Bill Text: PA HB2154 | 2011-2012 | Regular Session | Introduced

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Bill Title: Providing for nonprofit organizations; and further providing for compensation of directors, for definitions, for prohibition, for definitions and for board of directors.

Spectrum: Strong Partisan Bill (Democrat 29-3)

Status: (Introduced - Dead) 2012-01-26 - Referred to FINANCE [HB2154 Detail]

Download: Pennsylvania-2011-HB2154-Introduced.html

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PRINTER'S NO. 3020
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 2154 Session of2012
INTRODUCED BY DeLUCA, D. COSTA, DALEY, DeWEESE, FRANKEL, HARKINS, HORNAMAN, HUTCHINSON, JOSEPHS, MAHONEY, MATZIE, McGEEHAN, MURPHY, MURT, PRESTON, READSHAW, YOUNGBLOOD, BARBIN, BISHOP, K. BOYLE, BUXTON, COHEN, CURRY, DERMODY, FABRIZIO, KORTZ, KULA, MULLERY, PASHINSKI, PYLE, SAMUELSON AND WATERS, JANUARY 26, 2012
REFERRED TO COMMITTEE ON FINANCE, JANUARY 26, 2012
AN ACT
Amending Titles 10 (Charities), 15 (Corporations and
Unincorporated Associations) and 40 (Insurance) of the
Pennsylvania Consolidated Statutes, providing for nonprofit
organizations; and further providing for compensation of
directors, for definitions, for prohibition, for definitions
and for board of directors.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 10 of the Pennsylvania Consolidated
Statutes is amended by adding parts to read:
PART I
PRELIMINARY PROVISIONS
(RESERVED)
PART II
NONPROFIT ORGANIZATIONS
Chapter
21. Preliminary Provisions (Reserved)
23. Boards of Directors
CHAPTER 21
PRELIMINARY PROVISIONS
(RESERVED)
CHAPTER 23
BOARDS OF DIRECTORS
Sec.
2301. Scope of chapter.
2302. Definitions.
2303. Prohibition.
§ 2301. Scope of chapter.
This chapter relates to boards of directors of nonprofit
organizations.
§ 2302. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Board of directors." The group of persons vested with the
management of the business and affairs of a nonprofit
organization irrespective of the name by which such group is
designated. The term does not include an other body.
"Director." A person designated, elected or appointed, by
that or any other name or title, to act as a director, and his
successors. The term does not include a member of an other body.
"Nonprofit organization." An entity listed under section
501(c)(3) of the Internal Revenue Code of 1986 (Public Law
99-514, 26 U.S.C. § 501(c)(3)).
§ 2303. Prohibition.
No director shall receive compensation for his services as a
director of a nonprofit organization.
Section 2. Section 5730 of Title 15 is amended to read:
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§ 5730. Compensation of directors.
[Except as otherwise restricted in the bylaws, the board of
directors shall have the authority to fix the compensation of
directors for their services as such, and a director may be a
salaried officer of the corporation.] No director shall receive
compensation for his services as a director.
Section 3. Section 6101 of Title 40 is amended by adding
definitions to read:
§ 6101. Definitions.
The following words and phrases when used in this chapter
shall have, unless the context clearly indicates otherwise, the
meanings given to them in this section:
"Compensation." Anything given or received as an equivalent
for services. The term shall not include reimbursement for costs
and expenses reasonably incurred by the independent officer,
director or trustee in the course and support of services.
* * *
"Independent officer, director or trustee." An officer,
director or trustee of a hospital plan corporation who is not
serving as an employee, or the equivalent of an employee, of the
hospital plan corporation.
* * *
Section 4. Title 40 is amended by adding a section to read:
§ 6128. Prohibition.
No hospital plan corporation shall provide compensation to an
independent officer, director or trustee for services as an
independent officer, director or trustee.
Section 5. Section 6302(a) of Title 40 is amended by adding
definitions to read:
§ 6302. Definitions.
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(a) General rule.--The following words and phrases when used
in this chapter shall have, unless the context clearly indicates
otherwise, the meanings given to them in this section:
* * *
"Compensation." Anything given or received as an equivalent
for services. The term shall not include reimbursement for costs
and expenses reasonably incurred by the independent officer,
director or trustee in the course and support of services.
* * *
Section 6. Section 6328(b) of Title 40 is amended by adding
a paragraph to read:
§ 6328. Board of directors.
* * *
(b) General medical service corporation.--
* * *
(7) No general medical services corporation shall
provide compensation to a director for his services as a
director.
Section 7. This act shall take effect in 60 days.
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