79R2205 CLG-D

By:  Alonzo                                                       H.B. No. 1620



A BILL TO BE ENTITLED

AN ACT

relating to the award of attorney's fees in an action against an 
officer or director of a nonprofit corporation.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  The Texas Non-Profit Corporation Act (Article 
1396-1.01 et seq., Vernon's Texas Civil Statutes) is amended by 
adding Article 2.22B to read as follows:
	Art. 2.22B.  LIABILITY FOR ATTORNEY'S FEES.  The court shall 
award reasonable attorney's fees to a person who prevails in an 
action against an officer or director of a corporation for an act or 
omission occurring in the person's capacity as an officer or 
director.
	SECTION 2.  Subchapter E, Chapter 22, Business Organizations 
Code, is amended by adding Section 22.236 to read as follows:
	Sec. 22.236.  LIABILITY FOR ATTORNEY'S FEES.  The court 
shall award reasonable attorney's fees to a person who prevails in 
an action against an officer or director of a corporation for an act 
or omission occurring in the person's capacity as an officer or 
director.
	SECTION 3.  Article 2.22B, Texas Non-Profit Corporation Act 
(Article 1396-2.22B, Vernon's Texas Civil Statutes), as added by 
this Act, applies only to an action filed on or after the effective 
date of this Act.  An action filed before the effective date of this 
Act is governed by the law in effect on the date the action was 
filed, and the former law is continued in effect for that purpose.
	SECTION 4.  Section 22.236, Business Organizations Code, as 
added by Section 2 of this Act, applies only to an action filed on or 
after the effective date of that section.  An action filed before 
that date is governed by the law in effect on the date the action was 
filed, and the former law is continued in effect for that purpose.
	SECTION 5.  Section 2 of this Act takes effect January 1, 
2006.              
	SECTION 6.  Except as provided by Section 5, this Act takes 
effect immediately if it receives a vote of two-thirds of all the 
members elected to each house, as provided by Section 39, Article 
III, Texas Constitution.  If this Act does not receive the vote 
necessary for immediate effect, this Act takes effect September 1, 
2005.