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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
|||| 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
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