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Texas Finance Code - Section 31.303. Disclosure To Other Agencies

Legal Research Home > Texas Lawyer > Finance Code > Texas Finance Code - Section 31.303. Disclosure To Other Agencies

§ 31.303. DISCLOSURE TO OTHER AGENCIES.  (a) For purposes 
of this section:
		(1)  "Affiliated group" means two or more persons 
affiliated through common ownership or a contractual common 
undertaking involving the sharing of customer information among 
those persons.
		(2)  "Agency" means a department or agency of this 
state, another state, the United States, or a foreign government 
with whom the United States currently maintains diplomatic 
relations, or any related agency or instrumentality.
		(3)  "Functional regulatory agency" means an agency 
that regulates and charters, licenses, or registers persons engaged 
in financial activities or activities incidental or complimentary 
to financial activities, including activities related to banking, 
insurance, or securities, within the jurisdiction of the agency.
		(4)  "Privilege" includes any work-product, 
attorney-client, or other privilege recognized under federal or 
state law.
	(b)  The banking commissioner may, as the commissioner 
considers necessary or proper to the enforcement of the laws of this 
state, another state, the United States, or a foreign sovereign 
state with whom the United States currently maintains diplomatic 
relations, or in the best interest of the public, disclose 
information in the possession of the department to another agency. 
The banking commissioner may not disclose information under this 
section that is confidential under applicable state or federal law 
unless:
		(1)  the recipient agency agrees to maintain the 
confidentiality and take all reasonable steps to oppose an effort 
to secure disclosure of the information from the agency;  or
		(2)  the banking commissioner determines in the 
exercise of discretion that the interest of law enforcement 
outweighs and justifies the potential for disclosure of the 
information by the recipient agency.
	(c)  The banking commissioner by agreement may establish an 
information sharing and exchange program with a functional 
regulatory agency that has overlapping regulatory jurisdiction 
with the department, with respect to all or part of an affiliated 
group that includes a financial institution, to reduce the 
potential for duplicative and burdensome filings, examinations, 
and other regulatory activities.  Each agency party to the 
agreement must agree to maintain confidentiality of information 
that is confidential under applicable state or federal law and take 
all reasonable steps to oppose any effort to secure disclosure of 
the information from the agency.  An agreement may also specify 
procedures regarding use and handling of confidential information 
and identify types of information to be shared and procedures for 
sharing on a recurring basis.
	(d)  Disclosure of information by or to the banking 
commissioner under this section does not constitute a waiver of or 
otherwise affect or diminish an evidentiary privilege to which the 
information is otherwise subject, whether or not the disclosure is 
governed by a confidentiality agreement.
	(e)  Notwithstanding other law, an agency of this state:                       
		(1)  may execute, honor, and comply with an agreement 
to maintain confidentiality and oppose disclosure of information 
obtained from the banking commissioner as provided in this section;  
and
		(2)  shall treat as confidential any information 
obtained from the banking commissioner that is entitled to 
confidential treatment under applicable state or federal law and 
take all reasonable steps to oppose an effort to secure disclosure 
of the information from the agency.

Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.  Amended 
by Acts 2001, 77th Leg., ch. 528, § 3, eff. Sept. 1, 2001.

Last modified: August 10, 2007