By Parker                                             S.B. No. 1224
          Substitute the following for S.B. No. 1224:
          By Marchant                                       C.S.S.B. No. 1224
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to confidential information of or provided by the Banking
    1-3  Department of Texas.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Article 10, Chapter II, The Texas Banking Code
    1-6  (Article 342-210, Vernon's Texas Civil Statutes), is amended by
    1-7  amending Subsection (a) and adding Subsection (e) to read as
    1-8  follows:
    1-9        Art. 10.  INFORMATION CONFIDENTIAL--PRIVILEGED--EXCEPTIONS
   1-10        (a)  Subject to the provisions of Section 5 of Chapter 183 of
   1-11  the Forty-fourth Legislature of Texas (1935), page 461 (Article
   1-12  489b, Section 5), and any other statutory provision of this State,
   1-13  all information obtained, either directly or indirectly, by the
   1-14  Banking Department relative to the financial condition of any bank
   1-15  or bank holding company other than call reports and profit and loss
   1-16  statements, whether obtained through examination or otherwise,
   1-17  except published statements, and all files and records of said
   1-18  Department relative thereto shall be confidential, and shall not be
   1-19  disclosed by the Banking Commissioner or any officer or employee of
   1-20  said Department.  Further provided that no such information shall
   1-21  be divulged to any member of the Finance Commission, nor shall any
   1-22  member of the Finance Commission be given access to such files and
   1-23  records of the Banking Department; provided, however, that the
   1-24  Banking Commissioner may disclose to the Finance Commission or to
    2-1  the State Banking Board information, files and records pertinent to
    2-2  any hearing or matter pending before such Commission or such Board.
    2-3  Further provided that upon request, the Banking Commissioner may
    2-4  disclose to a Federal Reserve Bank any information relative to its
    2-5  members, and shall permit it access to any files and records or
    2-6  reports relating to its members.  Further provided that the Banking
    2-7  Commissioner may, in the Banking Commissioner's <his> discretion,
    2-8  if the Banking Commissioner <he> deems it necessary or proper to
    2-9  the enforcement of the laws of this State, another state, <or> the
   2-10  United States, or a foreign country, and to the best interest of
   2-11  the public, divulge such information to any other department of
   2-12  this State, another state, <or> the National Government, or a
   2-13  foreign government, or any agency or instrumentality thereof.
   2-14        (e)  Information, files, and records of the Banking
   2-15  Department, including examination reports, that are confidential
   2-16  under Subsection (a) of this article and that are provided by the
   2-17  Banking Department to a bank or bank holding company remain
   2-18  confidential and may not be disclosed by the bank, the bank holding
   2-19  company, or an officer, director, employee, or agent of the bank or
   2-20  bank holding company or used as evidence in a legal proceeding;
   2-21  provided, however, after a subpoena is served on the Banking
   2-22  Department a court of competent jurisdiction may order the
   2-23  production of material information, files, records, or examination
   2-24  reports from the Banking Department, but only under a protective
   2-25  order limiting disclosure issued pursuant to the applicable rules
   2-26  of civil procedure.  The party issuing or obtaining the subpoena
   2-27  shall pay reasonable costs of reproduction, postage, delivery and
    3-1  other expenses which the Banking Department incurs in complying
    3-2  with the order.  The Banking Department may notify any customer or
    3-3  depositor affected by the subpoena of its receipt of the subpoena.
    3-4  The Banking Department shall not be required to disclose any
    3-5  records pertaining to the transactions of any customer or depositor
    3-6  unless the customer or depositor is a proper or necessary party to
    3-7  the proceedings or the customer or depositor consents, in writing,
    3-8  to the disclosure of such records.
    3-9        SECTION 2.  The importance of this legislation and the
   3-10  crowded condition of the calendars in both houses create an
   3-11  emergency and an imperative public necessity that the
   3-12  constitutional rule requiring bills to be read on three several
   3-13  days in each house to be suspended, and this rule is hereby
   3-14  suspended.