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