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

                                  4887

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            February 9, 2015
                               ___________

Introduced  by M. of A. GALEF -- read once and referred to the Committee
  on Governmental Operations

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
WAIVER 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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00047-01-5
              

A. 4887                             2

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
(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

A. 4887                             3

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, 2016; provided that sections
one, two and three of this act shall expire and be deemed repealed March
31, 2021.