By: Armbrister S.B. No. 1178
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the regulation of athlete agents and providing for the
1-2 issuance of subpoenas and other process in investigations by the
1-3 secretary of state.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Chapter 13, Acts of the 70th Legislature, 2nd
1-6 Called Session, 1987 (Article 8871, Vernon's Texas Civil Statutes),
1-7 is amended by adding Section 10A to read as follows:
1-8 Sec. 10A. SUBPOENAS OR OTHER PROCESS IN INVESTIGATIONS BY
1-9 SECRETARY OF STATE. (a) The secretary of state may require and
1-10 compel, by subpoena or summons issued by the secretary of state,
1-11 the attendance and testimony of witnesses and the production of any
1-12 books, accounts, records, magnetic or electronic recordings,
1-13 papers, contracts, correspondence, or other records the secretary
1-14 deems relevant or material to a matter which the secretary of state
1-15 has authority under this Act to investigate. For this purpose, the
1-16 secretary of state or any officer designated by and acting on
1-17 behalf of the secretary of state may administer oaths and
1-18 affirmations, examine witnesses, and receive evidence. Any
1-19 information or evidence received shall be treated as confidential
1-20 by the secretary of state and shall not be open to public
1-21 inspection except by court order and are exempt from disclosure
1-22 under the open records law, Chapter 552, Government Code.
1-23 (b) Service of any subpoena or summons issued by the
2-1 secretary of state may be made, at the secretary's discretion, by
2-2 the secretary, the secretary's authorized agent, a sheriff, or a
2-3 constable. Service may be made on any natural person by delivering
2-4 a duly executed copy of the subpoena or summons to the person to be
2-5 served or by mailing such copy by registered or certified mail,
2-6 return receipt requested, to such person at the person's residence
2-7 or principal office or place of business. Service of any subpoena
2-8 or summons issued by the secretary of state may be made on any
2-9 person other than a natural person by delivering or by mailing a
2-10 duly executed copy of the subpoena or summons to a person to whom
2-11 delivery would be appropriate under state law in a civil suit. A
2-12 verified return by the individual serving the subpoena or summons
2-13 setting forth the manner of service shall be proof of such service,
2-14 and, in the case of service by registered or certified mail, the
2-15 return shall be accompanied by the return post office receipt of
2-16 delivery of the subpoena or summons.
2-17 (c) On the failure to obey a subpoena or the refusal of a
2-18 witness whose testimony is sought to appear or to answer, the
2-19 secretary of state shall refer the matter to the attorney general
2-20 for enforcement. The attorney general may apply to a district
2-21 court of Travis County for an order requiring compliance. If the
2-22 district court determines that good cause exists for the issuance
2-23 of the subpoena, the court shall order compliance. The district
2-24 court may modify the requirements of a subpoena that the court
2-25 determines are unreasonable. Failure to obey the order of the
3-1 district court is punishable as contempt.
3-2 (d) The secretary of state may propound to any athlete,
3-3 compliance coordinator designated under Subsection (e), Section 7,
3-4 of this Act, or any person subject to the provisions of this Act
3-5 and to any officer, director, partner, or associate thereof such
3-6 interrogatories as may be reasonable, necessary, and proper to
3-7 enable the secretary of state to ascertain whether a person
3-8 regulated by this Act is in compliance with all the provisions of
3-9 this Act. Notwithstanding the foregoing, the secretary of state
3-10 shall not propound interrogatories for athletes not represented by
3-11 counsel. The interrogatories shall be answered within 30 days
3-12 after mailing or within such additional time as shall be fixed by
3-13 the secretary of state, and the answers shall be full and complete
3-14 and shall be made in writing and under oath. If the
3-15 interrogatories are directed to an individual, they shall be
3-16 answered by the individual, and if directed to a corporation,
3-17 association, partnership, or other legal entity, they shall be
3-18 answered by an officer, associate, partner, or authorized
3-19 representative of the legal entity.
3-20 (e) If the interrogatories and answers disclose a violation
3-21 of the provisions of this Act, the secretary of state shall take
3-22 action under Subsection (b) of Section 3 of this Act.
3-23 (f) The interrogatories and answers shall be treated as
3-24 confidential and shall not be open to public inspection except by
3-25 court order and are exempt from disclosure under the open records
4-1 law, Chapter 552, Government Code.
4-2 (g) The secretary of state may, at the secretary's
4-3 discretion, disclose any confidential information in the
4-4 secretary's possession to any governmental authority or any
4-5 quasi-governmental authority.
4-6 SECTION 2. This Act takes effect September 1, 1995.
4-7 SECTION 3. The importance of this legislation and the
4-8 crowded condition of the calendars in both houses create an
4-9 emergency and an imperative public necessity that the
4-10 constitutional rule requiring bills to be read on three several
4-11 days in each house be suspended, and this rule is hereby suspended.