HOUSE BILL NO. 353

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Bill Status



H0353................................by JUDICIARY, RULES AND ADMINISTRATION
CHARITABLE TRUSTS - Amends existing law to revise the definitions of
"charitable corporation or organization" and "nonprofit corporation or
organization"; and to extend immunity from liability to trustees of a
charitable trust.

01/16    House intro - 1st rdg - to printing
01/17    Rpt prt - to Jud
01/30    Rpt out - rec d/p - to 2nd rdg
01/31    2nd rdg - to 3rd rdg
02/06    3rd rdg - PASSED - 66-0-4
      AYES -- Anderson, Andrus, Barrett, Bayer, Bedke, Bell, Bilbao, Block,
      Bock, Boe, Bolz, Bowers, Brackett, Bradford, Chadderdon, Chavez,
      Chew, Clark, Collins, Crane, Durst, Hagedorn, Hart, Harwood, Henbest,
      Henderson, Jaquet, Killen, King, Labrador, Lake, LeFavour,
      Loertscher, Luker, Marriott, Mathews, McGeachin, Mortimer, Moyle,
      Nielsen, Nonini, Pasley-Stuart, Patrick, Pence, Raybould, Ringo,
      Roberts, Ruchti, Rusche, Sayler, Schaefer, Shepherd(02),
      Shepherd(08), Shirley, Shively, Smith(30), Snodgrass, Stevenson,
      Thayn, Thomas, Trail, Vander Woude, Wills, Wood(27), Wood(35), Mr.
      Speaker
      NAYS -- None
      Absent and excused -- Black, Eskridge, Kren, Smith(24)
    Floor Sponsor - Bock
    Title apvd - to Senate
02/07    Senate intro - 1st rdg - to Jud
02/26    Rpt out - rec d/p - to 2nd rdg
02/27    2nd rdg - to 3rd rdg
03/04    3rd rdg - PASSED - 31-0-4
      AYES -- Andreason, Bair, Bastian, Bilyeu, Broadsword, Burkett,
      Cameron, Coiner, Corder, Darrington, Davis, Fulcher, Geddes, Hammond,
      Heinrich, Hill, Kelly, Keough, Little, Lodge, Malepeai(Sagness),
      McGee, McKague, McKenzie, Pearce, Richardson, Schroeder, Siddoway,
      Stegner, Stennett, Werk
      NAYS -- None
      Absent and excused -- Gannon, Goedde, Jorgenson, Langhorst
    Floor Sponsor - Hill
    Title apvd - to House
03/05    To enrol
03/06    Rpt enrol - Sp signed
03/07    Pres signed
03/10    To Governor
03/14    Governor signed
         Session Law Chapter 83
         Effective: 07/01/08

Bill Text




                                                                       
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   Second Regular Session - 2008

                                                                       

                              IN THE HOUSE OF REPRESENTATIVES

                                     HOUSE BILL NO. 353

                      BY JUDICIARY, RULES AND ADMINISTRATION COMMITTEE

  1                                        AN ACT
  2    RELATING TO LIMITATION ON CERTAIN TORT DAMAGES AND LIABILITIES; AMENDING  SEC-
  3        TION 6-1601, IDAHO CODE, TO REVISE THE DEFINITIONS OF "CHARITABLE CORPORA-
  4        TION  OR  ORGANIZATION"  AND  "NONPROFIT  CORPORATION  OR ORGANIZATION" TO
  5        INCLUDE CHARITABLE TRUSTS AND TO MAKE TECHNICAL CORRECTIONS; AND  AMENDING
  6        SECTION  6-1605, IDAHO CODE, TO EXTEND IMMUNITY FROM LIABILITY TO TRUSTEES
  7        OF A CHARITABLE TRUST.

  8    Be It Enacted by the Legislature of the State of Idaho:

  9        SECTION 1.  That Section 6-1601, Idaho Code, be, and the  same  is  hereby
 10    amended to read as follows:

 11        6-1601.  DEFINITIONS. As used in this act:
 12        (1)  "Charitable  corporation or organization or charitable trust" means a
 13    corporation or organization or charitable trust including any community chest,
 14    fund, or foundation organized and operated exclusively for religious, charita-
 15    ble, scientific, testing for public safety, literary, or educational purposes,
 16    or to foster national or international amateur sports competition (but only if
 17    no part of its activities involve the  provision  of  athletic  facilities  or
 18    equipment),  or  for the prevention of cruelty to children or animals, no part
 19    of the net earnings of which inures to the benefit of any private  shareholder
 20    or  individual,  no substantial part of the activities of which is carrying on
 21    propaganda, or otherwise attempting, to influence legislation.
 22        (2)  "Claimant" means any party to a  civil  action  making  a  claim  for
 23    relief, legal or equitable, compensatory or noncompensatory.
 24        (3)  "Economic   damages"  means  objectively  verifiable  monetary  loss,
 25    including, but not limited to, out-of-pocket expenses, loss of earnings,  loss
 26    of  use  of property, cost of replacement or repair, cost of obtaining substi-
 27    tute domestic services, loss of employment, medical expenses, or loss of busi-
 28    ness or employment opportunities.
 29        (4)  "Future damages" means noneconomic damages and economic damages to be
 30    incurred after entry of a judgment.
 31        (5)  "Noneconomic damages" means subjective, nonmonetary losses including,
 32    but not limited to, pain, suffering, inconvenience, mental anguish, disability
 33    or disfigurement incurred by the injured party; emotional  distress;  loss  of
 34    society and companionship; loss of consortium; or destruction or impairment of
 35    the parent-child relationship.
 36        (6)  "Nonprofit  corporation  or organization" means a charitable corpora-
 37    tion or organization or charitable trust; any other corporation  organized  or
 38    existing  under chapter 3, title 30, Idaho Code, or an equivalent provision of
 39    the law of another state; or an unincorporated association; which corporation,
 40    organization, charitable trust or unincorporated association is organized  and
 41    existing exclusively for nonprofit purposes, and which:
 42        (a)  Either  is tax exempt under section 501(c)(3) of the Internal Revenue
 43        Code or regularly bestows benefits to the community at large, and

