By: Huffman S.B. No. 10

A BILL TO BE ENTITLED

AN ACT

relating to the investigation and prosecution of offenses against public administration, including ethics offenses, and offenses involving insurance fraud or the imposition of the motor fuels tax.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Chapter 402, Government Code, is amended by adding Subchapter D to read as follows:

SUBCHAPTER D. PUBLIC INTEGRITY UNIT

Sec. 402.101. DEFINITIONS. In this subchapter:

(1) "Offense" means a prohibited act for which state law imposes a criminal or civil penalty.

(2) "Prosecute" means represent the state to impose a criminal or civil penalty.

(3) "Prosecuting attorney" means a district attorney, criminal district attorney, or county attorney.

Sec. 402.102. OFFENSES AGAINST PUBLIC ADMINISTRATION. For purposes of this subchapter, the following are offenses against public administration:

(1) an offense under Title 8, Penal Code, committed by a state officer or a state employee in connection with the powers and duties of the state office or state employment;

(2) an offense under Chapter 301, 302, 305, 571, 572, or 2004;

(3) an offense under Chapter 573 committed by a state officer in connection with the powers and duties of the state office; and

(4) an offense under Title 15, Election Code, committed in connection with:

(A) a campaign for or the holding of state office; or

(B) an election on a proposed constitutional amendment.

Sec. 402.103. OFFENSES INVOLVING INSURANCE FRAUD. For purposes of this subchapter, the following are offenses involving insurance fraud:

(1) an offense under Chapter 35, Penal Code, including an offense under that chapter that involves workers' compensation insurance under Title 5, Labor Code; or

(2) a fraudulent insurance act as defined by Section 701.001, Insurance Code, including an act that involves workers' compensation insurance under Title 5, Labor Code.

Sec. 402.104. OFFENSES INVOLVING MOTOR FUELS TAX. For purposes of this subchapter, an offense involving motor fuels tax means a felony offense under Section 162.403, Tax Code.

Sec. 402.105. PUBLIC INTEGRITY UNIT. (a) The office of the attorney general shall establish and support a public integrity unit consisting of:

(1) the attorneys and staff employed by the attorney general to investigate and support prosecution of offenses described by this subchapter; and

(2) one commissioned officer of the Texas Rangers division of the Department of Public Safety to assist with each investigation by the attorney general and verify the resulting findings.

(b) The prosecuting attorney described by Subsection 402.107(a) serves as part of the public integrity unit from the date a presiding judge selects that office under this subchapter until:

(1) the date that the investigation for an offense under this subchapter officially ceases; or

(2) the date any potential prosecution of an offense under this subchapter is fully adjudicated.

Sec. 402.106. INVESTIGATION AND PROSECUTION ASSISTANCE BY PUBLIC INTEGRITY UNIT. (a) Upon receiving a formal or informal complaint for an offense under this subchapter or on request of a county or district attorney, the public integrity unit has the authority to perform an initial investigation into whether a person has committed:

(1) an offense against public administration;

(2) an offense involving insurance fraud; or

(3) an offense involving motor fuels tax.

(b) while performing an initial investigation under Subsection (a), one commissioned officer of the Texas Rangers division of the Department of Public Safety shall provide assistance to and verify the findings made by the public integrity unit.

(c) If an initial investigation by the public integrity unit demonstrates a reasonable suspicion that:

(1) an offense under Subsection (a)(1) occurred, the matter shall be referred to the appropriate presiding judge of the administrative judicial region containing the county where a person accused of that offense resides; or

(2) an offense under Subsection (a)(2) or (a)(3) occurred, the matter shall be referred to the appropriate venue described in Chapter 13, Code of Criminal Procedure.

(d) the public integrity unit shall, on request of the prosecuting attorney described in Section 402.107(a) of this subchapter, assist in the investigation of an offense under this subchapter.

(e) If assisting in a prosecution as provided by Subsection (c)(1), the public integrity unit may exercise the powers as necessary to accomplish the assistance, and the prosecuting attorney described by Subsection 402.107(a) retains the authority to represent the state in the district an inferior courts in the prosecution of the offense.

Sec. 402.107. SELECTION OF PROSECUTING ATTORNEY BY PRESIDING JUDGE OF ADMINISTRATIVE JUDICIAL REGION. (a) Upon receipt of an initial investigation under Subsection 402.106(c)(1), a presiding judge shall appoint a criminal district attorney, district attorney, or county attorney for counties in which there is not a resident criminal district attorney as provided by Section 21, Article V, Texas Constitution, from any judicial district comprised of a county within the borders of that particular administrative judicial region, unless that county is the county of residence for the person under investigation.

(b) Regardless of venue described in Section 402.108, the prosecuting attorney under this subchapter retains the sole authority to represent the state in the district and inferior courts for all offenses under this subchapter and lesser included offenses arising from the same transaction that lead to an initial investigation under Section 402.106(a)(1).

(c) Regardless of venue described in Section 402.108, the prosecuting attorney under this subchapter retains the sole discretion to terminate an investigation referred to that office under this subchapter for insufficient evidence or proceed with prosecution.

(d) The prosecuting attorney shall notify the public integrity unit of the termination of a case for insufficient evidence or the results of a case's final adjudication.

(e) All prosecution arising from the investigation described by Section 402.106(a)(1), including proceedings before a grand jury, shall be at the venue described in Section 402.108.

Sec. 402.108. VENUE. Notwithstanding Chapter 13, Code of Criminal Procedure, or other law, if the defendant is a natural person, venue for prosecution of an offense under Subsection 402.106(a)(1) is the county in which the defendant resides.

Sec. 402.109. RESIDENCE. For the purposes of this subchapter, a person resides in the county where that person:

(1) claims a residence homestead under Chapter 41, Property Code, if that person is a member of the Texas Legislature;

(2) claimed to be a resident before being subject to residency requirements under Article IV, Texas Constitution, if that person is a member of the Executive Department of the State;

(3) claims a residence homestead under Chapter 41, Property Code if that person is a justice on the supreme court or judge on the court of criminal appeals; or

(4) otherwise claims residence if no other provision of this subsection applies.

Sec. 402.110. COOPERATION OF STATE AGENCIES AND LOCAL LAW ENFORCEMENT AGENCIES. (a) To the extent allowed by law, a state agency or local law enforcement agency shall cooperate with the public integrity unit by providing information requested by the unit as necessary to carry out the purposes of this subchapter.

(b) Information disclosed under this section is confidential and not subject to disclosure under Chapter 552.

SECTION 2. Section 402.009, Government Code, is amended to read as follows:

Sec. 402.009. AUTHORITY TO EMPLOY AND COMMISSION PEACE OFFICERS. The attorney general may employ and commission peace officers as investigators for:

(1) the limited purpose of assisting the attorney general in carrying out the duties of that office relating to prosecution assistance and crime prevention; or

(2) the purpose of investigating offenses under Subchapter D.

SECTION 3. (a) Not later than three months after the effective date of this Act, the attorney general shall establish the public integrity unit under Subchapter D, Chapter 402, Government Code, as added by this Act.

(b) Subchapter D, Chapter 402, Government Code, as added by this Act, applies only to the prosecution of an offense under Subchapter D, Chapter 402, Government Code committed on or after the date that the attorney general establishes the public integrity unit. For purposes of this section, an offense is committed if any element of the offense occurs before the date described by this Section.

(c) The prosecution of an offense committed before the date described in Subsection (b) of this Section, is covered by the law in effect when the offense was committed, and the former law is continued in effect for that purpose.

SECTION 4. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2015.