Texas 2015 - 84th Regular

Texas Senate Bill SB989 Compare Versions

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1	1	By: KolkhorstBurton S.B. No. 989
2	2	Burton
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the establishment and administration of a state bullion
8	8	depository; authorizing fees.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subtitle C, Title 10, Government Code, is
11	11	amended by adding Chapter 2116 to read as follows:
12	12	CHAPTER 2116. TEXAS BULLION DEPOSITORY
13	13	SUBCHAPTER A. ESTABLISHMENT AND ADMINISTRATION OF TEXAS
14	14	BULLION DEPOSITORY
15	15	Sec. 2116.001. DEFINITIONS. In this chapter:
16	16	(1) "Administrator" means the bullion depository
17	17	administrator appointed under Section 2116.003.
18	18	(2) "Bullion" means precious metals that are formed
19	19	into uniform shapes and quantities such as ingots, bars, or plates,
20	20	with uniform content and purity, as are suitable for or customarily
21	21	used in the purchase, sale, storage, transfer, and delivery of bulk
22	22	or wholesale transactions in precious metals.
23	23	(3) "Business day" means a day other than a Saturday,
24	24	Sunday, or banking holiday for a bank chartered under the laws of
25	25	this state.
26	26	(4) "Deposit" means the establishment of an executory
27	27	obligation of the depository to deliver to the order of the person
28	28	establishing with the depository the obligation, on demand, a
29	29	quantity of a specified precious metal, in bullion, specie, or a
30	30	combination of bullion and specie, equal to the quantity of the same
31	31	precious metal delivered by or on behalf of the depositor into the
32	32	custody of:
33	33	(A) the depository; or
34	34	(B) a depository agent.
35	35	(5) "Depositor" means a person who makes a deposit.
36	36	(6) "Depository" means the Texas Bullion Depository
37	37	created by this chapter.
38	38	(7) "Depository account" means the rights, interests,
39	39	and entitlements established in favor of a depositor with respect
40	40	to a deposit in accordance with this chapter and rules adopted under
41	41	this chapter.
42	42	(8) "Depository account holder," regarding a
43	43	depository account, means the original depositor or a successor or
44	44	assignee of the depositor respecting the depository account.
45	45	(9) "Depository agent" means a person licensed in
46	46	accordance with this chapter to serve as an intermediary between
47	47	the depository and a retail customer in making a transaction in
48	48	precious metals bullion or specie.
49	49	(10) "Precious metal" means a metal, including gold,
50	50	silver, platinum, palladium, and rhodium, that:
51	51	(A) bears a high value-to-weight ratio relative
52	52	to common industrial metals; and
53	53	(B) customarily is formed into bullion or specie.
54	54	(11) "Specie" means a precious metal stamped into
55	55	coins of uniform shape, size, design, content, and purity, suitable
56	56	for or customarily used as currency, as a medium of exchange, or as
57	57	the medium for purchase, sale, storage, transfer, or delivery of
58	58	precious metals in retail or wholesale transactions.
59	59	Sec. 2116.002. TEXAS BULLION DEPOSITORY. (a) The Texas
60	60	Bullion Depository is established as an agency of this state in the
61	61	office of the comptroller.
62	62	(b) The depository is established to serve as the custodian,
63	63	guardian, and administrator of certain bullion and specie that may
64	64	be transferred to or otherwise acquired by this state or an agency,
65	65	a political subdivision, or another instrumentality of this state.
66	66	Sec. 2116.003. DEPOSITORY ADMINISTRATION; ADMINISTRATOR.
67	67	(a) The depository is administered as a division of the office of
68	68	the comptroller and under the direction and supervision of a
69	69	bullion depository administrator appointed by the comptroller with
70	70	the advice and consent of the governor, lieutenant governor, and
71	71	senate.
72	72	(b) The administrator shall:
73	73	(1) administer, supervise, and direct the operations
74	74	and affairs of the depository and depository agents; and
75	75	(2) liaise with the comptroller and other divisions of
76	76	the office of the comptroller to ensure that each transaction with
77	77	the depository that involves state money, that involves an agency,
78	78	a political subdivision, or another instrumentality of this state,
79	79	or that involves a private person is planned, administered, and
80	80	executed in a manner to achieve the purposes of this chapter.
81	81	(c) The administrator may appoint, subject to the approval
82	82	of the comptroller, a deputy administrator or other subordinate
83	83	officer as necessary and appropriate to the efficient
84	84	administration of the depository.
