STATE OF NEW YORK
________________________________________________________________________
4463--A
2013-2014 Regular Sessions
IN ASSEMBLY
February 5, 2013
___________
Introduced by M. of A. GALEF -- read once and referred to the Committee
on Governmental Operations -- recommitted to the Committee on Govern-
mental Operations in accordance with Assembly Rule 3, sec. 2 --
committee discharged, bill amended, ordered reprinted as amended and
recommitted to said committee
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
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD04817-03-4
A. 4463--A 2
1 wavier of the annual registration fees required by this article in the
2 year immediately following the year in which such course was completed
3 by such volunteers or employees. Such charitable organization shall
4 verify on its registration or re-registration form that such volunteers
5 or employees have completed such course and shall provide a copy of a
6 certificate of completion of such a course to the attorney general upon
7 the request of the department of law.
8 3. Any charitable organization required to register pursuant to
9 section one hundred seventy-two of this article that is affiliated with
10 a director or employs a key employee, as such terms are defined in
11 subdivision (a) of section one hundred two of the not-for-profit corpo-
12 ration law, who completes an acceptable fundraising ethics course or
13 acceptable governance course, shall be entitled to a waiver of the annu-
14 al registration fees required by this article in the year immediately
15 following the year in which such course was completed by such volunteers
16 or employees. Such charitable organization shall verify on its registra-
17 tion or re-registration form that such directors or key employees have
18 completed any such course and shall provide a copy of a certificate of
19 completion of such a course to the attorney general upon the request of
20 the department of law.
21 4. A person or organization shall be eligible for only one fee waiver
22 during any three year period pursuant to this section.
23 5. (a) For the purpose of this section, "acceptable fundraising ethics
24 course" shall mean a course of instruction, of at least three hours in
25 length, approved by the department of education in consultation with the
26 attorney general, in relation to the law and ethics of fundraising and
27 philanthropy.
28 (b) For the purpose of this section, "acceptable governance course"
29 shall mean a course of instruction, of at least three hours in length,
30 approved by the department of education in consultation with the attor-
31 ney general, in relation to the law and ethics of not-for-profit corpo-
32 ration governance.
33 (c) Universities and colleges statewide, and professional trade asso-
34 ciations that establish professional standards and provide training and
35 resources for individuals engaging in professional fundraising or not-
36 for-profit corporate governance may offer any course described in this
37 subdivision through classroom training and/or by distance learning, and
38 shall provide a certificate of completion to those who complete any such
39 course. Any person taking such a course may elect to do so by either
40 method offered.
41 § 2. Section 8-1.4 of the estates, powers and trusts law is amended by
42 adding a new paragraph (t) to read as follows:
43 (t) (1) Any organization required to file a periodic report pursuant
44 to this article and register pursuant to section one hundred seventy-two
45 of the executive law (A) that has a director or key employee, as such
46 terms are defined in subdivision (a) of section one hundred two of the
47 not-for-profit corporation law, who has completed an acceptable
48 fundraising ethics course or acceptable governance course, (B) that
49 engages, retains or contracts with a professional fundraiser, profes-
50 sional solicitor or fundraising counsel, who is an individual, has
51 registered pursuant to section one hundred seventy-three of the execu-
52 tive law, and has completed an acceptable fundraising ethics course, or
53 (C) whose volunteers or employees responsible for the hiring, training
54 or supervision of employees engaged in the fundraising activities of the
55 charitable organization complete an acceptable fundraising ethics
56 course, shall be entitled to a waiver of the fee required by paragraph
A. 4463--A 3
1 (p) of this section in the year immediately following the year in which
2 such course was completed by such directors or key employees. Such
3 organization shall verify on the periodic filing of such organization
4 that the appropriate persons employed by or affiliated with such organ-
5 ization have completed any such course and shall provide a copy of a
6 certificate of completion of such course to the attorney general upon
7 the request of the department of law. A person or organization shall be
8 eligible for only one fee waiver during any three year period pursuant
9 to this paragraph.
10 (2)(A) For the purpose of this section, "acceptable fundraising ethics
11 course" shall mean a course of instruction, of at least three hours in
12 length, approved by the department of education in consultation with the
13 attorney general, in relation to the law and ethics of fundraising and
14 philanthropy.
15 (B) For the purpose of this section, "acceptable governance course"
16 shall mean a course of instruction, of at least three hours in length,
17 approved by the department of education in consultation with the attor-
18 ney general, in relation to the law and ethics of not-for-profit corpo-
19 ration governance.
20 (C) Universities and colleges statewide, and professional trade asso-
21 ciations that establish professional standards and provide training and
22 resources for individuals engaging in professional fundraising or not-
23 for-profit corporate governance may offer any course described in this
24 paragraph through classroom training and/or by distance learning, and
25 shall provide a certificate of completion to those who complete any such
26 course. Any person taking such a course may elect to do so by either
27 method offered.
28 § 3. The department of education shall establish regulations to ensure
29 the quality of the courses offered by distance learning, the satisfac-
30 tion of course attendance or participation requirements, and the proper
31 keeping of records related to such attendance or participation for
32 courses offered pursuant to paragraph (c) of subdivision 5 of section
33 178 of the executive law and clause (C) of subparagraph 2 of paragraph
34 (t) of section 8-1.4 of the estates, powers and trusts law.
35 § 4. The attorney general shall issue a report to the governor, the
36 temporary president of the senate and the speaker of the assembly six
37 years after the effective date of this act that shall include a state-
38 ment of the number of persons and organizations that were granted a
39 waiver of fee pursuant to this act and the number of persons having
40 completed an acceptable course for the purpose of obtaining such a waiv-
41 er, and a statement by the attorney general as to the efficacy of the
42 provisions of section one of this act in promoting the understanding of,
43 and adherence to, the law and ethics of fundraising and philanthropy and
44 the law of the governance of not-for-profit organizations. Such report
45 shall also include a description of acceptable not-for-profit fundrais-
46 ing and governance ethics curricula, an assessment of the adequacy of
47 the availability of acceptable courses statewide and registrant satis-
48 faction with such courses, and recommendations with respect to develop-
49 ing legislation mandating the completion of such courses by professional
50 fundraisers, professional solicitors, fundraising counsels, key employ-
51 ees of charitable organizations, or volunteers or employees responsible
52 for the hiring, training or supervision of employees engaged in the
53 fundraising activities of the charitable organization.
54 § 5. This act shall take effect April 1, 2015; provided that sections
55 one, two and three of this act shall expire and be deemed repealed March
56 31, 2021.
