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Relating to the regulation of state banks, state trust companies, and third-party service providers of state banks and state trust companies.
No fiscal implication to the State is anticipated.
SB 1823 would add to the definition of "third-party service provider" under the Texas Banking Act and the Texas Trust Company Act a person who regularly engages in the practice of assembling or evaluation, and maintaining, public record information and credit account information from persons who furnish that information regularly for the purpose of furnishing to third parties reports indicating a person's creditworthiness, credit standing, or credit capacity. This bill would also authorize a subpoena issued for annual examinations or investigations of unauthorized activity of state banks or trust companies to prohibit a person from: (1) disclosing that the subpoena has been issued; (2) disclosing or describing any records requested in the subpoena; (3) disclosing whether records have been furnished in response to the subpoena; or (4) disclosing or describing any examination of the person under oath. A subpoena would be able to prohibit these disclosures only if the records relate to an ongoing investigation and the disclosure could significantly impede or jeopardize the investigation.
This bill would also subject a third-party service provider to an enforcement action under the Texas Banking Act or the Texas Trust Company Act if the provider refuses to submit to examination by the banking commissioner or pay an associated fee.
Finally, this bill would add conditions to the exemption from certain transfer or ownership interest requirements without prior written approval of the commissioner and remove the minimum administrative penalty imposed under the Texas Banking Act or the Texas Trust Company Act.
Texas Action remains neutral on SB 1823 because it does not affect our liberty principles.
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