85	85	Sec. 2116.004. DEPOSITS AND RELATED ASSETS NOT SUBJECT TO
86	86	LEGISLATIVE APPROPRIATION; STATUS OF DEPOSITS AND ALLOCATION OF
87	87	REVENUES. (a) The following are not available for legislative
88	88	appropriation:
89	89	(1) a deposit to the depository;
90	90	(2) bullion or specie held by or on behalf of the
91	91	depository or a depository agent;
92	92	(3) bullion or specie in transit to or from the
93	93	depository or a depository agent; and
94	94	(4) a receivable or other amount owed to the
95	95	depository in settlement of a transaction in bullion or specie.
96	96	(b) Bullion, specie, and other assets described by
97	97	Subsection (a) are subject to redemption, liquidation, or transfer
98	98	exclusively to discharge an obligation of the depository to
99	99	depository account holders, depository agents, bullion banks,
100	100	financial institutions, or other intermediaries in accordance with
101	101	this chapter and rules adopted under this chapter.
102	102	(c) Revenue the depository realizes from fees, charges, or
103	103	other payments received in the course of depository operations
104	104	shall be deposited to the credit of the general revenue fund.
105	105	Sec. 2116.005. DEPOSITS AND DEPOSITORY ACCOUNTS;
106	106	STANDARDS. (a) The depository may receive a deposit of bullion or
107	107	specie from or on behalf of a person acting in the person's own
108	108	right, as trustee, or in another fiduciary capacity, in accordance
109	109	with rules adopted by the comptroller as appropriate to:
110	110	(1) ensure compliance with law; and
111	111	(2) protect the interests of:
112	112	(A) the depository;
113	113	(B) depository account holders;
114	114	(C) this state and the agencies, political
115	115	subdivisions, and instrumentalities of this state; and
116	116	(D) the public at large.
117	117	(b) The depository shall record the amount of precious
118	118	metals a person deposits, regardless of form, in units of troy
119	119	ounces pure, and the records must also specify the type and quantity
120	120	of each precious metal deposited.
121	121	(c) The comptroller by rule shall adopt standards by which
122	122	the quantities of precious metals deposited are credited to a
123	123	depositor's depository account by reference to the particular form
124	124	in which the metals were deposited, classified by mint,
125	125	denomination, weight, assay mark, or other indicator, as
126	126	applicable. The standards must conform to applicable national and
127	127	international standards of weights and measures.
128	128	(d) The comptroller by rule may, if the comptroller
129	129	determines that to do so is in the public interest, restrict the
130	130	forms in which deposits of precious metals may be made to those
131	131	forms that conveniently lend themselves to measurement and
132	132	accounting in units of troy ounces and standardized fractions of
133	133	troy ounces.
134	134	(e) The depository shall adjust each depository account
135	135	balance to reflect additions to or withdrawals or deliveries from
136	136	the account.
137	137	Sec. 2116.006. DEMAND, PRESENTMENT, WITHDRAWAL, DELIVERY,
138	138	AND SETTLEMENT. (a) The depository shall deliver any precious
139	139	metal held by or on behalf of the depository in bullion, specie, or
140	140	a combination of bullion and specie, on the order of a depository
141	141	account holder in a quantity of that precious metal as is available
142	142	in the depository account holder's depository account.
143	143	(b) The depository shall make a delivery described by
144	144	Subsection (a) on demand by the presentment of a suitable check,
145	145	draft, or digital electronic instruction to the depository or a
146	146	depository agent. The comptroller by rule shall adopt the forms,
147	147	standards, and processes through which an order for delivery on
148	148	demand may be made, presented, and honored.
149	149	(c) The depository shall make a delivery at the depository's
150	150	settlement facility designated by the comptroller, shipping to an
151	151	address specified by the account holder or, at the depository's
152	152	discretion, at a facility of a depository agent at which
153	153	presentment is made, not later than five business days after the
154	154	date of presentment.
155	155	Sec. 2116.007. TRANSFER OF DEPOSITORY ACCOUNT BALANCE.
156	156	(a) In accordance with rules adopted under this chapter, a
157	157	depository account holder may transfer any portion of the balance
158	158	of the holder's depository account by check, draft, or digital
159	159	electronic instruction to another depository account holder or to a
160	160	person who at the time the transfer is initiated is not a depository
161	161	account holder.
