Prohibits a charitable organization from using any charitable donations that the charitable organization receives to make any sort of payment that arises as a term of a confidentiality agreement or closed settlement agreement.

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S1236-2011 Actions

• Jan 4, 2012: REFERRED TO FINANCE
• Jan 6, 2011: REFERRED TO FINANCE

S1236-2011 Memo

BILL NUMBER:S1236

TITLE OF BILL:
,.in 0
An act
to amend the executive law, in relation to prohibiting charitable
organizations registered in the state of New York from using any
charitable donations for confidentiality agreements or closed settlement
agreements

PURPOSE:
To prohibit charities registered with the State of New York from
engaging in the practice of
using charitable dollars for the purpose of closed "gagged" settlement
agreements.

SUMMARY OF PROVISIONS:
Amends the executive law by adding a new section 172-e. Would
prohibit any charitable organization registered with the State of New
York from using charitable donations for confidentiality agreements
or closed settlement agreements.
Defines "confidentiality agreement" or "closed settlement agreement"
to mean any private agreement or court ordered agreement resolving a
cause of action which limits the possession, disclosure or
dissemination of information about any part of the agreement.

EXISTING LAW:
New bill.

JUSTIFICATION:
This proposal has two benefits. First, it is only fair that those who
donate money to charities know where their charitable dollars are
going. Second, those engaged in covering up child sex abuse, or any
crime for that matter should not be allowed to hide under a "gagged
agreement."

LEGISLATIVE HISTORY:
2003-2004:  S.2815 Died in Senate Finance Committee
2005-2006:  S.4211 Died in Senate Finance Committee
2007-2008:  S.1805 Died in Senate Finance Committee
2009:       S.1343 (Duane) Died in Finance
2010:       S.1343 (Duane) Died in Finance

FISCAL IMPLICATIONS:
None.

LOCAL FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
Immediately.

S1236-2011 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                    1236

                         2011-2012 Regular Sessions

                              I N  SENATE

                               January 6, 2011
                                 ___________

  Introduced  by  Sen.  DUANE  -- read twice and ordered printed, and when
    printed to be committed to the Committee on Finance

  AN ACT to amend the executive law, in relation to prohibiting charitable
    organizations registered in the state of New York from using any char-
    itable donations for confidentiality agreements or  closed  settlement
    agreements

    THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
  BLY, DO ENACT AS FOLLOWS:


    Section 1. The executive law is amended by adding a new section  172-e
  to read as follows:

    S  172-E.  PROHIBITS ANY CHARITABLE ORGANIZATION FROM USING CHARITABLE
  DONATIONS FOR CONFIDENTIALITY AGREEMENTS  OR  CLOSED  SETTLEMENT  AGREE-
  MENTS.  1.  ANY  CHARITABLE  ORGANIZATION REGISTERED IN THE STATE OF NEW
  YORK SHALL BE PROHIBITED FROM USING ANY  CHARITABLE  DONATION  THAT  THE
  CHARITABLE ORGANIZATION RECEIVES TO MAKE ANY SORT OF PAYMENT THAT ARISES
  AS A TERM OF A CONFIDENTIALITY AGREEMENT OR CLOSED SETTLEMENT AGREEMENT.
    2.  FOR  THE  PURPOSES OF THIS SECTION, "CONFIDENTIALITY AGREEMENT" OR
  "CLOSED SETTLEMENT AGREEMENT" SHALL MEAN ANY PRIVATE AGREEMENT OR  COURT
  ORDERED   AGREEMENT  RESOLVING  A  CAUSE  OF  ACTION  WHICH  LIMITS  THE
  POSSESSION, DISCLOSURE OR DISSEMINATION OF INFORMATION ABOUT ANY PART OF
  THE AGREEMENT.
    S 2. This act shall take effect immediately and shall apply to  agree-
  ments  and  proposed  agreements entered into on or after such effective
  date.



   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD00959-01-1