House Bill 2595 allows West Virginia public colleges to work with certain private nonprofit corporations. But what can those corporations actually do?
The answer is important because these entities may play a major role in the future of college athletics and university operations.
Can they handle money?
Yes. Under the law, these corporations can serve as fiscal agents for certain university-related activities. In the athletics context, that can include operational and financial responsibilities defined by the agreement with the school.
Can they own or manage property?
Yes. HB 2595 allows these corporations to receive, purchase, hold, lease, use, sell, and dispose of real and personal property.
That could be significant for facilities, equipment, sponsorship assets, and other athletics-related property matters.
Can they run athletics-related operations?
Yes, depending on the agreement. The law allows these corporations to conduct operational, economic, fiscal, and educational development activities and services related to intercollegiate athletics.
Can the university transfer assets to them?
Yes. The law allows institutional boards of governors to provide and transfer funding and property, both real and personal, to qualifying corporations.
Can they avoid certain state procedures?
In some areas, yes. Certain athletics-related matters may be exempt from state requirements and procedures, including public meetings and public records laws.
Are they completely independent?
No. These corporations are tied to the university. For athletics-related entities, the voting corporate directors must be employees of the institution or an affiliate of the institution.
Can they act like a business?
In many ways, yes. They can operate with more flexibility than a traditional public agency. That is the point of the structure.
What happens if the corporation dissolves or the agreement ends?
The assets must go back to the institution or another qualifying entity designated for the benefit of the institution. This helps keep the assets tied to the public educational mission.
Bottom line
HB 2595 gives qualifying nonprofit corporations broad powers to support West Virginia colleges, especially in athletics. These entities can manage money, property, operations, and development activity. But their power also raises important questions about public oversight and accountability.
Related reading: Does HB 2595 Reduce Transparency? | HB 2595 Explained