162	162	(b) The depository shall adjust the depository account
163	163	balances of the depository accounts to reflect a transfer
164	164	transaction between depository account holders on presentment of
165	165	the check, draft, or other instruction by reducing the payor's
166	166	depository account balance and increasing the depository account
167	167	balance of the payee accordingly.
168	168	(c) If a depository account holder transfers to a payee who
169	169	is not a depository account holder any portion of the balance of the
170	170	holder's depository account, the depository shall allow the payee
171	171	to establish a depository account by presentment of the payor's
172	172	check, draft, or instruction to the depository or to a depository
173	173	agent. The depository shall credit a newly established account on
174	174	behalf of the payee and shall debit the payor's account
175	175	accordingly.
176	176	Sec. 2116.008. DEPOSITORY ACCOUNT CONTRACTS. (a) To
177	177	establish a depository account, a depositor must contract with the
178	178	depository for a depository account. The contract must specify:
179	179	(1) the terms applicable to the account, including any
180	180	special terms; and
181	181	(2) the conditions on which withdrawals or deliveries
182	182	with respect to the account may be made.
183	183	(b) The execution of a contract for a depository account
184	184	described by this section may be made, as prescribed by rules
185	185	adopted under this chapter, by electronic or digital transmission.
186	186	(c) The depository or a depository agent shall hold the
187	187	contract for a depository account in the records pertaining to the
188	188	account.
189	189	(d) A contract for a depository account executed by a
190	190	depositor and the depository is considered a contract in writing
191	191	for all purposes, and may be evidenced by one or more agreements,
192	192	deposit receipts, signature cards, amendment notices, or other
193	193	documentation as provided by law.
194	194	(e) The depository and the depository account holder may
195	195	amend a contract for a depository account by agreement, or the
196	196	depository may amend the deposit contract by mailing a written
197	197	notice of the amendment to the account holder, separately or as an
198	198	enclosure with or part of the account holder's statement of account
199	199	or passbook. In the case of amendment by notice from the
200	200	depository, the notice must include the text and effective date of
201	201	the amendment. The effective date may not be earlier than the 30th
202	202	day after the date the notice is mailed, unless otherwise provided
203	203	by rules adopted under this chapter.
204	204	Sec. 2116.009. CAUSE OF ACTION FOR DENIAL OF DEPOSIT
205	205	LIABILITY. (a) A cause of action for denial of deposit liability
206	206	on a depository account contract without a maturity date does not
207	207	accrue until the depository has denied liability and given notice
208	208	of the denial to the depository account holder.
209	209	(b) The depository's act of furnishing an account statement
210	210	or passbook, whether in physical, digital, or electronic form,
211	211	constitutes a denial of liability and the giving of such notice as
212	212	to any amount not shown on the statement or passbook.
213	213	Sec. 2116.010. FEES; SERVICE CHARGES; PENALTIES. The
214	214	comptroller by rule may establish fees, service charges, and
215	215	penalties to be charged a depository account holder for a service or
216	216	activity regarding a depository account, including a fee for an
217	217	overdraft, an insufficient fund check or draft, or a stop payment
218	218	order.
219	219	Sec. 2116.011. DEPOSITORY ACCOUNT OWNERSHIP BY OWNER OF
220	220	RECORD. Unless the depository acknowledges in writing a pledge of a
221	221	depository account, the depository may treat the holder of record
222	222	of the account as the owner of the account for all purposes and
223	223	without regard to a notice to the contrary.
224	224	Sec. 2116.012. TRANSFER OF DEPOSITORY ACCOUNT. (a) A
225	225	depository account may be transferred on the books of the
226	226	depository only on presentation to the depository of:
227	227	(1) evidence of transfer satisfactory to the
228	228	depository; and
229	229	(2) an application for the transfer submitted by the
230	230	person to whom the depository account is to be transferred.
231	231	(b) A person to whom a depository account is to be
232	232	transferred must accept the transferred account subject to the
233	233	terms of the deposit contract, this chapter, and rules adopted
234	234	under this chapter.
235	235	Sec. 2116.013. DEPOSITORY ACCOUNTS NOT INTEREST-BEARING.
236	236	The depository may not pay on a depository account:
237	237	(1) interest;
238	238	(2) an amount in the nature of interest; or
239	239	(3) a fee or other payment for the use or forbearance
240	240	of use of money, bullion, specie, or precious metals deposited to a
241	241	depository account.
