PRINTER'S NO. 814
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
748
Session of
2017
INTRODUCED BY CRUZ, DONATUCCI, SCHWEYER AND MILLARD,
MARCH 7, 2017
REFERRED TO COMMITTEE ON FINANCE, MARCH 7, 2017
AN ACT
Amending the act of November 26, 1997 (P.L.508, No.55), entitled
"An act providing for the tax exemption of institutions of
purely public charity; exempting real property owned by
State-related universities or Federal Government
instrumentalities from taxation; providing for unfair
competition; imposing penalties; and making repeals," further
providing for definitions, for State-related institutions and
for criteria for institutions of purely public charity.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definition of "institution of purely public
charity" in section 3 of the act of November 26, 1997 (P.L.508,
No.55), known as the Institutions of Purely Public Charity Act,
is amended and the section is amended by adding definitions to
read:
Section 3. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
* * *
"Institution of purely public charity." An institution which
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meets the criteria under section 5. The term does not include a
State-related university or other institution of higher
education.
* * *
"Other institution of higher education." Any of the
following:
(1) An institution within the State System of Higher
Education.
(2) A community college established under Article XIX-A
of the act of March 10, 1949 (P.L.30, No.14), known as the
Public School Code of 1949, or the act of August 24, 1963
(P.L.1132, No.484), known as the Community College Act of
1963.
(3) An independent institution of higher education that:
(i) is located in this Commonwealth and incorporated
or chartered by the Commonwealth;
(ii) is entitled to confer degrees under 24 Pa.C.S.
ยง 6505 (relating to power to confer degrees);
(iii) uses the designation "college," "university"
or "seminary" as provided for by standards and
qualifications prescribed by the State Board of Education
under 24 Pa.C.S. Ch. 65 (relating to private colleges,
universities and seminaries); and
(iv) receives, directly or indirectly, funding
through a State appropriation.
* * *
"State-related university." Any of the following:
(1) The Pennsylvania State University and its affiliate.
(2) The Pennsylvania College of Technology.
(3) The University of Pittsburgh.
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(4) Temple University and its subsidiaries Temple
University Hospital, Inc., and Temple University Children's
Hospital, Inc..
(5) Lincoln University.
(6) An institution designated by act of the General
Assembly as "State-related."
Section 2. Sections 4 and 5(b) of the act are amended to
read:
Section 4. State-related universities and other institutions of
higher education.
[(a) General rule.--It is the intent of the General Assembly
to recognize that the State-related universities provide a
direct public benefit and serve the public purposes of this
Commonwealth by declaring the real property of State-related
universities to be public property for purposes of exemption
from State and local taxation when the property is actually and
regularly used for public purposes, provided that nothing in
this section is intended or shall be construed to affect the
title to real property of State-related universities or the
power and authority of the governing bodies of State-related
universities with respect to such real property. Further,
nothing in this section is intended or shall be construed to
affect, impair or terminate any contract or agreement in effect
on or before the effective date of this section by and between a
State-related university and any political subdivision wherein
the State-related university pays real estate taxes, amounts in
lieu of real estate taxes or other charges, fees or
contributions for government services.]
(b) Real property.--Notwithstanding any other provision of
this act or other law to the contrary:
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(1) All real property owned by State-related
universities or owned by the Commonwealth and used by a
State-related university [is and shall be deemed public
property for purposes of the Constitution of Pennsylvania
and] shall be subject to the laws of this Commonwealth
relating to the assessment, taxation and exemption of real
estate and shall not be exempt from [all] State and local
taxation [when actually and regularly used for public
purposes].
(2) All real property owned by other institutions of
higher education shall be subject to the laws of this
Commonwealth relating to the assessment, taxation and
exemption of real estate and shall not be exempt from State
and local taxation.
[(c) Exception.--This section shall not include the property
of a State-related university the possession and control of
which has been transferred to a for-profit entity not otherwise
entitled to tax-exempt status, irrespective of whether that
entity is affiliated with the university. The execution of a
management services contract with a third party entity to
provide operational services to the university which would
otherwise be provided or conducted directly by the university
shall not, however, be considered a transfer of possession and
control of real property within the meaning of this section.
(d) Definitions.--As used in this section, the following
words and phrases shall have the meanings given to them in this
subsection:
"Public purposes." All activities relating to the
educational mission of State-related universities, including
teaching, research, service and activities incident or ancillary
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thereto which provide services to or for students, employees or
the public.
"State-related universities." The Pennsylvania State
University and its affiliate, the Pennsylvania College of
Technology, the University of Pittsburgh, Temple University and
its subsidiaries Temple University Hospital, Inc., and Temple
University Children's Hospital, Inc., and Lincoln University.]
Section 5. Criteria for institutions of purely public charity.
* * *
(b) Charitable purpose.--The institution must advance a
charitable purpose. This criterion is satisfied if the
institution is organized and operated primarily to fulfill any
one or combination of the following purposes:
(1) Relief of poverty.
(2) Advancement and provision of education. This
paragraph includes postsecondary education[.], except if
provided by a State-related university or other institution
of higher education.
(3) Advancement of religion.
(4) Prevention and treatment of disease or injury,
including mental retardation and mental disorders.
(5) Government or municipal purposes.
(6) Accomplishment of a purpose which is recognized as
important and beneficial to the public and which advances
social, moral or physical objectives.
* * *
Section 3. This act shall take effect in 60 days.
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