S.B. 140 Enrolled

1

FINANCIAL INSTITUTIONS DISCLOSURE
2 OF RECORDS
3 2009 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Margaret Dayton
6 House Sponsor: Bradley M. Daw
7
8 LONG TITLE
9 General Description:
10 This bill modifies the Financial Institutions Act to address obtaining a record by
11 written permission of account holders.
12 Highlighted Provisions:
13 This bill:
14 . defines terms;
15 . provides for obtaining a protected record by written permission of account holders;
16 and
17 . makes technical and conforming amendments.
18 Monies Appropriated in this Bill:
19 None
20 Other Special Clauses:
21 None
22 Utah Code Sections Affected:
23 AMENDS:
24 7-1-1001, as last amended by Laws of Utah 2008, Chapter 268 and renumbered and
25 amended by Laws of Utah 2008, Chapter 3
26 7-1-1004, as renumbered and amended by Laws of Utah 2008, Chapter 3
27 7-1-1006, as renumbered and amended by Laws of Utah 2008, Chapter 3
28 7-1-1007, as renumbered and amended by Laws of Utah 2008, Chapter 3
29

30 Be it enacted by the Legislature of the state of Utah:
31 Section 1. Section 7-1-1001 is amended to read:
32 7-1-1001. Definitions -- Written consent or court order for disclosure by
33 financial institution -- Exception.
34 (1) As used in this part:
35 (a) "Account holder" means a person for whom an account is held by a financial
36 institution.
37 [(a)] (b) "Governmental entity" means:
38 (i) the state, including [all departments, institutions, boards, divisions, bureaus,
39 offices, commissions, committees, and elected officials; and]:
40 (A) a department;
41 (B) an institution;
42 (C) a board;
43 (D) a division;
44 (E) a bureau;
45 (F) an office;
46 (G) a commission;
47 (H) a committee; or
48 (I) an elected official; and
49 (ii) a political subdivision of the state, including:
50 (A) a county[,];
51 (B) a city[,];
52 (C) a town[,];
53 (D) a school district[,];
54 (E) a public transit district[,];
55 (F) a redevelopment agency[,];
56 (G) a special improvement[,] district; or
57 (H) a taxing district.

58 [(b)] (c) "Nonprotected record" means a record maintained by [the] a financial
59 institution to facilitate the conduct of [its] the financial institution's business regarding a
60 person or account, including:
61 (i) the existence of an account;
62 (ii) the opening and closing dates of an account;
63 (iii) the name under which an account is held; and
64 (iv) the name, address, and telephone number of an account holder.
65 [(c)] (d) "Protected record" means a record that is not defined as a nonprotected
66 record[; and].
67 [(d)] (e) "Record" means information that is:
68 (i) prepared, owned, received, or retained by a financial institution;
69 (ii) (A) inscribed on a tangible medium; or
70 (B) stored in an electronic or other medium; and
71 (iii) retrievable in perceivable form.
72 (2) Except [as provided in Section] for a governmental entity listed in Subsection
73 7-1-1006 (1), an individual acting [in] on behalf of a governmental entity may not request,
74 obtain by subpoena, or otherwise obtain information from a state or federally chartered
75 financial institution that constitutes a record reflecting the financial condition of any person
76 without first obtaining:
77 (a) written permission from [the person that is named or referenced] all account
78 holders of the account referenced in the record to be examined; or
79 (b) an order from a court of competent jurisdiction permitting access to the record.
80 (3) This section does not apply to a review made by the commissioner [of financial
81 institutions] to determine whether a financial institution is operating in accordance with law.
82 Section 2. Section 7-1-1004 is amended to read:
83 7-1-1004. Reimbursement of financial institution for costs of obtaining
84 information.
85 (1) A financial institution [shall be] is entitled to reimbursement by [the] a

86 governmental entity seeking [the] information, for costs reasonably and directly incurred in
87 searching for, reproducing, or transporting [books, papers, records, or other data] a record
88 required to be produced if the financial institution produces the record:
89 (a) pursuant to written permission by [the person named or referenced in] all account
90 holders of the account referenced in the record in accordance with [Section 7-1-1001 ;]:
91 (i) Subsection 7-1-1001 (2)(a); or
92 (ii) Subsection 7-1-1006 (2)(b)(iii);
93 (b) in compliance with an order obtained under this part; or
94 (c) in compliance with an order of a court or administrative body of competent
95 jurisdiction.
96 (2) The commissioner [of financial institutions] shall by rule establish the rates and
97 conditions under which [reimbursement shall be made] a governmental entity shall reimburse
98 a financial institution.
99 Section 3. Section 7-1-1006 is amended to read:
100 7-1-1006. Inapplicable to certain official investigations.
101 (1) Sections [ 7-1-1001 through] 7-1-1002 and 7-1-1003 do not apply [when] if an
102 examination of [records] a record is a part of an official investigation by:
103 (a) local police;
104 (b) a sheriff;
105 (c) a peace officer;
106 (d) a city attorney;
107 (e) a county attorney;
108 (f) a district attorney;
109 (g) the attorney general;
110 (h) the Department of Public Safety;
111 (i) the Office of Recovery Services of the Department of Human Services;
112 (j) the Insurance Department;
113 (k) the Department of Commerce;

114 (l) the Benefit Payment Control Unit or the Payment Error Prevention Unit of the
115 Department of Workforce Services;
116 (m) the state auditor; or
117 (n) the State Tax Commission.
118 (2) Except for the Office of Recovery Services, if a governmental entity listed in
119 Subsection (1) seeks a record, the entity shall obtain the record as follows:
120 (a) if the record is a nonprotected record, by request in writing that:
121 (i) certifies that an official investigation is being conducted; and
122 (ii) is signed by a representative of the governmental entity that is conducting the
123 official investigation; or
124 (b) if the record is a protected record, by obtaining:
125 (i) a subpoena authorized by statute; [or]
126 (ii) other legal process:
127 (A) ordered by a court of competent jurisdiction; and
128 (B) served upon the financial institution[.]; or
129 (iii) written permission from all account holders of the account referenced in the
130 record to be examined.
131 (3) If the Office of Recovery Services seeks a record, [it] the Office of Recovery
132 Services shall obtain the record pursuant to:
133 (a) Subsection 62A-11-104 (7);
134 (b) Section 62A-11-304.1 ;
135 (c) Section 62A-11-304.5 ; or
136 (d) Title IV, Part D of the Social Security Act as codified in 42 U.S.C. 651 et seq.
137 (4) A financial institution may not give notice to [any] an account holder or person
138 named or referenced within the record disclosed pursuant to Subsection (2)(a).
139 (5) In accordance with Section 7-1-1004 , the [agency] governmental entity conducting
140 the official investigation that obtains a record from a financial institution under this section
141 shall reimburse the financial institution for costs reasonably and directly incurred by the

142 financial institution.
143 Section 4. Section 7-1-1007 is amended to read:
144 7-1-1007. Liability of financial institutions.
145 A financial institution is not liable to [any] an account holder or person named or
146 referenced within a record:
147 (1) for [any] a disclosure that is the result of a subpoena, order, or request made
148 pursuant to Sections 7-1-1001 through 7-1-1006 if the financial institution reasonably believes
149 that the subpoena, order, or request is properly made under Sections 7-1-1001 through
150 7-1-1006 ; or
151 (2) for [any] a disclosure or action taken in good faith pursuant to a data match or
152 administrative subpoena provided for by [the statutes] a statute listed in Subsection
153 7-1-1006 (3).