SB 1618

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.