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.
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.
STATE OF NEW YORK ________________________________________________________________________ 1236 2011-2012 Regular Sessions IN 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