| 1 | 1 | | By: Carona S.B. No. 581 |
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| 2 | 2 | | (Villarreal) |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to procedures for securing the deposit of public funds. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Section 2257.045, Government Code, is amended to |
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| 10 | 10 | | read as follows: |
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| 11 | 11 | | Sec. 2257.045. RECEIPT OF SECURITY BY CUSTODIAN. (a) On |
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| 12 | 12 | | receipt of an investment security, a custodian shall[: |
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| 13 | 13 | | [(1)] immediately identify on its books and records, |
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| 14 | 14 | | by book entry or another method, the pledge of the security to the |
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| 15 | 15 | | public entity. |
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| 16 | 16 | | (b) For a deposit of public funds under Subchapter F, the |
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| 17 | 17 | | custodian shall issue and deliver to the comptroller a trust |
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| 18 | 18 | | receipt for the pledged security. |
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| 19 | 19 | | (c) For any other deposit of public funds under this |
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| 20 | 20 | | chapter, at the written direction of the appropriate public entity |
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| 21 | 21 | | officer, the custodian shall: |
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| 22 | 22 | | (1) [; and |
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| 23 | 23 | | [(2) promptly] issue and deliver to the appropriate |
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| 24 | 24 | | public entity officer a trust receipt for the pledged security; or |
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| 25 | 25 | | (2) issue and deliver a trust receipt for the pledged |
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| 26 | 26 | | security to the public entity's depository and instruct the |
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| 27 | 27 | | depository to deliver the trust receipt to the public entity |
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| 28 | 28 | | officer immediately. |
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| 29 | 29 | | (d) The custodian shall issue and deliver the trust receipt |
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| 30 | 30 | | as soon as practicable on the same business day on which the |
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| 31 | 31 | | investment security is received. |
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| 32 | 32 | | SECTION 2. Section 2257.046, Government Code, is amended by |
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| 33 | 33 | | adding Subsection (d) to read as follows: |
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| 34 | 34 | | (d) At the request of the appropriate public entity officer, |
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| 35 | 35 | | the public entity's custodian shall provide a current list of all |
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| 36 | 36 | | pledged investment securities. The list must include, for each |
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| 37 | 37 | | pledged investment security: |
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| 38 | 38 | | (1) the name of the public entity; |
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| 39 | 39 | | (2) the date the security was pledged to secure the |
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| 40 | 40 | | public entity's deposit; |
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| 41 | 41 | | (3) the Committee on Uniform Security Identification |
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| 42 | 42 | | Procedures (CUSIP) number of the security; |
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| 43 | 43 | | (4) the face value and maturity date of the security; |
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| 44 | 44 | | and |
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| 45 | 45 | | (5) the confirmation number on the trust receipt |
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| 46 | 46 | | issued by the custodian. |
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| 47 | 47 | | SECTION 3. This Act takes effect immediately if it receives |
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| 48 | 48 | | a vote of two-thirds of all the members elected to each house, as |
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| 49 | 49 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 50 | 50 | | Act does not receive the vote necessary for immediate effect, this |
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| 51 | 51 | | Act takes effect September 1, 2013. |
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