PRINTER'S NO. 2562
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2196
Session of
2021
INTRODUCED BY STAMBAUGH, HENNESSEY, JAMES AND RYAN,
DECEMBER 22, 2021
REFERRED TO COMMITTEE ON EDUCATION, DECEMBER 22, 2021
AN ACT
Amending the act of July 5, 2012 (P.L.962, No.104), entitled "An
act authorizing State-owned universities and the employees
thereof to enter into certain agreements with affiliated
entities; providing for doctoral degrees; and making related
repeals," in general provisions, further providing for
definitions; and, in relations with private affiliated
entities, further providing for scope of chapter and for
applicability, providing for expenditure of funds and further
providing for status.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definition of "affiliated entity" in section
102 of the act of July 5, 2012 (P.L.962, No.104), known as the
Commonwealth Higher Education Modernization Act, is amended to
read:
Section 102. 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:
"Affiliated entity." A private nonprofit corporation [with
the sole purpose of benefiting] that held at least $5,000,000 in
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nonpublic, donated funds that the private nonprofit corporation
administered and expended for the benefit of the State System of
Higher Education or a State-owned university during the
preceding three fiscal years.
* * *
Section 2. Sections 501 and 502 of the act are amended to
read:
Section 501. Scope of chapter.
This chapter shall govern 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 State-owned university].
Section 502. Applicability.
[In order for this chapter to apply to an affiliated entity,
the affiliated entity must exist 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.] In order for
this chapter to apply to an affiliated entity, the affiliated
entity must be a private nonprofit corporation and must manage
at least $5,000,000 in nonpublic, donated funds for the benefit
of the system or a State-owned university during the preceding
three fiscal years. No affiliated entity that meets the criteria
under this section may be denied the benefits afforded by this
chapter without due process of law and a determination by the
orphans' court. An affiliated entity may raise and utilize
nonpublic funds to benefit and promote the system or a State-
owned university.
Section 3. The act is amended by adding a section to read:
Section 502.1. Expenditure of funds.
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Funds held by an affiliated entity on or after the effective
date of this section shall be distributed at the discretion of
the affiliated entity for the purposes of this chapter.
Section 4. Section 505 of the act is amended to read:
Section 505. Status.
Affiliated entities recognized under this chapter shall not
be [considered]:
(1) 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.
(2) Subject to the act of February 14, 2008 (P.L.6,
No.3), known as the Right-to-Know Law.
Section 5. This act shall take effect in 60 days.
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