SB 836 -- NOT-FOR-PROFIT CORPORATIONS
SPONSOR: Mueller (Smith)
COMMITTEE ACTION: Voted "do pass" by the Committee on Civil and Administrative Law by a vote of 15 to 0.
This bill clarifies that a not-for-profit business entity formed by 3 or more political subdivisions for the purpose of providing liability insurance for the political subdivisions may distribute dividends to the political subdivisions as long as a surplus of funds remains in the business entity.
FISCAL NOTE: No impact on state funds.
PROPONENTS: Supporters say that this bill clarifies legislation that was passed into law last year. That law allows political subdivisions to set up a business entity to provide liability insurance. This bill merely adds language to the relevant section in the chapter governing not-for-profit corporations.
Testifying for the bill was Senator Mueller.
OPPONENTS: There was no opposition voiced to the committee.
Richard Smreker, Legislative Analyst