242	242	Sec. 2116.014. LIEN ON DEPOSITORY ACCOUNT. (a) Without
243	243	the need of any further agreement or pledge, the depository has a
244	244	lien on each depository account owned by a depository account
245	245	holder to secure any fees, charges, or other obligations owed or
246	246	that may become owed to the depository in connection with any of the
247	247	depository account holder's depository accounts as provided by the
248	248	terms of the depository account holder's applicable depository
249	249	account contract.
250	250	(b) On default in the payment or in the satisfaction of a
251	251	depository account holder's obligation, the depository, without
252	252	notice to or consent of the depository account holder, may transfer
253	253	on the depository's books all or part of the balance of a depository
254	254	account holder's depository account to the extent necessary to pay
255	255	or satisfy the obligation, as determined by reference to the
256	256	exchange rates applicable at the time of the transfer.
257	257	(c) The depository by written instrument may waive wholly or
258	258	partly the depository's lien on a depository account.
259	259	(d) Subject to a lien created as provided by this section,
260	260	the depository shall recognize the lawful pledge to a third party by
261	261	a depository account holder of the depository account holder's
262	262	rights, interests, and entitlements in and to a depository account
263	263	as an intangible asset. On the satisfaction of other requirements
264	264	of law in respect of the perfection and enforcement of a pledge of
265	265	that type, the depository shall take all steps reasonably necessary
266	266	and appropriate to effectuate on the depository's books any
267	267	transfer of a depository account or of all or part of a depository
268	268	account balance to the account of the secured party on the
269	269	successful enforcement of the pledge.
270	270	Sec. 2116.015. DEPOSITORY ACCOUNT AS LEGAL INVESTMENT.
271	271	(a) The following persons may invest the person's money in a
272	272	depository account by purchasing precious metals and depositing the
273	273	precious metals with the depository or a depository agent:
274	274	(1) a fiduciary, including an administrator,
275	275	executor, custodian, guardian, or trustee;
276	276	(2) a political subdivision of this state or an
277	277	instrumentality of this state;
278	278	(3) a business or nonprofit corporation;
279	279	(4) a charitable or educational corporation or
280	280	association; or
281	281	(5) a financial institution, including a bank, savings
282	282	and loan association, or credit union.
283	283	(b) An investment by an insurance company in a depository
284	284	account is eligible to be applied as a credit against taxes payable
285	285	under Chapters 221 and 222, Insurance Code, in accordance with
286	286	rules adopted by the comptroller after consultation with the
287	287	commissioner of insurance.
288	288	(c) An investment by a school district in a depository
289	289	account may be made instead of an investment as provided by Section
290	290	45.102, Education Code, and the depository may be used by a district
291	291	instead of a depository bank for the purposes of Subchapter G,
292	292	Chapter 45, Education Code.
293	293	Sec. 2116.016. APPLICABILITY OF ESTATES CODE. The
294	294	applicable provisions of Chapters 111, 112, and 113, Estates Code,
295	295	govern a depository account.
296	296	Sec. 2116.017. PLEDGE OF JOINTLY HELD DEPOSITORY ACCOUNT.
297	297	(a) Unless a term of the depository account provides otherwise, a
298	298	person on whose signature precious metals may be withdrawn from a
299	299	depository account that is jointly held in the names of two or more
300	300	persons may, by a signed pledge, pledge and transfer to the
301	301	depository or to a third party all or part of the account.
302	302	(b) A pledge made as described by Subsection (a) does not
303	303	sever or terminate the joint and survivorship ownership of the
304	304	account, to the extent applicable to the account before the pledge.
305	305	Sec. 2116.018. DEPOSITORY ACCOUNT HELD BY FIDUCIARY.
306	306	(a) The depository or a depository agent may accept a depository
307	307	account in the name of a fiduciary, including an administrator,
308	308	executor, custodian, guardian, or trustee, for a named beneficiary.
309	309	(b) A fiduciary may open, add to, or withdraw precious
310	310	metals from an account described by Subsection (a).
311	311	(c) Except as otherwise provided by law, a payment or
312	312	delivery to a fiduciary or an acquittance signed by the fiduciary to
313	313	whom a payment or delivery is made is a discharge of the depository
314	314	for the payment or delivery.
