1-1 By: Harris of Tarrant S.B. No. 1461
1-2 (In the Senate - Filed April 30, 1993; May 3, 1993, read
1-3 first time and referred to Committee on Jurisprudence;
1-4 May 11, 1993, reported favorably by the following vote: Yeas 4,
1-5 Nays 0; May 11, 1993, sent to printer.)
1-6 COMMITTEE VOTE
1-7 Yea Nay PNV Absent
1-8 Henderson x
1-9 Harris of Tarrant x
1-10 Brown x
1-11 Harris of Dallas x
1-12 Luna x
1-13 Parker x
1-14 West x
1-15 A BILL TO BE ENTITLED
1-16 AN ACT
1-17 relating to a spouse's access to information concerning the
1-18 community property held by the other spouse.
1-19 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-20 SECTION 1. Subchapter B, Chapter 5, Family Code, is amended
1-21 by adding Section 5.28 to read as follows:
1-22 Sec. 5.28. ACCESS TO CERTAIN ACCOUNT INFORMATION. (a) A
1-23 spouse has the right to examine any account of the other spouse,
1-24 including the amount in and the deposits, loans, or other
1-25 transactions made in relation to the account, maintained by the
1-26 other spouse in a financial institution or stock brokerage firm if
1-27 the account contains community property, including community
1-28 property that is under the sole management, control, and
1-29 disposition of the other spouse.
1-30 (b) A financial institution or stock brokerage firm that
1-31 receives a request from a spouse for information to which the
1-32 spouse is entitled under this section about an account of the other
1-33 spouse shall provide the information requested by the spouse unless
1-34 the institution or firm receives an order from a district court as
1-35 described by Subsection (c) of this section.
1-36 (c) A spouse who objects to a request by the other spouse
1-37 under this section because the account that is the subject of the
1-38 request contains only property that is not community property may
1-39 request an order from a district court preventing the spouse
1-40 requesting the information about the account from obtaining the
1-41 information. The court shall issue the order only if the court
1-42 finds that all of the property in the account is not community
1-43 property.
1-44 (d) This section does not affect the ability of a financial
1-45 institution or stock brokerage firm to charge a fee or costs for
1-46 information provided to a spouse under this section.
1-47 (e) In this section, "financial institution" means a state
1-48 or federal bank, savings and loan association, credit union, or
1-49 savings bank.
1-50 SECTION 2. Subsection (b), Section 6.08, Texas Credit Union
1-51 Act (Article 2461-6.08, Vernon's Texas Civil Statutes), is amended
1-52 to read as follows:
1-53 (b) Except in connection with an examination or audit by a
1-54 government agency authorized by law to examine credit unions or a
1-55 request by the spouse of a member of the credit union under Section
1-56 5.28, Family Code, no credit union authorized to do business under
1-57 this Act is required to disclose or produce to third parties or
1-58 permit third parties to examine records pertaining to the shares,
1-59 deposits, loans, or other affairs of a member of the credit union,
1-60 unless the member consents to the disclosure or production or the
1-61 request for disclosure or production is made by the department or
1-62 is in response to a subpoena or other order issued by a court of
1-63 competent jurisdiction or to an administrative subpoena or summons
1-64 issued by a state or federal agency as specifically authorized by
1-65 law. The commission may promulgate reasonable rules regarding the
1-66 confidentiality of members' accounts and the duties and obligations
1-67 of the credit union to maintain that confidentiality and may
1-68 authorize disclosure of member information under circumstances and
2-1 conditions that the commission determines are appropriate or
2-2 requisite in the daily operation of the credit union's business.
2-3 The commission by rule shall provide for reasonable notice to a
2-4 member of a request from the member's spouse under Section 5.28,
2-5 Family Code.
2-6 SECTION 3. Sections 1, 2, and 3, Article 5, Chapter VII, The
2-7 Texas Banking Code (Article 342-705, Vernon's Texas Civil
2-8 Statutes), are amended to read as follows:
2-9 Sec. 1. No financial institution shall be required to
2-10 recognize the claim of any third party to any deposit, or withhold
2-11 payment of any deposit to the depositor or to his order, unless and
2-12 until the financial institution is served with citation or other
2-13 appropriate process issuing out of a court of competent
2-14 jurisdiction in connection with a suit instituted by such third
2-15 party for the purpose of recovering or establishing an interest in
2-16 such deposit; neither shall any financial institution be required
2-17 to disclose or produce to third parties, or permit third parties to
2-18 examine the amount deposited by any depositor or other records
2-19 pertaining to the deposits, accounts, loans, or other transactions
2-20 of a depositor, owner, borrower, or customer except (i) where the
2-21 depositor, owner, borrower, or customer as to whom the information
2-22 is to be disclosed is a proper or necessary party to a proceeding
2-23 in a court of competent jurisdiction in which event the records
2-24 pertaining to the deposits, accounts, loans, or other financial
2-25 institution transactions of such depositor, owner, borrower, or
2-26 customer shall be subject to disclosure or (ii) where the financial
2-27 institution itself is a proper or necessary party to a proceeding
2-28 in a court of competent jurisdiction, except that records
2-29 pertaining to the deposits, accounts, loans, or other transactions
2-30 of a depositor, owner, borrower, or customer may not be disclosed
2-31 unless the court orders and the financial institution subsequently
2-32 obtains the written consent of the depositor, owner, borrower, or
2-33 customer to whom the records pertain, or (iii) in response to a
2-34 subpoena issued by a legislative investigating committee of the
2-35 Legislature of Texas, or (iv) in response to a request for
2-36 examination of its records by the Attorney General of Texas
2-37 pursuant to Article 1302-5.01 et seq. of the Texas Miscellaneous
2-38 Corporation Laws Act, or (v) in response to a request by the spouse
2-39 of a depositor, owner, borrower, or customer under Section 5.28,
2-40 Family Code.
