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.
This bill would require most New York not-for-profit, charitable, and otherwise tax-exempt organizations, as well as certain trustees, to file an annual disclosure with the Attorney General stating whether any funds were used in the prior fiscal year to pay judgments or settlements tied to allegations of sexual harassment, sexual assault, or child abuse committed by an officer, director, employee, agent, or trustee. The disclosure could be filed separately or incorporated into an existing annual financial report, and it would be made under penalty of perjury.
The measure applies broadly to charitable organizations and exempt entities that are otherwise outside some of the usual registration and reporting requirements, while preserving a possible constitutional challenge for any particular organization. It is aimed at increasing transparency around how organizational funds are used to resolve abuse-related claims and would take effect 120 days after enactment, with the Attorney General authorized to adopt implementing rules before then.
The bill would amend the Estates, Powers and Trusts Law and the Executive Law to add a new annual reporting obligation for designated trustees, charitable organizations, and certain exempt entities. It does not prohibit settlements or judgments, but it requires disclosure to the Attorney General when organizational funds are used for those purposes in cases involving sexual harassment, sexual assault, or child abuse allegations against insiders or agents. Noncompliance would trigger the same fines and penalties that already apply for failing to file required annual financial reports, thereby expanding enforcement through existing reporting frameworks.
Based on the bill text and caption, the measure appears to be framed as a transparency and accountability bill, with an emphasis on protecting the public and organizational stakeholders from hidden payouts in abuse-related cases. No committee transcript or vote record is provided, so there is no direct evidence of support or opposition from legislators or stakeholders. The overall tone of the proposal is regulatory rather than punitive, suggesting a policy goal of disclosure rather than restricting settlements.
The main potential point of contention is the breadth of the reporting mandate, which reaches not only registered charities but also entities otherwise exempt from some reporting requirements and designated trustees. Organizations may object to the administrative burden, the public-policy implications of compelled disclosure, or the possibility that the law could be challenged as unconstitutional as applied to specific entities. Supporters would likely emphasize transparency, accountability, and oversight of funds used to resolve allegations of sexual misconduct or child abuse, while critics may focus on privacy, compliance costs, and the scope of Attorney General oversight.