BILL ANALYSIS S.B. 1178 By: Armbrister (Kubiak) 5-16-95 Committee Report (Unamended) BACKGROUND Currently, the secretary of state is not authorized to issue subpoenas to conduct investigations into possible violations of the Athlete Agents Act. PURPOSE S.B. 1178 authorizes the secretary of state to issue subpoenas and propound interrogatories for the purpose of investigating violations of the Athlete Agents Act. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 13, Acts of the 70th Legislature, 2nd Called Session, 1987, (Article 8871, V.T.C.S. (Athlete Agents Act), by adding Section 10A, as follows: Sec. 10A. SUBPOENAS OR OTHER PROCESS IN INVESTIGATIONS BY SECRETARY OF STATE. (a) Authorizes the secretary of state (secretary) to require and compel by subpoena or summons the attendance and testimony of witnesses and the production of any records the secretary deems relevant to a matter which the secretary has authority to investigate. Authorizes the secretary of state or any officer designated by and acting on behalf of the secretary to administer oaths and affirmations, examine witnesses, and receive evidence. Requires any information or evidence received to be treated as confidential and to not be open to public inspection except by court order and are exempt from disclosure under Chapter 552, Government Code. (b) Authorizes service of any subpoena or summons to be served at the secretary's discretion by the secretary, an authorized agent, a sheriff, or a constable and sets forth procedure for serving the subpoena or summons. (c) Requires the secretary of state to refer the matter to the attorney general for enforcement on the failure to obey a subpoena or the refusal to appear or to answer of a witness whose testimony is sought. Authorizes the attorney general to apply to a district court of Travis County for an order requiring compliance. Requires the court to order compliance if the court determines that good cause exists for the issuance of the subpoena. Authorizes the court to modify the requirements of a subpoena. Provides that failure to obey the court's order is punishable as contempt. (d) Authorizes the secretary to propound to any athlete, compliance coordinator as designated under Section 7(e) of this Act, or any person subject to the provisions of this Act, and to any officer, director, partner, or associate thereof, interrogatories to enable the secretary to ascertain whether any person regulated by this Act is in compliance with this Act. Prohibits the secretary of state from propounding interrogatories for athletes not represented by counsel. Requires the interrogatories to be answered completely and under oath within a certain time period. Requires interrogatories to be answered by the appropriate individual, officer, or authorized representative of the legal entity. (e) Requires the secretary to take action under Section 3(b) if interrogatories and the answers disclose a violation of the provisions of this Act. (f) Requires interrogatories and answers thereto to be treated as confidential and not open to public inspection except by court order and are exempt from disclosure under Chapter 552, Government Code. (g) Authorizes the secretary, at the secretary's discretion, to disclose any confidential information in the secretary's possession to any governmental or quasi-governmental authority. SECTION 2. Effective date: September 1, 1995. SECTION 3. Emergency clause. SUMMARY OF COMMITTEE ACTION SB 1178 was considered in a Formal Meeting on May 16, 1995. The Chair laid out SB 1178, and recognized Rep. Kubiak to explain the bill. There was no objection. Rep. Kubiak moved that the full committee adopt SB 1178, and that it be reported favorably to the full House with the recommendation that it do pass and be printed, and placed on the Local and Consent Calendar. The motion prevailed by the following vote: AYES: 7, NAYS: 0, ABSENT: 2.