Texas Senate Bill SB2173

Texas 2017 - 85th Regular

Caption

Relating to the operation and administration of the Texas Bullion Depository; depository agents; and to the appropriation of money from the fees, charges, penalties, and other amounts related to the depository and deposited to the general revenue fund for that purpose.

Impact

The bill modifies existing government code to centralize the operations of the Texas Bullion Depository under the comptroller’s office, establishing a clearer operational structure. Among its provisions are measures for confidentiality of account records, as well as rules regarding electronic information sharing to maintain secure communication of transactions. It also clarifies the depository’s liability limitations, relieving the state from responsibilities in the case of activities conducted through the depository.

Summary

SB2173 establishes regulations concerning the operation and administration of the Texas Bullion Depository. This legislation outlines the role of the comptroller in managing the depository, as well as the licensing and responsibilities of depository agents who facilitate transactions involving precious metals. The bill aims to create a structured framework for not only the handling of bullion but also the associated revenues, ensuring that fees, charges, and penalties collected are appropriately allocated to support the depository's operations.

Contention

While the bill primarily focuses on enhancing the operational integrity of the Bullion Depository, there are potential points of contention around the management of depository agents and the levels of oversight that the comptroller will have regarding these agents. Concerns may arise regarding transparency and accountability, particularly given the extensive powers granted to the depository and its administration in matters of financial transactions and client confidentiality. Stakeholders may express varied opinions about the balance between operational autonomy and regulatory oversight.