HB 1020

            
2020 SESSION

20102586D

HOUSE BILL NO. 1020


Offered January 8, 2020


Prefiled January 7, 2020

A BILL to amend the Code of Virginia by adding in Chapter 14 
 of Title 8.01 an article numbered 7.2, consisting of sections numbered 
 8.01-413.2 and 8.01-413.3, relating to records of 
 financial institutions.
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Patron-- Adams, L.R.

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Referred to Committee for Courts of Justice

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Be it enacted by the General Assembly of Virginia:
 
 
1. That the Code of Virginia is amended by adding in Chapter 
 14 of Title 8.01 an article numbered 7.2, consisting of sections numbered 
 8.01-413.2 and 8.01-413.3, as follows:
 
 
Article 7.2.
 
 
Financial 
 Institution Evidence.
 
 
� 8.01-413.2. 
 Definitions.
 
 
As used in this 
 article, unless the context requires a different meaning:
 
 
"Financial 
 institution" has the same meaning as prescribed to it in � 6.2-100.
 
 
"Governmental 
 unit" means the United States, 
 the Commonwealth, and any political subdivision thereof.
 
 
� 8.01-413.3. Records 
 of financial institutions.
 
 
A. A person, other 
 than a governmental unit, who is a party to an action and is seeking discovery 
 or production of evidence as permitted by and pursuant to the Rules of Supreme 
 Court of Virginia, any other law of 
 the Commonwealth, or the Federal Rules 
 of Civil Procedure requiring or requesting access to financial records 
 pertaining to a customer of the financial institution shall pay to the financial 
 institution that assembles or provides the financial records a fee for 
 reimbursement of reasonably necessary costs, directly incurred, as follows:
 
 
1. Reimbursement of 
 search and processing costs, including the total amount of personnel direct time 
 incurred in locating and retrieving, reproducing, and 
 packaging and preparing financial records for shipment, 
 and costs for analysis of material or for managerial 
 or legal advice, expertise, research, or time spent for any of these 
 activities. Search and processing costs may include the actual cost of 
 extracting information stored by computer in the format in which it is normally 
 produced, based on computer time and necessary supplies.
 
 
2. Reimbursement 
 for reproduction costs incurred in making copies of documents required or 
 requested. The rate for reproduction costs for making copies of required or 
 requested documents shall be the institutions usual rate charged to its 
 customers for reproducing copies, including copies produced by reader-printer 
 reproduction processes. Photographs, films, and other materials shall be 
 reimbursed at actual cost.
 
 
3. Reimbursement of 
 transportation costs, including (i) 
 transport of personnel to locate and retrieve the information or material 
 required or requested and (ii) 
 all other reasonably necessary costs to convey the information or material to 
 the place of examination.
 
 
B. Payment for 
 reasonably necessary, directly incurred costs to financial institutions shall 
 be limited to material required or requested.
 
 
C. Payment shall be 
 made only for costs that are both directly incurred and reasonably necessary.
 
 
D. A 
 financial institution may require an advance payment, based on the 
 institutions good faith estimate of the charges permitted by this section. 
 Any payment in excess of the actual charge shall be promptly refunded by the 
 financial institution.
 
 
E. If 
 (i) a party to a lawsuit making the request for 
 materials or information withdraws the legal process or formal written request, 
 (ii) the customer revokes 
 the authorization for release of materials or information, or (iii) 
 the legal process or request has been successfully challenged by the customer, 
 the party shall promptly notify the financial institution of these facts. The 
 party shall be responsible only for the costs directly incurred prior to the 
 time that the financial institution receives this notice.
 
 
F. A financial 
 institution is not entitled to reimbursement under this section 
 for costs incurred in assembling or providing financial records provided as an 
 incident to perfecting a security interest, proving a claim in bankruptcy, or 
 otherwise collecting on a debt owing to the financial institution itself or to 
 the institution in its role as a fiduciary.