By:  Harris, Chris                                    S.B. No. 1461
       73R9842 DAK-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to a spouse's access to information concerning the
    1-3  community property held by the other spouse.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Subchapter B, Chapter 5, Family Code, is amended
    1-6  by adding Section 5.28 to read as follows:
    1-7        Sec. 5.28.  ACCESS TO CERTAIN ACCOUNT INFORMATION.  (a)  A
    1-8  spouse has the right to examine any account of the other spouse,
    1-9  including the amount in and the deposits, loans, or other
   1-10  transactions made in relation to the account, maintained by the
   1-11  other spouse in a financial institution or stock brokerage firm if
   1-12  the account contains community property, including community
   1-13  property that is under the sole management, control, and
   1-14  disposition of the other spouse.
   1-15        (b)  A financial institution or stock brokerage firm that
   1-16  receives a request from a spouse for information to which the
   1-17  spouse is entitled under this section about an account of the other
   1-18  spouse shall provide the information requested by the spouse unless
   1-19  the institution or firm receives an order from a district court as
   1-20  described by Subsection (c) of this section.
   1-21        (c)  A spouse who objects to a request by the other spouse
   1-22  under this section because the account that is the subject of the
   1-23  request contains only property that is not community property may
   1-24  request an order from a district court preventing the spouse
    2-1  requesting the information about the account from obtaining the
    2-2  information.  The court shall issue the order only if the court
    2-3  finds that all of the property in the account is not community
    2-4  property.
    2-5        (d)  This section does not affect the ability of a financial
    2-6  institution or stock brokerage firm to charge a fee or costs for
    2-7  information provided to a spouse under this section.
    2-8        (e)  In this section, "financial institution" means a state
    2-9  or federal bank, savings and loan association, credit union, or
   2-10  savings bank.
   2-11        SECTION 2.  Section 6.08(b), Texas Credit Union Act (Article
   2-12  2461-6.08, Vernon's Texas Civil Statutes), is amended to read as
   2-13  follows:
   2-14        (b)  Except in connection with an examination or audit by a
   2-15  government agency authorized by law to examine credit unions, or a
   2-16  request by the spouse of a member of the credit union under Section
   2-17  5.28, Family Code, no credit union authorized to do business under
   2-18  this Act is required to disclose or produce to third parties or
   2-19  permit third parties to examine records pertaining to the shares,
   2-20  deposits, loans, or other affairs of a member of the credit union,
   2-21  unless the member consents to the disclosure or production or the
   2-22  request for disclosure or production is made by the department or
   2-23  is in response to a subpoena or other order issued by a court of
   2-24  competent jurisdiction or to an administrative subpoena or summons
   2-25  issued by a state or federal agency as specifically authorized by
   2-26  law.  The commission may promulgate reasonable rules regarding the
   2-27  confidentiality of members' accounts and the duties and obligations
    3-1  of the credit union to maintain that confidentiality and may
    3-2  authorize disclosure of member information under circumstances and
    3-3  conditions that the commission determines are appropriate or
    3-4  requisite in the daily operation of the credit union's business.
    3-5  The commission by rule shall provide for reasonable notice to a
    3-6  member of a request from the member's spouse under Section 5.28,
    3-7  Family Code.
    3-8        SECTION 3.  Sections 1, 2, and 3, Article 5, Chapter VII, The
    3-9  Texas Banking Code (Article 342-705, Vernon's Texas Civil
   3-10  Statutes), are amended to read as follows:
   3-11        Sec. 1.  No financial institution shall be required to
   3-12  recognize the claim of any third party to any deposit, or withhold
   3-13  payment of any deposit to the depositor or to his order, unless and
   3-14  until the financial institution is served with citation or other
   3-15  appropriate process issuing out of a court of competent
   3-16  jurisdiction in connection with a suit instituted by such third
   3-17  party for the purpose of recovering or establishing an interest in
   3-18  such deposit; neither shall any financial institution be required
   3-19  to disclose or produce to third parties, or permit third parties to
   3-20  examine the amount deposited by any depositor or other records
   3-21  pertaining to the deposits, accounts, loans, or other transactions
   3-22  of a depositor, owner, borrower, or customer except (i) where the
   3-23  depositor, owner, borrower, or customer as to whom the information
   3-24  is to be disclosed is a proper or necessary party to a proceeding
   3-25  in a court of competent jurisdiction in which event the records
   3-26  pertaining to the deposits, accounts, loans, or other financial
   3-27  institution transactions of such depositor, owner, borrower, or
    4-1  customer shall be subject to disclosure or (ii) where the financial
    4-2  institution itself is a proper or necessary party to a proceeding
    4-3  in a court of competent jurisdiction, except that records
    4-4  pertaining to the deposits, accounts, loans, or other transactions
    4-5  of a depositor, owner, borrower, or customer may not be disclosed
    4-6  unless the court orders and the financial institution subsequently
    4-7  obtains the written consent of the depositor, owner, borrower, or
    4-8  customer to whom the records pertain, or (iii) in response to a
    4-9  subpoena issued by a legislative investigating committee of the
   4-10  Legislature of Texas, <or> (iv) in response to a request for
   4-11  examination of its records by the Attorney General of Texas
   4-12  pursuant to Article 1302-5.01 et seq. of the Texas Miscellaneous
   4-13  Corporation Laws Act, or (v) in response to a request by the spouse
   4-14  of a depositor, owner, borrower, or customer under Section 5.28,
   4-15  Family Code.
