SRC-VRA H.B. 2040 78(R)    BILL ANALYSIS


Senate Research CenterH.B. 2040
By: Marchant (Ellis, Rodney)
Jurisprudence
5/19/2003
Engrossed
DIGEST AND PURPOSE 

Currently, legal barriers prevent or protect information sharing related
to corporate fraud investigations.  H.B. 2040 allows the Board of
Accountancy, the Office of the Attorney General, the State Securities
Board, the Texas Department of Insurance, and the Public Utility
Commission to share information on corporate fraud investigations, while
maintaining current law with respect to the confidentiality of corporate
documents. 

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 555, Government Code, by adding Subchapter C, as
follows: 

 SUBCHAPTER C. SHARING CONFIDENTIAL INFORMATION

Sec. 555.051.  INFORMATION SHARING AMONG CERTAIN AGENCIES. (a) Provides
that this section applies only to information held by or for the office of
the attorney general, the Texas Department of Insurance, the Texas State
Board of Public Accountancy, the Public Utility Commission of Texas, or
the State Securities Board that relates to the possible commission of
corporate fraud by a person who is licensed or otherwise regulated by any
of those state agencies.  Defines "corporate fraud" as used in this
section. 
 
(b)  Authorizes each agency listed in Subsection (a),  on request or on
its own initiative, to share confidential information or information to
which access is otherwise restricted by law with one or more of the other
listed agencies in Subsection (a) for investigative purposes pursuant to
Subsection (a).  Provides that, except as provided by this section,
confidential information that is shared under this section remains
confidential under law and legal restrictions on access to the information
remain in effect. 
  
(c)  Requires a state agency that receives shared information under this
section to perform certain tasks. 

(d)  Provides that this section does not limit or restrict information
sharing among agencies as otherwise provided by law. 

SECTION 2.  Amends the heading to Chapter 555, Government Code, to read as
follows: 

CHAPTER 555. STATE AGENCY RECORDS RELATING TO LICENSE HOLDERS OR OTHER
REGULATED PERSONS 
 
SECTION 3.  Effective date: upon passage or September 1, 2003.