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5 AN ACT RELATING TO THE JUDICIAL CODE; AMENDING PROVISIONS RELATED TO
6 A GOVERNMENTAL ENTITY OBTAINING FINANCIAL INFORMATION; DEFINING
7 TERMS; ADDRESSING LIABILITIES OF FINANCIAL INSTITUTIONS; AND MAKING
8 TECHNICAL CORRECTIONS.
9 This act affects sections of Utah Code Annotated 1953 as follows:
11 78-27-45, as last amended by Chapter 241, Laws of Utah 1989
12 78-27-46, as enacted by Chapter 143, Laws of Utah 1977
13 78-27-47, as enacted by Chapter 143, Laws of Utah 1977
14 78-27-48, as enacted by Chapter 143, Laws of Utah 1977
15 78-27-50, as last amended by Chapter 316, Laws of Utah 1994
17 78-27-50.5, Utah Code Annotated 1953
18 Be it enacted by the Legislature of the state of Utah:
19 Section 1. Section 78-27-45 is amended to read:
20 78-27-45. Financial information privacy -- Written consent or court order for
21 disclosure by financial institution -- Exception.
22 (1) As used in Sections 78-27-45 through 78-27-50:
23 (a) "governmental entity" means:
24 (i) the state, including all departments, institutions, boards, divisions, bureaus, offices,
25 commissions, committees, and elected officials; and
26 (ii) any political subdivision of the state, including any county, city, town, school district,
27 public transit district, redevelopment agency, special improvement, or taxing district;
1 (b) "nonprotected record" means a record maintained by the financial institution to
2 facilitate the conduct of its business regarding a person or account, including:
3 (i) the existence of an account and the account number; and
4 (ii) the opening and closing dates of an account;
5 (c) "protected record" means a record not defined as a nonprotected record; and
6 (d) "record" means information that is:
7 (i) prepared, owned, received, or retained by a financial institution;
8 (ii) (A) inscribed on a tangible medium; or
9 (B) stored in an electronic or other medium; and
10 (iii) retrievable in perceivable form.
12 of [
13 governmental entity may not request or obtain by subpoena or otherwise information from a state
14 or federally chartered financial institution [
15 that constitutes a record reflecting the financial condition of any person without first obtaining:
16 (a) written permission from the person [
18 (b) an order from a court of competent jurisdiction permitting access to the [
21 (a) reviews made by the commissioner of financial institutions to determine whether a
22 financial institution is operating in accordance with law; or
23 (b) reports filed as required by Section 76-10-1906.
26 Section 2. Section 78-27-46 is amended to read:
27 78-27-46. Financial information privacy -- Notice to person about whom information
29 (1) [
30 governmental entity that obtained the order shall give notice [
31 about whom information is sought within three days of the day on which service of the order is
1 made upon the financial institution, but no later than seven days before the day fixed in the order
2 as the day upon which the records are to be produced or examined.
3 (b) The notice required by Subsection (1)(a) shall be accompanied by:
4 (i) a copy of the order [
5 (ii) a copy of the motion or application upon which [
7 (iii) a statement setting forth the rights of the person under Section 78-27-47.
8 (2) (a) The notice shall be sufficient if, on or before the third day after issuance of the
9 order, notice is:
10 (i) served in the manner provided in Rule 4(e), Utah Rules of Civil Procedure, upon the
11 person entitled to notice[
12 (ii) mailed by certified or registered mail to the last-known address of the person. [
14 (b) Notwithstanding Subsection (2)(a), if the person entitled to notice is deceased or under
15 legal disability, notice shall be served upon or mailed to the last-known address of such person's
16 executor, administrator, guardian, or other fiduciary.
17 Section 3. Section 78-27-47 is amended to read:
18 78-27-47. Financial information privacy -- Intervention to challenge or stay order
19 -- Burden on governmental entity.
20 (1) Notwithstanding any other law or rule of law, any person who is entitled to notice of
21 a court order under Section 78-27-46 shall have the right to intervene in any proceeding with
22 respect to enforcement of the order to challenge the issuance of the order or to stay compliance
24 (2) Upon intervention, the burden shall be [
26 there is reasonable cause for the issuance of the order [
28 Section 4. Section 78-27-48 is amended to read:
29 78-27-48. Financial information privacy -- Reimbursement of financial institution
30 for costs of obtaining information.
31 (1) Any financial institution [
1 permission [
2 78-27-50, or in compliance with an order of a court of competent jurisdiction shall be entitled to
3 reimbursement by the [
4 reasonably and directly incurred in searching for, reproducing, or transporting books, papers,
5 records, or other data required to be produced.
6 (2) The commissioner of financial institutions shall by [
7 and conditions under which reimbursement shall be made.
8 Section 5. Section 78-27-50 is amended to read:
9 78-27-50. Financial information privacy -- Inapplicable to certain official
11 (1) [
12 an examination of records is a part of an official investigation by [
13 (a) a local police[
14 (b) a sheriff[
15 (c) a peace officer[
16 (d) a city attorney[
17 (e) a county attorney[
18 (f) a district attorney[
19 (g) the attorney general[
20 (h) the Department of Public Safety[
21 (i) the Office of Recovery Services of the Department of Human Services[
22 (j) the Insurance Department[
23 (k) the Department of Commerce; or
24 (l) the state auditor.
28 (2) If a governmental entity listed in Subsection (1) seeks a record, the entity shall obtain
29 the record as follows:
30 (a) if the record is a nonprotected record, by request in writing from a representative of the
31 governmental entity that is conducting the official investigation; or
1 (b) if the record is a protected record, by obtaining a subpoena or other legal process:
2 (i) ordered by a court of competent jurisdiction; and
3 (ii) served upon the financial institution.
4 (3) A financial institution may not give notice to any person named or referenced within
5 the record disclosed pursuant to Subsection (1)(a).
6 (4) A protected record obtained under this section shall be subject to reimbursement from
7 the agency conducting the official investigation for costs reasonably incurred by the financial
8 institution in accordance with Section 78-27-48.
9 Section 6. Section 78-27-50.5 is enacted to read:
10 78-27-50.5. Liability of financial institutions.
11 A financial institution is not liable to any person named or referenced within a record for
12 any disclosure that is the result of a subpoena, order, or request made pursuant to Sections
13 78-27-45 through 78-27-50 if the financial institution reasonably believes that the subpoena, order,
14 or request is properly made under Sections 78-27-45 through 78-27-50.
Legislative Review Note
as of 1-27-98 8:37 AM
A limited legal review of this bill raises no obvious constitutional or statutory concerns.
Office of Legislative Research and General Counsel
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