Bill: HB 3488, 85(R) - 2017
Committee
House Economic & Small Business Development
2nd Chamber Committee
Senate Natural Resources & Economic Development
Vote Recommendation
| Vote Recommendation |
Economic Freedom |
Property Rights |
Personal Responsibility |
Limited Government |
Individual Liberty |
| Neutral |
Neutral |
Neutral |
Neutral |
Neutral |
Neutral |
Author(s)
Gina Hinojosa
Sponsor(s)
Craig Estes
Bill Caption
Relating to authorizing the formation of public benefit corporations.
Fiscal Notes
No significant fiscal implication to the state is anticipated.
Bill Analysis
HB 3488 would amend the Business Organizations Code to authorize a for-profit corporation to elect to become a public benefit corporation. This bill would require the board of directors to operate business affairs in a manner that balances the shareholders’ interests and a public benefit or benefits as specified in the certificate of formation. Shareholders would be authorized to maintain a derivative action to enforce compliance with the requirements of the board of directors. Finally, conditions for the issuing of stock would be established.
Vote Recommendation Notes
This bill attempts to address a problem that when when a corporation states a social purpose the extent of the duty of the board of directors is unclear. Given that electing to become a public benefit corporation and being subject to the regulations established in this bill is voluntary, we remain neutral.
Organizations Supporting
Coalition of Texans with Disabilities
Texas Association of Business
