senate Bill S2156A

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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Bill Status


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

  • 14 / Jan / 2013
    • REFERRED TO FINANCE
  • 08 / Jan / 2014
    • REFERRED TO FINANCE
  • 06 / Jun / 2014
    • AMEND (T) AND RECOMMIT TO FINANCE
  • 06 / Jun / 2014
    • PRINT NUMBER 2156A
  • 18 / Jun / 2014
    • COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • 18 / Jun / 2014
    • ORDERED TO THIRD READING CAL.1469
  • 18 / Jun / 2014
    • PASSED SENATE
  • 18 / Jun / 2014
    • DELIVERED TO ASSEMBLY
  • 18 / Jun / 2014
    • REFERRED TO GOVERNMENTAL OPERATIONS

Summary

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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Bill Details

See Assembly Version of this Bill:
A4463A
Versions:
S2156
S2156A
Legislative Cycle:
2013-2014
Current Committee:
Law Section:
Executive Law
Laws Affected:
Add §178, Exec L; amd §8-1.4, EPT L
Versions Introduced in 2011-2012 Legislative Cycle:
S7624, A10615

Sponsor Memo

BILL NUMBER:S2156A

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: This bill establishes a five-year pilot program that will
provide for a onetime annual registration fee waiver for professional
fundraisers who complete a course of instruction in the law and ethics
of fundraising, for charitable organizations whose professional
fundraiser or in-house fundraising supervisor complete a course of
instruction in the law and ethics of fundraising, and for charitable
organizations that have a key employee who has completed a course in
the law and ethics of charitable fundraising or the law and ethics of
not-for-profit governance.

SUMMARY OF PROVISIONS:

Section one amends the Executive Law to add a new section 178 that
provides for a onetime waiver of a registration fee waiver for
professional fundraisers who complete a course of instruction in the
law and ethics of fundraising for the year following the year in which
they completed the course. Section one also provides for an annual fee
waiver 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. The 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 whether a
course is acceptable. It also provides that universities and colleges
statewide, and professional trade associations would be permitted to
offer any such course through classroom training or by distance
learning.

Section two provides for waivers of a charitable organization's
Estates, Powers and Trusts Law annual fee in the same manner as the
waiver of the organization's Executive Law annual fee as provided for
in section one.

Section three requires the Department of Education to develop rules
that would ensure proper attendance by students of acceptable courses
and proper attendance recording procedures by organizations offering
such courses.

Section four provides that the attorney general shall issue a report
to the governor and the Legislature within six years that describes
participation in the pilot program, analyzes of the efficacy of the
act in promoting ethics in charitable fundraising or governance,
describes acceptable ethics curricula, assesses the availability of,
and satisfaction with, acceptable courses, and makes a recommendations


with respect to developing legislation mandating the completion of
such courses.

JUSTIFICATION: There are approximately 1.8 million charitable
organizations in existence today that raise between $225 and $255
billion per year. Unfortunately, many ethical problems exposed in
Corporate America are now spilling over into the non-profit sector.
Recent scandals point out that there is need for transparency and
maximum accountability in the profession.

This bill will provide valuable insight into how to best promote
adherence to ethical standards within charitable organizations and
amongst fundraising professionals. It does so specifically by offering
a financial incentive to study ethics in charitable fundraising and
governance.

LEGISLATIVE HISTORY: This is a new bill.

FISCAL IMPLICATIONS: Minimal.

EFFECTIVE DATE: This act shall take effect on April 1, 2015 and
sections one through three shall be deemed repealed on March 31, 2021.

