A04887 Summary:

BILL NO    A04887 

SAME AS    No same as 

SPONSOR    Galef

COSPNSR    

MLTSPNSR   

Add S178, Exec L; amd S8-1.4, EPT L

Provides for the waiver of annual fees for professional fundraisers who
complete a course of instruction in the law of ethics in fundraising.
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A04887 Actions:

BILL NO    A04887 

02/09/2015 referred to governmental operations
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A04887 Votes:

There are no votes for this bill in this legislative session.
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A04887 Memo:

BILL NUMBER:A4887

TITLE OF BILL:  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

PURPOSE OR GENERAL IDEA OF BILL:

The purpose of this legislation is to establish a five year pilot
program providing a one-time annual registration fee waiver for those
who complete a course in the law and ethics of charitable fundraising,
or the law and ethics of not-for-profit governance.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1. The Executive Law is amended by adding a new section 178 as
follows: Course of instruction in the law of ethics in fundraising and
philanthropy, and not-for-profit corporation governance. Any
professional fundraiser, professional solicitor or fundraising
counsel, who is an individual and is required to register pursuant to
section 173 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 immediately
following the year in which such course was completed. This section
also provides for an annual fee waive for organizations whose in-house
fundraising supervisors or key employees take an ethics course. In the
case of 'key employees" an acceptable course would be either the Law
and Ethics of Fundraising, or the Law and Ethics of Corporate
Governance. This bill section limits a person or organization to one
fee waiver during any three calendar year period.  Section one also
provides that the education department, in consultation with the
Attorney General, shall determine eligibility criteria. Statewide
universities, colleges and professional trade associations can offer
such course through classroom training or by distance learning.

Section 2. Adds a new paragraph (t) to section 8-1.4 of the Estates,
Powers and Trusts Law, which reads as follows: (t)(1) Any organization
required to file a periodic report and register (A) that has a
director or key employee who has completed an acceptable fundraising
ethics course (B) that engages, retains or contracts with a
professional fundraiser, professional solicitor or fundraising
counsel, is an individual, has registered, 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 required fee in the year immediately
following the year in which such course was completed. (2)(A) Defines
"acceptable fundraising ethics course. (B) Defines "acceptable
governance course". (C) Universities and colleges, and the like, may
offer the appropriate course, and shall provide a certificate of
completion to those who complete such course.


Section 3. The department of education shall establish regulations to
ensure the quality of the courses offered distance learning, the
satisfaction of course attendance or participation requirements.

Section 4. The attorney general shall issue a report to the governor,
temporary president of the senate and speaker of the assembly six
years after the effective date of this act.

Section 5. This section establishes the effective date.

JUSTIFICATION:

There are close to 1.8 million charitable organizations that rise
between $225 and $255 billion annually for a variety of causes.
Unfortunately, there has been an increase in corruption as evidenced
by the criminal convictions of professional fundraisers. Public trust
is deteriorating so that there is an urgent need for transparency and
maximum accountability.

The bill is the first step in determining how to guarantee the highest
ethical standards within charitable organizations and amongst
fundraising professionals. It does so through educating these
professionals, and providing a financial fee waiver incentive for that
education.

PRIOR LEGISLATIVE HISTORY:

A. 4463 and S. 2156-A of 2013/2014
A. 10615 and S. 2724 of 2011/2012

FISCAL IMPLICATIONS:

This legislation has a minimal cost to the State.

EFFECTIVE DATE:

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.
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A04887 Text:

                           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
                                      ___________

       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:

