SRC-AXB H.B. 2151 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 2151
By: Bosse (Whitmire)
Economic Development
5/13/1999
Engrossed


DIGEST 

Under the Public Facility Corporation Act, a city, county, school district,
housing authority, or special district (sponsor) is authorized to create a
public facility corporation (corporation) and use it to provide for the
acquisition, construction, rehabilitation, renovation, repair, equipping,
furnishing, and placement in service of public facilities. The corporation
may issue bonds to purchase obligations of its sponsor, to finance public
facilities on behalf of its sponsor, or to loan the proceeds of the
obligations to other entities to accomplish the purposes of the sponsor.
Unlike the members of the governing body of a sponsor, which is a
governmental authority, the members of a corporation's board of directors
do not enjoy immunity from liability for their actions. H.B. 2151 grants to
a member of a corporation's board of directors the same immunity from
liability that is granted to a member of the governing body of the sponsor
of the corporation.  

PURPOSE

As proposed, H.B. 2151 grants to a member of a corporation's board of
directors the same immunity from liability that is granted to a member of
the governing body of the sponsor of the corporation.  

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 3.028, Article 717s, V.T.C.S., by adding
Subsection (g), to grant a member of a corporation's board of directors the
same liability from immunity as a member of the governing body of the
sponosor of the corporation, under certain conditions. 

SECTION 2.  Effective date:  September 1, 1999.
  Makes application of this Act prospective.

SECTION 3.  Emergency clause.