Assembly Version of this Bill:: A4996
Current Committee:: Senate Finance
Law Section:: Executive Law
Laws Affected:: Amd §§171-a, 172, 173 & 173-b, Exec L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S6232, A8232
2021-2022: S5778, A8297
2023-2024: S2667

2019-S3213 (ACTIVE) - Summary

Requires certain employees of charitable organizations to complete a course of instruction in the law and ethics of fundraising.

2019-S3213 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S3213

SPONSOR: COMRIE
 
TITLE OF BILL:

An act to amend the executive law, in relation to requiring certain
employees of charitable organizations to complete a course of instruc-
tion in the law and ethics of fundraising

 
PURPOSE:

This legislation requires an ethics course requirement for professional
fundraisers.

 
SUMMARY OF SPECIFIC PROVISIONS:

This legislation amends the Executive Law, which requires ethics train-
ing for professional fundraisers, professional solicitors, and fundrais-
ing counsel required to register under Article 7-A of the Executive Law
and Section 8 of the Estates, Powers, and Trusts Law.

Impacted parties will be required to complete training in the law and
ethics of fundraising within twelve months of completing registration
and at least once in any five-year period of registration thereafter.

The law and ethics course of instruction must be approved by the attor-
ney general, in a manner which addresses the prohibited activities noted
in Section 172 of the Executive Law, such as false statements, fraudu-
lent or illegal acts, false advertising, false solicitation, and illegal
contracting.

Universities and colleges statewide and professional trade associations
that provide such training to individuals engaging in professional
fundraising may offer such course through classroom training or distance
learning per New York State Education Department regulations.

The attorney general shall monitor compliance with such mandated train-
ing and reporting on an ongoing basis.

 
JUSTIFICATION:

The proposed legislation models The New York State Lobbying Act 1-d(h),
which requires the Joint Commission on Public Ethics to "provide an
online ethics training course for individuals registered as lobbyists"
and such registered individuals are required to "complete such training
course at least once in any three-year period during which he or she is
registered as a lobbyist" in alignment with state efforts to restore
public trust.

Public concern regarding lack of transparency and impropriety surround-
ing non-profits and charitable foundations are foundational issues upon
which fundraising ethics legislation has been proposed for enactment.
According to the Urban Institute, National Center for Charitable Statis-
tics, New York ranked only behind California in total charitable'
contributions in 2013, with more than $17.2 billion in reported
donations. New Yorkers have consistently supported causes which are
broad in both range and scope, answering needs in education, health, the
arts, housing, the environment and other areas locally, nationally, and
globally. Furthermore, the New York Bureau of Labor Statistics reported
in 2012 that not-for-profit jobs make up over 18 percent of New York's
private sector employment, with more than 1.25 million worked on nonpro-
fit payrolls paid more than $57 billion in wages.

In light of recent New York State investigations and settlements related
to unethical and illegal fundraising activity, the proposed fundraising
legislation mandating ethics training for registered professional
fundraisers, professional solicitors, fundraising counsel, and organiza-
tions and charities of a similar nature aligns with New York's desire to
restore public trust, as stories of abusing charities have emerged,
while also enhancing governance and oversight of nonprofits.

 
LEGISLATIVE HISTORY:

Senate Bill 6232 of 2017-18.

 
FISCAL IMPLICATIONS:

Minimal.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2019-S3213 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3213
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             February 4, 2019
                                ___________
 
 Introduced  by  Sen.  COMRIE -- read twice and ordered printed, and when
   printed to be committed to the Committee on Finance
 
 AN ACT to amend the executive law,  in  relation  to  requiring  certain
   employees of charitable organizations to complete a course of instruc-
   tion in the law and ethics of fundraising

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 171-a of the executive law is amended by  adding  a
 new subdivision 13 to read as follows:
   13.  "ACCEPTABLE  COURSE." ANY CLASSROOM TRAINING OR DISTANCE LEARNING
 COURSE OF INSTRUCTION APPROVED BY THE ATTORNEY GENERAL, IN  RELATION  TO
 THE  LAW  AND  ETHICS  OF  FUNDRAISING AND PHILANTHROPY IN A MANNER THAT
 SHALL INCLUDE, BUT NOT BE LIMITED TO, PROHIBITED ACTIVITIES PURSUANT  TO
 SECTION  ONE  HUNDRED  SEVENTY-TWO OF THIS ARTICLE, SUCH AS FALSE STATE-
 MENTS, FRAUDULENT OR ILLEGAL ACTS, FALSE  ADVERTISING,  FALSE  SOLICITA-
 TION,  AND ILLEGAL CONTRACTING. UNIVERSITIES AND COLLEGES STATEWIDE, AND
 PROFESSIONAL TRADE ASSOCIATIONS THAT  ESTABLISH  PROFESSIONAL  STANDARDS
 AND  PROVIDE  TRAINING AND RESOURCES FOR INDIVIDUALS ENGAGING IN PROFES-
 SIONAL FUNDRAISING, MAY OFFER AN ACCEPTABLE  COURSE  AND  SHALL  PROVIDE
 DOCUMENTATION OF COMPLETION TO THOSE WHO COMPLETE THE COURSE.
   §  2.  Section  172  of  the  executive law is amended by adding a new
 subdivision 4-a to read as follows:
   4-A. ANY CHARITABLE ORGANIZATION, INCLUDING ANY  CHARITABLE  ORGANIZA-
 TION REQUIRED TO BE REGISTERED PURSUANT TO ARTICLE EIGHT OF THE ESTATES,
 POWERS  AND  TRUSTS  LAW, REQUIRED TO REGISTER PURSUANT TO THIS SECTION,
 AND SEVENTY-FIVE PERCENT OF WHOSE  EMPLOYEES  ARE  RESPONSIBLE  FOR  THE
 HIRING, TRAINING, OR SUPERVISION OF EMPLOYEES ENGAGED IN THE FUNDRAISING
 ACTIVITIES OF THE ORGANIZATION, GROUP ASSOCIATION, PARTNERSHIP OR CORPO-
 RATION,  SHALL  REQUIRE  ANY  INDIVIDUAL  OR  INDIVIDUALS UNDER WHICH IT
 INTENDS TO SOLICIT CONTRIBUTIONS NAMED IN ACCORDANCE WITH PARAGRAPH  (A)
 OF  SUBDIVISION  ONE OF THIS SECTION TO COMPLETE AN ACCEPTABLE COURSE OF
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD06124-01-9

