HB 1544 -- NOT-FOR-PROFIT CORPORATIONS

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.

HB 1544 -- NOT-FOR-PROFIT CORPORATIONS (Smith)

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.

HB 1544 -- NOT-FOR-PROFIT CORPORATIONS

SPONSOR:  Smith

COMMITTEE ACTION:  Voted "do pass by consent" by the Committee
on Civil and Administrative Law by a vote of 18 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 the bill is needed to clean up
an ambiguity created by legislation enacted last year.  The
statutes referred to in this section relate to political
subdivisions that form an entity for the purpose of self-
insuring.  The authority for such an entity to distribute
surplus contributions (back to the government entities) needs to
also appear in Chapter 355, governing not-for-profit
corporations.

Testifying for the bill were Representative Smith; and Missouri
Housing Authorities.

OPPONENTS:  There was no opposition voiced to the committee.

Richard Smreker, Legislative Analyst

HB 1544 -- Not-for-Profit Corporations

Sponsor:  Smith

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.