                                       2

  1        (b)  Nno part of the net income of which is distributable to its  members,
  2        directors or officers.
  3        (7)  "Personal injury" means a physical injury, sickness or death suffered
  4    by an individual.
  5        (8)  "Property  damage"  means loss in value or in use of real or personal
  6    property, where such loss arises from physical damage  to  or  destruction  of
  7    such property.
  8        (9)  "Punitive  damages"  means  damages  awarded  to a claimant, over and
  9    above what will compensate the claimant for actual personal injury  and  prop-
 10    erty  damage, to serve the public policies of punishing a defendant for outra-
 11    geous conduct and of deterring future like conduct.

 12        SECTION 2.  That Section 6-1605, Idaho Code, be, and the  same  is  hereby
 13    amended to read as follows:

 14        6-1605.  LIMITATION  ON LIABILITY OF VOLUNTEERS, OFFICERS AND DIRECTORS OF
 15    NONPROFIT CORPORATIONS AND ORGANIZATIONS AND TRUSTEES  OF  CHARITABLE  TRUSTS.
 16    (1)  In  any  nonprofit  corporation  or  organization  or charitable trust as
 17    defined in section 6-1601(6), Idaho Code, officers, directors, and  volunteers
 18    who  serve  the nonprofit corporation or organization without compensation and
 19    trustees of the charitable trust who serve without compensation shall be  per-
 20    sonally  immune  from civil liability arising out of their conduct as an offi-
 21    cer, director, trustee or volunteer, if such conduct is within the course  and
 22    scope of the duties and functions of the individual officer, director, trustee
 23    or volunteer and at the direction of the corporation or organization or chari-
 24    table  trust. The provisions of this section shall not eliminate or limit, and
 25    no immunity is hereby granted for  the  liability  of  an  officer,  director,
 26    trustee or volunteer:
 27        (a)  For  conduct  which  is  willful,  wanton, or which involves fraud or
 28        knowing violation of the law;
 29        (b)  To the extent of coverage for such conduct under a policy of  liabil-
 30        ity insurance, whether the policy is purchased by the corporation or orga-
 31        nization  or  charitable trust, the individual officer, director, trustee,
 32        volunteer or some third party;
 33        (c)  For any intentional breach of a fiduciary duty  or  duty  of  loyalty
 34        owed  by  the officer, director or volunteer to the corporation, organiza-
 35        tion or the members thereof, or owed by  the  trustee  to  the  charitable
 36        trust or the members thereof;
 37        (d)  For  acts or omissions not in good faith or which involve intentional
 38        misconduct, fraud or a knowing violation of law;
 39        (e)  For any transaction from which the officer, director, trustee or vol-
 40        unteer derived an improper personal benefit;
 41        (f)  For any violation of the provisions of section 30-3-82,  Idaho  Code;
 42        or
 43        (g)  For damages which result from the operation of a motor vehicle.
 44        (2)  Reimbursement  of  an  officer,  director or volunteer of a nonprofit
 45    corporation or organization or of a trustee of a charitable  trust  for  costs
 46    and expenses actually incurred shall not be considered compensation.
 47        (3)  Nothing in this section shall be construed to supersede, abrogate, or
 48    limit any immunities or limitation of liability otherwise provided by law.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE

                             RS 17457

Idaho encourages its citizens to volunteer by reducing their
exposure to liability for service to nonprofit organizations when
done without compensation.  This legislation makes two
clarifications.  First, it recognizes that nonprofit organizations
may be created in the form of a trust.  Second, current law
requires that the nonprofit organization "regularly bestow benefits
to the community at large."  This requirement, however, is very
subjective.  The proposed amendment would add an objective standard
that will allow the requirement to be met if the organization "is
tax exempt under section 501(c)(3) of the Internal Revenue Code."


                           FISCAL NOTE

None.




Contact
Name:  Rep. Les Bock 
Phone: 332-1000


STATEMENT OF PURPOSE/FISCAL NOTE                         H 353