A00156 Summary:

BILL NOA00156
 
SAME ASNo Same As
 
SPONSORPerry
 
COSPNSRDinowitz
 
MLTSPNSR
 
Amd 8-1.4, EPT L; amd 172-b, Exec L
 
Requires tax exempt organizations to report on moneys spent on judgments and settlements regarding harassment, assault or abuse allegations against its officers, directors, employees, agents and trustees.
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A00156 Actions:

BILL NOA00156
 
01/06/2021referred to judiciary
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A00156 Committee Votes:

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A00156 Floor Votes:

There are no votes for this bill in this legislative session.
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A00156 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A156
 
SPONSOR: Perry
  TITLE OF BILL: An act to amend the estates, powers and trusts law and the executive law, in relation to requiring not-for-profit and exempt organizations and trustees to report annually whether or not moneys were spent to pay judgments or settle accusations related to harassment, assault or abuse allegedly committed by officers, directors, employees or agents of the organizations or trustees   PURPOSE: Requires all charitable organizations to incorporate a disclosure state- ment in the organization's annual financial report filed with the attor- ney general as to whether or not any organization's funds were spent for satisfying judgments or settlements related to allegations of sexual harassment, sexual assault or child abuse committed by officers, direc- tors, employees, agents, or trustee of an organization.   SUMMARY OF SPECIFIC PROVISIONS: Section one of the bill adds paragraph (t) to S 8-1.4 of the estates, powers and trusts which: (1) Requires the provisions of this paragraph to apply to a designated "trustee", as defined in paragraph (a) of this section consistent with the federal and state constitution. (2) Requires a designated trustee to file an annual disclosure statement with the attorney general, subject to perjury, that show whether the funds entrusted to such trustee were expended during the preceding fiscal year for the purpose of satisfying any judgment or settlement related to allegations of sexual harassment, sexual assault, or child abuse committed by an officer, director, employee, trustee or agent of the trustee of an not-for-profit organization. Failure to timely file such disclosure statement will result in default for the same fines and penalties as those that are applicable to failure by a trustee to timely file the trustee's annual financial report. Section two of the bill adds subdivision 10 to § 172-b of the executive law which: (a) Requires that the provisions of this subdivision apply to certain "charitable organizations" and entities as defined. (b) Requires charitable organizations and entities to file annually as prescribed by the attorney general, a disclosure statement, subject to perjury, that avers whether or not any of the funds entrusted to such charitable organization or entity were expended during the preceding fiscal year for the purpose of satisfying any judgment or settlement related to allegations of sexual harassment, sexual assault, or child abuse committed by an officer, director, employee, or agent of the char- itable organization or entity. Failure to file or timely file such statement subjects the charitable organization or entity to the same fines and penalties as those that are applicable to failure by a chari- table organization or entity to file or timely file an annual financial report. Section three of the bill provides the effective date. JUSTIFICATION: Charitable organizations are often entrusted with the care and safety of our children. Thirty to forty percent of pedophiles are family friends or trusted adults. Recent developments in child abuse scandals involving members of the Catholic Church highlight the need for accountability mechanisms to protect children involved with similar organizations. Such crimes do not only harm children, they also burden taxpayers. Annual direct federal costs including medical, police, court, and social services costs for adjudicating child abuse cases are estimated at approximately $24 billion. If these crimes are defended by not-for-pro- fit organizations, which are exempt from paying taxes, the government and taxpayers bear the financial burden and have a right to know. This bill will ensure the transparency of judgments and settlements for not for profit organizations which are entrusted with the care of our state's children by requiring full disclosure of such judgments and settlements to the state attorney general.   PRIOR LEGISLATIVE HISTORY: 2019-2020: A.87 - Referred to Judiciary 2017-2018: A.634 - Referred to Judiciary 2015-2016: A.4866 - Referred to Judiciary 2013-2014: A.4095 - Referred to Judiciary 2011-2012: A.3172 - Referred to Judiciary 2009-2010: A.3408 - Referred to Judiciary 2007-2008: A.5219 - Referred to Judiciary 2005-2006: A.8044-A - Referred to Judiciary   FISCAL IMPLICATIONS: None   EFFECTIVE DATE: One hundred twenty days after becoming law, provided, however, that effective immediately, the addition, amendment and/or repeal of any rules or regulations necessary for the implementation of this act on its effective date is authorized and directed to be made and completed by the state attorney general on or before such effective date.
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A00156 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                           156
 
                               2021-2022 Regular Sessions
 
                   IN ASSEMBLY
 
                                       (Prefiled)
 
                                     January 6, 2021
                                       ___________
 
        Introduced  by M. of A. PERRY -- read once and referred to the Committee
          on Judiciary
 
