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
01/06/2016 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:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A4887
 
SPONSOR: Galef
  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 profes- sional 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 annu- al 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 asso- ciations 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 indi- vidual, 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 satis- faction 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. Unfor- tunately, there has been an increase in corruption as evidenced by the criminal convictions of professional fundraisers. Public trust is dete- riorating 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 fundrais- ing 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:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          4887
 
                               2015-2016 Regular Sessions
 
                   IN ASSEMBLY
 
                                    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    § 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 not-
    33  for-profit corporate governance may offer any course described  in  this
    34  subdivision  through classroom training and/or by distance learning, and
    35  shall provide a certificate of completion to those who complete any such
    36  course. Any person taking such a course may elect to  do  so  by  either
    37  method offered.
    38    § 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 not-
    20  for-profit corporate governance may offer any course described  in  this
    21  paragraph  through  classroom  training and/or by distance learning, and
    22  shall provide a certificate of completion to those who complete any such
    23  course. Any person taking such a course may elect to  do  so  by  either
    24  method offered.
    25    § 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    § 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    § 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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