PRINTER'S NO. 2219
No. 1755 Session of 2001
INTRODUCED BY L. I. COHEN, BELFANTI, CREIGHTON, FRANKEL, GEORGE,
McGILL, SAYLOR AND YOUNGBLOOD, JUNE 13, 2001
REFERRED TO COMMITTEE ON EDUCATION, JUNE 13, 2001
AN ACT
1 Amending the act of December 19, 1985 (P.L.351, No.99), entitled
2 "An act requiring the disclosure of gifts to institutions of
3 higher education made by foreign governments, foreign legal
4 entities and foreign persons," further providing for
5 definitions and for disclosure requirements.
6 The General Assembly of the Commonwealth of Pennsylvania
7 hereby enacts as follows:
8 Section 1. Sections 2 and 3 of the act of December 19, 1985
9 (P.L.351, No.99), known as the Higher Education Gift Disclosure
10 Act, are amended to read:
11 Section 2. Definitions.
12 The following words and phrases when used in this act shall
13 have the meanings given to them in this section unless the
14 context clearly indicates otherwise:
15 "College or university." Any nonprofit educational
16 institution situated within this Commonwealth empowered to
17 provide a program of education beyond the high school level and
18 which, by virtue of governing law and regulation, is recognized
19 by the State Board of Education as an institution of higher
1 education and which places no restrictions upon the admission of
2 students based upon race, creed or national origin. The term
3 includes all institutions of the State System of Higher
4 Education.
5 "Department." The Department of Education of the
6 Commonwealth.
7 "Foreign government." Any government other than the United
8 States Government or the government of a state or a political
9 subdivision thereof. The term shall include an agent of such
10 government.
11 "Foreign legal entity."
12 (1) Any legal entity created under the laws of a foreign
13 government.
14 (2) Any legal entity created under the laws of the
15 United States or of any state or political subdivision
16 thereof if:
17 (i) fifty percent of the ownership of the stock of,
18 or interest in, such legal entity is directly or
19 indirectly owned legally or beneficially by one or more
20 foreign governments or one or more foreign persons;
21 (ii) fifty percent of the membership of any such
22 entity is composed of foreign persons or legal entities
23 created under the laws of a foreign government or agents
24 of such legal entities; or
25 (iii) fifty percent of the assets of such entity are
26 derived from contributions or loans from foreign
27 governments or foreign persons.
28 "Foreign person." Any foreign legal entity and any
29 individual who is not a citizen or national of the United States
30 or a trust territory or protectorate thereof. The term shall
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1 include an agent of such individual.
2 "Gift." Any contract, gift, grant, endowment, award or
3 donation of money or property of any kind, or any combination of
4 these, which in any one fiscal year equals or exceeds [$100,000]
5 $5,000.
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] $5,000 made to the college or
13 university by a donor known to the college or university
14 through reasonable good faith efforts to be a foreign
15 government, foreign legal entity or foreign person in any
16 fiscal year of the college or university. This provision
17 shall only apply in circumstances where the contribution of
18 the foreign government, foreign legal entity or foreign
19 person, alone or together with others, exceeds 50% of the
20 total gift.
21 (2) If the foreign government, foreign legal entity or
22 foreign person makes more than one gift to a college or
23 university in any fiscal year of the college or university
24 and the total value of the gifts equals or exceeds [$100,000]
25 $5,000, the college or university shall make the same
26 disclosure with respect to all such gifts received.
27 (b) Report.--The foregoing information shall be forwarded by
28 a college or university to the secretary not later than the due
29 date for the Federal return of organizations exempt from income
30 tax. Such information shall include:
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1 (1) The name and address of the donor of the gift.
2 (2) The amount and date of the making of each gift.
3 (3) The subject of each gift.
4 (4) A detailed description of any terms, restrictions,
5 requirements or conditions imposed on the college by the
6 terms of the gift.
7 (5) A detailed description of the purpose for which the
8 gift will be used by the college or university, including the
9 identification of the persons whom the gift is explicitly
10 intended to benefit.
11 (c) Forms.--Colleges and universities shall forward the
12 foregoing information to the secretary on forms prepared and
13 made available by the secretary for that purpose.
14 Section 2. The amendment of section 3 of the act shall apply
15 to fiscal years of "colleges or universities," as defined in
16 section 2 of the act, beginning on or after the effective date
17 of this act.
18 Section 3. This act shall take effect in 60 days.
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