Texas House Bill HB2394

Texas 2015 - 84th Regular

Caption

Relating to the compelled production of certain customer records by a financial institution.

Impact

The law, once enacted, will directly influence how courts manage requests for bank and financial records in Texas. The amendment ensures that financial institutions are financially compensated before they are compelled to produce customer records, thus fostering a more manageable process for both institutions and requesting parties. This may lead to a decrease in frivolous or burdensome record requests, as potential requestors will need to consider the associated costs before proceeding. Effectively, the bill shifts the responsibility of payment onto the requesting parties, which proponents argue is a fairer system.

Summary

House Bill 2394 seeks to amend the Texas Finance Code by addressing the production of certain customer records by financial institutions. The bill specifically introduces a requirement that if a requesting party has not settled the financial institution's costs or secured a cost bond, a court is prohibited from ordering the institution to release such records. Additionally, if this condition is not met, the court cannot hold the financial institution in contempt for non-compliance with a record request. This approach aims to protect financial institutions from potential burdens related to record requests from various parties.

Sentiment

The sentiment surrounding HB 2394 appears neutral to positive among financial institutions, as it offers them greater protection from unmanageable record requests. Financial institutions have expressed support for the bill, highlighting the financial and operational strain of complying with numerous record requests, particularly if such requests originate without advance assurance of cost. However, there may be concerns from consumer advocacy groups who argue that this could limit access to financial records necessary for accountability in certain legal contexts.

Contention

A notable point of contention regarding HB 2394 is the balance between the necessity of financial transparency and the protection of institutional resources. While proponents highlight the need to protect financial institutions from excessive demands, opponents may argue that this could inhibit lawful investigations or consumer access to vital information. Additionally, there is a question of how this bill may impact the rights of individuals or entities seeking to access their own financial records in legal matters if cost-related barriers arise from this law.