THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY DINNIMAN, ALLOWAY, GREENLEAF, EARLL AND MENSCH, AUGUST 2, 2011

REFERRED TO EDUCATION, AUGUST 2, 2011  

AN ACT

Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An

act relating to the public school system, including certain

provisions applicable as well to private and parochial

schools; amending, revising, consolidating and changing the

laws relating thereto," providing for relations with private

affiliated entities; and making related repeals.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  The act of March 10, 1949 (P.L.30, No.14), known

as the Public School Code of 1949, is amended by adding a

section to read:

Section 2021-A.  Relations with Private Affiliated

Entities.--(a)  This section shall apply to the relationships

between the system or a State-owned university and affiliated

entities that are incorporated for the sole purpose of

benefiting the system or a State-owned university.

(b)  This section shall apply to an affiliated entity if the

affiliated entity exists for the sole purpose of benefiting the

system or a State-owned university. Affiliated entities may

raise and utilize nonpublic funds to benefit and promote the

system or a State-owned university.

(c)  System employes or officers may provide services to an

affiliated entity as an ex officio, nonvoting member of the

board of the affiliated entity as part of the mission of the

system or a State-owned university.

(d)  The system and State-owned universities may coordinate

and jointly engage in fundraising activities with an affiliated

entity in order to raise money for the affiliated entity if the

money is used to directly inure to the benefit of the system or

State-owned university for the purposes stated under this act.

(e)  Notwithstanding any other provision of law, the

provisions of the act of July 19, 1957 (P.L.1017, No.451), known

as the "State Adverse Interest Act," shall not apply to the

system, its institutions or employes of the system and its

institutions for actions undertaken in accordance with this

section.

(f)  Nothing in this section shall be construed as

authorizing or granting power to an affiliated entity to enter

into any transactions or any agreements on behalf of the system

or a State-owned university.

(g)  Neither the system nor a State-owned university shall be

responsible for the payment of any debts or satisfaction of any

obligations incurred by an affiliated entity.

(h)  Affiliated entities recognized under this article shall

not be considered instrumentalities or agencies of the

Commonwealth. The Commonwealth shall not have any ownership

interest in the corporation and all affiliated entities shall

continue to be considered private corporations.

Section 2.  Repeals are as follows:

(1)  The General Assembly declares that the repeals under

paragraphs (2) and (3) are necessary to effectuate the

addition of section 2021-A of the act.

(2)  The following acts are repealed:

(i)  The act of May 20, 1857 (P.L.581, No.619),

entitled "An act to provide for the Due Training of

Teachers for the Common Schools of the State."

(ii)  The act of April 15, 1859 (P.L.680, No.681),

entitled "A supplement to an act to provide for the due

training of Teachers for the Common Schools of the State,

passed on the twentieth of May, one thousand eight

hundred and fifty-seven."

(iii)  The act of January 18, 1952 (1951 P.L.2111,

No.600), entitled "An act to provide for minimum

compensation and increments for administrators and

members of the faculty of State Colleges; providing for

leaves of absence; imposing certain duties upon the

Boards of Trustees and Presidents of State Colleges and

the Superintendent of Public Instruction; and repealing

inconsistent laws."

(3)  The following acts or parts of acts are repealed to

the extent they are inconsistent with the addition of section

2021-A of the act:

(i)  The act of July 19, 1957 (P.L.1017, No.451),

known as the State Adverse Interest Act.

(ii)  65 Pa.C.S. § 1103(a).

Section 3.  This act shall take effect in 60 days.