Alfano, Burling, Errigo, Finch, McDonough, Miller J
Amd SS172, 175 & 172-a, add S174-e, Exec L
Requires a charitable organization to include a clear description of the purpose of such charitable organization and the use of funds collected by such organization in the information required when filing with the attorney general for registration as a charitable organization; authorizes the attorney general to hold funds collected by such charitable organization in trust for the benefit of the charitable organization for any length of time deemed necessary by the attorney general whenever the attorney general shall have reason to believe that such charitable organization is in violation of the provisions of law regulating such organization; requires a person requesting contributions for the relief of any individual to register as a charitable organization if the gross contributions received by such person is in excess of $5,000.
STATE OF NEW YORK
________________________________________________________________________
5990
2009-2010 Regular Sessions
IN ASSEMBLY
February 23, 2009
___________
Introduced by M. of A. OAKS, BARRA, CALHOUN, GIGLIO, HAWLEY, KOLB --
Multi-Sponsored by -- M. of A. ALFANO, BURLING, ERRIGO, FINCH, McDO-
NOUGH, MILLER, WALKER -- read once and referred to the Committee on
Governmental Operations
AN ACT to amend the executive law, in relation to registration of chari-
table organizations and the establishment of a collective trust
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 1 of section 172 of the executive law is
2 amended by adding a new paragraph (k) to read as follows:
3 (k) A clear description of the purpose of the charitable organization
4 and the use of collected funds.
5 § 2. The opening paragraph of subdivision 2 of section 175 of the
6 executive law, as amended by chapter 43 of the laws of 2002, is amended
7 to read as follows:
8 In addition to any other action or proceeding authorized by law and
9 any action or proceeding by the attorney general, the attorney general
10 may bring an action or special proceeding in the supreme court, in the
11 name and in behalf of the people of the state of New York, against a
12 charitable organization and any other persons acting for it or in its
13 behalf to enjoin such organization and/or persons from continuing the
14 solicitation or collection of funds or property or engaging therein or
15 doing any acts in furtherance thereof, with any funds collected therein
16 to be held in trust for the benefit of the charitable organization or
17 donee for any length of time deemed necessary by the attorney general,
18 and to cancel any registration statement previously filed with the
19 attorney general pursuant to this article and for an order awarding
20 restitution and damages, penalties and costs; and removing any director
21 or other person responsible for the violation of this article; dissolv-
22 ing a corporation and other relief which the court may deem proper,
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD05184-01-9
A. 5990 2
1 whenever the attorney general shall have reason to believe that the
2 charitable organization or other person:
3 § 3. Paragraph (c) of subdivision 2 of section 172-a of the executive
4 law, as amended by chapter 43 of the laws of 2002, is amended to read as
5 follows:
6 (c) Persons requesting any contributions for the relief of any indi-
7 vidual, specified by name at the time of the solicitation, if all of the
8 contributions collected, without any deductions whatsoever, are paid to
9 or for the benefit of the named beneficiary; provided however, if gross
10 contributions received by such persons shall be in excess of five thou-
11 sand dollars such person shall be deemed to be a charitable organization
12 and such person shall within thirty days after the date it shall have
13 received total contributions in excess of five thousand dollars register
14 with the attorney general as required by section one hundred seventy-two
15 of this article. Prior to the commencement of any such solicitation,
16 the principal person requesting contributions may file with the attorney
17 general a form, provided by the attorney general, which shall read as
18 follows:
19 CHARITABLE SOLICITATION FOR THE RELIEF OF AN INDIVIDUAL
20 ______________________________________________________________________
21 NAME AND ADDRESS OF THE PRINCIPAL PERSON REQUESTING CONTRIBUTIONS
22 ______________________________________________________________________
23 PURPOSE OF THE SOLICITATION
24 ______________________________________________________________________
25 NAME AND ADDRESS OF THE PRIMARY INDIVIDUAL BENEFICIARY
26 ______________________________________________________________________
27 NAME AND ADDRESS OF SECONDARY BENEFICIARY (IF ANY)
28 LIST NO MORE THAN THREE SECONDARY BENEFICIARIES
29 The principal person requesting contributions may, on such form desig-
30 nate up to three secondary individuals or charitable organizations as
31 charitable beneficiaries who shall be entitled to such contributions in
32 the event circumstances change rendering it impossible or impracticable
33 to use any or all of the money collected for the primary beneficiary.
34 The designation of one or more secondary beneficiaries shall be ineffec-
35 tive unless such form has been filed with the attorney general and all
36 persons requesting contributions shall have informed any person solicit-
37 ed at the time of any solicitation of such filing. In the event that it
38 is or may be impossible or impracticable to use any or all of the money
39 collected for the benefit of the primary beneficiary, and (i) no second-
40 ary beneficiary has been properly designated pursuant to this paragraph,
41 or (ii) no secondary beneficiary exists, then the attorney general, the
42 primary beneficiary, or any person who requested contributions may peti-
43 tion the supreme court, on notice to the attorney general, the primary
44 beneficiary if living, any secondary beneficiaries, and the principal
45 person who requested the contributions for an order directing that any
46 moneys remaining shall be transferred to a charitable organization with
47 purposes similar to those for which such contributions were collected.
48 In the event that money collected for the relief of any individual,
49 without any deductions whatsoever, is paid to or for the benefit of the
50 primary beneficiary within sixty days of its receipt, then all require-
A. 5990 3
1 ments of this paragraph shall be deemed to have been complied with. For
2 the purposes of this section, the term "principal person requesting the
3 contributions" shall mean any person who is primarily responsible for
4 soliciting funds for the relief of an individual, but shall not include
5 any person who solicits funds when all such funds are subsequently
6 transferred over to a principal person requesting contributions.
7 § 4. The executive law is amended by adding a new section 174-e to
8 read as follows:
9 § 174-e. Constructive trust. Any funds collected in excess of five
10 thousand dollars shall be deemed to be held in trust for the benefit of
11 the charitable organization or donee and to be applied first for the
12 purpose of the solicitation before using any part of the total of the
13 same for any other purpose.
14 § 5. This act shall take effect immediately.
