Current StatusView additional legislative information at the LPITS web site.Bill Number: 2500 Ratification Number: 277 Act Number 192 Introducing Body: House Subject: Nonprofit corporations, to provide immunity from suit of directors, trustees, or members of governing bodies of electric cooperatives and not-for-profit corporations, organizations, and associations
(A192, R277, H2500)
AN ACT TO AMEND CHAPTER 31 OF TITLE 33, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO NONPROFIT CORPORATIONS GENERALLY, BY ADDING SECTION 33-31-180 SO AS TO PROVIDE IMMUNITY FROM SUIT OF DIRECTORS, TRUSTEES, OR MEMBERS OF GOVERNING BODIES OF ELECTRIC COOPERATIVES AND NOT-FOR-PROFIT CORPORATIONS, ORGANIZATIONS, AND ASSOCIATIONS WHICH ARE EXEMPT FROM FEDERAL INCOME TAXATION EITHER UNDER THE PROVISIONS OF SECTION 501(c)(3), (c)(6), OR (c)(12) OF THE INTERNAL REVENUE CODE OF 1986 AND TO PROVIDE EXCEPTION TO IMMUNITY.
Be it enacted by the General Assembly of the State of South Carolina:
Findings
SECTION 1. The General Assembly finds that the services of not-for-profit boards are critical to the efficient conduct and management of the public and charitable affairs of the citizens of this State. Members of these not-for-profit boards must be permitted to operate without concern for the possibility of litigation arising from the discharge of their duties as policymakers.
Immunity from suit
SECTION 2. Article 1 of Chapter 31 of Title 33 of the 1976 Code is amended by adding:
"Section 33-31-180. (A) All directors, trustees, or members of the governing bodies of not-for-profit cooperatives, corporations, associations, and organizations described in subsection (B) are immune from suit arising from the conduct of the affairs of these cooperatives, corporations, associations, or organizations. This immunity from suit is removed when the conduct amounts to wilful, wanton, or gross negligence. Nothing in this section may be construed to grant immunity to the not-for-profit cooperatives, corporations, associations, or organizations.
(B) Subsection (A) applies to the following:
(1) electric cooperatives organized under Chapter 49 of Title 33;
(2) not-for-profit corporations, associations, and organizations, as recognized in and exempted from taxation under Federal Income Tax Code Section 501(c)(3), (c)(6), or (c)(12)."
Time effective
SECTION 3. This act takes effect upon approval by the Governor.