SENATE AMENDED
PRIOR PRINTER'S NOS. 1107, 2057, 2225, PRINTER'S NO. 2671
2494
No. 971 Session of 1985
INTRODUCED BY LEVIN, IRVIS, MANDERINO, HAYES, COLAFELLA,
JOSEPHS, McCLATCHY, CESSAR, PIEVSKY, D. R. WRIGHT, GALLAGHER,
FREIND, ITKIN, FREEMAN, COHEN, HARPER, MILLER, FOX, PISTELLA,
HAGARTY, NAHILL AND DAWIDA, APRIL 16, 1985
AS AMENDED ON THIRD CONSIDERATION, IN SENATE, DECEMBER 11, 1985
AN ACT
1 Requiring the disclosure of gifts to institutions of higher
2 education made by foreign governments, foreign legal entities
3 and foreign persons.
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6 Section 1. Short title.
7 This act shall be known and may be cited as the Higher
8 Education Gift Disclosure Act.
9 Section 2. Definitions.
10 The following words and phrases when used in this act shall
11 have the meanings given to them in this section unless the
12 context clearly indicates otherwise:
13 "College or university." Any nonprofit educational
14 institution situated within this Commonwealth empowered to
15 provide a program of education beyond the high school level and
16 which, by virtue of governing law and regulation, is recognized
1 by the State Board of Education as an institution of higher
2 education and which places no restrictions upon the admission of
3 students based upon race, creed or national origin. The term
4 includes all institutions of the State System of Higher
5 Education.
6 "Department." The Department of Education of the
7 Commonwealth.
8 "Foreign government." Any government other than the United
9 States Government or the government of a state or a political
10 subdivision thereof. The term shall include an agent of such
11 government.
12 "Foreign legal entity."
13 (1) Any legal entity created under the laws of a foreign
14 government.
15 (2) Any legal entity created under the laws of the
16 United States or of any state or political subdivision
17 thereof if:
18 (i) fifty percent of the ownership of the stock of,
19 or interest in, such legal entity is directly or
20 indirectly owned legally or beneficially by one or more
21 foreign governments or one or more foreign persons;
22 (ii) fifty percent of the membership of any such
23 entity is composed of foreign persons or legal entities
24 created under the laws of a foreign government or agents
25 of such legal entities; or
26 (iii) fifty percent of the assets of such entity are
27 derived from contributions or loans from foreign
28 governments or foreign persons.
29 "Foreign person." Any foreign legal entity and any
30 individual who is not a citizen or national of the United States
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1 or a trust territory or protectorate thereof. The term shall
2 include an agent of such individual.
3 "Gift." Any contract, gift, grant, endowment, award or
4 donation of money or property of any kind, or any combination of
5 these, which in any one fiscal year equals or exceeds $100,000.
6 "Secretary." The Secretary of Education of the Commonwealth.
7 Section 3. Disclosure requirements.
8 (a) In general.--
9 (1) Every college and university shall disclose the
10 amount, terms, restrictions, requirements and conditions
11 attached to or made a part of any gift of a value equal to or
12 in excess of $100,000 made to the college or university by a
13 donor known to the college or university through reasonable
14 good faith efforts to be a foreign government, foreign legal
15 entity or foreign person in any fiscal year of the college or
16 university. This provision shall only apply in circumstances
17 where the contribution of the foreign government, foreign
18 legal entity or foreign person, alone or together with
19 others, exceeds 50% of the total gift.
20 (2) If the foreign government, foreign legal entity or
21 foreign person makes more than one gift to a college or
22 university in any fiscal year of the college or university,
23 and the total value of the gifts equals or exceeds $100,000,
24 the college or university shall make the same disclosure with
25 respect to all such gifts received.
26 (b) Report.--The foregoing information shall be forwarded by
27 a college or university to the secretary not later than the due
28 date for the Federal return of organizations exempt from income
29 tax. Such information shall include:
30 (1) The name and address of the donor of the gift.
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1 (2) The amount and date of the making of each gift.
2 (3) The subject of each gift.
3 (4) A detailed description of any terms, restrictions,
4 requirements or conditions imposed on the college by the
5 terms of the gift.
6 (5) A detailed description of the purpose for which the
7 gift will be used by the college or university, including the
8 identification of the persons whom the gift is explicitly
9 intended to benefit.
10 (c) Forms.--Colleges and universities shall forward the
11 foregoing information to the secretary on forms prepared and
12 made available by the secretary for that purpose.
13 SECTION 4. ALUMNI GIFT REPORTS. <--
14 NOTWITHSTANDING THE PROVISIONS OF THIS ACT, IF THE FOREIGN
15 SOURCE IS AN ALUMNUS, AND NO GRANT OR CONTRACT CONTAINS ANY
16 CONDITIONS, RESTRICTIONS, REQUIREMENTS, MATCHING PROVISIONS, OR
17 DESIGNATIONS OTHER THAN THAT THE GRANT OR CONTRACT IS GIVEN FOR
18 THE BENEFIT OF THE INSTITUTION AS A WHOLE, THE DISCLOSURE REPORT
19 SHALL BE REQUIRED TO DISCLOSE ONLY THE NATIONALITY AND COUNTRY
20 OF RESIDENCE OF THE FOREIGN SOURCE.
21 Section 4 5. Publication of gifts and contracts. <--
22 The information subject to disclosure under section 3 shall
23 be a matter of public record, shall be made available by the
24 department to the general public for review and copying during
25 normal business hours. and shall be published at least annually <--
26 by the secretary in the Pennsylvania Bulletin.
27 Section 5 6. Sworn statement of nationality. <--
28 Any college or university may, at its option, request any
29 donor to submit a sworn statement, on a form prepared and made
30 available to the colleges and universities by the secretary for
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1 that purpose, attesting to whether the donor is a foreign legal
2 entity or foreign person. A college or university may
3 thereafter, without further penalty, rely upon that sworn
4 statement in complying with the disclosure requirements of this
5 act with respect to the foreign status of the donor.
6 Section 6 7. Penalties. <--
7 (a) Donee penalty.--Any college or university that willfully
8 or intentionally fails to disclose the information required by
9 section 3 shall be subject to a civil penalty of 105% of the
10 amount of any undisclosed gift.
11 (b) Donor penalty.--Any foreign legal entity or foreign
12 person that submits a false sworn statement, on their own behalf
13 or on behalf of a foreign government, to a college or university
14 pursuant to section 5 6 as defined in 18 Pa.C.S. § 4904(b) <--
15 (relating to unsworn falsification to authorities) shall be
16 subject to the penalties prescribed therein.
17 Section 7 8. Effective date. <--
18 This act shall take effect in 60 days.
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