N.Y. Executive Law § 172-f: Disclosure of certain activities by non-charitable non-profit entities

§ 172-f. Disclosure of certain activities by non-charitable non-profit

entities. 1. Definitions. (a) "Covered Entity" means any corporation or

entity that is qualified as an exempt organization or entity by the

United States Department of the Treasury under I.R.C. 501(c)(4).

(b) "Covered communication" means a communication by a covered entity,

not otherwise reported by such covered entity pursuant to article one-A

of the legislative law or article fourteen of the election law, by a

covered entity conveyed to five hundred or more members of a general

public audience in the form of: (i) an audio or video communication via

broadcast, cable or satellite; (ii) a written communication via

advertisements, pamphlets, circulars, flyers, brochures, letterheads; or

(iii) other published statement which: refers to and advocates for or

against a clearly identified elected official, executive or

administrative body or legislative body relating to the sponsorship,

support, opposition, or outcome of any proposed legislation, pending

legislation, rule, regulation, hearing or decision, or advocates for or

against action by any elected official, executive or administrative body

or legislative body.

Covered communication shall not include: (i) communications with a

professional journalist or newscaster, including an editorial board or

editorial writer of a newspaper, magazine, news agency, press

association or wire service, relating to news, as these terms are

defined in section seventy-nine-h of the civil rights law, and

communications relating to confidential and non-confidential news as

described in subdivisions (b) and (c) of section seventy-nine-h of the

civil rights law respectively and communications made pursuant to

community outreach efforts for broadcast stations required by federal

law; or

(ii) a communication that is: (A) directed, sent or distributed by the

covered entity only to individuals who affirmatively consent to be

members of the covered entity, contribute funds to the covered entity,

or, pursuant to the covered entity's articles or bylaws, have the right

to vote directly or indirectly for the election of directors or

officers, or on changes to bylaws, disposition of all or substantially

all of the covered entity's assets or the merger or dissolution of the

covered entity; or (B) for the purpose of promoting or staging any

candidate debate, town hall or similar forum to which at least two

candidates seeking the same office, or two proponents of differing

positions on a referendum or question submitted to voters, are invited

as participants, and which does not promote or advance one candidate or

position over another.

(c) "Expenditures for covered communications" shall mean: (i) any

expenditure made, liability incurred, or contribution provided for

covered communications; or (ii) any other transfer of funds, assets,

services or any other thing of value to any individual, group,

association, corporation whether organized for profit or not-for-profit,

labor union, political committee, political action committee, or any

other entity for the purpose of supporting or engaging in covered

communications by the recipient or a third party.

(d) "Donation" shall mean any contribution, including in-kind, gift,

loan, advance or deposit of money or anything of value made to a covered

entity unless such donation is deposited into an account the funds of

which are not used for making expenditures for covered communications.

(e) "Reporting period" shall mean the six month period within a

calendar year starting January first and ending June thirtieth or the

six month period within a calendar year starting July first and ending

December thirty-first.

2. Disclosure of expenditures for covered communications. (a) Any

covered entity that makes expenditures for covered communications in an

aggregate amount or fair market value exceeding ten thousand dollars in

a calendar year shall file a financial disclosure report with the

department of state. The financial disclosure report shall include:

(i) the name and address of the covered entity that made the

expenditure for covered communications;

(ii) the name or names of any individuals who exert operational or

managerial control over the covered entity. The disclosures required by

this paragraph shall include the name of at least one natural person;

(iii) a detailed description of the covered communication;

(iv) the dollar amount paid for each covered communication, the name

and address of the person or entity receiving the payment, and the date

the payment was made; and

(v) for any restricted donation received by the covered entity in

whole or in part for the support of the covered communication, the name

and address of any individual, corporation, association, or group that

made a donation to the covered entity and the date of such donation, and

the amount of the donation, together with a description of any

restriction.

(b) The covered entity shall file a financial disclosure report with

the department of state within thirty days of the close of a reporting

period.

3. Public disclosure of funding disclosure reports. The department of

state shall promulgate any regulations necessary to implement these

requirements and shall publish on the department's website the reports

of covered communications required by this section. Such publishing

shall not include the names and addresses of individual donors to

covered entities, nor shall such publishing include the covered entity's

Internal Revenue Service Form 990 Schedule B. Such report shall not be

made public pursuant to this section if, based upon a review of the

relevant facts presented by the covered entity, such disclosure may

cause harm, threats, harassment, or reprisals to the source of the

donation or to individuals or property affiliated with the source of the

donation. The covered entity may appeal the secretary's determination

and such appeal shall be heard by a judicial hearing officer who is

independent and not affiliated with or employed by the department of

state, pursuant to regulations promulgated by the department of state.

The reports subject to disclosure pursuant to this section that are the

subject of such appeal pursuant to this section shall not be made public

pending final judgment on appeal.

4. If a covered entity's annual report filed pursuant to section one

hundred seventy-two-b of this article does not include a completed

Internal Revenue Service Form 990 schedule B, the entity shall in

addition to filing a disclosure with the department of law, also file

with the department of state a complete Internal Revenue Service Form

990 schedule B, regardless of whether such form is submitted or required

to be submitted to the Internal Revenue Service.