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.