By: Carona S.B. No. 581
(In the Senate - Filed February 14, 2013; February 20, 2013,
read first time and referred to Committee on Business and Commerce;
March 18, 2013, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 6, Nays 1; March 18, 2013,
sent to printer.)
COMMITTEE SUBSTITUTE FOR S.B. No. 581 By: Carona
A BILL TO BE ENTITLED
AN ACT
relating to procedures for securing the deposit of public funds.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2257.045, Government Code, is amended to
read as follows:
Sec. 2257.045. RECEIPT OF SECURITY BY CUSTODIAN. (a) On
receipt of an investment security, a custodian shall[:
[(1)] immediately identify on its books and records,
by book entry or another method, the pledge of the security to the
public entity.
(b) For a deposit of public funds under Subchapter F, the
custodian shall promptly issue and deliver to the comptroller a
trust receipt for the pledged security.
(c) For any other deposit of public funds under this
chapter, at the direction of the appropriate public entity officer,
the custodian shall:
(1) [; and
[(2)] promptly issue and deliver to the appropriate
public entity officer a trust receipt for the pledged security; or
(2) promptly issue a trust receipt to the public
entity's depository and instruct the depository to deliver the
trust receipt to the public entity officer immediately.
SECTION 2. Section 2257.046, Government Code, is amended by
adding Subsection (d) to read as follows:
(d) At the request of the public entity, the public entity's
custodian shall provide to the appropriate public entity officer a
current list of all pledged investment securities. The list must
include, for each pledged investment security:
(1) the name of the public entity;
(2) the date of the deposit for which the security was
pledged;
(3) the date the security was issued;
(4) the face value and maturity date of the security;
and
(5) the confirmation number on the trust receipt
issued by the custodian.
SECTION 3. Section 116.051, Local Government Code, is
amended to read as follows:
Sec. 116.051. QUALIFICATION AS DEPOSITORY OR
SUBDEPOSITORY. Within 15 days after the date a bank is selected as
a county depository or subdepository, the bank must qualify as the
depository or subdepository by providing security for the funds to
be deposited by the county with the bank. The depository or
subdepository may secure these funds, at the option of the
commissioners court, by:
(1) personal bond; surety bond; bonds, notes, and
other securities; first mortgages on real property; real property;
certificates of deposit; a letter of credit issued by a federal home
loan bank; or a combination of these methods, as provided by this
subchapter; or
(2) investment securities or interests in them as
provided by Chapter 726, Acts of the 67th Legislature, Regular
Session, 1981 (Article 2529b-1, Vernon's Texas Civil Statutes).
SECTION 4. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2013.
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