senate Bill S3501

2013-2014 Legislative Session

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

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Archive: Last Bill Status - In Committee


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

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Feb 04, 2014 reported and committed to finance
Jan 08, 2014 referred to veterans, homeland security and military affairs
Feb 05, 2013 referred to veterans, homeland security and military affairs

Votes

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Feb 4, 2014 - Veterans, Homeland Security and Military Affairs committee Vote

S3501
7
1
committee
7
Aye
1
Nay
5
Aye with Reservations
0
Absent
0
Excused
0
Abstained
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Veterans, Homeland Security and Military Affairs Committee Vote: Feb 4, 2014

nay (1)

Co-Sponsors

S3501 - Bill Details

Current Committee:
Senate Finance
Law Section:
Executive Law
Laws Affected:
Add §719, Exec L; amd §490.15, Pen L; amd §115, N-PC L
Versions Introduced in 2011-2012 Legislative Session:
S5294

S3501 - Bill Texts

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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 NUMBER:S3501

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 719 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 institu-
tion 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 719 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 guil-
ty of a class A Misdemeanor,

Section Two - amends section 490.15 of the penal law , as added by chap-
ter 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 guil-
ty 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, 2014.

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 valid-
ity of their finances and enforce money laundering for terrorists organ-
izations.

LEGISLATIVE HISTORY: New Bill.

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE: This act shall take effect January 1, 2014.

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

                                  3501

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            February 5, 2013
                               ___________

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 719 to
read as follows:
  S 719. 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.
                                                           LBD07309-01-3

S. 3501                             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. 3501                             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, 2014.

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