HB 2595 — Non Profit Athletics Act

WEST VIRGINIA LEGISLATURE REGULAR SESSION ENGROSSEDENROLLED Committee Substitute for House Bill 2595 ByB Delegates,YDELEGATES, Riley,RILE, Ellington,LLINGTON, Maynor,AYNOR J., J.ANNON, F EHRENBACHER, MCCORMICK, ROHRBACH, HIARELL, STATLER, ROWNING,AND LUCAS [Passed April 10, 2025;

Cannon,in Fehrenbacher,effect McCormick,from Rohrbach,passage] Chiarelli,Enr Statler,CS Browning,for HB 2595 AN ACT to amend and Lucasreenact [Originating§18B-12-2, in§18B-12-3, theand Committee§18B-12-4 onof the Judiciary;Code of West Virginia, 1931, as amended, and to repeal §18B-12-10 of said code, all relating to agreements for institutions of higher education with private corporations established to benefit institutions of higher education;

Reported on March 27, 2025] Eng CS for HB 2595 A BILL to amend and reenact §18B-12-2, §18B-12-3, and §18B-12-4 of the Code of West Virginia, 1931, as amended, and to repeal §18B-12-10 of said code, all relating to agreements for institutions of higher education with private corporations established to benefit institutions of higher education;

(a) The Legislature finds and determines that the future economic development in the state will depend in part upon research developed at the state institutions of higher education, and enhanced research opportunities for state institutions of higher education will promote the Enr CS for HB 2595 general economic welfare of the citizens of the state.

In order to enhance the competitive position of state 1 Eng CS for HB 2595 institutions of higher education in the current environment for research and development, expenditures for equipment and material for research projects must be handled in an expeditious fashion, and the acquisition and utilization of research grants can be simplified and expedited through the utilization of private corporations.

Provided, That the voting corporate directors of any entity established to conduct operational, economic, fiscal, and educational development Enr CS for HB 2595 activities and services related to intercollegiate athletics shall consist solely of employees of the institution of higher education or an employee of an affiliate of the institution of higher education.

2 Eng CS for HB 2595 (2) The corporation shall be organized as a nonprofit, nonstock corporation under the general corporation laws of the state exclusively for charitable, educational or scientific purposes within the meaning of section 501(c)(3) of the Internal Revenue Code of 1986, as amended, to engage in one or more of the following:

and (b) to provide evaluation, development, patenting, management and marketing services for inventions of the faculty, staff and students of such state institution of higher education;

Provided, however, that matters relating to the conduct of operational, economic, fiscal and educational development activities and services related to intercollegiate athletics’ programs are exempt from §§6-9A-3 6-9A-3 and §§29B-1-1, 29B-1-1, et seq.

Enr CS for HB 2595 §18B-12-4.

3 Eng CS for HB 2595 (a) With respect to entities engaged in activities contemplated by the provisions of §18B- 12-3(2)(a) and (b) of this code and notwithstanding §12-3-10 of this code or any other provision of law to the contrary, each governing board is hereby authorized to enter into an agreement with one or more private corporations, which agreement shall be for the benefit of the state institution of higher education and contain the following provisions, subject to further specification as is mutually agreed upon by the governing board and the corporation:

Notwithstanding §12-3-10 of this code or any other provision of law to the Enr CS for HB 2595 contrary, each governing board is hereby authorized to enter into an agreement with one or more 4 Eng CS for HB 2595 private corporations, which agreement shall be for the benefit of the state institution of higher education, to conduct operational, economic, fiscal, and educational development activities and services related to intercollegiate athletics’ programs and shall contain the following provisions, subject to further specification as is mutually agreed upon by the governing board and the corporation:

(b)(c)(c) Upon termination of the agreement, the funds or grants paid or held by the corporation, and all other property held by the corporation, shall be transferred to the institution or its designee as the governing board directs.

(c)(d)(d) A corporation may utilize both corporation employees and personnel of the institution.

The corporation may include as costs any applicable overhead and fringe benefit assessments necessary to 5recover Engthe costs Enr CS for HB 2595 recover the costs expended by the institution, pursuant to the terms of the agreement, and that a board may be reimbursed for expenses incurred by it pursuant to the agreement.

[Repealed.] 6Enr CS for HB 2595 The Clerk of the House of Delegates and the Clerk of the Senate hereby certify that the foregoing bill is correctly enrolled.

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Clerk of the House of Delegates ...............................................................

Clerk of the Senate Originated in the House of Delegates.

In effect from passage.

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Speaker of the House of Delegates ...............................................................

President of the Senate __________ The within is ................................................

this the...........................................

Day of ..........................................................................................................., 2025.

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Governor 7