1-1                                   AN ACT

 1-2     relating to immunity from liability for the directors and officers

 1-3     of the Texas Catastrophe Property Insurance Association.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 9A(a), Article 21.49, Insurance Code, is

 1-6     amended to read as follows:

 1-7           (a)  Except as provided by Section 10 of this Article, any

 1-8     [Any] person insured under this Act who is aggrieved by an act,

 1-9     ruling, or decision of the Association relating to the payment of,

1-10     the amount of, or the denial of a claim may elect to bring an

1-11     action, including an action under Article 21.21 of this code,

1-12     against the Association in a court of competent jurisdiction or to

1-13     appeal the act, ruling, or decision under Section 9 of this

1-14     Article.  A person may not proceed under both Section 9 of this

1-15     Article and this section for the same act, ruling, or decision.

1-16           SECTION 2.  Section 10, Article 21.49, Insurance Code, is

1-17     amended to read as follows:

1-18           Sec. 10.  IMMUNITY FROM LIABILITY.  (a)  A director or

1-19     officer of the Association is not individually liable for any act

1-20     or failure to act in the performance of official duties in

1-21     connection with the Association.

1-22           (b)  Subsection (a) does not apply to:

1-23                 (1)  an act or failure to act of an employee of the

1-24     Association;

 2-1                 (2)  an act or failure to act of the Association;

 2-2                 (3)  an act or omission involving a motor vehicle; or

 2-3                 (4)  an act or failure to act that constitutes bad

 2-4     faith, intentional misconduct, or gross negligence.

 2-5           (c)  There shall be no liability on the part of and no cause

 2-6     of action of any nature shall arise against a director of the

 2-7     association, the Board or any of its staff, the Association or its

 2-8     agents or employees, or against any participating insurer or its

 2-9     agents or employees, for any inspections made under the plan of

2-10     operation or any statements made in good faith by them in any

2-11     reports or communications concerning risks submitted to the

2-12     Association, or at any administrative hearings conducted in

2-13     connection therewith under the provisions of this Act.

2-14           SECTION 3.  This Act takes effect September 1, 1997, and

2-15     applies only to a cause of action that accrues on or after that

2-16     date.  A cause of action that accrues before the effective date of

2-17     this Act is governed by the law as it existed immediately before

2-18     the effective date of this Act, and that law is continued in effect

2-19     for that purpose.

2-20           SECTION 4.  The importance of this legislation and the

2-21     crowded condition of the calendars in both houses create an

2-22     emergency and an imperative public necessity that the

2-23     constitutional rule requiring bills to be read on three several

2-24     days in each house be suspended, and this rule is hereby suspended.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I certify that H.B. No. 1477 was passed by the House on May

         14, 1997, by a non-record vote; and that the House concurred in

         Senate amendments to H.B. No. 1477 on May 23, 1997, by a non-record

         vote.

                                             _______________________________

                                                 Chief Clerk of the House

               I certify that H.B. No. 1477 was passed by the Senate, with

         amendments, on May 21, 1997, by a viva-voce vote.

                                             _______________________________

                                                 Secretary of the Senate

         APPROVED:  _____________________

                            Date

                    _____________________

                          Governor