HB 405 — An Act amending Title 15 (Corporations and Unincorporated Associations) of the Pennsylvania Consolidated Statutes, in general provisions relating to business corporations, providing for eligibility for receipt of State resources.

PRINTER'S NO.   377

                      THE GENERAL ASSEMBLY OF PENNSYLVANIA



                          HOUSE BILL
                          No. 405
                                                 Session of
                                                   2025

     INTRODUCED BY MARKOSEK, HILL-EVANS, HADDOCK, WEBSTER, McNEILL,
        SANCHEZ, GIRAL, HARKINS, DONAHUE, SCHLOSSBERG, CIRESI,
        FIEDLER, DEASY, GREEN AND CEPEDA-FREYTIZ, JANUARY 29, 2025

     REFERRED TO COMMITTEE ON STATE GOVERNMENT, JANUARY 29, 2025


                                      AN ACT
 1   Amending Title 15 (Corporations and Unincorporated Associations)
 2      of the Pennsylvania Consolidated Statutes, in general
 3      provisions relating to business corporations, providing for
 4      eligibility for receipt of State resources.
 5      The General Assembly of the Commonwealth of Pennsylvania
 6   hereby enacts as follows:
 7      Section 1.     Title 15 of the Pennsylvania Consolidated
 8   Statutes is amended by adding a section to read:
 9   § 1111.    Eligibility for receipt of State resources.
10      (a)    Conditions.--A domestic business corporation or a
11   foreign business corporation with 200 or more employees in this
12   Commonwealth shall not be eligible for a State contract, State
13   funding or a State grant if the corporation:
14             (1)   has violated 29 U.S.C. Ch. 8 (relating to fair labor
15      standards) within the previous five years;
16             (2)   has been found guilty of an unfair labor practice in
17      this Commonwealth within the previous five years;
18             (3)   has violated the act of August 15, 1961 (P.L.987,
 1      No.442), known as the Pennsylvania Prevailing Wage Act,
 2      within the previous five years; or
 3            (4)   fails to submit to the Department of State current
 4      bylaws of the corporation, which must provide for a
 5      corporation having a governing board, with at least 20% of
 6      the members of the governing board of the corporation being
 7      current employees of the corporation and elected by the
 8      employees of the corporation.
 9      (b)   Applicability.--This section does not apply if the
10   condition described in subsection (a)(1), (2) or (3) occurred
11   prior to the effective date of this subsection.
12      Section 2.    The addition of 15 Pa.C.S. § 1111 shall apply to
13   the following:
14            (1)   A State contract entered into or renewed on or after
15      the effective date of this section.
16            (2)   State funding approved or otherwise made on or after
17      the effective date of this section.
18            (3)   A State grant approved on or after the effective
19      date of this section.
20      Section 3.    This act shall take effect in 60 days.




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