H.B. 2040 78(R)    BILL ANALYSIS


H.B. 2040
By: Marchant
State Affairs
Committee Report (Unamended)



BACKGROUND AND PURPOSE 

Current law may restrict information sharing among oversight agencies with
respect to investigations.  Recent revelations about corporate fraud
demonstrate that oversight agencies need adequate investigative tools to
address these complex cases.  House Bill 2040 expressly allows the State
Board of Public Accountancy, the Office of the Attorney General, the State
Securities Board, the Texas Department of Insurance, and the Public
Utility Commission to share information, while maintaining appropriate
security safeguards. 

RULEMAKING AUTHORITY

It is the opinion of the committee that this bill does not expressly grant
any additional rulemaking authority to a state officer, department,
institution, or agency. 

ANALYSIS

House Bill 2040 adds Subchapter C, Chapter 555 of the Government Code to
provide that the Attorney General, the Department of Insurance, the State
Board of Public Accountancy, the Public Utility Commission of Texas, or
the State Securities Board may share confidential information that relates
to a person who is licensed or otherwise regulated by any of those
agencies. 

The confidential information may be shared with one or more of the other
listed agencies for investigative purposes. The bill further provides that
any shared confidential information remains confidential, and legal
restrictions on access to the information remain in effect. 

The bill requires a state agency that receives shared information to keep
the information secure and limit access to the information within the
agency to agency personnel who need access.  The agency may disclose the
information only 1) to another agency listed in Sec. 555.051, Government
Code; 2) to bring or prosecute a contested case or court action to prevent
a violation of law or to impose sanctions or penalties in connection with
a violation; 3) to an appropriate law enforcement agency or prosecutor if
the state agency determines the information may be evidence of an offense;
or, 4) under a court order or subpoena showing disclosure of the
information is necessary to protect the public health, safety, or welfare. 

EFFECTIVE DATE

Upon passage, or, if the Act does not receive the necessary vote, the Act
takes effect September 1, 2003.