HBA-DMH H.B. 2578 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2578 By: Haggerty Licensing & Administrative Procedures 4/17/2001 Introduced BACKGROUND AND PURPOSE The authority to issue a subpoena compelling the attendance of a witness or the production of records and documents is a common and useful regulatory tool. Without that authority, an agency does not have the ability to access individuals and information necessary to conduct a thorough and accurate investigation. Subpoena authority can be an extremely helpful tool for agencies that regulate cash intensive businesses such as charitable bingo. House Bill 2578 authorizes the Texas Lottery Commission to issue a subpoena to compel the attendance and testimony of a relevant witness or the production of relevant evidence located in this state for inspection or copying by the commission in an investigation of any matter under the Bingo Enabling Act. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the Texas Lottery Commission in SECTION 1 (Section 2001.701, Occupations Code) of this bill. ANALYSIS House Bill 2578 amends the Occupations Code to authorize the Texas Lottery Commission (commission), in an investigation of any matter under the Bingo Enabling Act, to issue a subpoena to compel the attendance and testimony of a relevant witness or the production of relevant evidence located in this state for inspection or copying by the commission. The bill sets forth provisions regarding the service and process for a subpoena. The bill requires the commission to adopt rules to avoid imposing an undue burden or expense on persons to whom subpoenas are issued and authorizes the commission by rule to delegate the authority granted regarding the issuance of a subpoena to an agent of the commission. If a person fails to comply with a subpoena issued by the commission, the bill authorizes the commission, acting through the attorney general, to file suit against the person to enforce the subpoena in a district court in Travis County. On finding that good cause exists for issuing the subpoena, the bill requires the court to order the person to comply with the subpoena and pay reasonable attorney's fees. The bill authorizes the court to punish a person who fails to obey the court order for contempt of court. The bill sets forth provisions for the reimbursement to which a person required by a subpoena to attend a proceeding before the commission or its agent is entitled. The bill authorizes a person in possession or control of evidence located outside this state on request of the commission to make the evidence available for examination at the place where the evidence is located. The bill authorizes the commission to designate a representative, including an official of the state in which the evidence is located, to examine the evidence for the commission. The bill authorizes the commission on request of an official of another state or of the United States to examine evidence located in this state for that official in similar circumstances. The bill sets forth provisions regarding the confidentiality and privilege of any information or evidence acquired under a commission subpoena. The bill authorizes the commission to issue a protective order relating to the confidentiality or privilege of information or evidence to restrict the use or distribution of the information or evidence by any person or in a proceeding other than a proceeding before the commission. On request, the bill authorizes the commission to furnish evidence obtained under a commission subpoena to a law enforcement agency of this state, another state, or the United States or a prosecuting attorney of a municipality, county, or judicial district of this state, another state, or the United States. A subpoena issued to a financial institution as part of a criminal investigation is not subject to provisions regarding the production of financial institution records. The bill provides that the Bingo Enabling Act subpoena and evidence procedures do not affect the conduct of a contested case under the Administrative Procedure Act. EFFECTIVE DATE October 1, 2001.