By Palmer H.B. No. 2714
75R8396 CAG-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to bingo reform.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Sections 16(e)-(g), Bingo Enabling Act (Article
1-5 179d, Vernon's Texas Civil Statutes), are amended to read as
1-6 follows:
1-7 (e) The commission shall, upon proof by a preponderance of
1-8 the evidence, [After a hearing, the commission may] suspend or
1-9 revoke any license issued under this Act for failure to comply with
1-10 this Act, [or] a rule adopted [by the commission] under this Act,
1-11 or for any reason that would allow or require the commission to
1-12 refuse to issue or renew a license. A proceeding under this
1-13 subsection shall be conducted according to the provisions of
1-14 Subchapters C-G, Chapter 2001, Government Code [of the same class.
1-15 The commission may summarily suspend a license issued under this
1-16 Act for failure to comply with this Act or a rule adopted by the
1-17 commission under this Act if the commission determines that the
1-18 licensee's continued operation may constitute an immediate threat
1-19 to the health, safety, morals, or welfare of the public. The
1-20 Administrative Procedure and Texas Register Act (Article 6252-13a,
1-21 Vernon's Texas Civil Statutes) does not apply to the commission in
1-22 the enforcement and administration of a summary suspension under
1-23 this section].
1-24 (f) The director of bingo operations may summarily suspend
2-1 any license issued under this Act if the director determines that
2-2 reasonable grounds exist to believe that a licensee has failed to
2-3 comply with this Act, a rule adopted under this Act, or for any
2-4 reason that would allow or require the commission to refuse to
2-5 issue or renew a license. A proceeding to summarily suspend a
2-6 license [issued under this Act] is initiated by service of notice
2-7 to the licensee [the commission by serving notice to the licensee
2-8 informing it of the right to a hearing before the commission]. The
2-9 notice may [must] be personally served by physical delivery to any
2-10 [on an] officer, director, operator, or other agent of the
2-11 licensee. Notice by personal service is effective on delivery.
2-12 Notice may be served [or sent] by certified or registered mail,
2-13 return receipt requested, to the licensee's mailing address as it
2-14 appears on the commission's records. Notice served by mail is
2-15 effective on mailing. A license is suspended at the time notice is
2-16 effective and the licensee shall immediately surrender the license
2-17 to the commission. [The notice must state the alleged violations
2-18 that constitute grounds for summary suspension.]
2-19 (g) The notice must state the grounds for the summary
2-20 suspension and must inform the licensee of the location, date, and
2-21 time of a preliminary hearing [If a notice of summary suspension
2-22 is served on a licensee, the commission shall simultaneously serve
2-23 notice of a hearing, to be held within 10 days after the date the
2-24 notice is served,] at which the licensee may appear and [shall]
2-25 show cause why the license should not remain [be summarily]
2-26 suspended pending a final suspension or revocation hearing [on the
2-27 10th day after the date the notice is served]. A preliminary
3-1 hearing shall be convened not later than the 10th day after the
3-2 date of the summary suspension of the license. Subchapters C-G,
3-3 Chapter 2001, Government Code:
3-4 (1) do not apply to enforcement and administration of
3-5 a summary suspension under this section; and
3-6 (2) do apply to a final hearing on a suspension or
3-7 revocation [A final hearing on the suspension or revocation of the
3-8 license shall be held, if requested by the licensee, within 30 days
3-9 after the date the commission receives written notice of the
3-10 request. A final hearing on suspension or revocation is governed
3-11 by the same rules as a hearing on any other suspension or
3-12 revocation under this Act].
3-13 SECTION 2. The Bingo Enabling Act (Article 179d, Vernon's
3-14 Texas Civil Statutes) is amended by adding Sections 27a, 27b, 27c,
3-15 27d, and 27e to read as follows:
3-16 Sec. 27a. INVESTIGATION OF PROHIBITED ACTIVITY. (a) If the
3-17 director of bingo operations has reason to believe that a person
3-18 has engaged, is engaging, or is likely to engage in an activity
3-19 prohibited under this Act or the rules of the commission, the
3-20 director of bingo operations may:
3-21 (1) make any necessary investigation to determine
3-22 whether the prohibited activity has occurred or is likely to occur
3-23 or to aid in the enforcement of the laws or regulations
3-24 administered by the commission;
3-25 (2) initiate appropriate disciplinary action as
3-26 provided by this Act and the rules of the commission; and
3-27 (3) report any prohibited activity to an appropriate
4-1 law enforcement agency or another regulatory agency.
4-2 (b) The commission may furnish any materials, documents,
4-3 reports, complaints, or other evidence the commission has compiled
4-4 in connection with a prohibited activity to a law enforcement
4-5 agency after the commission has received a written request from the
4-6 law enforcement agency. The commission may assist the law
4-7 enforcement agency or other regulatory agency as requested.
4-8 (c) A person acting without malice, fraudulent intent, and
4-9 bad faith is not subject to liability, including liability for
4-10 libel, slander, or other relevant tort, if the person files a
4-11 report or furnishes, orally or in writing, information concerning a
4-12 suspected, anticipated, or completed prohibited activity to a law
4-13 enforcement agency, the commission, or another regulatory agency
4-14 with appropriate jurisdiction, or an agent or employee of a law
4-15 enforcement agency, the commission, or other regulatory agency.
