Honorable David Dewhurst, Lieutenant Governor, Senate
FROM:
John Keel, Director, Legislative Budget Board
IN RE:
SB313 by Harris (Relating to collection of civil damages awarded against certain nonprofit institutions.), As Passed 2nd House
No significant fiscal implication to the State is anticipated.
Under the bill a claimant may not collect damages awarded against certain nonprofit organizations from an endowment fund, restricted fund or similar fund or account or the income derived from the corpus of the fund or account if the fund or account meets certain conditions. The Department of Protective and Regulatory Services indicates that implementation of the bill could result in barring recovery on breach of contract cases if childcare contractors met the criteria established in the bill. The bar on collection could average $20,000 per year.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies:
324 Department of Human Services, 530 Department of Protective and Regulatory Services