senate Bill S5294

Relates to prohibiting funding of terrorist activities through donations to not-for-profit organizations

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 03 / May / 2011
    • REFERRED TO VETERANS, HOMELAND SECURITY AND MILITARY AFFAIRS
  • 10 / May / 2011
    • REPORTED AND COMMITTED TO FINANCE
  • 04 / Jan / 2012
    • REFERRED TO VETERANS, HOMELAND SECURITY AND MILITARY AFFAIRS
  • 06 / Jun / 2012
    • REPORTED AND COMMITTED TO FINANCE

Summary

Relates to prohibiting funding of terrorist activities through donations to not-for-profit organizations and requires not-for-profit corporations to file reports when conducting business with certain countries.

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Bill Details

Versions:
S5294
Legislative Cycle:
2011-2012
Current Committee:
Senate Finance
Law Section:
Executive Law
Laws Affected:
Add §718, Exec L; amd §490.15, Pen L; amd §115, N-PC L

Sponsor Memo

BILL NUMBER:S5294

TITLE OF BILL:
An act
to amend the executive law, the
penal law and the
not-for-profit corporation law, in
relation to prohibiting funding and support of terrorist activities and
organizations

PURPOSE:
This legislation will strengthen the ability of the Attorney General
and State Comptroller to monitor and enforcement violations regarding
not-for-profit organizations funding or providing any support to
terrorist organizations.

SUMMARY OF PROVISIONS:
Section One -amends the executive law by adding section 718 to
stipulate every not-for-profit corporation file a quarterly detailed
report with the division of homeland security and emergency services
if the not-for-profit conducts business with, receives or transfers
monies to any person, firm, business, corporations, government
or charitable institution or service in Afghanistan, Pakistan, Iran,
Syria, Yemen, Lebanon, Iraq, Egypt, Saudi Arabia, Libya, Nigeria,
Somalia, Algeria, Russia, Peru, Philippines, Mali, Indonesia, or
Malaysia. This report will contain the nature of the businesses
conducted, the amounts of monies received and transferred, and the
purpose for the activities, as well as all other matters of interest
to the division.

Section One - amends the executive law by adding 718 to stipulate any
officer, director or employee of a not-for-profit corporation who
fails to make a required filing pursuant to subdivision one of this
section will be subject to a civil penalty not to exceed two thousand
five hundred dollars. Any officer, director or employee of a
not-for-profit corporation, who knowingly fails to make a required
filing will be guilty of a class A Misdemeanor.

Section Two - amends section 490.15 of the penal law , as added by
chapter 300 of the laws of 2001 to define soliciting or providing
support for an act of terrorism in the first degree when he or she as
an officer or director of a not-for-profit corporation, knowingly
permits such corporation to assist, fund or support terrorism.

Section Three - amends section 115 of the not-for-profit corporation
law by adding chapter 669 of the laws of 1977 to include solicitation
of contributions for charitable purposes.

Section Three - amends section 115 of the not-for-profit corporation
law by adding chapter 669 of the laws of 1977 to prohibit
contributions solicited for, or transferred to, organizations that
support terrorism. No Corporation formed under this chapter shall
solicit contributions for, or transfer any monies to, any person or
organization which assists, funds or supports terrorism or terrorist
activities.


Section Three - defines terrorist activities as any act, or threat of
an act, of violence directed against the United States, any state, or
local government, or against any person or property within the United
States, if such act, or threat of an act, of violence is motivated by
religious, cultural or political ideology.

Section Three - defines the assistance, funding or support of
terrorism shall include any activity which could assist the
advancement, planning, operation, conduct or advocacy of terrorism or
terrorist activities, including the assistance, funding or supporting
of any educational, religious, cultural or political organization, or
person officially affiliated with such organizations, which advocates
the advancement, planning, operation, conduct or advocacy of
terrorism or terrorist activities.