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

                                 2156--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 14, 2013
                               ___________

Introduced  by  Sens.  VALESKY,  RANZENHOFER  --  read twice and ordered
  printed, and when printed to be committed to the Committee on  Finance
  --  recommitted  to the Committee on Finance in accordance with Senate
  Rule  6,  sec.  8  --  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:

  Section 1. The executive law is amended by adding a new section 178 to
read as follows:
  S  178.  COURSE OF INSTRUCTION IN THE LAW OF ETHICS IN FUNDRAISING AND
PHILANTHROPY, AND NOT-FOR-PROFIT CORPORATION GOVERNANCE.  1. ANY PROFES-
SIONAL FUNDRAISER, PROFESSIONAL SOLICITOR OR FUNDRAISING COUNSEL, WHO IS
AN INDIVIDUAL AND IS  REQUIRED  TO  REGISTER  PURSUANT  TO  SECTION  ONE
HUNDRED  SEVENTY-THREE  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 IMME-
DIATELY FOLLOWING THE YEAR IN WHICH  SUCH  COURSE  WAS  COMPLETED.  SUCH
INDIVIDUALS  SHALL  VERIFY ON THEIR REGISTRATION OR RE-REGISTRATION FORM
THAT THEY HAVE COMPLETED SUCH COURSE AND SHALL PROVIDE  A  COPY  OF  THE
CERTIFICATE OF COMPLETION AT THE REQUEST OF THE ATTORNEY GENERAL.
  2.    ANY  CHARITABLE  ORGANIZATION  REQUIRED  TO REGISTER PURSUANT TO
SECTION ONE HUNDRED SEVENTY-TWO OF  THIS  ARTICLE  WHOSE  VOLUNTEERS  OR
EMPLOYEES RESPONSIBLE FOR THE HIRING, TRAINING OR SUPERVISION OF EMPLOY-
EES ENGAGED IN THE FUNDRAISING ACTIVITIES OF THE CHARITABLE ORGANIZATION
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.
                                                           LBD04817-02-4

