A 7206: 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.

  
  STATE OF NEW YORK ________________________________________________________________________ 7206 2025-2026 Regular Sessions  IN ASSEMBLY March 21, 2025 ___________ Introduced by M. of A. CHANDLER-WATERMAN -- 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 21 trustee otherwise required to file an annual financial report pursuant EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD08337-01-5 
 A. 7206 2 1 to this section or section one hundred seventy-two-b of the executive 2 law shall satisfy the filing requirement of this paragraph by including 3 such annual disclosure statement with the filing of the trustee's annual 4 financial report or as a part of the trustee's annual financial report. 5 The failure to file or timely file such annual disclosure statement or 6 to include it as a part of the trustee's annual financial report as 7 permitted herein shall subject the trustee in default to the same fines 8 and penalties as those that are applicable to failure by a trustee to 9 file or timely file the trustee's annual financial report. 10 § 2. Section 172-b of the executive law is amended by adding a new 11 subdivision 10 to read as follows: 12 10. (a) Notwithstanding the exemptions from the registration and 13 reporting provisions of this article specified in section one hundred 14 seventy-two-a of this article, the provisions of this subdivision shall 15 apply to all "charitable organizations" defined in section one hundred 16 seventy-one-a of this article and to all entities otherwise exempted 17 from this article that are enumerated in section one hundred seventy- 18 two-a of this article, except to the extent, if any, that the applica- 19 tion of this subdivision to any particular charitable organization is 20 found by the final judgment of a court of competent jurisdiction, after 21 any and all appeals have been exhausted, to be violative of the federal 22 or state constitution. 23 (b) Every charitable organization and every entity that is otherwise 24 exempted from the application of this article by section one hundred 25 seventy-two-a of this article shall file annually with the attorney 26 general on a form prescribed by the attorney general and on such date or 27 dates as the attorney general shall require, a disclosure statement, 28 setting forth under the penalties of perjury whether or not any of the 29 funds entrusted to such charitable organization or exempted entity were 30 expended during the immediately preceding fiscal year covered by such 31 statement for the purpose of satisfying any judgment or paying the 32 amount of any settlement related to one or more allegations of sexual 33 harassment, sexual assault, or child abuse committed by an officer, 34 director, employee or agent of the charitable organization or exempted 35 entity. A charitable organization otherwise required to file an annual 36 financial report pursuant to this article or section 8-1.4 of the 37 estates, powers and trusts law may satisfy the annual filing requirement 38 of this subdivision by including such annual disclosure statement with 39 the filing of the charitable organization's annual financial report or 40 as a part of such organization's annual financial report. The failure to 41 file or timely file such annual disclosure statement or to include it as 42 a part of a charitable organization's annual financial report as permit- 43 ted herein shall subject the charitable organization or otherwise 44 exempted entity in default to the same fines and penalties as those that 45 are applicable to failure by a charitable organization to file or timely 46 file the charitable organization's annual financial report. 47 § 3. This act shall take effect on the one hundred twentieth day after 48 it shall have become a law. Effective immediately, the addition, amend- 49 ment and/or repeal of any rules or regulations necessary for the imple- 50 mentation of this act on its effective date are authorized to be made 51 and completed by the attorney general on or before such effective date.