By Brown S.B. No. 731 77R6732 CLG-D 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., Vernon's Texas Civil Statutes) is amended by 1-6 adding Article 2.22 to read as follows: 1-7 Art. 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 the person's capacity as an officer unless 1-10 the officer's conduct 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, 2001, 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.