BILL ANALYSIS |
H.B. 2394 |
By: Darby |
Investments & Financial Services |
Committee Report (Unamended) |
BACKGROUND AND PURPOSE
There are concerns regarding the current requirement that a party in a lawsuit requesting financial records pay for those records to be produced. Interested parties have expressed concern that some litigators are not complying with this requirement, which results in a financial institution either having to produce records without compensation for the effort or face contempt of court charges for not fulfilling the request. H.B. 2394 seeks to remedy this issue.
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CRIMINAL JUSTICE IMPACT
It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
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RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
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ANALYSIS
H.B. 2394 amends the Finance Code to prohibit a court from ordering a financial institution to produce a customer record in response to a record request or from finding a financial institution to be in contempt of court for failing to produce the record if a requesting party has not paid the financial institution's costs of complying with the record request under the Texas Banking Act or posted a cost bond to cover those costs.
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EFFECTIVE DATE
September 1, 2015.
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