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2/15/06. Rendell Signs SB 595.
Governor Rendell signed
SB 595 into law. This bill permits teens
age 16 and 17 to sit on nonprofit advisory committees. Prior
versions of the bill would have allowed teens to sit on certain
nonprofit boards with full voting rights. This would have
unnecessarily exposed teens to tort, contract and fiduciary
liability, which posed a particular problem for D&O insurance
providers. PANO has always supported the goal of encouraging
youth civic participation. We believe that the new SB 595 as
signed by the Governor will serve this goal, while protecting
our children from lawsuits.
Old News: Senate Permits Teens to Sit on Nonprofit Boards with
Full Voting Rights. On November 2, the Pennsylvania
Senate passed Senate Bill 595 by a 39-11 margin. SB 595 allows
16- and 17-year-olds to sit on certain nonprofit boards with
full voting rights. Issues surrounding contract liability, tort
liability and fiduciary responsibility have not been resolved or
even addressed. SB 595 has been referred to the House Commerce
Committee. It is uncertain when it will reach the House floor
for a vote. For more information, please contact David Ross,
PANO policy analyst, at
david@pano.org.
Background:
On October 31, the Pennsylvania Senate
voted on Senate Bill 595 as Amended. Senate Bill 595 would
permit 16 and 17 year old teens to sit on certain nonprofit
Boards, with full voting rights. Certain restrictions apply,
such as teen directors must not be able to hold a numerical
majority based on the quorum required to conduct business. This
is a well intentioned piece of legislation. We support the goal
of encouraging youth civic engagement. However, it is PANO
position that teens of minority age should be permitted to serve
on boards, but only in an advisory capacity, and without voting
rights. We believe that a young person should be able to gain
all the benefits of participation without incurring adult
liability. A similar House Bill [HB 1622] has stalled in
committee. PANO defeated this bill in 2001 and 2003. A much
greater response will be required this time to finally settle
the matter.
On June 3, the
Pennsylvania House of Representatives introduced House Bill 1622
[identical to SB 595] to permit 16 and 17 year old teens to sit
on certain nonprofit Boards, with full voting rights.
On April 1, 2005, the Pennsylvania Senate introduced Senate
Bill 595 to permit 16 and 17 year old teens to sit on certain
nonprofit Boards, with full voting rights.
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