PRINTER'S NO. 1168
No. 995 Session of 2003
INTRODUCED BY WASHINGTON, MYERS, BISHOP, WATERS, CREIGHTON, DALEY, HORSEY, KIRKLAND AND THOMAS, MARCH 26, 2003
REFERRED TO COMMITTEE ON COMMERCE, MARCH 26, 2003
AN ACT 1 Amending the act of May 15, 1933 (P.L.565, No.111), entitled "An 2 act relating to the powers and duties of the Department of 3 Banking and the Secretary of Banking in exercising 4 supervision over, and taking possession of and conducting or 5 liquidating the business and property of, corporations, 6 associations, and persons receiving deposits or otherwise 7 transacting a banking business, corporations acting as 8 fiduciaries, and building and loan associations; providing 9 for the payment of the expenses of the Department of Banking 10 by supervised corporations, associations, or persons, and 11 appropriating the Banking Department Fund; authorizing the 12 Department of Banking, under certain circumstances, to 13 examine corporations, associations, or persons affiliated, or 14 having business transactions with supervised corporations, 15 associations or persons; authorizing appeals to the Supreme 16 Court, and prescribing and limiting the powers and duties of 17 certain other courts and their prothonotaries, registers of 18 wills, recorders of deeds, and certain State departments, 19 commissions, and officers; authorizing certain local public 20 officers and State departments to collect fees for services 21 rendered under this act; providing penalties; and repealing 22 certain acts and parts of acts," further providing for 23 disclosure. 24 The General Assembly of the Commonwealth of Pennsylvania 25 hereby enacts as follows: 26 Section 1. Section 302 of the act of May 15, 1933 (P.L.565, 27 No.111), known as the Department of Banking Code, amended 28 December 9, 2002 (P.L. , No.209), is amended to read:
1 [Section 302. Disclosure of Information Forbidden; Penalty; 2 Exceptions.--A. (1) This section applies to matters relating 3 to institutions, credit unions and licensees. 4 (2) Neither the secretary, nor any deputy, examiner, clerk, 5 or other employe of the department, shall publish or divulge to 6 anyone any information contained in or ascertained from any 7 examination or investigation made by the department, or any 8 letter, report, or statement sent to the department, or any 9 other paper or document in the custody of the department, except 10 when the publication or divulgement of such information is made 11 by the department pursuant to the provisions of this act, or 12 when the production of such information is required by subpoena 13 or other legal process of a court of competent jurisdiction, or 14 when it is used in deciding whether to prosecute or in 15 prosecutions or other court actions instituted by or on behalf 16 of or at the request of the department, or when referring for 17 investigation to any Federal, State or local law enforcement or 18 any Federal or State financial regulatory agency, including 19 banking, insurance and securities regulatory agencies, or when 20 the department provides information to any Federal or State 21 financial regulatory agency, including banking, insurance and 22 securities regulatory agencies, when the information pertains to 23 an enforcement concern. The information shall be provided as may 24 be necessary or appropriate, as determined in the discretion of 25 the secretary. 26 (3) The service of a subpoena upon the secretary, deputy, 27 examiner, clerk or other employe of the department shall not be 28 construed as requiring such person to disclose any information, 29 but such person shall have all the rights and privileges as any 30 other subpoenaed party to object to production of information on 20030H0995B1168 - 2 -
1 the same basis as provided in the Rules of Civil Procedure, 2 statute, regulation or common law. The department may condition 3 the release of such information on an order from a court of 4 competent jurisdiction protecting the information from general 5 disclosure to the public. The department retains and may 6 exercise any and all remedies at law and in equity to quash a 7 subpoena. 8 (4) Any privileges available to Federal financial 9 institution regulators under Federal statute, regulation or 10 common law shall be available to the department. 11 (5) The department may provide to any person, Federal, State 12 or local government agency the following information regarding 13 licensees, to the extent that the department has such 14 information in its possession: whether and for what time period 15 a person's license is current, suspended or revoked pursuant to 16 a final order issued by the department; whether and for what 17 time period an individual is or has been suspended or prohibited 18 from working for or otherwise participating as a licensee 19 pursuant to a final order issued by the department. 20 (6) The department may condition the release of subpoenaed 21 information on an order from a court of competent jurisdiction 22 protecting the information from general disclosure to the 23 public. 24 (7) If the department is subpoenaed for a report of 25 examination information, the department may refuse to release 26 the requested information, as the secretary deems necessary and 27 appropriate under the circumstances, for the following reasons: 28 safety and soundness; if the department requests and is denied a 29 protective order; or if the department requests and is denied 30 redaction of the report of examination to protect the privacy of 20030H0995B1168 - 3 -
1 persons not involved in the litigation. 2 B. A violation of the provisions of this section by the 3 secretary, or by any deputy, examiner, clerk, or other employe 4 of the department, shall be sufficient ground for his removal 5 from office. In addition the secretary, deputy, examiner, clerk, 6 or other employe who willfully or knowingly commits such 7 violation shall be deemed guilty of a misdemeanor, and shall, 8 upon conviction thereof, be subject to imprisonment for a period 9 not exceeding one year, or a fine not exceeding one thousand 10 dollars, or both.] 11 Section 2. This act shall take effect immediately. A3L07MEP/20030H0995B1168 - 4 -