SENATE BILL NO. 1029

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S1029...................................................by JUDICIARY AND RULES
VOLUNTEER LIABILITY - Amends existing law to provide a correct statutory
citation to the Idaho Nonprofit Corporation Act in the statute providing a
limitation on liability of volunteers, officers and directors of nonprofit
corporations and organizations.
                                                                        
01/27    Senate intro - 1st rdg - to printing
01/28    Rpt prt - to Jud
02/06    Rpt out - rec d/p - to 2nd rdg
02/07    2nd rdg - to 3rd rdg
02/10    3rd rdg - PASSED - 31-3-1
      AYES -- Bailey, Brandt, Bunderson, Burkett, Burtenshaw, Cameron,
      Compton, Darrington, Davis, Gannon, Geddes, Goedde, Hill, Ingram,
      Kennedy, Little, Lodge, Malepeai, Marley, McKenzie, McWilliams, Noble,
      Noh, Pearce, Richardson, Schroeder, Sorensen, Stegner, Stennett, Sweet,
      Williams
      NAYS -- Calabretta, Keough, Werk
      Absent and excused -- Andreason
    Floor Sponsor - Lodge
    Title apvd - to House
02/11    House intro - 1st rdg - to Jud
02/28    Rpt out - rec d/p - to 2nd rdg
03/03    2nd rdg - to 3rd rdg
03/04    3rd rdg - PASSED - 65-0-5
      AYES -- Andersen, Barraclough, Bauer, Bedke, Bell, Black, Block, Boe,
      Bolz, Bradford, Campbell, Cannon, Clark, Collins, Cuddy, Deal, Denney,
      Douglas, Eberle, Edmunson, Ellsworth, Eskridge, Field(18), Field(23),
      Gagner, Garrett, Harwood, Henbest, Jaquet, Kellogg, Kulczyk, Lake,
      Langford, Langhorst, Martinez, McGeachin, McKague, Meyer, Miller,
      Mitchell, Moyle, Naccarato, Nielsen, Raybould, Ridinger, Ring, Ringo,
      Roberts, Robison, Rydalch, Sali, Sayler, Schaefer, Shepherd, Shirley,
      Skippen, Smith(30), Smith(24), Smylie, Snodgrass, Stevenson, Tilman,
      Trail, Wills, Mr. Speaker
      NAYS -- None
      Absent and excused -- Barrett, Bieter, Crow, Jones, Wood
    Floor Sponsor - Ellsworth
    Title apvd - to Senate
03/05    To enrol
03/06    Rpt enrol - Pres signed
03/07    Sp signed
03/10    To Governor
03/13    Governor signed
         Session Law Chapter 59
         Effective: 07/01/03

Bill Text


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-seventh Legislature                 First Regular Session - 2003
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                                    SENATE BILL NO. 1029
                                                                        
                              BY JUDICIARY AND RULES COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO LIMITATION ON LIABILITY OF VOLUNTEERS, OFFICERS AND  DIRECTORS  OF
  3        NONPROFIT  CORPORATIONS  AND ORGANIZATIONS; AMENDING SECTION 6-1605, IDAHO
  4        CODE, TO PROVIDE A CORRECT STATUTORY CITATION TO THE IDAHO NONPROFIT  COR-
  5        PORATION ACT.
                                                                        
  6    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  7        SECTION  1.  That  Section  6-1605, Idaho Code, be, and the same is hereby
  8    amended to read as follows:
                                                                        
  9        6-1605.  LIMITATION ON LIABILITY OF VOLUNTEERS, OFFICERS AND DIRECTORS  OF
 10    NONPROFIT  CORPORATIONS AND ORGANIZATIONS. (1) In any nonprofit corporation or
 11    organization as defined in section 6-1601(6), Idaho Code, officers, directors,
 12    and volunteers who serve the nonprofit  corporation  or  organization  without
 13    compensation  shall  be  personally immune from civil liability arising out of
 14    their conduct as an officer, director, or volunteer, if such conduct is within
 15    the course and scope of the duties and functions of  the  individual  officer,
 16    director or volunteer and at the direction of the corporation or organization.
 17    The  provisions  of this section shall not eliminate or limit, and no immunity
 18    is hereby granted for the liability of an officer, director or volunteer:
 19        (a)  For conduct which is willful, wanton,  or  which  involves  fraud  or
 20        knowing violation of the law;
 21        (b)  To  the extent of coverage for such conduct under a policy of liabil-
 22        ity insurance, whether the policy is purchased by the corporation or orga-
 23        nization, the individual officer, director, volunteer or some third party;
 24        (c)  For any intentional breach of a fiduciary duty  or  duty  of  loyalty
 25        owed  by  the officer, director or volunteer to the corporation, organiza-
 26        tion or the members thereof;
 27        (d)  For acts or omissions not in good faith or which involve  intentional
 28        misconduct, fraud or a knowing violation of law;
 29        (e)  For  any  transaction  from  which the officer, director or volunteer
 30        derived an improper personal benefit;
 31        (f)  For any violation of the provisions of  sections  30-321  and  30-322
 32        30-3-82, Idaho Code; or
 33        (g)  For damages which result from the operation of a motor vehicle.
 34        (2)  Reimbursement  of  an  officer,  director or volunteer of a nonprofit
 35    corporation or organization for costs and expenses actually incurred shall not
 36    be considered compensation.
 37        (3)  Nothing in this section shall be construed to supersede, abrogate, or
 38    limit any immunities or limitation of liability otherwise provided by law.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE
                         RS12623


                                 

Section 6-1605, passed originally in 1987, provides for
limitations on the civil liability of officers, directors, and
volunteers who serve without compensation for a nonprofit
corporation or organization.  Part 1(f) of the Section cross
references two Idaho Code Sections in the old Idaho Nonprofit
Corporations Act.  However, that Act was repealed in 1993 and a
new Idaho Nonprofit Corporation Act adopted.  The cross reference
sections are therefore now incorrect.  The remaining equivalent
section in the new Act which requires a cross reference is
Section 30-3-82 (Loans to or guarantees for directors and
officers).  The actions covered in the old cross-referenced
sections are otherwise covered by sections of the new Act; for
example, Section 30-3-85 covers standards of conduct for officers
of nonprofit corporations and the consequences for violation of
such standards.  Therefore, that section does not need to be
cross-referenced in Section 6-1605.  The bill therefore simply
corrects the old cross references to the proper new cross
reference.

                                
                                
                          FISCAL NOTE

This bill will have no fiscal impact.







CONTACT:  Robert L. Aldridge
          1209 North Eighth Street
          Boise, Idaho 83702-4297
          Telephone: office: (208) 336-9880  home: (208) 888-4668
          Fax: (208) 336-9882
          e-mail: rlaldridge@hotmail.com



STATEMENT OF PURPOSE/FISCAL NOTE                 Bill No. S 102