S T A T E O F N E W Y O R K
________________________________________________________________________
3223
2011-2012 Regular Sessions
I N A S S E M B L Y
January 24, 2011
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Introduced by M. of A. CALHOUN, BURLING, KOLB, McDONOUGH, OAKS -- read
once and referred to the Committee on Governmental Operations
AN ACT to amend the executive law, in relation to charitable organiza-
tions
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivision 1 of section 172 of the executive law is
amended by adding a new paragraph (k) to read as follows:
(K) A DETAILED STATEMENT SETTING FORTH HOW THE PERCENTAGE OF FUNDS
CONTRIBUTED TO THAT CHARITABLE ORGANIZATION ARE ALLOCATED TO EACH OF THE
FOLLOWING: (I) ADMINISTRATIVE AND OPERATING EXPENSES, AND (II) DIRECT
CHARITABLE PURPOSES CONSISTENT WITH THOSE STATED IN THAT ORGANIZATION'S
REGISTRATION AS REQUIRED BY PARAGRAPH (E) OF THIS SUBDIVISION.
S 2. Subdivision 2 of section 172-d of the executive law, as amended
by chapter 43 of the laws of 2002, is amended to read as follows:
2. Engage in any fraudulent or illegal act, device, scheme, artifice
to defraud or for obtaining money or property by means of a false
pretense, representation or promise, transaction or enterprise in
connection with any solicitation or with the registration, reporting and
disclosure provisions of this article, INCLUDING ANY STATEMENT THAT
COULD REASONABLY BE DEEMED TO FALSELY IMPLY THAT A PROFESSIONAL FUND
RAISER AS DEFINED IN THIS ARTICLE IS NOT IN FACT A PROFESSIONAL FUND
RAISER BUT IS RATHER A MEMBER OR OFFICER OF THE ORGANIZATION WHICH HAS
CONTRACTED WITH SUCH PROFESSIONAL FUND RAISER. The term "fraud" or
"fraudulent" as used herein shall include those acts which may be char-
acterized as misleading or deceptive including, but not limited to those
acts covered by the term "fraud" or "fraudulent" under subdivision
twelve of section sixty-three of this chapter AND ALSO INCLUDING ANY
VERBAL OR WRITTEN STATEMENT THAT FALSELY INDICATES THAT A GREATER
PERCENTAGE OF FUNDS COLLECTED BY THE PROFESSIONAL FUND RAISER WILL BE
FORWARDED TO THE ORGANIZATION WHICH HAS CONTRACTED WITH SUCH PROFES-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02844-01-1
A. 3223 2
SIONAL FUND RAISER THAN IS IN FACT THE CASE, WHERE THE PROFESSIONAL FUND
RAISER EITHER MAKES SUCH A FALSE STATEMENT KNOWINGLY OR IN SUCH A MANNER
AS TO CONFUSE OR DECEIVE THE PUBLIC. To establish fraud neither intent
to defraud nor injury need to be shown; or
S 3. This act shall take effect on the one hundred eightieth day after
it shall have become a law.