Pennsylvania HB 323: An Act amending Title 15 (Corporations and Unincorporated Associations) of the Pennsylvania Consolidated Statutes, in general provisions relating to nonprofit corporations, providing for eligibility for receipt of State resources.

Bill Text

PRINTER'S NO. 279
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 323
Session of
2025
INTRODUCED BY CIRESI, D. MILLER, HILL-EVANS, PROBST, FRANKEL,
CEPEDA-FREYTIZ, GIRAL, PIELLI, KHAN, SANCHEZ, DONAHUE,
HOHENSTEIN, D. WILLIAMS, NEILSON, FIEDLER, GREEN AND WEBSTER,
JANUARY 27, 2025
REFERRED TO COMMITTEE ON LABOR AND INDUSTRY, JANUARY 27, 2025
AN ACT
Amending Title 15 (Corporations and Unincorporated Associations)
of the Pennsylvania Consolidated Statutes, in general
provisions relating to nonprofit corporations, providing for
eligibility for receipt of State resources.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 15 of the Pennsylvania Consolidated
Statutes is amended by adding a section to read:
§ 5111. Eligibility for receipt of State resources.
(a) Conditions.--A domestic nonprofit corporation or a
foreign nonprofit corporation with 200 or more employees in this
Commonwealth shall not be eligible for a State contract, State
funding or a State grant if the corporation:
(1) has violated 29 U.S.C. Ch. 8 (relating to fair labor
standards) within the previous five years;
(2) has been found guilty of an unfair labor practice in
this Commonwealth within the previous five years; or
(3) fails to submit to the Department of State current
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bylaws of the corporation, which must provide that at least
20% of the members of the governing board of the corporation
are current employees of the corporation and are elected by
the employees of the corporation.
(b) Applicability.--
(1) Subsection (a) shall not apply in the case of
health-care-related money payable from the Commonwealth to
the domestic nonprofit corporation or foreign nonprofit
corporation, which shall include Medicaid reimbursements.
(2) This section shall not apply if the condition
described in subsection (a)(1) or (2) occurred prior to the
effective date of this paragraph.
Section 2. The addition of 15 Pa.C.S. § 5111 shall apply to
the following:
(1) A State contract entered into or renewed on or after
the effective date of this section.
(2) State funding approved or otherwise made on or after
the effective date of this section.
(3) A State grant approved on or after the effective
date of this section.
Section 3. This act shall take effect in 60 days.
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