CS FOR HOUSE BILL NO. 49(L&C) - Benefit Corporations

• Creates new Chapter 10.60 allowing business corporations to become "benefit corporations" that pursue general and specific public benefit purposes in addition to shareholder profits.

• Establishes governance requirements including director and officer duties to consider effects on shareholders, employees, customers, communities, health, and long-term interests when making decisions that may affect public benefits.

• Requires benefit corporations to prepare biennial benefit reports assessing performance against third-party standards and disclosing compliance with public benefit purposes; reports must be filed with the biennial report to the state.

• Adds involuntary dissolution grounds for benefit corporations delinquent six months or more in filing benefit reports or paying the associated fee.

• Effective date of July 1, 2016, with Department of Commerce, Community, and Economic Development authorized to adopt implementing regulations by that date.