HB 2851

84(R) - 2015
House Investments & Financial Services
House Investments & Financial Services

Vote Recommendation

  • Neutral
  • Neutral
  • Neutral
  • Neutral
  • Neutral


Tan Parker

Bill Caption

Relating to the limitation on the liability of the nonprofit corporation established by the Texas Public Finance authority to issue revenue bonds for open-enrollment charter schools to provide educational facilities.

Fiscal Notes

A fiscal note dated April 3, 2015 anticipates no fiscal implication to the State of to units of local government.

Bill Analysis

House Bill 2851 would amend Section 53.351(b) the Education Code related to bonds for open-enrollment charter school facilities in order to require that the appointment by the Texas Public Finance Authority of the directors of the corporation established under the section be subject to the approval of the governor.

House Bill 2851 would also limit the liability of directors, officers, or employees of the nonprofit corporation and make them not liable for damage, loss, or injury resulting from the performance of the person’s duties, or on any commitment or agreement executed on behalf of the corporation.

Vote Recommendation Notes

5/23/15 Update:

No amendments have been introduced on the House floor and no changes have been made to the bill in Senate committee. We continue to remain neutral.

The second chamber sponsor is Senator Van Taylor.

First chamber analysis below:

According to the statement of purpose for House Bill 2851, Charter School Finance Corporation's (CSFC) directors and officers, as well as directors, officers, or employees of the finance authority acting on the corporation's behalf are not granted statutory immunity from personal liability for claims arising as a result of the performance of their official duties or on any commitment or agreement executed on the corporation's behalf, unlike for other state agency or similar corporations established as an instrumentality of the state.

House Bill 2851 would grant them this authority.

It is a concern that giving immunity to directors, officers, and employees of a nonprofit corporation established to act on behalf of the state, as its duly constituted authority and instrumentality, to issue revenue bonds for authorized open-enrollment charter schools, might not disincentivize employees from exercising proper personal responsibility related to the performance of their duties.

Nevertheless, since this immunity has been granted to other state agency board of directors, we will remain neutral on House Bill 2851.