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


Office of House Bill AnalysisH.B. 2151
By: Bosse
Civil Practices
4/21/1999
Committee Report (Amended)



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.
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.

EXPLANATION OF AMENDMENTS

Amendment No. 1:

Amends H.B. 2151 in SECTION 1 by replacing proposed Section 3.028(g),
Article 717s, V.T.C.S. with a new section 3.028(g), providing that a member
of the board of directors of a public facility corporation (corporation) is
granted 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.