By Turner of Harris                                   H.B. No. 1809
       74R5435 GCH-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to indemnification of trustees, officers, and employees of
    1-3  retirement systems for police officers in certain municipalities.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 4, Chapter 76, Acts of the 50th
    1-6  Legislature, 1947 (Article 6243g-1, Vernon's Texas Civil Statutes),
    1-7  is amended by adding Subsection (k) to read as follows:
    1-8        (k)(1)  If the Pension Board has not purchased insurance as
    1-9  described by Subsection (j) of this section for any reason or if
   1-10  the insurance is insufficient or otherwise inadequate, the Board
   1-11  shall, except as provided by Subdivision (2) of this subsection,
   1-12  indemnify a Board member or officer or employee of the Board for
   1-13  liability imposed as damages because of an alleged act, error, or
   1-14  omission committed in the individual's capacity as a Board member
   1-15  or officer or employee of the Board and for reasonable costs and
   1-16  expenses, including attorney's fees, incurred in the individual's
   1-17  defense of a claim of an alleged act, error, or omission.
   1-18              (2)  The Pension Board may not indemnify a Board member
   1-19  or officer or employee of the Board for liability imposed or
   1-20  expenses incurred because of the individual's dishonesty,
   1-21  fraudulent breach of trust, lack of good faith, intentional fraud
   1-22  or deception, intentional failure to act prudently, or gross
   1-23  negligence.
   1-24              (3)  Indemnification under this subsection applies to
    2-1  acts, errors, or omissions by Board members, officers or employees
    2-2  of the Board, former Board members, and former officers or
    2-3  employees of the Board that occur or occurred on or after July 1,
    2-4  1993.
    2-5        SECTION 2.  The importance of this legislation and the
    2-6  crowded condition of the calendars in both houses create an
    2-7  emergency and an imperative public necessity that the
    2-8  constitutional rule requiring bills to be read on three several
    2-9  days in each house be suspended, and this rule is hereby suspended,
   2-10  and that this Act take effect and be in force from and after its
   2-11  passage, and it is so enacted.