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.