By Hilbert                                            H.B. No. 2217
         76R8076 CLG-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the liability of an officer of a nonprofit corporation.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  The Texas Non-Profit Corporation Act (Article
 1-5     1396-1.01 et seq.) is amended by adding Section 2.22 to read as
 1-6     follows:
 1-7           Sec. 2.22.  OFFICER LIABILITY.  An officer is not liable to
 1-8     the corporation or any other person for an action taken or omission
 1-9     made by the  officer in that capacity unless the officer's conduct
1-10     was not exercised:
1-11                 (1)  in good faith;
1-12                 (2)  with ordinary care; and
1-13                 (3)  in a manner the officer reasonably believes to be
1-14     in the best interest of the corporation.
1-15           SECTION 2.  This Act takes effect September 1, 1999, and
1-16     applies only to an action filed on or after that date.  An action
1-17     filed before the effective date of this Act is governed by the law
1-18     in effect when the action was filed, and the former law is
1-19     continued in effect for that purpose.
1-20           SECTION 3.  The importance of this legislation and the
1-21     crowded condition of the calendars in both houses create an
1-22     emergency and an imperative public necessity that the
1-23     constitutional rule requiring bills to be read on three several
1-24     days in each house be suspended, and this rule is hereby suspended.