§ 378. Unfair competition with small businesses
Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 10 P.S. Charities and Welfare
10 P.S. § 378
§ 378. Unfair competition with small businesses
(1) The commercial business is intended only for the use of its employees, staff, alumni, faculty, members, students, clients, volunteers, patients or residents. For purposes of this paragraph, a person shall not be considered an employee, staff, member, alumnus, faculty, student, client, volunteer, patient or resident if the person's only relationship with the institution of purely public charity is to receive products or services resulting from the commercial business.
(h) Existing business arrangements.--An institution of purely public charity that prior to the effective date of this section funded, capitalized, guaranteed the indebtedness of, leased obligations of or subsidized a commercial business may continue to own and operate such businesses without violating subsection (b) as long as the institution does not substantially expand the scope of the commercial business. In the event an injunction is issued under subsection (i), the effect of such injunction shall be limited to restraining the substantial expansion of the scope of the commercial business which was initiated after the effective date of this section.
(i) Remedies.--The Department of State shall establish a system of mandatory arbitration for the purpose of receiving all complaints from aggrieved small businesses relating to an institution of purely public charity's alleged violation of this section. Upon receipt of such complaint, the department shall direct that the complaint be resolved as provided in this subsection.
(2) Within ten days of filing the complaint with the department, the aggrieved small business shall serve a copy of the complaint on the institution of purely public charity against which the complaint is filed. The institution of purely public charity must respond to the complaint within 30 days of its receipt by the institution of purely public charity.
(3) Within 30 days following the period of time allotted to the institution of purely public charity to respond to the complaint, the department shall provide an unbiased and qualified arbitrator who possesses sufficient knowledge regarding such institutions to adjudicate the matter. If the institution of purely public charity does not participate in the arbitration, the arbitrator may issue an order to compel such participation. Such an order shall be enforceable by the court of common pleas in the judicial district where the arbitration takes place.
(4) The arbitration shall take place in the judicial district in which the aggrieved small business is located. The department shall provide the arbitrator all relevant material regarding the complaint, including the original complaint, the institution of purely public charity's response to the complaint and copies of any other relevant information which the department may possess. The arbitration shall be completed within one year from the date on which the arbitrator was assigned.
(5) Within 30 days of the arbitrator's assignment, the arbitrator shall determine if the complaint sets forth prima facie evidence that a violation of this section has occurred. If the arbitrator determines that the complaint does not contain prima facie evidence, the arbitrator shall issue a written report detailing the findings and shall terminate the arbitration. A small business may appeal such a determination as provided in paragraph (9).
(6) The arbitrator shall determine if the activity of the institution of purely public charity is in violation of this section. In making this determination, the arbitrator shall review all relevant law, including previous arbitrators' decisions, regulations and the charter or governing legal documents of the institution of purely public charity.
(7) The decision of the arbitrator shall be set forth in a written decision issued to each party specifying findings of fact and conclusions of law. If the arbitrator finds a violation of this section, the arbitrator may include an order or injunction as part of the decision, provided that no damages may be assessed against an institution of purely public charity.
(8) Upon agreement of the parties, the decision of the arbitrator shall be final and binding as to all matters of fact and law and shall be entered by the arbitrator as a final judgment in the court of common pleas of the judicial district in which the arbitration took place. A copy of the arbitrator's final decision shall also be filed with the department.
Credits
1997, Nov. 26, P.L. 508, No. 55, § 8, effective in 120 days.
10 P.S. § 378, PA ST 10 P.S. § 378
Current through Act 10 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
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