    1    Section 1. The executive law is amended by adding a new section 178 to
    2  read as follows:
    3    S 178. COURSE OF INSTRUCTION IN THE LAW OF ETHICS IN  FUNDRAISING  AND
    4  PHILANTHROPY, AND NOT-FOR-PROFIT CORPORATION GOVERNANCE.  1. ANY PROFES-
    5  SIONAL FUNDRAISER, PROFESSIONAL SOLICITOR OR FUNDRAISING COUNSEL, WHO IS
    6  AN  INDIVIDUAL  AND  IS  REQUIRED  TO  REGISTER  PURSUANT TO SECTION ONE
    7  HUNDRED SEVENTY-THREE OF THIS  ARTICLE,  WHO  SHALL  HAVE  COMPLETED  AN
    8  ACCEPTABLE  FUNDRAISING  ETHICS  COURSE SHALL BE ENTITLED TO A WAIVER OF
    9  THE ANNUAL REGISTRATION FEE BY THE ATTORNEY GENERAL FOR THE  YEAR  IMME-
   10  DIATELY  FOLLOWING  THE  YEAR  IN  WHICH SUCH COURSE WAS COMPLETED. SUCH
   11  INDIVIDUALS SHALL VERIFY ON THEIR REGISTRATION OR  RE-REGISTRATION  FORM
   12  THAT  THEY  HAVE  COMPLETED  SUCH COURSE AND SHALL PROVIDE A COPY OF THE
   13  CERTIFICATE OF COMPLETION AT THE REQUEST OF THE ATTORNEY GENERAL.
   14    2.   ANY CHARITABLE ORGANIZATION  REQUIRED  TO  REGISTER  PURSUANT  TO
   15  SECTION  ONE  HUNDRED  SEVENTY-TWO  OF  THIS ARTICLE WHOSE VOLUNTEERS OR
   16  EMPLOYEES RESPONSIBLE FOR THE HIRING, TRAINING OR SUPERVISION OF EMPLOY-
   17  EES ENGAGED IN THE FUNDRAISING ACTIVITIES OF THE CHARITABLE ORGANIZATION
   18  COMPLETE AN ACCEPTABLE FUNDRAISING ETHICS COURSE, SHALL BE ENTITLED TO A
   19  WAIVER OF THE ANNUAL REGISTRATION FEES REQUIRED BY THIS ARTICLE  IN  THE
   20  YEAR  IMMEDIATELY  FOLLOWING THE YEAR IN WHICH SUCH COURSE WAS COMPLETED
   21  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

