SRC-HRD S.B. 1923 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 1923
By: Ratliff
Finance
4-13-97
As Filed


DIGEST 

Currently, several state agencies have invested substantially in companies
which either distribute or own other companies that distribute music that
many people consider to be seriously offensive.  For example, the Teacher
Retirement System holds 1,595,000 shares of common stock (at a value of
approximately $64 million) in the Seagram Company, which owns a
substantial portion of MCA Records, a distributor of much of the
aforementioned music.  The lyrics of many of these artists promote
criminal activity and incite violence against police, women, and certain
minority or ethnic groups.  There are concerns about a public policy which
allows state agencies to invest in companies that promote violence,
illegal activities, and the degradation of certain groups, especially as
other state agencies work diligently to prevent the very activities these
songs promote. 
  
This bill would prohibit state agencies from investing in any company that
either distributes or owns a controlling interest in any company which
distributes or promotes songs or lyrics describing criminal activity,
violence against police officers or racial or ethnic groups, or describing
bestiality, necrophilia, or pedophilia.   

PURPOSE

As proposed, S.B. 1923 prohibits state agencies from using state funds to
invest in private corporations that writes, records, produces, advertises,
markets, sells, or otherwise promotes any song, lyrics, or other musical
work that explicitly describes, glamorizes, or advocates certain offensive
activities. 

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 404.024, Government Code, by adding Subsection
(j), to prohibit the comptroller from using state funds to invest in or
purchase securities, including obligations, of a private corporation or
other private business entity that directly or indirectly through
ownership of 10 percent or more of another corporation or business entity,
writes, records, produces, advertises, markets, sells, or otherwise
promotes any song, lyrics, or other musical work that explicitly
describes, glamorizes, or advocates: acts of criminal violence, including
murder, assault, assault on peace officers, sexual assault, and robbery;
necrophilia, bestiality, or pedophilia; illegal use of controlled
substances; criminal street gang activity; degradation or denigration of
females; or violence against a particular sex, race, or ethnic group.   

SECTION 2. Amends Chapter 2256B, Government Code, by adding Section
2256.060, as follows: 

Sec. 2256.060.  UNAUTHORIZED INVESTMENT.  Prohibits the state or an entity
of state government, including a department, commission, board, office, or
institution of higher education as defined by Section 61.003, Education
Code, from using state funds to invest in or purchase securities,
including obligations, of a private corporation or other private business
entity that directly or indirectly through ownership of 10 percent or more
of another corporation or business entity, writes, records, produces,
advertises, markets, sells, or otherwise promotes any song, lyrics, or
other musical work that explicitly describes,  glamorizes, or advocates
certain activities. 

SECTION 3. Amends Section 845.301, Government Code, by adding Subsection
(f), to prohibit the board of trustees from using state funds to invest in
or purchase securities, including obligations, of a private corporation or
other private business entity that directly or indirectly through
ownership of 10 percent or more of another corporation or business entity,
writes, records, produces, advertises, markets, sells, or otherwise
promotes any song, lyrics, or other musical work that explicitly
describes, glamorizes, or advocates certain activities. 

SECTION 4. Amends Section 855.302, Government Code by adding Subsection
(c), to make conforming changes. 

SECTION 5. Requires a governmental entity or retirement system that owns
an investment prohibited by this Act to divest the investment as soon as
is reasonable and practical considering protection of capital, but not
later than January 1, 1999. 

SECTION 6. Emergency clause.
  Effective date: 90 days after adjournment.