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