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


Senate Research CenterC.S.S.B. 616
By: Sibley
Education
3-6-97
Committee Report (Substituted)


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, C.S.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 adding new Subsections (l) - (n), and redesignating existing
Subsection (l) as Subsection (o). Deletes 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.  Provides that an individual commits a Class
A misdemeanor, if the individual violates Subsection (l) or (m) of this
section. Defines "participated," and "particular matter."  Makes
conforming changes. 

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

SUMMARY OF COMMITTEE CHANGES

Amends the proposed relating clause.

Amends SECTION 1, Section 66.08, Education Code, to delete Subsections (j)
and (k), which made no changes in the proposed version, from the committee
substitute.   Redesignates the definitions of "participated" and
"particular matter" originally contained in proposed Subsection (m) to new
Subsection (o).  Makes conforming and nonsubstantive changes.