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


Office of House Bill AnalysisH.B. 2151
By: Bosse
Civil Practices
6/4/1999
Enrolled



BACKGROUND AND PURPOSE 

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.
Prior to the 76th Legislature, the members of a corporation's board of
directors did not have immunity from liability for their actions; unlike
members of the governing body of a sponsor. 

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 if the director was
acting in good faith and in the course and scope of the duties or functions
within 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 if the director was acting in good faith
and in the course and scope of the duties or functions within the
corporation. 

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

SECTION 3.Emergency clause.