By Place                                        H.B. No. 1748

      75R3671 BEM-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to requiring that the board of directors of certain

 1-3     nonprofit corporations be elected at a statewide election.

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

 1-5           SECTION 1.  Chapter 9, Title 32, Revised Statutes, is amended

 1-6     by adding Article 1397 to read as follows:

 1-7           Art. 1397.  ELECTION OF GOVERNING BODY OF A NONPROFIT

 1-8     CORPORATION RECEIVING PUBLIC FUNDS.  Notwithstanding any other

 1-9     provision of law, the governing body of each nonprofit corporation

1-10     organized under the laws of this state that receives any of its

1-11     funding from this state or any governmental unit of this state

1-12     shall be elected by the voters of this state in accordance with

1-13     procedures prescribed by the secretary of state.  The secretary of

1-14     state shall modify existing election procedures, dates, and

1-15     deadlines as necessary to implement this article.

1-16           SECTION 2.  The first election under this Act shall be held

1-17     in 1998. Persons serving on the governing body of a nonprofit

1-18     corporation organized under the laws of this state that receives

1-19     any of its funding from the state or any of the state's

1-20     governmental units under the law as it existed immediately before

1-21     the effective date of this Act shall continue to serve, if

1-22     otherwise qualified, until their successors are elected and assume

1-23     office.

1-24           SECTION 3.  The importance of this legislation and the

 2-1     crowded condition of the calendars in both houses create an

 2-2     emergency and an imperative public necessity that the

 2-3     constitutional rule requiring bills to be read on three several

 2-4     days in each house be suspended, and this rule is hereby suspended,

 2-5     and that this Act take effect and be in force from and after its

 2-6     passage, and it is so enacted.