S. 2156--A                          2

WAVIER  OF  THE ANNUAL REGISTRATION FEES REQUIRED BY THIS ARTICLE IN THE
YEAR IMMEDIATELY FOLLOWING THE YEAR IN WHICH SUCH COURSE  WAS  COMPLETED
BY  SUCH  VOLUNTEERS  OR EMPLOYEES.   SUCH CHARITABLE ORGANIZATION SHALL
VERIFY  ON ITS REGISTRATION OR RE-REGISTRATION FORM THAT SUCH VOLUNTEERS
OR EMPLOYEES HAVE COMPLETED SUCH COURSE AND SHALL PROVIDE A  COPY  OF  A
CERTIFICATE  OF COMPLETION OF SUCH A COURSE TO THE ATTORNEY GENERAL UPON
THE REQUEST OF THE DEPARTMENT OF LAW.
  3. ANY  CHARITABLE  ORGANIZATION  REQUIRED  TO  REGISTER  PURSUANT  TO
SECTION  ONE HUNDRED SEVENTY-TWO OF THIS ARTICLE THAT IS AFFILIATED WITH
A DIRECTOR OR EMPLOYS A KEY EMPLOYEE,  AS  SUCH  TERMS  ARE  DEFINED  IN
SUBDIVISION  (A) OF SECTION ONE HUNDRED TWO OF THE NOT-FOR-PROFIT CORPO-
RATION LAW, WHO COMPLETES AN ACCEPTABLE  FUNDRAISING  ETHICS  COURSE  OR
ACCEPTABLE GOVERNANCE COURSE, SHALL BE ENTITLED TO A WAIVER OF THE ANNU-
AL  REGISTRATION  FEES  REQUIRED BY THIS ARTICLE IN THE YEAR IMMEDIATELY
FOLLOWING THE YEAR IN WHICH SUCH COURSE WAS COMPLETED BY SUCH VOLUNTEERS
OR EMPLOYEES. SUCH CHARITABLE ORGANIZATION SHALL VERIFY ON ITS REGISTRA-
TION OR RE-REGISTRATION FORM THAT SUCH DIRECTORS OR KEY  EMPLOYEES  HAVE
COMPLETED  ANY  SUCH COURSE AND SHALL PROVIDE A COPY OF A CERTIFICATE OF
COMPLETION OF SUCH A COURSE TO THE ATTORNEY GENERAL UPON THE REQUEST  OF
THE DEPARTMENT OF LAW.
  4.  A PERSON OR ORGANIZATION SHALL BE ELIGIBLE FOR ONLY ONE FEE WAIVER
DURING ANY THREE YEAR PERIOD PURSUANT TO THIS SECTION.
  5. (A) FOR THE PURPOSE OF THIS SECTION, "ACCEPTABLE FUNDRAISING ETHICS
COURSE" SHALL MEAN A COURSE OF INSTRUCTION, OF AT LEAST THREE  HOURS  IN
LENGTH, APPROVED BY THE DEPARTMENT OF EDUCATION IN CONSULTATION WITH THE
ATTORNEY  GENERAL,  IN RELATION TO THE LAW AND ETHICS OF FUNDRAISING AND
PHILANTHROPY.
  (B) FOR THE PURPOSE OF THIS SECTION,  "ACCEPTABLE  GOVERNANCE  COURSE"
SHALL  MEAN  A COURSE OF INSTRUCTION, OF AT LEAST THREE HOURS IN LENGTH,
APPROVED BY THE DEPARTMENT OF EDUCATION IN CONSULTATION WITH THE  ATTOR-
NEY  GENERAL, IN RELATION TO THE LAW AND ETHICS OF NOT-FOR-PROFIT CORPO-
RATION GOVERNANCE.
  (C) UNIVERSITIES AND COLLEGES STATEWIDE, AND PROFESSIONAL TRADE  ASSO-
CIATIONS  THAT ESTABLISH PROFESSIONAL STANDARDS AND PROVIDE TRAINING AND
RESOURCES  FOR  INDIVIDUALS  ENGAGING  IN  PROFESSIONAL  FUNDRAISING  OR
NOT-FOR-PROFIT  CORPORATE  GOVERNANCE  MAY OFFER ANY COURSE DESCRIBED IN
THIS SUBDIVISION THROUGH CLASSROOM TRAINING AND/OR BY DISTANCE LEARNING,
AND SHALL PROVIDE A CERTIFICATE OF COMPLETION TO THOSE WHO COMPLETE  ANY
SUCH  COURSE.  ANY  PERSON  TAKING  SUCH  A COURSE MAY ELECT TO DO SO BY
EITHER METHOD OFFERED.
  S 2. Section 8-1.4 of the estates, powers and trusts law is amended by
adding a new paragraph (t) to read as follows:
  (T) (1) ANY ORGANIZATION REQUIRED TO FILE A PERIODIC  REPORT  PURSUANT
TO THIS ARTICLE AND REGISTER PURSUANT TO SECTION ONE HUNDRED SEVENTY-TWO
OF  THE  EXECUTIVE  LAW (A) THAT HAS A DIRECTOR OR KEY EMPLOYEE, AS SUCH
TERMS ARE DEFINED IN SUBDIVISION (A) OF SECTION ONE HUNDRED TWO  OF  THE
NOT-FOR-PROFIT   CORPORATION   LAW,  WHO  HAS  COMPLETED  AN  ACCEPTABLE
FUNDRAISING ETHICS COURSE OR  ACCEPTABLE  GOVERNANCE  COURSE,  (B)  THAT
ENGAGES,  RETAINS  OR  CONTRACTS WITH A PROFESSIONAL FUNDRAISER, PROFES-
SIONAL SOLICITOR OR FUNDRAISING  COUNSEL,  WHO  IS  AN  INDIVIDUAL,  HAS
REGISTERED  PURSUANT  TO SECTION ONE HUNDRED SEVENTY-THREE OF THE EXECU-
TIVE LAW, 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 FEE REQUIRED BY PARAGRAPH

