NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A634
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
attorney 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,
directors, employees, agents, or trustee of an organization.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section one of the bill amends § 8-1.4 of the estates, powers and trusts
law by adding a new paragraph (t) which:
(1) Requites 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 time-
ly file the trustee's annual financial report.
Section two of the bill amends § 172-b of the executive law by adding a
new subdivision 9 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:
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 twentieth day 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.