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.
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-forprofit conducts business with, receives or transfers monies to any person, firm, business, corporations, 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. 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 guilty of a class A Misdemeanor,
Section Two - amends section 490.15 of the penal law , as added by chapter 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 guilty 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 notfor-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 validity of their finances and enforce money laundering for terrorists organizations.
LEGISLATIVE HISTORY: New Bill.
FISCAL IMPLICATIONS: None.
EFFECTIVE DATE: This act shall take effect January 1, 2014.
STATE OF NEW YORK ________________________________________________________________________ 3501 2013-2014 Regular Sessions IN SENATE 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 REQUIREDEXPLANATION--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 PROVISIONSS. 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.