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.