Section Three - gives the attorney general or state comptroller the
authority to, upon probable cause perform an audit and investigate
any corporation formed under this chapter, suspected of violating the
provisions of this law. The attorney general and state comptroller
will be permitted full and unrestricted access to all records, papers
and accounts of such corporations, and will have the power to depose
under oath, any officer, director or employee of the not-for-profit.

Section Three - stipulates if any corporation is found to have
violated the above mentioned provisions or has an officer or director
found guilty of shall be deemed immediately dissolved, with its
assets immediately transferred to the state of New York, and the
state comptroller where they will be disbursed to other charitable
organizations which do not assist, fun or support terrorism or
terrorist activities.

Section Four - stipulates this act shall take effect January 1, 2012.

JUSTIFICATION:
This legislation will provide more oversight for not-for-profits from
the Division of Homeland Security and Emergency Services, to decrease
the funding available to terrorists in New York State.

Traditionally, not-for-profits help those in need and provide valuable
services to our communities. Unfortunately, not-for-profits provide
the perfect disguise for gathering significant sums of money for
terrorist organizations. This legislation will allow the Attorney
General and State Comptroller to investigate not-for-profits to
determine the validity of their finances and enforce money laundering
for terrorists organizations.

LEGISLATIVE HISTORY:
New Bill.

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This act shall take effect January 1, 2012.


view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  5294

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               May 3, 2011
                               ___________

Introduced  by  Sen.  BALL  --  read twice and ordered printed, and when
  printed to be committed to the Committee on Veterans, Homeland Securi-
  ty and Military Affairs

AN ACT to amend the executive law, the penal law and the  not-for-profit
  corporation  law,  in  relation  to prohibiting funding and support of
  terrorist activities and organizations

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The executive law is amended by adding a new section 718 to
read as follows:
  S 718. REPORTS OF NOT-FOR-PROFIT CORPORATIONS. 1. EVERY NOT-FOR-PROFIT
CORPORATION  SHALL QUARTERLY FILE A DETAILED REPORT WITH THE DIVISION OF
HOMELAND SECURITY AND EMERGENCY SERVICES, IF SUCH  CORPORATION  CONDUCTS
BUSINESS WITH, RECEIVES MONIES FROM, OR TRANSFERS MONIES TO, ANY PERSON,
FIRM,  BUSINESS,  CORPORATION,  GOVERNMENT  OR CHARITABLE INSTITUTION OR
SERVICE IN AFGHANISTAN, PAKISTAN, IRAN,  SYRIA,  YEMEN,  LEBANON,  IRAQ,
EGYPT,  SAUDI  ARABIA,  LIBYA,  NIGERIA, SOMALIA, ALGERIA, RUSSIA, PERU,
PHILIPPINES, MALI, INDONESIA, OR MALAYSIA. THE  FORM  OF  SUCH  DETAILED
REPORT,  WHICH  SHALL  CONTAIN THE NATURE OF THE BUSINESS CONDUCTED, THE
AMOUNTS OF MONIES RECEIVED AND TRANSFERRED, AND THE  PURPOSES  FOR  SUCH
ACTIVITIES,  AS  WELL  AS ALL OTHER MATTERS OF INTEREST TO THE DIVISION,
SHALL BE ESTABLISHED BY REGULATIONS PROMULGATED  BY  THE  DIVISION.  THE
COMMISSIONER OF THE DIVISION OF HOMELAND SECURITY AND EMERGENCY SERVICES
MAY  ACCEPT  A SIMULTANEOUS FILING OF ALL DOCUMENTS REQUIRED TO BE FILED
BY SUCH CORPORATION WITH THE DEPARTMENT OF LAW'S BUREAU OF CHARITIES  IN
LIEU OF, OR IN ADDITION TO, THE FILING OF THE DETAILED REPORT.
  2.  ANY OFFICER, DIRECTOR OR EMPLOYEE OF A NOT-FOR-PROFIT CORPORATION,
WHO FAILS TO MAKE A REQUIRED FILING PURSUANT TO SUBDIVISION ONE OF  THIS
SECTION  SHALL  BE SUBJECT TO A CIVIL PENALTY NOT TO EXCEED TWO THOUSAND
FIVE  HUNDRED  DOLLARS.  ANY  OFFICER,  DIRECTOR  OR   EMPLOYEE   OF   A
NOT-FOR-PROFIT  CORPORATION,  WHO  KNOWINGLY  FAILS  TO  MAKE A REQUIRED

