HBA-ATS, RBT H.B. 756 76(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 756
By: Hartnett
Business & Industry
6/3/1999
Enrolled



BACKGROUND AND PURPOSE 

The Texas Non-Profit Corporation Act allows meetings of directors and
members to be held by telephone or similar communications equipment if all
participants can hear each other.  H.B. 756 allows these meetings to be
held by means of videoconferencing or the Internet.  Expanding meeting
options may save costs by utilizing new technology.  Traditional
face-to-face meetings will not be replaced, but the need for such meetings
may be reduced and emergency meetings could be held by means of
videoconferencing or the Internet, possibly at a lower cost.   
 
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 Article 9.11, Article 1396-9.11, V.T.C.S. (Texas
Non-Profit Corporation Act), as follows: 

Art.  9.11.  New title: MEETINGS BY TELEPHONE CONFERENCE OR OTHER REMOTE
COMMUNICATIONS TECHNOLOGY.  Deletes "telephone" from existing title.
Authorizes meetings by means of an electronic communications system for
members of a nonprofit corporation, members of the board of directors of a
nonprofit corporation, or members of any committee designated by a board of
directors,  including videoconferencing technology or the Internet,
provided each member entitled to participate consents to the meeting being
held by means of that system and the system allows each member to
communicate concurrently with each other participant.  Creates Section B
from existing text. Makes conforming and nonsubstantive changes. 

SECTION 2.  Emergency clause.
  Effective date: upon passage.