        AN ACT to amend the estates, powers and trusts  law  and  the  executive
          law,  in relation to requiring not-for-profit and exempt organizations
          and trustees to report annually whether or not moneys  were  spent  to
          pay  judgments or settle accusations related to harassment, assault or
          abuse allegedly committed by officers, directors, employees or  agents
          of the organizations or trustees
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Section 8-1.4 of the estates,  powers  and  trusts  law  is
     2  amended by adding a new paragraph (t) to read as follows:
     3    (t)  (1)  Notwithstanding  the  exemptions  from  the registration and
     4  reporting provisions of this section specified in paragraph (b) of  this
     5  section,  the  provisions  of this paragraph shall apply to a designated
     6  "trustee", as defined in paragraph (a) of this section,  except  to  the
     7  extent, if any, that the application of this paragraph to any particular
     8  trustee is found by the final judgment of a court of competent jurisdic-
     9  tion,  after any and all appeals have been exhausted, to be violative of
    10  the federal or state constitution.
    11    (2) A designated trustee shall file annually with the attorney general
    12  on a form prescribed by the attorney general and on such date  or  dates
    13  as  the  attorney general shall require, a disclosure statement, setting
    14  forth under the penalties of perjury whether or not  any  of  the  funds
    15  entrusted  to such board of trustees or designated trustee were expended
    16  during the immediately preceding fiscal year covered by  such  statement
    17  for  the  purpose of satisfying any judgment or paying the amount of any
    18  settlement related to one or  more  allegations  of  sexual  harassment,
    19  sexual  assault,  or  child  abuse  committed  by  an officer, director,
    20  employee or agent of the board of trustees or a  designated  trustee.  A
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04337-01-1

        A. 156                              2
 
     1  trustee  otherwise  required to file an annual financial report pursuant
     2  to this section or section one hundred seventy-two-b  of  the  executive
     3  law  shall satisfy the filing requirement of this paragraph by including
     4  such annual disclosure statement with the filing of the trustee's annual
     5  financial  report or as a part of the trustee's annual financial report.
     6  The failure to file or timely file such annual disclosure  statement  or
     7  to  include  it  as  a  part of the trustee's annual financial report as
     8  permitted herein shall subject the trustee in default to the same  fines
     9  and  penalties  as  those that are applicable to failure by a trustee to
    10  file or timely file the trustee's annual financial report.
    11    § 2. Section 172-b of the executive law is amended  by  adding  a  new
    12  subdivision 10 to read as follows:
    13    10.  (a)  Notwithstanding  the  exemptions  from  the registration and
    14  reporting provisions of this article specified in  section  one  hundred
    15  seventy-two-a  of this article, the provisions of this subdivision shall
    16  apply to all "charitable organizations" defined in section  one  hundred
    17  seventy-one-a  of  this  article  and to all entities otherwise exempted
    18  from this article that are enumerated in section  one  hundred  seventy-
    19  two-a  of  this article, except to the extent, if any, that the applica-
    20  tion of this subdivision to any particular  charitable  organization  is
    21  found  by the final judgment of a court of competent jurisdiction, after
    22  any and all appeals have been exhausted, to be violative of the  federal
    23  or state constitution.
    24    (b)  Every  charitable organization and every entity that is otherwise
    25  exempted from the application of this article  by  section  one  hundred
    26  seventy-two-a  of  this  article  shall  file annually with the attorney
    27  general on a form prescribed by the attorney general and on such date or
    28  dates as the attorney general shall  require,  a  disclosure  statement,
    29  setting  forth  under the penalties of perjury whether or not any of the
    30  funds entrusted to such charitable organization or exempted entity  were
    31  expended  during  the  immediately preceding fiscal year covered by such
    32  statement for the purpose of  satisfying  any  judgment  or  paying  the
    33  amount  of  any  settlement related to one or more allegations of sexual
    34  harassment, sexual assault, or child  abuse  committed  by  an  officer,
    35  director,  employee  or agent of the charitable organization or exempted
    36  entity. A charitable organization otherwise required to file  an  annual
    37  financial  report  pursuant  to  this  article  or  section 8-1.4 of the
    38  estates, powers and trusts law may satisfy the annual filing requirement
    39  of this subdivision by including such annual disclosure  statement  with
    40  the  filing  of the charitable organization's annual financial report or
    41  as a part of such organization's annual financial report. The failure to
    42  file or timely file such annual disclosure statement or to include it as
    43  a part of a charitable organization's annual financial report as permit-
    44  ted herein  shall  subject  the  charitable  organization  or  otherwise
    45  exempted entity in default to the same fines and penalties as those that
    46  are applicable to failure by a charitable organization to file or timely
    47  file the charitable organization's annual financial report.
    48    § 3. This act shall take effect on the one hundred twentieth day after
    49  it  shall have become a law. Effective immediately, the addition, amend-
    50  ment and/or repeal of any rules or regulations necessary for the  imple-
    51  mentation  of  this  act on its effective date are authorized to be made
    52  and completed by the attorney general on or before such effective date.
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A00156 LFIN:

 NO LFIN
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A00156 Chamber Video/Transcript:

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