Bill S2156A-2013

Provides for the waiver of annual fees for professional fundraisers who complete a course of instruction in the law of ethics in fundraising

Provides for the waiver of annual fees for professional fundraisers who complete a course of instruction in the law of ethics in fundraising.

Details

Actions

  • Jun 18, 2014: referred to governmental operations
  • Jun 18, 2014: DELIVERED TO ASSEMBLY
  • Jun 18, 2014: PASSED SENATE
  • Jun 18, 2014: ORDERED TO THIRD READING CAL.1469
  • Jun 18, 2014: COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • Jun 6, 2014: PRINT NUMBER 2156A
  • Jun 6, 2014: AMEND (T) AND RECOMMIT TO FINANCE
  • Jan 8, 2014: REFERRED TO FINANCE
  • Jan 14, 2013: REFERRED TO FINANCE

Meetings

Votes

VOTE: COMMITTEE VOTE: - Rules - Jun 18, 2014
Ayes (23): Skelos, Libous, Bonacic, Carlucci, Farley, Flanagan, Hannon, Larkin, LaValle, Marcellino, Maziarz, Nozzolio, Seward, Valesky, Little, Stewart-Cousins, Breslin, Dilan, Hassell-Thompson, Krueger, Montgomery, Parker, Perkins
Ayes W/R (1): Gianaris
Excused (1): Espaillat

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.


Text

STATE OF NEW YORK ________________________________________________________________________ 2156--A 2013-2014 Regular Sessions IN SENATE 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
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
(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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