HBA-ATS H.B. 2151 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2151
By: Bosse
Civil Practices
4/4/1999
Introduced



BACKGROUND AND PURPOSE 

Under the Public Facility Corporation Act, a city, county, school district,
housing authority, or special district (i.e., a 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 the board of directors of a public facility
corporation the same immunity from liability that is granted to a member of
the governing body of the sponsor of the corporation.  

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 3.028, Article 717s, V.T.C.S. (Public Facility
Corporation Act), by adding Subsection (g), to grant to a member of the
board of directors of a public facility corporation (corporation) the same
immunity from liability that is granted to a member of the governing body
of the sponsor of the corporation. 

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

SECTION 3.Emergency clause.