2-41 Sec. 2. Unless ordered otherwise by a court of competent
2-42 jurisdiction and unless consent is required under Section (1)(ii)
2-43 of this article, before disclosure, production, or examination may
2-44 be required under Section 1 of this article, the agency, body, or
2-45 party issuing or obtaining the order, subpoena, or request for the
2-46 disclosure, examination, or production of records of deposits,
2-47 accounts, loans, or other financial institution records shall (1)
2-48 give notice of such order, subpoena, or request to the depositor or
2-49 financial institution customer in the manner provided by Rule 21a,
2-50 Texas Rules of Civil Procedure, at least 10 days preceding the date
2-51 when compliance with the order, subpoena, or request is required,
2-52 and (2) certify to the financial institution (at the time the
2-53 order, subpoena, or request is served or delivered to the financial
2-54 institution) that the depositor or financial institution customer
2-55 has been served with or has been mailed a copy of the order,
2-56 subpoena, or request as required herein. A financial institution
2-57 shall be entitled to recover from the party seeking the material
2-58 reasonable costs of reproduction, postage, delivery, and other
2-59 expenses which it incurs in complying with orders, subpoenas,
2-60 requests for the disclosure, consent to disclosure, examination, or
2-61 production of records of deposits, accounts, loans, and other
2-62 financial institution records. A production, disclosure, or
2-63 examination under Section 1(i) <or> (ii), or (v) of this article is
2-64 not required until the costs that the financial institution is
2-65 entitled to recover under this section have been paid to the
2-66 financial institution in full or until the party seeking the
2-67 material has posted a cost bond in an amount sufficient to ensure
2-68 the recovery by the financial institution of all of those costs and
2-69 expenses. The financial institution may notify its customer or
2-70 depositor (unless ordered otherwise by a court of competent
3-1 jurisdiction) of its receipt of any subpoena, order, or request for
3-2 production.
3-3 Sec. 3. Each customer or depositor entitled to notice of an
3-4 order, subpoena, or request for disclosure, examination, or
3-5 production of records of deposits or accounts or other financial
3-6 institution records may, prior to the date specified therein for
3-7 disclosure, examination, or production, file in an appropriate
3-8 district court of the State of Texas a motion to quash the order,
3-9 subpoena, or request or for protective order and shall make
3-10 personal service of such motion on the party, agency, or body
3-11 issuing or obtaining such order, subpoena, or request and on the
3-12 financial institution prior to the date for disclosure,
3-13 examination, or production. Any motion to quash or for protection
3-14 shall be verified. Failure to file and serve such motion to quash
3-15 or for protection shall constitute consent for all purposes to
3-16 disclosure, production, or examination made pursuant to this
3-17 article. A motion for a protective order in response to a request
3-18 under Section 1(v) of this article is subject to Section 5.28,
3-19 Family Code.
3-20 SECTION 4. (a) This Act takes effect September 1, 1993.
3-21 (b) This Act applies to a request by a spouse to examine an
3-22 account held by the other spouse that contains community property
3-23 on or after the effective date of this Act, without regard to
3-24 whether the account was opened or the community property was
3-25 obtained by the other spouse before, on, or after that date.
3-26 SECTION 5. The importance of this legislation and the
3-27 crowded condition of the calendars in both houses create an
3-28 emergency and an imperative public necessity that the
3-29 constitutional rule requiring bills to be read on three several
3-30 days in each house be suspended, and this rule is hereby suspended.
3-31 * * * * *
3-32 Austin,
3-33 Texas
3-34 May 11, 1993
3-35 Hon. Bob Bullock
3-36 President of the Senate
3-37 Sir:
3-38 We, your Committee on Jurisprudence to which was referred S.B.
3-39 No. 1461, have had the same under consideration, and I am
3-40 instructed to report it back to the Senate with the recommendation
3-41 that it do pass and be printed.
3-42 Henderson,
3-43 Chairman
3-44 * * * * *
3-45 WITNESSES
3-46 No witnesses appeared on S.B. No. 1461.