Committee unanimously approves updating bank subpoena rules to allow electronic records and clarify treatment of deceased customers
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Summary
House Bill 1523 clarifies that banks need not attempt to notify deceased customers or their heirs before complying with subpoenas and modernizes record delivery to allow electronic transfer; it passed the Commerce Committee 23-0 and advances to calendar and rules.
Representative Stevens told the committee House Bill 15 23 would modernize two outdated aspects of bank subpoena procedure: it clarifies that if a bank believes a customer is deceased it is not required to attempt to notify that person (or their heirs) before producing records, and it updates delivery rules to allow banks to provide records electronically or by any mutually agreed means.
‘‘Right now the law is unclear whether a bank has to try to notify a deceased person, the deceased person's heirs, or the estate,’’ Stevens said, explaining that the change reduces administrative burden when a customer is deceased and electronic records are available.
Representative Hardaway asked how the change would affect probate procedure and notice to heirs. Stevens replied that in a probate case ‘‘all of the people involved in the case would get notice of that subpoena being issued’’ and that banks could rely on a death certificate or probate filings to determine a customer’s death rather than attempting service on a deceased person.
The committee opened the board for a recorded vote; the clerk reported 23 ayes and no nays. The committee passed HB 1523 and sent the bill to the calendar and rules committee.
