BACKGROUND INFORMATION ON ORGANIZED CRIME IN TEXAS AND THE DEVELOPMENT OF THE PREVENTION COUNCIL IS PRESENTED. REPORTS DEAL WITH THE STATUS OF ILLEGAL DRUG TRAFFIC, GAMBLING, FENCING OF STOLEN MERCHANDISE, PROSTITUTION, PORNOGRAPHY, AND OTHER ORGANIZED CRIMINAL ACTIVITIES. GROUPS INVOLVED IN ORGANIZED CRIME ARE IDENTIFIED. CRIMINAL JUSTICE NEEDS FOR FIGHTING THE INFLUX OF ORGANIZED CRIME INCLUDE PUBLIC AWARENESS AND INVOLVEMENT, DATA COLLECTION AND INTELLIGENCE, ORGANIZED CRIME CONTROL UNITS, PERSONNEL AND TRAINING, AND AGENCY COOPERATION, COORDINATION, AND LIAISON. ACTIVITIES OF THE TEXAS ORGANIZED CRIME PREVENTION COUNCIL FOR THE YEAR 1977 ARE DESCRIBED, AND PROJECTED ACTIVITIES FOR 1978 ARE OUTLINED. PROPOSED LEGISLATION INCLUDES PROVISIONS FOR ELECTRONIC SURVEILLANCE, MANDATORY REPORTING, STATUTORY AUTHORITY FOR THE COUNCIL, AND CRIMINAL INTELLIGENCE. THE APPENDIX CONTAINS A LISTING OF LOCAL AND REGIONAL ORGANIZED CRIME UNITS WHICH CONTRIBUTED INFORMATION TO THE REPORTS. (DAG)