    1  VERIFY  ON ITS REGISTRATION OR RE-REGISTRATION FORM THAT SUCH VOLUNTEERS
    2  OR EMPLOYEES HAVE COMPLETED SUCH COURSE AND SHALL PROVIDE A  COPY  OF  A
    3  CERTIFICATE  OF COMPLETION OF SUCH A COURSE TO THE ATTORNEY GENERAL UPON
    4  THE REQUEST OF THE DEPARTMENT OF LAW.
    5    3.  ANY  CHARITABLE  ORGANIZATION  REQUIRED  TO  REGISTER  PURSUANT TO
    6  SECTION ONE HUNDRED SEVENTY-TWO OF THIS ARTICLE THAT IS AFFILIATED  WITH
    7  A  DIRECTOR  OR  EMPLOYS  A  KEY  EMPLOYEE, AS SUCH TERMS ARE DEFINED IN
    8  SUBDIVISION (A) OF SECTION ONE HUNDRED TWO OF THE NOT-FOR-PROFIT  CORPO-
    9  RATION  LAW,  WHO  COMPLETES  AN ACCEPTABLE FUNDRAISING ETHICS COURSE OR
   10  ACCEPTABLE GOVERNANCE COURSE, SHALL BE ENTITLED TO A WAIVER OF THE ANNU-
   11  AL REGISTRATION FEES REQUIRED BY THIS ARTICLE IN  THE  YEAR  IMMEDIATELY
   12  FOLLOWING THE YEAR IN WHICH SUCH COURSE WAS COMPLETED BY SUCH VOLUNTEERS
   13  OR EMPLOYEES. SUCH CHARITABLE ORGANIZATION SHALL VERIFY ON ITS REGISTRA-
   14  TION  OR  RE-REGISTRATION FORM THAT SUCH DIRECTORS OR KEY EMPLOYEES HAVE
   15  COMPLETED ANY SUCH COURSE AND SHALL PROVIDE A COPY OF A  CERTIFICATE  OF
   16  COMPLETION  OF SUCH A COURSE TO THE ATTORNEY GENERAL UPON THE REQUEST OF
   17  THE DEPARTMENT OF LAW.
   18    4. A PERSON OR ORGANIZATION SHALL BE ELIGIBLE FOR ONLY ONE FEE  WAIVER
   19  DURING ANY THREE YEAR PERIOD PURSUANT TO THIS SECTION.
   20    5. (A) FOR THE PURPOSE OF THIS SECTION, "ACCEPTABLE FUNDRAISING ETHICS
   21  COURSE"  SHALL  MEAN A COURSE OF INSTRUCTION, OF AT LEAST THREE HOURS IN
   22  LENGTH, APPROVED BY THE DEPARTMENT OF EDUCATION IN CONSULTATION WITH THE
   23  ATTORNEY GENERAL, IN RELATION TO THE LAW AND ETHICS OF  FUNDRAISING  AND
   24  PHILANTHROPY.
   25    (B)  FOR  THE  PURPOSE OF THIS SECTION, "ACCEPTABLE GOVERNANCE COURSE"
   26  SHALL MEAN A COURSE OF INSTRUCTION, OF AT LEAST THREE HOURS  IN  LENGTH,
   27  APPROVED  BY THE DEPARTMENT OF EDUCATION IN CONSULTATION WITH THE ATTOR-
   28  NEY GENERAL, IN RELATION TO THE LAW AND ETHICS OF NOT-FOR-PROFIT  CORPO-
   29  RATION GOVERNANCE.
   30    (C)  UNIVERSITIES AND COLLEGES STATEWIDE, AND PROFESSIONAL TRADE ASSO-
   31  CIATIONS THAT ESTABLISH PROFESSIONAL STANDARDS AND PROVIDE TRAINING  AND
   32  RESOURCES  FOR  INDIVIDUALS  ENGAGING  IN  PROFESSIONAL  FUNDRAISING  OR
   33  NOT-FOR-PROFIT CORPORATE GOVERNANCE MAY OFFER ANY  COURSE  DESCRIBED  IN
   34  THIS SUBDIVISION THROUGH CLASSROOM TRAINING AND/OR BY DISTANCE LEARNING,
   35  AND  SHALL PROVIDE A CERTIFICATE OF COMPLETION TO THOSE WHO COMPLETE ANY
   36  SUCH COURSE. ANY PERSON TAKING SUCH A COURSE  MAY  ELECT  TO  DO  SO  BY
   37  EITHER METHOD OFFERED.
   38    S 2. Section 8-1.4 of the estates, powers and trusts law is amended by
   39  adding a new paragraph (t) to read as follows:
   40    (T)  (1)  ANY ORGANIZATION REQUIRED TO FILE A PERIODIC REPORT PURSUANT
   41  TO THIS ARTICLE AND REGISTER PURSUANT TO SECTION ONE HUNDRED SEVENTY-TWO
   42  OF THE EXECUTIVE LAW (A) THAT HAS A DIRECTOR OR KEY  EMPLOYEE,  AS  SUCH
   43  TERMS  ARE  DEFINED IN SUBDIVISION (A) OF SECTION ONE HUNDRED TWO OF THE
   44  NOT-FOR-PROFIT  CORPORATION  LAW,  WHO  HAS  COMPLETED   AN   ACCEPTABLE
   45  FUNDRAISING  ETHICS  COURSE  OR  ACCEPTABLE  GOVERNANCE COURSE, (B) THAT
   46  ENGAGES, RETAINS OR CONTRACTS WITH A  PROFESSIONAL  FUNDRAISER,  PROFES-
   47  SIONAL  SOLICITOR  OR  FUNDRAISING  COUNSEL,  WHO  IS AN INDIVIDUAL, HAS
   48  REGISTERED PURSUANT TO SECTION ONE HUNDRED SEVENTY-THREE OF  THE  EXECU-
   49  TIVE  LAW, AND HAS COMPLETED AN ACCEPTABLE FUNDRAISING ETHICS COURSE, OR
   50  (C) WHOSE VOLUNTEERS OR EMPLOYEES RESPONSIBLE FOR THE  HIRING,  TRAINING
   51  OR SUPERVISION OF EMPLOYEES ENGAGED IN THE FUNDRAISING ACTIVITIES OF THE
   52  CHARITABLE   ORGANIZATION  COMPLETE  AN  ACCEPTABLE  FUNDRAISING  ETHICS
   53  COURSE, SHALL BE ENTITLED TO A WAIVER OF THE FEE REQUIRED  BY  PARAGRAPH
   54  (P)  OF THIS SECTION IN THE YEAR IMMEDIATELY FOLLOWING THE YEAR IN WHICH
   55  SUCH COURSE WAS COMPLETED BY  SUCH  DIRECTORS  OR  KEY  EMPLOYEES.  SUCH
   56  ORGANIZATION  SHALL  VERIFY  ON THE PERIODIC FILING OF SUCH ORGANIZATION
       A. 4887                             3

