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.
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.
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.
