PRINTER'S NO. 361
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
342
Session of
2017
INTRODUCED BY DeLUCA, MILLARD, CALTAGIRONE, D. COSTA, McNEILL,
THOMAS, FRANKEL AND ROZZI, FEBRUARY 6, 2017
REFERRED TO COMMITTEE ON FINANCE, FEBRUARY 6, 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 and for criteria for institutions
of purely public charity.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. 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 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:
* * *
"Restrictive covenant not to compete." An agreement between
an employer and an employee that is designed to impede the
ability of the employee to compete with the employer when a
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separating event occurs.
"Separating event." An employee's discontinuance of
employment with a current employer and move to employment with a
different employer in the same field.
* * *
Section 2. Section 5(c) of the act is amended by adding a
paragraph to read:
Section 5. Criteria for institutions of purely public charity.
* * *
(c) Private profit motive.--The institution must operate
entirely free from private profit motive. Notwithstanding
whether the institution's revenues exceed its expenses, this
criterion is satisfied if the institution meets all of the
following:
* * *
(5) The institution does not enter into a restrictive
covenant not to compete and the institution does not attempt
to enforce a restrictive covenant not to compete.
* * *
Section 3. This act shall take effect in 60 days.
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