S T A T E O F N E W Y O R K
________________________________________________________________________
6653
2023-2024 Regular Sessions
I N A S S E M B L Y
April 25, 2023
___________
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:
Section 1. Section 8-1.4 of the estates, powers and trusts law is
amended by adding a new paragraph (t) to read as follows:
(T) (1) NOTWITHSTANDING THE EXEMPTIONS FROM THE REGISTRATION AND
REPORTING PROVISIONS OF THIS SECTION SPECIFIED IN PARAGRAPH (B) OF THIS
SECTION, THE PROVISIONS OF THIS PARAGRAPH SHALL APPLY TO A DESIGNATED
"TRUSTEE", AS DEFINED IN PARAGRAPH (A) OF THIS SECTION, EXCEPT TO THE
EXTENT, IF ANY, THAT THE APPLICATION OF THIS PARAGRAPH TO ANY PARTICULAR
TRUSTEE IS FOUND BY THE FINAL JUDGMENT OF A COURT OF COMPETENT JURISDIC-
TION, AFTER ANY AND ALL APPEALS HAVE BEEN EXHAUSTED, TO BE VIOLATIVE OF
THE FEDERAL OR STATE CONSTITUTION.
(2) A DESIGNATED TRUSTEE SHALL FILE ANNUALLY WITH THE ATTORNEY GENERAL
ON A FORM PRESCRIBED BY THE ATTORNEY GENERAL AND ON SUCH DATE OR DATES
AS THE ATTORNEY GENERAL SHALL REQUIRE, A DISCLOSURE STATEMENT, SETTING
FORTH UNDER THE PENALTIES OF PERJURY WHETHER OR NOT ANY OF THE FUNDS
ENTRUSTED TO SUCH BOARD OF TRUSTEES OR DESIGNATED TRUSTEE WERE EXPENDED
DURING THE IMMEDIATELY PRECEDING FISCAL YEAR COVERED BY SUCH STATEMENT
FOR THE PURPOSE OF SATISFYING ANY JUDGMENT OR PAYING THE AMOUNT OF ANY
SETTLEMENT RELATED TO ONE OR MORE ALLEGATIONS OF SEXUAL HARASSMENT,
SEXUAL ASSAULT, OR CHILD ABUSE COMMITTED BY AN OFFICER, DIRECTOR,
EMPLOYEE OR AGENT OF THE BOARD OF TRUSTEES OR A DESIGNATED TRUSTEE. A
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.
LBD07740-01-3
A. 6653 2
TO THIS SECTION OR SECTION ONE HUNDRED SEVENTY-TWO-B OF THE EXECUTIVE
LAW SHALL SATISFY THE FILING REQUIREMENT OF THIS PARAGRAPH BY INCLUDING
SUCH ANNUAL DISCLOSURE STATEMENT WITH THE FILING OF THE TRUSTEE'S ANNUAL
FINANCIAL REPORT OR AS A PART OF THE TRUSTEE'S ANNUAL FINANCIAL REPORT.
THE FAILURE TO FILE OR TIMELY FILE SUCH ANNUAL DISCLOSURE STATEMENT OR
TO INCLUDE IT AS A PART OF THE TRUSTEE'S ANNUAL FINANCIAL REPORT AS
PERMITTED HEREIN SHALL SUBJECT THE TRUSTEE IN DEFAULT TO THE SAME FINES
AND PENALTIES AS THOSE THAT ARE APPLICABLE TO FAILURE BY A TRUSTEE TO
FILE OR TIMELY FILE THE TRUSTEE'S ANNUAL FINANCIAL REPORT.
