An Act To Revoke The Tax-Exempt Status Of An Organization That Fails To Report Sexual Assaults Committed By Employees, Board Members, Volunteers Or Affiliates

This bill requires Maine tax-exempt organizations (like charities, religious groups, and nonprofits) to report all sexual assault allegations involving their employees, board members, volunteers, or affiliates to law enforcement. If an organization fails to report two separate, substantiated allegations within a 10-year period, Maine’s Bureau of Revenue Services must revoke its tax-exempt status. Organizations have 30 days to appeal the revocation, and may apply for reinstatement after 5 years by proving compliance with reporting rules, implementing child protection policies, and cooperating with past investigations. The law applies specifically to entities qualifying under federal tax code 501(c).