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11287-01-1

S. 5294                             2

FILING PURSUANT TO SUBDIVISION ONE OF THIS SECTION SHALL BE GUILTY OF  A
CLASS A MISDEMEANOR.
  S  2.  Section 490.15 of the penal law, as added by chapter 300 of the
laws of 2001, is amended to read as follows:
S 490.15 Soliciting or providing support for an act of terrorism in  the
           first degree.
  A person commits soliciting or providing support for an act of terror-
ism in the first degree when:
  1.  he or she commits the crime of soliciting or providing support for
an act of terrorism in the second degree and the total value of material
support or resources exceeds one thousand dollars; OR
  2. HE OR SHE, AS AN OFFICER OR DIRECTOR  OF  A  NOT-FOR-PROFIT  CORPO-
RATION,  KNOWINGLY  PERMITS  SUCH CORPORATION TO ASSIST, FUND OR SUPPORT
TERRORISM.
  Soliciting or providing support for an act of terrorism in  the  first
degree is a class C felony.
  S  3.  Section  115 of the not-for-profit corporation law, as added by
chapter 669 of the laws of 1977, is amended to read as follows:
S 115. Power to solicit contributions for charitable purposes.
  (A) SOLICITATION OF CONTRIBUTIONS FOR CHARITABLE PURPOSES.  No  corpo-
ration having the power to solicit contributions for charitable purposes
may  solicit  contributions  for  any purpose for which approval of such
solicitation is required under the provisions of  section  four  hundred
four of this chapter unless the certificate specifically makes provision
for  such  solicitation and the required written approval is endorsed on
or annexed to such certificate or unless the corporation is among  those
referred  to  in section one hundred seventy-two-a of the executive law.
If such approval is not obtained and the corporation continues to solic-
it or to receive contributions for such purpose or  advertises  that  it
has  obtained such approval, the attorney general, at the request of the
officer or body authorized to grant such  approval,  shall  maintain  an
action  or  proceeding pursuant to the provisions of subparagraph one of
paragraph (a) of section one hundred twelve of this  [chapter]  ARTICLE.
Such an action may also be maintained in relation to a corporation here-
inafter incorporated if the name, purposes, objects or the activities of
such  corporation may, in any manner, lead to the belief that the corpo-
ration possesses or may exercise any of such purposes.
  (B) CONTRIBUTIONS SOLICITED FOR, OR TRANSFERRED TO, ORGANIZATIONS THAT
SUPPORT TERRORISM PROHIBITED. NO CORPORATION FORMED UNDER  THIS  CHAPTER
SHALL  SOLICIT  CONTRIBUTIONS FOR, OR TRANSFER ANY MONIES TO, ANY PERSON
OR ORGANIZATION WHICH ASSISTS, FUNDS OR SUPPORTS TERRORISM OR  TERRORIST
ACTIVITIES.  TERRORISM AND TERRORIST ACTIVITIES FOR THE PURPOSES OF THIS
SECTION, SHALL INCLUDE ANY  ACT,  OR  THREAT  OF  AN  ACT,  OF  VIOLENCE
DIRECTED  AGAINST  THE UNITED STATES, ANY STATE, OR LOCAL GOVERNMENT, OR
AGAINST ANY PERSON OR PROPERTY WITHIN THE UNITED STATES, IF SUCH ACT, OR
THREAT OF AN ACT, OF VIOLENCE IS MOTIVATED  BY  RELIGIOUS,  CULTURAL  OR
POLITICAL  IDEOLOGY.  FOR  THE PURPOSES OF THIS SECTION, THE ASSISTANCE,
FUNDING OR SUPPORT OF TERRORISM SHALL INCLUDE ANY ACTIVITY  WHICH  COULD
ASSIST  THE  ADVANCEMENT,  PLANNING,  OPERATION,  CONDUCT OR ADVOCACY OF
TERRORISM OR TERRORIST ACTIVITIES, INCLUDING THE ASSISTANCE, FUNDING  OR
SUPPORTING  OF  ANY EDUCATIONAL, RELIGIOUS, CULTURAL OR POLITICAL ORGAN-
IZATION, OR PERSON OFFICIALLY AFFILIATED WITH SUCH  ORGANIZATION,  WHICH
ADVOCATES  THE  ADVANCEMENT, PLANNING, OPERATION, CONDUCT OR ADVOCACY OF
TERRORISM OR TERRORIST ACTIVITIES. THE ATTORNEY GENERAL AND/OR THE STATE
COMPTROLLER, UPON PROBABLE CAUSE, MAY AUDIT AND INVESTIGATE  ANY  CORPO-
RATION  FORMED UNDER THIS CHAPTER, SUSPECTED OF VIOLATING THE PROVISIONS

