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.  The Athlete Agents Act (Article 8871, Vernon's
    1-6  Texas Civil Statutes) is amended by adding Section 12 to read as
    1-7  follows:
    1-8             SUBPOENAS OR OTHER PROCESS IN INVESTIGATIONS
    1-9                         BY SECRETARY OF STATE
   1-10        Sec. 12.  (a)  The secretary of state may require and compel,
   1-11  by subpoena or summons issued by the secretary of state, the
   1-12  attendance and testimony of witnesses and the production of any
   1-13  books, accounts, records, magnetic or electric recordings, papers,
   1-14  contracts, and correspondence or other records the secretary deems
   1-15  relevant or material to a matter which the secretary of state has
   1-16  authority under this Act to investigate.  For this purpose, the
   1-17  secretary of state or any officer designated by and acting on the
   1-18  behalf of the secretary of state may administer oaths and
   1-19  affirmations, examine witnesses and receive evidence.  Any
   1-20  information or evidence received shall be treated as confidential
   1-21  by the secretary of state and shall not be open to public
   1-22  inspection except by court order.
   1-23        (b)  Service of any subpoena or summons issued by the
    2-1  secretary of state may be served, 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 to
   2-18  appear or to answer of a witness whose testimony is sought, 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, or any person subject to the provisions of
    3-4  this Act, and to any officer, director, partner, or associate
    3-5  thereof, such interrogatories as may be reasonable necessary and
    3-6  proper to enable the secretary of state to ascertain whether any
    3-7  person regulated by this Act is in compliance with all the
    3-8  provisions of this Act.  The interrogatories shall be answered
    3-9  within thirty (30) days after the mailing thereof, or within such
   3-10  additional time as shall be fixed by the secretary of state, and
   3-11  the answers thereto shall be full and complete and shall be made in
   3-12  writing and under oath.  If the interrogatories are directed to an
   3-13  individual, they shall be answered by the individual, and if
   3-14  directed to a corporation, association, partnership, or other legal
   3-15  entity, they shall be answered by an officer, associate, partner or
   3-16  authorized representative of the legal entity.
   3-17        (e)  If such interrogatories and the answers thereto disclose
   3-18  a violation of the provisions of this Act, the secretary of state
   3-19  shall take action under Subsection (b) of Section 3 of this Act.
   3-20        (f)  Such interrogatories and answers thereto shall be
   3-21  treated as confidential and shall not be open to public inspection
   3-22  except by court order.
   3-23        (g)  The secretary of state may, at the secretary's
   3-24  discretion, disclose any confidential information in the
   3-25  secretary's possession to any governmental authority or any
    4-1  quasi-governmental authority.
    4-2        SECTION 2.  This Act take effect September 1, 1995.
    4-3        SECTION 3.  The importance of this legislation and the
    4-4  crowded condition of the calendars in both houses create an
    4-5  emergency and an imperative public necessity that the
    4-6  constitutional rule requiring bills to be read on three several
    4-7  days in each house be suspended, and this rule is hereby suspended.