By Tillery H.B. No. 3454 77R9109 DWS-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to certain requests for financial institution records. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Section 59.006, Finance Code, is amended by 1-5 amending Subsection (a) and adding Subsection (h) to read as 1-6 follows: 1-7 (a) This section provides the exclusive method for compelled 1-8 discovery of a record of a financial institution relating to one or 1-9 more customers. This section does not create a right of privacy in 1-10 a record and, except as provided by Subsection (h), does not apply 1-11 to: 1-12 (1) a demand or inquiry from a state or federal 1-13 government agency authorized by law to conduct an examination of 1-14 the financial institution; 1-15 (2) a record request from a state or federal 1-16 government agency or instrumentality under statutory or 1-17 administrative authority that provides for, or is accompanied by, a 1-18 specific mechanism for discovery and protection of a customer 1-19 record of a financial institution, including a record request from 1-20 a federal agency subject to the Right to Financial Privacy Act of 1-21 1978 (12 U.S.C. Section 3401 et seq.), as amended, or from the 1-22 Internal Revenue Service under Section 1205, Internal Revenue Code 1-23 of 1986; 1-24 (3) a record request from or report to a government 2-1 agency arising out of the investigation or prosecution of a 2-2 criminal offense; 2-3 (4) a record request in connection with a garnishment 2-4 proceeding in which the financial institution is garnishee and the 2-5 customer is debtor; 2-6 (5) a record request by a duly appointed receiver for 2-7 the customer; 2-8 (6) an investigative demand or inquiry from a state 2-9 legislative investigating committee; 2-10 (7) an investigative demand or inquiry from the 2-11 attorney general of this state as authorized by law other than the 2-12 procedural law governing discovery in civil cases; or 2-13 (8) the voluntary use or disclosure of a record by a 2-14 financial institution subject to other applicable state or federal 2-15 law. 2-16 (h) A financial institution that receives a request for 2-17 records described by Subsections (a)(1)-(7) may bring an action in 2-18 district court for relief under this subsection. If the financial 2-19 institution establishes in the action that the request for records 2-20 is unreasonable or onerous, the court may issue an order: 2-21 (1) limiting the scope of the records that the 2-22 financial institution must provide; 2-23 (2) requiring the person requesting the records to pay 2-24 the financial institution's reasonable cost of complying with the 2-25 request; or 2-26 (3) providing the relief under both Subdivisions (1) 2-27 and (2). 3-1 SECTION 2. This Act takes effect immediately if it receives 3-2 a vote of two-thirds of all the members elected to each house, as 3-3 provided by Section 39, Article III, Texas Constitution. If this 3-4 Act does not receive the vote necessary for immediate effect, this 3-5 Act takes effect September 1, 2001.