SRC-SEW S.B. 604 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 604
77R3760 JD-FBy: Sibley
Business & Commerce
3/19/2001
As Filed


DIGEST AND PURPOSE 

The new federal law on financial modernization, also known as the
Gramm-Leach-Bliley Act (GLBA), permits affiliations among financial
institutions, banks, and insurance companies and calls for functional
regulation by federal and state agencies.  As a result, both federal and
state regulators may need access to the same confidential information.  As
proposed, S.B. 604 allows federal and state regulators to share
confidential information, which would remain confidential even when shared,
rather than forcing each regulator to independently obtain information or
separately examine a regulated entity. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 552C, Government Code, by adding Section
552.1015, as follows: 

Sec. 552.1015.  EFFECT OF DISCLOSURE OF CONFIDENTIAL OR CERTAIN EXCEPTED
INFORMATION BY CERTAIN STATE GOVERNMENTAL BODIES.  (a) Provides that this
section applies only to information held by a governmental body defined by
Section 552.003(1)(A)(i).   

(b) Provides that a disclosure of confidential information, as described by
Section 552.101, by a governmental body to another governmental body of
this state or to an agency or instrumentality of another state, the United
States, or another country, is not a violation of Section 552.352 or any
other law of this state that prohibits the release or disclosure of the
information, does not affect the confidentiality of the information, is not
considered a release of information to the public for purposes of Section
552.007, and is not a waiver of any privilege applicable to the information
under law.    

(c) Provides that a disclosure by a governmental body of information that
is excepted from the requirements of Section 552.021 by this chapter to an
entity described by Subsection (b) does not affect the continuing
applicability of the relevant exception from disclosure, is not considered
a release of information to the public for purposes of Section 552.007, and
is not a waiver of any privilege applicable to the information under law. 

(d) Requires an officer for public information of a governmental body who
receives a request for information covered by this section to assert that
the information is confidential or excepted from the requirements of
Section 552.021. 

SECTION 2.  Effective date:  upon passage or September 1, 2001.