   4-16        Sec. 2.  Unless ordered otherwise by a court of competent
   4-17  jurisdiction and unless consent is required under Section (1)(ii)
   4-18  of this article, before disclosure, production, or examination may
   4-19  be required under Section 1 of this article, the agency, body, or
   4-20  party issuing or obtaining the order, subpoena, or request for the
   4-21  disclosure, examination, or production of records of deposits,
   4-22  accounts, loans, or other financial institution records shall (1)
   4-23  give notice of such order, subpoena, or request to the depositor or
   4-24  financial institution customer in the manner provided by Rule 21a,
   4-25  Texas Rules of Civil Procedure, at least 10 days preceding the date
   4-26  when compliance with the order, subpoena, or request is required,
   4-27  and (2) certify to the financial institution (at the time the
    5-1  order, subpoena, or request is served or delivered to the financial
    5-2  institution) that the depositor or financial institution customer
    5-3  has been served with or has been mailed a copy of the order,
    5-4  subpoena, or request as required herein.  A financial institution
    5-5  shall be entitled to recover from the party seeking the material
    5-6  reasonable costs of reproduction, postage, delivery, and other
    5-7  expenses which it incurs in complying with orders, subpoenas,
    5-8  requests for the disclosure, consent to disclosure, examination, or
    5-9  production of records of deposits, accounts, loans, and other
   5-10  financial institution records.  A production, disclosure, or
   5-11  examination under Section 1(i) <or> (ii), or (v) of this article is
   5-12  not required until the costs that the financial institution is
   5-13  entitled to recover under this section have been paid to the
   5-14  financial institution in full or until the party seeking the
   5-15  material has posted a cost bond in an amount sufficient to ensure
   5-16  the recovery by the financial institution of all of those costs and
   5-17  expenses. The financial institution may notify its customer or
   5-18  depositor (unless ordered otherwise by a court of competent
   5-19  jurisdiction) of its receipt of any subpoena, order, or request for
   5-20  production.
   5-21        Sec. 3.  Each customer or depositor entitled to notice of an
   5-22  order, subpoena, or request for disclosure, examination, or
   5-23  production of records of deposits or accounts or other financial
   5-24  institution records may, prior to the date specified therein for
   5-25  disclosure, examination, or production, file in an appropriate
   5-26  district court of the State of Texas a motion to quash the order,
   5-27  subpoena, or request or for protective order and shall make
    6-1  personal service of such motion on the party, agency, or body
    6-2  issuing or obtaining such order, subpoena, or request and on the
    6-3  financial institution prior to the date for disclosure,
    6-4  examination, or production.  Any motion to quash or for protection
    6-5  shall be verified.  Failure to file and serve such motion to quash
    6-6  or for protection shall constitute consent for all purposes to
    6-7  disclosure, production, or examination made pursuant to this
    6-8  article.  A motion for a protective order in response to a request
    6-9  under Section 1(v) of this article is subject to Section 5.28,
   6-10  Family Code.
   6-11        SECTION 4.  (a)  This Act takes effect September 1, 1993.
   6-12        (b)  This Act applies to a request by a spouse to examine an
   6-13  account held by the other spouse that contains community property
   6-14  on or after the effective date of this Act, without regard to
   6-15  whether the account was opened or the community property was
   6-16  obtained by the other spouse before, on, or after that date.
   6-17        SECTION 5.  The importance of this legislation and the
   6-18  crowded condition of the calendars in both houses create an
   6-19  emergency and an imperative public necessity that the
   6-20  constitutional rule requiring bills to be read on three several
   6-21  days in each house be suspended, and this rule is hereby suspended.