 S. 3213                             2
 
 INSTRUCTION IN THE LAW AND ETHICS OF FUNDRAISING APPROVED BY THE  ATTOR-
 NEY  GENERAL WITHIN TWELVE MONTHS OF COMPLETING SUCH REGISTRATION AND AT
 LEAST ONCE IN ANY FIVE-YEAR  PERIOD  OF  REGISTRATION  THEREAFTER.  SUCH
 INDIVIDUALS  SHALL  PROVIDE  DOCUMENTATION  OF  SUCH  COMPLETION  AT THE
 REQUEST OF THE ATTORNEY GENERAL.  THE  ATTORNEY  GENERAL  SHALL  MONITOR
 COMPLIANCE  WITH  SUCH  MANDATED  TRAINING  AND  REPORTING ON AN ONGOING
 BASIS.
   § 3. Section 173 of the executive law  is  amended  by  adding  a  new
 subdivision 1-a to read as follows:
   1-A.  ANY  PROFESSIONAL  FUNDRAISER OR FUNDRAISING COUNSEL REQUIRED TO
 REGISTER PURSUANT TO THIS SECTION,  INCLUDING  AN  ORGANIZATION,  GROUP,
 ASSOCIATION,   PARTNERSHIP,  CORPORATION,  OR  ANY  COMBINATION  THEREOF
 REQUIRED TO REGISTER PURSUANT TO THIS SECTION, AND SEVENTY-FIVE  PERCENT
 OF  WHOSE  EMPLOYEES ARE RESPONSIBLE FOR THE HIRING, TRAINING, OR SUPER-
 VISION OF EMPLOYEES ENGAGED IN THE FUNDRAISING ACTIVITIES OF THE  ORGAN-
 IZATION,  GROUP  ASSOCIATION,  PARTNERSHIP OR CORPORATION, SHALL REQUIRE
 ANY INDIVIDUAL OR INDIVIDUALS UNDER WHICH IT INTENDS TO SOLICIT CONTRIB-
 UTIONS TO COMPLETE AN ACCEPTABLE COURSE OF INSTRUCTION IN  THE  LAW  AND
 ETHICS  OF  FUNDRAISING  APPROVED  BY THE ATTORNEY GENERAL WITHIN TWELVE
 MONTHS OF COMPLETING SUCH REGISTRATION AND AT LEAST ONCE  IN  ANY  FIVE-
 YEAR  PERIOD  OF  REGISTRATION  THEREAFTER. SUCH INDIVIDUALS OR ENTITIES
 SHALL VERIFY ON THEIR RE-REGISTRATION FORM THAT THEY HAVE COMPLETED SUCH
 COURSE AND SHALL PROVIDE DOCUMENTATION OF SUCH COMPLETION AT THE REQUEST
 OF THE ATTORNEY GENERAL. THE ATTORNEY GENERAL SHALL  MONITOR  COMPLIANCE
 WITH SUCH MANDATED TRAINING AND REPORTING ON AN ONGOING BASIS.
   §  4.  Section  173-b  of the executive law is amended by adding a new
 subdivision 1-a to read as follows:
   1-A. ANY PROFESSIONAL FUNDRAISER, PROFESSIONAL SOLICITOR, OR FUNDRAIS-
 ING COUNSEL WHICH IS AN ORGANIZATION, GROUP,  ASSOCIATION,  PARTNERSHIP,
 CORPORATION, OR ANY COMBINATION THEREOF REQUIRED TO REGISTER PURSUANT TO
 THIS  SECTION, AND SEVENTY-FIVE PERCENT OF WHOSE EMPLOYEES ARE RESPONSI-
 BLE FOR THE HIRING, TRAINING, OR SUPERVISION OF EMPLOYEES ENGAGED IN THE
 FUNDRAISING ACTIVITIES OF THE ORGANIZATION, GROUP ASSOCIATION,  PARTNER-
 SHIP  OR  CORPORATION, SHALL REQUIRE ANY INDIVIDUAL OR INDIVIDUALS UNDER
 WHICH IT INTENDS TO SOLICIT  CONTRIBUTIONS  TO  COMPLETE  AN  ACCEPTABLE
 COURSE  OF  INSTRUCTION IN THE LAW AND ETHICS OF FUNDRAISING APPROVED BY
 THE ATTORNEY GENERAL WITHIN TWELVE MONTHS OF COMPLETING  SUCH  REGISTRA-
 TION AND AT LEAST ONCE IN ANY FIVE-YEAR PERIOD OF REGISTRATION THEREAFT-
 ER.  THE  ATTORNEY  GENERAL  SHALL MONITOR COMPLIANCE WITH SUCH MANDATED
 TRAINING AND REPORTING ON AN ONGOING BASIS.
   § 5. This act shall take effect on the one hundred twentieth day after
 it shall have become a law.  Effective immediately, the addition, amend-
 ment and/or repeal of any rule or regulation necessary for the implemen-
 tation of this act on its effective date are authorized to be  made  and
 completed on or before such effective date.

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