SRC-JRN S.B. 616 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 616
By: Sibley
Education
3-2-97
As Filed


DIGEST 

Currently, a corporation's representatives are prohibited from certain
actions.  These prohibitions may limit a representative's ability to
recruit senior personnel and in some instances, contracts with major
investment service providers may be voided.  This bill defines the acts in
which a representative of a corporation is prohibited from participating
by defining the intent of the participation. 

PURPOSE

As proposed, S.B. 616 defines the acts in which a representative of a
corporation is prohibited from participating by defining the intent of the
participation. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 66.08, Education Code, by amending Subsections
(i) and (l), and adding Subsections (m) - (o), by deleting the prohibition
that a nonprofit corporation (corporation) may not enter into an agreement
with certain persons or business entities of the corporation on or before
certain dates.  Prohibits a former director of a corporation from making
appearances before certain persons by a certain date under certain
circumstances.  Prohibits a former officer or employee of a corporation
from representing any person or receiving compensation for services
rendered for certain matters.  Defines "participated," and "particular
matter."  Provides that an individual commits a Class A misdemeanor, if
the individual violates Subsection (l) or (m) of this section.  Makes
conforming changes. 

SECTION 2. Emergency clause.
  Effective date: upon passage.