By Haggerty H.B. No. 2578 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the subpoena and investigative authority of the Texas 1-3 Lottery Commission for the regulation of bingo. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Chapter 2001, Occupations Code, is amended by 1-6 adding Subchapter O to read as follows: 1-7 SUBCHAPTER O. SUBPOENAS AND RELATED PROCEDURES 1-8 Sec. 2001.701. SUBPOENA. (a) In an investigation of any 1-9 matter under this chapter, the commission may issue a subpoena to 1-10 compel the attendance and testimony of a relevant witness or the 1-11 production of relevant evidence located in this state for 1-12 inspection or copying by the commission. 1-13 (b) A subpoena may be served personally or by certified 1-14 mail. 1-15 (c) A subpoena may require a person to appear as a witness 1-16 or to produce evidence at the commission's offices in Austin or at 1-17 another place designated by the commission. 1-18 (d) The commission may issue a subpoena that requires an 1-19 immediate production of evidence only if: 1-20 (1) the subpoena states that the records are necessary 1-21 and must be produced immediately due to exigent and extraordinary 1-22 circumstances; and 1-23 (2) the subpoena is signed and issued by a member of 1-24 the commission and an agent of the commission. 2-1 (e) The commission shall adopt rules to avoid imposing an 2-2 undue burden or expense on persons to whom subpoenas are issued. 2-3 (f) The commission by rule may delegate the authority 2-4 granted under Subsection (a) to an agent of the commission. 2-5 (g) The fee charged by a sheriff or constable for serving a 2-6 commission subpoena may not exceed the fee for serving similar 2-7 subpoenas. 2-8 (h) In the issuance of a subpoena under this section for the 2-9 records of a religious society, the commission may subpoena only 2-10 the portion of the records related to a bingo enterprise. 2-11 Sec. 2001.702. FAILURE TO COMPLY WITH SUBPOENA. (a) If a 2-12 person fails to comply with a subpoena issued by the commission, 2-13 the commission, acting through the attorney general, may file suit 2-14 against the person to enforce the subpoena in a district court in 2-15 Travis County. 2-16 (b) On finding that good cause exists for issuing the 2-17 subpoena, the court shall order the person to comply with the 2-18 subpoena and pay reasonable attorney's fees. The court may punish 2-19 a person who fails to obey the court order for contempt of court. 2-20 Sec. 2001.703. REIMBURSEMENT FOR SUBPOENA COMPLIANCE. A 2-21 person required by a subpoena to attend a proceeding before the 2-22 commission or its agent is entitled to: 2-23 (1) reimbursement for mileage in the same amount for 2-24 each mile as the mileage travel allowance for a state employee for 2-25 the person's travel to or from the place where the person's 2-26 attendance is required, if the place is more than 25 miles from the 2-27 person's place of residence; and 3-1 (2) a fee for each day or part of a day the person is 3-2 required to be present as a witness that is equal to the greater 3-3 of: 3-4 (A) $10; or 3-5 (B) the general per diem travel allowance for a 3-6 state employee traveling in this state. 3-7 Sec. 2001.704. OUT-OF-STATE EVIDENCE. (a) A person in 3-8 possession or control of evidence located outside this state on 3-9 request of the commission may make the evidence available for 3-10 examination at the place where the evidence is located. The 3-11 commission may designate a representative, including an official of 3-12 the state in which the evidence is located, to examine the evidence 3-13 for the commission. 3-14 (b) The commission on request of an official of another 3-15 state or of the United States may examine evidence located in this 3-16 state for that official in circumstances similar to those described 3-17 by Subsection (a). 3-18 Sec. 2001.705. ACCESS TO EVIDENCE. (a) Evidence acquired 3-19 under a commission subpoena is not a public record for the period 3-20 the commission or its agent determines is reasonably necessary to: 3-21 (1) complete an investigation; 3-22 (2) protect the person being investigated from 3-23 unwarranted injury; or 3-24 (3) serve the public interest. 3-25 (b) The evidence is not subject to a subpoena, other than a 3-26 grand jury subpoena, until: 3-27 (1) the evidence is released by the commission for 4-1 public inspection; or 4-2 (2) after notice and a hearing, a district court 4-3 determines that complying with the subpoena would not jeopardize 4-4 the public interest and any investigation by the commission. 4-5 (c) Except for good cause, a district court order under 4-6 Subsection (b)(2) does not apply to: 4-7 (1) any communication received by the commission from 4-8 a law enforcement agency or another regulatory agency; or 4-9 (2) any internal commission communication made in 4-10 connection with a matter that the commission has the authority to 4-11 consider. 4-12 Sec. 2001.706. PRIVILEGED AND CONFIDENTIAL INFORMATION. (a) 4-13 Any information or evidence produced under a commission subpoena 4-14 that is otherwise privileged or confidential by law remains 4-15 privileged or confidential until admitted into evidence in an 4-16 administrative hearing or a court. 4-17 (b) The commission may issue a protective order relating to 4-18 the confidentiality or privilege of information or evidence 4-19 described by Subsection (a) to restrict the use or distribution of 4-20 the information or evidence: 4-21 (1) by any person; or 4-22 (2) in a proceeding other than a proceeding before the 4-23 commission. 4-24 Sec. 2001.707. COOPERATION WITH LAW ENFORCEMENT. On request, 4-25 the commission may furnish evidence obtained under a commission 4-26 subpoena to: 4-27 (1) a law enforcement agency of this state, another 5-1 state, or the United States; or 5-2 (2) a prosecuting attorney of a municipality, county, 5-3 or judicial district of this state, another state, or the United 5-4 States. 5-5 Sec. 2001.708. SUBPOENAS ISSUED TO FINANCIAL INSTITUTIONS. A 5-6 subpoena issued to a financial institution as part of a criminal 5-7 investigation is not subject to Section 30.007, Civil Practice and 5-8 Remedies Code. 5-9 Sec. 2001.709. EFFECT ON CONTESTED CASE. Sections 2001.701, 5-10 2001.704, 2001.705, 2001.707, and 2001.708 do not affect the 5-11 conduct of a contested case under Chapter 2001, Government Code. 5-12 SECTION 2. This Act takes effect October 1, 2001.