S. 2156--A                          3

(P) OF THIS SECTION IN THE YEAR IMMEDIATELY FOLLOWING THE YEAR IN  WHICH
SUCH  COURSE  WAS  COMPLETED  BY  SUCH  DIRECTORS OR KEY EMPLOYEES. SUCH
ORGANIZATION SHALL VERIFY ON THE PERIODIC FILING  OF  SUCH  ORGANIZATION
THAT  THE APPROPRIATE PERSONS EMPLOYED BY OR AFFILIATED WITH SUCH ORGAN-
IZATION HAVE COMPLETED ANY SUCH COURSE AND SHALL PROVIDE  A  COPY  OF  A
CERTIFICATE  OF  COMPLETION  OF SUCH COURSE TO THE ATTORNEY GENERAL UPON
THE REQUEST OF THE DEPARTMENT OF LAW. A PERSON OR ORGANIZATION SHALL  BE
ELIGIBLE  FOR  ONLY ONE FEE WAIVER DURING ANY THREE YEAR PERIOD PURSUANT
TO THIS PARAGRAPH.
  (2)(A) FOR THE PURPOSE OF THIS SECTION, "ACCEPTABLE FUNDRAISING ETHICS
COURSE" SHALL MEAN A COURSE OF INSTRUCTION, OF AT LEAST THREE  HOURS  IN
LENGTH, APPROVED BY THE DEPARTMENT OF EDUCATION IN CONSULTATION WITH THE
ATTORNEY  GENERAL,  IN RELATION TO THE LAW AND ETHICS OF FUNDRAISING AND
PHILANTHROPY.
  (B) FOR THE PURPOSE OF THIS SECTION,  "ACCEPTABLE  GOVERNANCE  COURSE"
SHALL  MEAN  A COURSE OF INSTRUCTION, OF AT LEAST THREE HOURS IN LENGTH,
APPROVED BY THE DEPARTMENT OF EDUCATION IN CONSULTATION WITH THE  ATTOR-
NEY  GENERAL, IN RELATION TO THE LAW AND ETHICS OF NOT-FOR-PROFIT CORPO-
RATION GOVERNANCE.
  (C) UNIVERSITIES AND COLLEGES STATEWIDE, AND PROFESSIONAL TRADE  ASSO-
CIATIONS  THAT ESTABLISH PROFESSIONAL STANDARDS AND PROVIDE TRAINING AND
RESOURCES  FOR  INDIVIDUALS  ENGAGING  IN  PROFESSIONAL  FUNDRAISING  OR
NOT-FOR-PROFIT  CORPORATE  GOVERNANCE  MAY OFFER ANY COURSE DESCRIBED IN
THIS PARAGRAPH THROUGH CLASSROOM TRAINING AND/OR BY  DISTANCE  LEARNING,
AND  SHALL PROVIDE A CERTIFICATE OF COMPLETION TO THOSE WHO COMPLETE ANY
SUCH COURSE. ANY PERSON TAKING SUCH A COURSE  MAY  ELECT  TO  DO  SO  BY
EITHER METHOD OFFERED.
  S 3. The department of education shall establish regulations to ensure
the  quality  of the courses offered by distance learning, the satisfac-
tion of course attendance or participation requirements, and the  proper
keeping  of  records  related  to  such  attendance or participation for
courses offered pursuant to paragraph (c) of subdivision  5  of  section
178  of  the executive law and clause (C) of subparagraph 2 of paragraph
(t) of section 8-1.4 of the estates, powers and trusts law.
  S 4. The attorney general shall issue a report to  the  governor,  the
temporary  president  of  the senate and the speaker of the assembly six
years after the effective date of this act that shall include  a  state-
ment  of  the  number  of  persons and organizations that were granted a
waiver of fee pursuant to this act and  the  number  of  persons  having
completed an acceptable course for the purpose of obtaining such a waiv-
er,  and  a  statement by the attorney general as to the efficacy of the
provisions of section one of this act in promoting the understanding of,
and adherence to, the law and ethics of fundraising and philanthropy and
the law of the governance of not-for-profit organizations.  Such  report
shall  also include a description of acceptable not-for-profit fundrais-
ing and governance ethics curricula, an assessment of  the  adequacy  of
the  availability  of acceptable courses statewide and registrant satis-
faction with such courses, and recommendations with respect to  develop-
ing legislation mandating the completion of such courses by professional
fundraisers,  professional solicitors, fundraising counsels, key employ-
ees of charitable organizations, or volunteers or employees  responsible
for  the  hiring,  training  or  supervision of employees engaged in the
fundraising activities of the charitable organization.
  S 5. This act shall take effect April 1, 2015; provided that  sections
one, two and three of this act shall expire and be deemed repealed March
31, 2021.

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