    1  THAT THE APPROPRIATE PERSONS EMPLOYED BY OR AFFILIATED WITH SUCH  ORGAN-
    2  IZATION  HAVE  COMPLETED  ANY  SUCH COURSE AND SHALL PROVIDE A COPY OF A
    3  CERTIFICATE OF COMPLETION OF SUCH COURSE TO THE  ATTORNEY  GENERAL  UPON
    4  THE  REQUEST OF THE DEPARTMENT OF LAW. A PERSON OR ORGANIZATION SHALL BE
    5  ELIGIBLE FOR ONLY ONE FEE WAIVER DURING ANY THREE YEAR  PERIOD  PURSUANT
    6  TO THIS PARAGRAPH.
    7    (2)(A) FOR THE PURPOSE OF THIS SECTION, "ACCEPTABLE FUNDRAISING ETHICS
    8  COURSE"  SHALL  MEAN A COURSE OF INSTRUCTION, OF AT LEAST THREE HOURS IN
    9  LENGTH, APPROVED BY THE DEPARTMENT OF EDUCATION IN CONSULTATION WITH THE
   10  ATTORNEY GENERAL, IN RELATION TO THE LAW AND ETHICS OF  FUNDRAISING  AND
   11  PHILANTHROPY.
   12    (B)  FOR  THE  PURPOSE OF THIS SECTION, "ACCEPTABLE GOVERNANCE COURSE"
   13  SHALL MEAN A COURSE OF INSTRUCTION, OF AT LEAST THREE HOURS  IN  LENGTH,
   14  APPROVED  BY THE DEPARTMENT OF EDUCATION IN CONSULTATION WITH THE ATTOR-
   15  NEY GENERAL, IN RELATION TO THE LAW AND ETHICS OF NOT-FOR-PROFIT  CORPO-
   16  RATION GOVERNANCE.
   17    (C)  UNIVERSITIES AND COLLEGES STATEWIDE, AND PROFESSIONAL TRADE ASSO-
   18  CIATIONS THAT ESTABLISH PROFESSIONAL STANDARDS AND PROVIDE TRAINING  AND
   19  RESOURCES  FOR  INDIVIDUALS  ENGAGING  IN  PROFESSIONAL  FUNDRAISING  OR
   20  NOT-FOR-PROFIT CORPORATE GOVERNANCE MAY OFFER ANY  COURSE  DESCRIBED  IN
   21  THIS  PARAGRAPH  THROUGH CLASSROOM TRAINING AND/OR BY DISTANCE LEARNING,
   22  AND SHALL PROVIDE A CERTIFICATE OF COMPLETION TO THOSE WHO COMPLETE  ANY
   23  SUCH  COURSE.  ANY  PERSON  TAKING  SUCH  A COURSE MAY ELECT TO DO SO BY
   24  EITHER METHOD OFFERED.
   25    S 3. The department of education shall establish regulations to ensure
   26  the quality of the courses offered by distance learning,  the  satisfac-
   27  tion  of course attendance or participation requirements, and the proper
   28  keeping of records related  to  such  attendance  or  participation  for
   29  courses  offered  pursuant  to paragraph (c) of subdivision 5 of section
   30  178 of the executive law and clause (C) of subparagraph 2  of  paragraph
   31  (t) of section 8-1.4 of the estates, powers and trusts law.
   32    S  4.  The  attorney general shall issue a report to the governor, the
   33  temporary president of the senate and the speaker of  the  assembly  six
   34  years  after  the effective date of this act that shall include a state-
   35  ment of the number of persons and  organizations  that  were  granted  a
   36  waiver  of  fee  pursuant  to  this act and the number of persons having
   37  completed an acceptable course for the purpose of obtaining such a waiv-
   38  er, and a statement by the attorney general as to the  efficacy  of  the
   39  provisions of section one of this act in promoting the understanding of,
   40  and adherence to, the law and ethics of fundraising and philanthropy and
   41  the  law  of the governance of not-for-profit organizations. Such report
   42  shall also include a description of acceptable not-for-profit  fundrais-
   43  ing  and  governance  ethics curricula, an assessment of the adequacy of
   44  the availability of acceptable courses statewide and  registrant  satis-
   45  faction  with such courses, and recommendations with respect to develop-
   46  ing legislation mandating the completion of such courses by professional
   47  fundraisers, professional solicitors, fundraising counsels, key  employ-
   48  ees  of charitable organizations, or volunteers or employees responsible
   49  for the hiring, training or supervision  of  employees  engaged  in  the
   50  fundraising activities of the charitable organization.
   51    S  5. This act shall take effect April 1, 2016; provided that sections
   52  one, two and three of this act shall expire and be deemed repealed March
   53  31, 2021.
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