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Bill > LD1499
ME LD1499
ME LD1499An Act to Revoke the Tax-exempt Status of an Organization That Fails to Report Sexual Assaults Committed by Employees, Board Members, Volunteers or Affiliates
summary
Introduced
04/08/2025
04/08/2025
In Committee
04/08/2025
04/08/2025
Crossed Over
Passed
Dead
05/28/2025
05/28/2025
Introduced Session
132nd Legislature
Bill Summary
This bill requires an organization that is tax exempt pursuant to the Internal Revenue Code, Section 501(c), including a religious, charitable, educational or nonprofit entity, to report all allegations of sexual assault involving that organization's employees, board members, volunteers or affiliates to law enforcement authorities. "Sexual assault" is defined as any criminal act that constitutes a sexual offense under state or federal law. If a tax-exempt organization fails to report at least 2 separate allegations of sexual assault within a 10-year period, as determined by a court or fact finder in an administrative hearing, that must be reported to the Department of Administrative and Financial Services, Bureau of Revenue Services, which is required to revoke the organization's tax-exempt status for all activities conducted within the State and provide the organization with the opportunity to appeal that revocation. An organization may apply for reinstatement of tax-exempt status after 5 years by demonstrating full compliance with reporting laws, implementation of child protection policies and training programs and cooperation with law enforcement investigations related to prior failures to report.
AI Summary
This bill establishes new requirements and penalties for tax-exempt organizations regarding the reporting of sexual assault allegations. Specifically, tax-exempt organizations (including religious, charitable, educational, and nonprofit entities) must report all allegations of sexual assault involving their employees, board members, volunteers, or affiliates to law enforcement authorities. "Sexual assault" is defined broadly as any criminal act constituting a sexual offense under state or federal law. If an organization fails to report at least two distinct sexual assault allegations within a 10-year period - as determined by a court or administrative proceeding - the Department of Administrative and Financial Services' Bureau of Revenue Services will revoke the organization's tax-exempt status for all activities within the state. The organization will receive written notice and an opportunity to appeal this decision. To regain tax-exempt status after five years, the organization must demonstrate full compliance with reporting laws, implement comprehensive child protection policies and training programs, and show cooperation with law enforcement investigations related to previous reporting failures. The bill also requires tax-exempt organizations to maintain records of sexual assault allegations and publicly disclose any violations, creating a framework designed to enhance accountability and transparency in handling sexual assault allegations.
Committee Categories
Budget and Finance
Sponsors (3)
Last Action
Pursuant to Joint Rule 310.3 Placed in Legislative Files (DEAD) (on 05/28/2025)
bill text
bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://legislature.maine.gov/legis/bills/display_ps.asp?LD=1499&snum=132 |
| BillText | https://legislature.maine.gov/legis/bills/getPDF.asp?paper=HP0983&item=1&snum=132 |
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