What's happening
This bill prohibits New York charitable organizations from using donations to fund confidentiality or closed settlement agreements.
Why it matters
Increases transparency and accountability. By prohibiting the use of charitable donations for confidentiality or closed settlement agreements, the bill makes it harder for organizations to hide misconduct or controversial actions behind private settlements.
Protects donor intent. Donors typically expect their contributions to support a charity’s mission, not to pay for legal settlements or to cover up issues. This law ensures that donations are used for charitable purposes rather than for potentially problematic legal cover-ups.
May deter organizational misconduct. Knowing that they cannot use donated funds to quietly resolve disputes, charitable organizations might be more careful in their operations and more likely to address problems openly rather than attempting to conceal them.
Applies immediately to new agreements. The law is designed to have an immediate impact, affecting all confidentiality or closed settlement agreements entered into after the law’s effective date, which could quickly change how charities handle disputes and allegations.
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Who cares
Headline styles
Stop Donations Funding NDAs
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to finance
- Referred to finance
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3464
2017-2018 Regular Sessions
IN SENATE
January 23, 2017
Introduced by Sens. PARKER, DILAN -- 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 charitable donations for confidentiality agreements or closed settlement agreements
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The executive law is amended by adding a new section 172-g to read as follows:
§ 172-g. Prohibits any charitable organization from using charitable donations for confidentiality agreements or closed settlement agreements. 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.
§ 2. This act shall take effect immediately and shall apply to agreements 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.
LBD06625-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
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-g. 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.
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
2015-2016:S.1819- Died in Finance 2013-2014:S.829-Died in Finance 2011-2012:S.1236- Died in Finance 2009-2010:S.1343(Duane)-Died in Finance 2007-2008:S.1805(Duane)-Died in Senate Finance Committee 2005-2006:S.4211(Duane)-Died in Senate Finance Committee 2003-2004:S.2815(Duane)-Died in Senate Finance Committee
Fiscal implications
None.
Local fiscal implications
None.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.