Official Summary Text
Present law allows a subpoena
authorizing the production of financial records
to
be served upon a financial institution if
(i) a
copy of the subpoena has been served upon the customer,
(ii)
the customer is available for service
in the manner provided by law for the service of subpoena, or
(iii)
in any judicial proceeding in which the customer is a named party, a copy of the subpoena has been served on the customer in the manner provided for the service of pleadings subsequent to the original complaint by t
he Tennessee Rules of Civil Procedure
.
This bill creates an exception in which a financial institution does not have a duty to confirm service of a subpoena on the customer, the customer's estate, or the customer's heirs if the financial institution reasonably believes that the customer is de
ceased.
DELIVERY AND STORAGE OF RECORDS
Present law also requires t
he copy of the records
to
be separately enclosed in an inner envelope or wrapper, sealed, with the title and number of the action, name of custodian and date of subpoena clearly inscribed on the sealed envelope or wrapper. The sealed envelope or wrapper
must
then be enclosed in an outer envelope or wrapper, sealed, and directed as follows:
If the subpoena directs attendance in court, to the clerk of the court or to the judge of the court
.
If the subpoena directs attendance at a deposition, to the officer before whom the deposition is to be taken, at the place designated in the subpoena for the taking of the deposition or at the officer's place of business
.
In other cases, to the issuer.
Unless the sealed envelope or wrapper is returned to a witness who is to appear personally,
present law requires
the copy of the records
to
remain sealed and
to
be opened only at the time of trial, deposition, or other hearing, upon the direction of the judge, court, officer, body, tribunal or other issuer conducting the proceeding, in the presence of all parties who have appeared in person or by counsel at the
trial, deposition, hearing or other proceeding.
This bill creates a new procedure for how subpoenaed records must be delivered and stored.
The copy of the records must be delivered to the issuer in the manner and location specified in the subpoena. If the subpoena does not specify a manner of delivery, then the records must be delivered by means of any method agreed upon by the issuer and t
he custodian, including electronic submission. If the issuer and custodian cannot agree to the manner of delivery, then the custodian may, at its option, deliver th
e records to the attention of the issuer by physical delivery, U.S. mail, or by means of a delivery service. If the location of the delivery of the records is not specified in the subpoena, then the custodian
must
deliver the records directly to the issuer.
Upon receipt of the records, the issuer
must
retain the records in a secure and confidential manner, and
must
not disclose any of the records except to such persons or entities entitled to view the records in connection with the proceeding under which t
he subpoena was issued.
Current Bill Text
Read the full stored bill text
SENATE BILL 1618
By Powers
HOUSE BILL 1523
By Stevens
HB1523
010756
- 1 -
AN ACT to amend Tennessee Code Annotated, Title 45,
Chapter 10, relative to financial records.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 45-10-106, is amended by deleting
subdivision (1) and substituting:
(1) A copy of the subpoena has been served upon the customer, if the customer
is available for service, in the manner provided by law for the service of subpoena, or, in
any judicial proceeding in which the customer is a named party, a copy of the subpoena
has been served on the customer in the manner provided for the service of pleadings
subsequent to the original complaint by the Tennessee Rules of Civil Procedure. If a
financial institution reasonably believes a customer is deceased, then the financial
institution does not have a duty to confirm service of a subpoena on the customer, the
customer's estate, or the customer's heirs; and
SECTION 2. Tennessee Code Annotated, Section 45-10-111, is amended by deleting
the section and substituting:
The copy of the records must be delivered to the issuer in the manner and
location specified in the subpoena. If the subpoena does not specify a manner of
delivery, then the records must be delivered by means of any method agreed upon by
the issuer and the custodian, including electronic submission. If the issuer and
custodian cannot agree to the manner of delivery, then the custodian may, at its option,
deliver the records to the attention of the issuer by physical delivery, U.S. mail, or by
means of a delivery service. If the location of the delivery of the records is not specified
in the subpoena, then the custodian shall deliver the records directly to the issuer.
- 2 - 010756
SECTION 3. Tennessee Code Annotated, Section 45-10-112, is amended by deleting
the section and substituting:
Upon receipt of the records, the issuer shall retain the records in a secure and
confidential manner, and shall not disclose any of the records except to such persons or
entities entitled to view the records in connection with the proceeding under which the
subpoena was issued.
SECTION 4. This act takes effect July 1, 2026, the public welfare requiring it.