§ 2. Section 172-b of the executive law is amended by adding a new
subdivision 10 to read as follows:
10. (A) NOTWITHSTANDING THE EXEMPTIONS FROM THE REGISTRATION AND
REPORTING PROVISIONS OF THIS ARTICLE SPECIFIED IN SECTION ONE HUNDRED
SEVENTY-TWO-A OF THIS ARTICLE, THE PROVISIONS OF THIS SUBDIVISION SHALL
APPLY TO ALL "CHARITABLE ORGANIZATIONS" DEFINED IN SECTION ONE HUNDRED
SEVENTY-ONE-A OF THIS ARTICLE AND TO ALL ENTITIES OTHERWISE EXEMPTED
FROM THIS ARTICLE THAT ARE ENUMERATED IN SECTION ONE HUNDRED SEVENTY-
TWO-A OF THIS ARTICLE, EXCEPT TO THE EXTENT, IF ANY, THAT THE APPLICA-
TION OF THIS SUBDIVISION TO ANY PARTICULAR CHARITABLE ORGANIZATION IS
FOUND BY THE FINAL JUDGMENT OF A COURT OF COMPETENT JURISDICTION, AFTER
ANY AND ALL APPEALS HAVE BEEN EXHAUSTED, TO BE VIOLATIVE OF THE FEDERAL
OR STATE CONSTITUTION.
(B) EVERY CHARITABLE ORGANIZATION AND EVERY ENTITY THAT IS OTHERWISE
EXEMPTED FROM THE APPLICATION OF THIS ARTICLE BY SECTION ONE HUNDRED
SEVENTY-TWO-A OF THIS ARTICLE SHALL FILE ANNUALLY WITH THE ATTORNEY
GENERAL ON A FORM PRESCRIBED BY THE ATTORNEY GENERAL AND ON SUCH DATE OR
DATES AS THE ATTORNEY GENERAL SHALL REQUIRE, A DISCLOSURE STATEMENT,
SETTING FORTH UNDER THE PENALTIES OF PERJURY WHETHER OR NOT ANY OF THE
FUNDS ENTRUSTED TO SUCH CHARITABLE ORGANIZATION OR EXEMPTED ENTITY WERE
EXPENDED DURING THE IMMEDIATELY PRECEDING FISCAL YEAR COVERED BY SUCH
STATEMENT FOR THE PURPOSE OF SATISFYING ANY JUDGMENT OR PAYING THE
AMOUNT OF ANY SETTLEMENT RELATED TO ONE OR MORE ALLEGATIONS OF SEXUAL
HARASSMENT, SEXUAL ASSAULT, OR CHILD ABUSE COMMITTED BY AN OFFICER,
DIRECTOR, EMPLOYEE OR AGENT OF THE CHARITABLE ORGANIZATION OR EXEMPTED
ENTITY. A CHARITABLE ORGANIZATION OTHERWISE REQUIRED TO FILE AN ANNUAL
FINANCIAL REPORT PURSUANT TO THIS ARTICLE OR SECTION 8-1.4 OF THE
ESTATES, POWERS AND TRUSTS LAW MAY SATISFY THE ANNUAL FILING REQUIREMENT
OF THIS SUBDIVISION BY INCLUDING SUCH ANNUAL DISCLOSURE STATEMENT WITH
THE FILING OF THE CHARITABLE ORGANIZATION'S ANNUAL FINANCIAL REPORT OR
AS A PART OF SUCH ORGANIZATION'S ANNUAL FINANCIAL REPORT. THE FAILURE TO
FILE OR TIMELY FILE SUCH ANNUAL DISCLOSURE STATEMENT OR TO INCLUDE IT AS
A PART OF A CHARITABLE ORGANIZATION'S ANNUAL FINANCIAL REPORT AS PERMIT-
TED HEREIN SHALL SUBJECT THE CHARITABLE ORGANIZATION OR OTHERWISE
EXEMPTED ENTITY IN DEFAULT TO THE SAME FINES AND PENALTIES AS THOSE THAT
ARE APPLICABLE TO FAILURE BY A CHARITABLE ORGANIZATION TO FILE OR TIMELY
FILE THE CHARITABLE ORGANIZATION'S ANNUAL FINANCIAL REPORT.
§ 3. This act shall take effect on the one hundred twentieth day after
it shall have become a law. Effective immediately, the addition, amend-
ment and/or repeal of any rules or regulations necessary for the imple-
mentation of this act on its effective date are authorized to be made
and completed by the attorney general on or before such effective date.