4-16 This section does not:
4-17 (1) affect or modify a common law or statutory
4-18 privilege or immunity;
4-19 (2) preempt the authority or relieve the duty of a law
4-20 enforcement agency or other regulatory agency with appropriate
4-21 jurisdiction to investigate and prosecute suspected criminal acts;
4-22 (3) prohibit a person from voluntarily disclosing
4-23 information to a law enforcement agency or other regulatory agency;
4-24 or
4-25 (4) limit a power or duty granted to the commission
4-26 under this Act or other law.
4-27 Sec. 27b. SUBPOENA AUTHORITY. (a) This section applies to
5-1 an investigation by the commission of a prohibited activity as
5-2 provided by Sections 27 and 27a of this Act, but does not affect
5-3 the conduct of a contested case under Chapter 2001, Government
5-4 Code.
5-5 (b) The director of bingo operations may issue a subpoena to
5-6 compel the attendance and testimony of a witness and the production
5-7 of a book, account, record, paper, or correspondence relating to a
5-8 matter that the commission has authority to consider or investigate
5-9 at the commission's offices in Austin or at another place the
5-10 commission designates.
5-11 (c) A member of the commission, the director of bingo
5-12 operations, or an employee of the commission must sign and issue
5-13 the subpoena.
5-14 (d) A person who is required by subpoena to attend a
5-15 proceeding before the commission is entitled to receive:
5-16 (1) reimbursement for mileage, in the amount provided
5-17 for travel by state employees, for traveling to or returning from a
5-18 proceeding that is more than 25 miles from the witness's residence;
5-19 and
5-20 (2) a fee for each day or part of a day the witness is
5-21 necessarily present as a witness, in an amount equal to the per
5-22 diem travel allowance of a state employee.
5-23 (e) An employee of the commission may serve the subpoena or
5-24 have the subpoena served by an authorized agent of the commission,
5-25 a sheriff, or a constable. The sheriff's or constable's fee for
5-26 serving the subpoena must be the same as the fee paid the sheriff
5-27 or constable for similar services.
6-1 (f) A person possessing materials located outside this state
6-2 that are requested by the commission may make the materials
6-3 available to the commission or a representative of the commission
6-4 for examination at the place where the materials are located. The
6-5 commission may designate a representative, including an official of
6-6 the state in which the materials are located, to examine the
6-7 materials and may respond to similar requests from an official of
6-8 another state, the United States, or a foreign country.
6-9 (g) The authority granted under this section is in addition
6-10 to other law authorizing the commission to obtain or require
6-11 information.
6-12 Sec. 27c. ENFORCEMENT OF SUBPOENA. (a) If necessary, the
6-13 director of bingo operations may apply to the district court of
6-14 Travis County or of the county in which the subpoena was served for
6-15 enforcement of the subpoena, and the court may issue an order
6-16 compelling compliance.
6-17 (b) If the court orders compliance with the subpoena or
6-18 finds the person in contempt for failure to obey the order, the
6-19 commission, or the attorney general if representing the commission,
6-20 may recover reasonable court costs, attorney's fees, and
6-21 investigative costs incurred in the proceeding.
6-22 Sec. 27d. CONFIDENTIALITY OF SUBPOENAED RECORDS.
6-23 (a) Notwithstanding Section 28 of this Act, a book, account,
6-24 record, paper, correspondence, or other document subpoenaed and
6-25 produced under Section 27b of this Act that is otherwise made
6-26 privileged or confidential by law remains privileged or
6-27 confidential unless admitted into evidence at an administrative
7-1 hearing or in a court. The commission may issue an order
7-2 protecting the confidentiality or privilege of the document and
7-3 restricting its use or distribution by any person or in any
7-4 proceeding, other than a proceeding before the commission.
7-5 (b) Subject to this Act and confidentiality provisions of
7-6 other law administered by the commission, information or material
7-7 acquired by the commission under a subpoena is not a public record
7-8 for the period the commission considers necessary to complete the
7-9 investigation, protect the person being investigated from
7-10 unwarranted injury, or serve the public interest. Information or
7-11 material acquired by the commission under subpoena is not subject
7-12 to a subpoena, except a valid grand jury subpoena, until released
7-13 for public inspection by the commission or, after notice and a
7-14 hearing, a district court determines that the public interest and
7-15 any investigation by the commission would not be jeopardized by
7-16 obeying the subpoena. The district court order may not apply to:
7-17 (1) a record or communication received from another
7-18 law enforcement or regulatory agency except on compliance with the
7-19 confidentiality laws governing the records of the other agency; or
7-20 (2) an internal note, memorandum, report, or
7-21 communication made in connection with a matter that the commission
7-22 has the authority to consider or investigate, except on good cause
7-23 and compliance with applicable confidentiality laws.
7-24 Sec. 27e. EVIDENCE. (a) If certified by the commission or
7-25 the director of bingo operations, a book, record, paper, or
7-26 document produced or testimony taken under a subpoena as provided
7-27 by this Act and held by the commission is admissible as evidence in
8-1 any case without prior proof of its correctness and without other
8-2 proof. The certified book, record, document, or paper, or a
8-3 certified copy, is prima facie evidence of the facts it contains.
8-4 (b) This section does not limit another provision of this
8-5 Act or other law that provides for the admission of evidence or its
8-6 evidentiary value.
8-7 SECTION 3. This Act takes effect September 1, 1997.
8-8 SECTION 4. The importance of this legislation and the
8-9 crowded condition of the calendars in both houses create an
8-10 emergency and an imperative public necessity that the
8-11 constitutional rule requiring bills to be read on three several
8-12 days in each house be suspended, and this rule is hereby suspended.