Tennessee Senate Bill SB1379

Tennessee 2023-2024 Regular Session

• Introduced: 2/1/23

Caption

AN ACT to amend Tennessee Code Annotated, Title 45 and Title 47, Chapter 18, relative to financial institutions.

Impact

If enacted, SB1379 will amend the Tennessee Code Annotated, specifically Title 45 and Title 47, which governs financial institutions. The law would categorize unauthorized disclosure of account information as a Class C misdemeanor, thus creating legal repercussions for financial institutions that fail to comply. This change could also influence how financial institutions handle requests for account information, reinforcing the need for proper authorization before sharing potentially sensitive data.

Summary

Senate Bill 1379 aims to enhance the privacy of individuals regarding their financial information held by financial institutions in Tennessee. The bill explicitly prohibits financial institutions from disclosing a person's account balance or transaction activity to any individual or entity other than the account owner without obtaining express written consent from the account owner or having a judicial warrant. This represents a significant step towards bolstering consumer privacy rights and protecting sensitive financial data.

Contention

Notable points of contention surrounding the bill may include concerns from financial institutions regarding the implications of enhanced regulations on their operational processes. Institutions may argue that the requirement for express consent or a warrant could complicate legitimate queries for information and impact customer service efficiency. Additionally, potential opponents of the bill might point out the challenges this could pose for law enforcement or recovery efforts in cases of fraud, particularly where timely access to account information is critical.