Pennsylvania Act 1985-99 — HIGHER EDUCATION GIFT DISCLOSURE ACT

Act text

HIGHER EDUCATION GIFT DISCLOSURE ACT
                  Act of Dec. 19, 1985, P.L. 351, No. 99              Cl. 24
                                  AN ACT

     Requiring the disclosure of gifts to institutions of higher
        education made by foreign governments, foreign legal entities
        and foreign persons.

        The General Assembly of the Commonwealth of Pennsylvania
     hereby enacts as follows:

     Section 1.  Short title.
        This act shall be known and may be cited as the Higher
     Education Gift Disclosure Act.
     Section 2.  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:
        "College or university."  Any nonprofit educational
     institution situated within this Commonwealth empowered to
     provide a program of education beyond the high school level and
     which, by virtue of governing law and regulation, is recognized
     by the State Board of Education as an institution of higher
     education and which places no restrictions upon the admission of
     students based upon race, creed or national origin. The term
     includes all institutions of the State System of Higher
     Education.
        "Department."  The Department of Education of the
     Commonwealth.
        "Foreign government."  Any government other than the United
     States Government or the government of a state or a political
     subdivision thereof. The term shall include an agent of such
     government.
        "Foreign legal entity."
            (1)  Any legal entity created under the laws of a foreign
        government.
            (2)  Any legal entity created under the laws of the
        United States or of any state or political subdivision
        thereof if:
                (i)  fifty percent of the ownership of the stock of,
            or interest in, such legal entity is directly or
            indirectly owned legally or beneficially by one or more
            foreign governments or one or more foreign persons;
                (ii)  fifty percent of the membership of any such
            entity is composed of foreign persons or legal entities
            created under the laws of a foreign government or agents
            of such legal entities; or
                (iii)  fifty percent of the assets of such entity are
            derived from contributions or loans from foreign
            governments or foreign persons.
        "Foreign person."  Any foreign legal entity and any
     individual who is not a citizen or national of the United States
     or a trust territory or protectorate thereof. The term shall
     include an agent of such individual.
        "Gift."  Any contract, gift, grant, endowment, award or
     donation of money or property of any kind, or any combination of
     these, which in any one fiscal year equals or exceeds $100,000.
        "Secretary."  The Secretary of Education of the Commonwealth.
     Section 3.  Disclosure requirements.
        (a)  In general.--
            (1)  Every college and university shall disclose the
        amount, terms, restrictions, requirements and conditions
        attached to or made a part of any gift of a value equal to or
        in excess of $100,000 made to the college or university by a
        donor known to the college or university through reasonable
        good faith efforts to be a foreign government, foreign legal
        entity or foreign person in any fiscal year of the college or
        university. This provision shall only apply in circumstances
        where the contribution of the foreign government, foreign
        legal entity or foreign person, alone or together with
        others, exceeds 50% of the total gift.
            (2)  If the foreign government, foreign legal entity or
        foreign person makes more than one gift to a college or
        university in any fiscal year of the college or university
        and the total value of the gifts equals or exceeds $100,000,
        the college or university shall make the same disclosure with
        respect to all such gifts received.
        (b)  Report.--The foregoing information shall be forwarded by
     a college or university to the secretary not later than the due
     date for the Federal return of organizations exempt from income
     tax. Such information shall include:
            (1)  The name and address of the donor of the gift.
            (2)  The amount and date of the making of each gift.
            (3)  The subject of each gift.
            (4)  A detailed description of any terms, restrictions,
        requirements or conditions imposed on the college by the
        terms of the gift.
            (5)  A detailed description of the purpose for which the
        gift will be used by the college or university, including the
        identification of the persons whom the gift is explicitly
        intended to benefit.
        (c)  Forms.--Colleges and universities shall forward the
     foregoing information to the secretary on forms prepared and
     made available by the secretary for that purpose.
     Section 4.  Alumni gift reports.
        Notwithstanding the provisions of this act, if the foreign
     source is an alumnus, and no grant or contract contains any
     conditions, restrictions, requirements, matching provisions or
     designations other than that the grant or contract is given for
     the benefit of the institution as a whole, the disclosure report
     shall be required to disclose only the nationality and country
     of residence of the foreign source.
     Section 5.  Publication of gifts and contracts.
        The information subject to disclosure under section 3 shall
     be a matter of public record and shall be made available by the
     department to the general public for review and copying during
     normal business hours.
     Section 6.  Sworn statement of nationality.
        Any college or university may, at its option, request any
     donor to submit a sworn statement, on a form prepared and made
     available to the colleges and universities by the secretary for
     that purpose, attesting to whether the donor is a foreign legal
     entity or foreign person. A college or university may
     thereafter, without further penalty, rely upon that sworn
     statement in complying with the disclosure requirements of this
     act with respect to the foreign status of the donor.
     Section 7.  Penalties.
        (a)  Donee penalty.--Any college or university that willfully
     or intentionally fails to disclose the information required by
     section 3 shall be subject to a civil penalty of 105% of the
     amount of any undisclosed gift.
        (b)  Donor penalty.--Any foreign legal entity or foreign
     person that submits a false sworn statement, on their own behalf
     or on behalf of a foreign government, to a college or university
     pursuant to section 6 as defined in 18 Pa.C.S. § 4904(b)
     (relating to unsworn falsification to authorities) shall be
     subject to the penalties prescribed therein.
     Section 8.  Effective date.
        This act shall take effect in 60 days.