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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