S. 5294                             3

OF THIS SECTION.  UPON THE CONDUCT OF SUCH AUDIT OR  INVESTIGATION,  THE
ATTORNEY GENERAL AND STATE COMPTROLLER SHALL BE PERMITTED FULL AND UNRE-
STRICTED ACCESS TO ALL RECORDS, PAPERS AND ACCOUNTS OF SUCH CORPORATION,
AND  SHALL ALSO BE EMPOWERED TO DEPOSE UNDER OATH, ANY OFFICER, DIRECTOR
OR EMPLOYEE OF SUCH CORPORATION. THE ATTORNEY GENERAL  SHALL  ALSO  HAVE
THE  POWER,  AS  SHALL  THE DISTRICT ATTORNEY OF THE COUNTY IN WHICH THE
CORPORATION MAINTAINS ITS OFFICES, TO PROSECUTE ANY  VIOLATION  OF  THIS
SECTION.   ANY CORPORATION FOUND TO HAVE VIOLATED THE PROVISIONS OF THIS
SECTION, AND/OR ANY CORPORATION WHICH HAS AN OFFICER OR  DIRECTOR  FOUND
GUILTY  OF  SECTION  490.15  OF  THE  PENAL  LAW UPON APPLICATION TO THE
SUPREME COURT BY THE ATTORNEY GENERAL OR THE DISTRICT ATTORNEY SHALL  BE
DEEMED IMMEDIATELY DISSOLVED, WITH ITS ASSETS IMMEDIATELY TRANSFERRED TO
THE  STATE  OF  NEW YORK, AND THE STATE COMPTROLLER UPON DEPOSITING SUCH
ASSETS INTO A SEGREGATED ACCOUNT SHALL THEREUPON DISBURSE SUCH ASSETS TO
OTHER CHARITABLE ORGANIZATIONS WHICH DO  NOT  ASSIST,  FUND  OR  SUPPORT
TERRORISM  OR  TERRORIST  ACTIVITIES,  UNLESS  THE  SUPREME  COURT FINDS
COMPELLING EVIDENCE THAT THE CORPORATION'S  EXISTENCE  SHOULD  BE  MAIN-
TAINED AND THE CORPORATION HAS DEMONSTRATED THAT ALL PERSONS INVOLVED IN
THE ACTIVITIES CONSTITUTING A VIOLATION OF THIS SECTION HAVE BEEN PERMA-
NENTLY  BARRED FROM EMPLOYMENT, ASSOCIATION, AND/OR ANY INVOLVEMENT WITH
THE CORPORATION.
  S 4. This act shall take effect January 1, 2012.

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