Pennsylvania House Bill HB1221

Pennsylvania 2025-2026 Regular Session

• Introduced: 4/15/25
• Refer: 4/15/25

Caption

In general provisions relating to partnerships and limited liability companies, providing for duties of nonprofit corporations in public-private partnerships with the Commonwealth.

Impact

If enacted, HB 1221 would create a more rigorous framework for nonprofits that engage in partnerships with the state, mandating that they provide comprehensive financial reports to state authorities. This is anticipated to foster greater oversight of funds and resources allocated to nonprofit organizations through these partnerships, which in turn could lead to improved governance and operational standards. Furthermore, the requirement for nonprofits to disclose purchases linked to state officials on their websites would heighten accountability, ensuring that state resources are utilized judiciously and without conflicts of interest.

Summary

House Bill 1221 seeks to amend Title 15 of the Pennsylvania Consolidated Statutes to establish new duties for nonprofit corporations engaged in public-private partnerships with the Commonwealth. Notably, the bill aims to enhance transparency and accountability for these nonprofits by imposing strict compliance standards, including adherence to the Right-to-Know Law and the provisions set forth in the Sarbanes-Oxley Act. This legislative measure intends to ensure that nonprofit entities operate with greater financial transparency when they collaborate with state government bodies, which is particularly significant in the context of public trust and scrutiny of nonprofit fundraising and spending practices.

Sentiment

The sentiment surrounding HB 1221 appears to be cautiously optimistic among supporters who advocate for heightened transparency in government dealings with nonprofit entities. Proponents argue that the measures incorporated within the bill will protect taxpayer interests and fortify public trust in nonprofit operations. However, there are likely concerns among some nonprofit leaders who might view these increased obligations as burdensome or potentially invasive, questioning whether such regulations could hinder their operational flexibility and responsiveness in addressing community needs.

Contention

There are several potential points of contention related to HB 1221, particularly concerning the balance between enhancing accountability and maintaining the operational autonomy of nonprofit organizations. Critics may argue that the stringent financial report requirements could disproportionately affect smaller nonprofits that lack the resources to manage extensive reporting obligations. Furthermore, the mandate for public disclosure of purchases made to state officials may generate concerns over privacy and the delineation of sensitive operational details, challenging the delicate balance between transparency and the right to confidentiality in business dealings.