315	315	(d) After a person who holds a depository account in a
316	316	fiduciary capacity dies, the depository may pay or deliver to the
317	317	beneficiary of the account the quantity of precious metals
318	318	represented by the balance in the depository account, plus other
319	319	rights relating to the depository account, wholly or partly, if the
320	320	depository has no written notice or order of the probate court of:
321	321	(1) a revocation or termination of the fiduciary
322	322	relationship; or
323	323	(2) any other disposition of the beneficial estate.
324	324	(e) The depository has no further liability for a payment
325	325	made or right delivered under Subsection (d).
326	326	Sec. 2116.019. DEPOSITORY ACCOUNT HELD IN TRUST;
327	327	UNDISCLOSED TRUST INSTRUMENT. (a) If the depository opens a
328	328	depository account for a person claiming to be the trustee for
329	329	another person and the depository has no other notice of the
330	330	existence or terms of the trust other than a written claim against
331	331	the account:
332	332	(1) the person claiming to be the trustee, on the
333	333	person's signature, may withdraw precious metals from the account;
334	334	and
335	335	(2) if the person claiming to be the trustee dies, the
336	336	depository may pay or deliver the quantity of precious metals
337	337	represented by the balance in the account to the person for whom the
338	338	account was opened.
339	339	(b) The depository has no further liability for a payment or
340	340	delivery made as provided by Subsection (a).
341	341	Sec. 2116.020. POWER OF ATTORNEY; REVOCATION ON DEATH OR
342	342	INCOMPETENCY. (a) The depository shall recognize the authority of
343	343	an attorney-in-fact authorized in writing by a depository account
344	344	holder to manage or withdraw precious metals from the depository
345	345	account holder's depository account until the depository receives
346	346	written or actual notice of the revocation of that authority.
347	347	(b) For purposes of this section, written notice of the
348	348	death or adjudication of incompetency of a depository account
349	349	holder is considered to be written notice of revocation of the
350	350	authority of the account holder's attorney-in-fact.
351	351	Sec. 2116.021. TRANSACTIONS AND RELATIONSHIPS. The
352	352	depository shall enter into transactions and relationships with
353	353	bullion banks, depositories, dealers, central banks, sovereign
354	354	wealth funds, financial institutions, international
355	355	nongovernmental organizations, and other persons, located inside
356	356	or outside of this state or inside or outside of the United States,
357	357	as the comptroller determines to be prudent and suitable to
358	358	facilitate the operations of the depository and to further the
359	359	purposes of this chapter.
360	360	Sec. 2116.022. CERTAIN ACTIONS PROHIBITED. The depository
361	361	may not take any of the following actions, and any attempt by the
362	362	depository to take any of the following actions is void ab initio
363	363	and of no force or effect:
364	364	(1) entering into a precious metals leasing,
365	365	sale-leaseback, forward transaction, swap transaction, future
366	366	transaction, index transaction, or option on or other derivative of
367	367	any of those, whether in the nature of a cap transaction, floor
368	368	transaction, collar transaction, repurchase transaction, reverse
369	369	repurchase transaction, buy-and-sell-back transaction, securities
370	370	lending transaction, or other financial instrument or interest
371	371	intended to or having the effect of hedging or leveraging the
372	372	depository's holdings of precious metals, including any option
373	373	with respect to any of these transactions, or any combination of
374	374	these transactions, except that the limitation provided by this
375	375	subdivision does not apply to a transaction entered into to limit
376	376	the depository's exposure to post-signature price risks associated
377	377	with executory agreements to purchase or sell precious metals in
378	378	the ordinary course of depository operations and does not apply to
379	379	policies of insurance purchased to insure against ordinary casualty
380	380	risks such as theft, damage or destruction, loss during shipment,
381	381	or similar risks;
382	382	(2) crediting the depository account balances of a
383	383	depository account holder, or disposing of any precious metals, if
384	384	to do so would cause the aggregate depository account balances with
385	385	respect to any precious metal represented by all depository
386	386	accounts to exceed the aggregate quantities of such precious metal
387	387	held by or for the benefit of the depository and the depository's
388	388	depository agents;
389	389	(3) entering into or maintaining a deposit, trust, or
390	390	similar relationship for the custody of precious metals by a third
391	391	party outside this state, directly or indirectly, for the account
392	392	or benefit of the depository if the comptroller by rule establishes
393	393	that:
394	394	(A) the custody or intermediary arrangements in
395	395	question do not meet the comptroller's standards of safety,
396	396	security, and liquidity; or
397	397	(B) except in those cases where such relationship
398	398	may be incidental to the performance of or preparation for purchase
399	399	and sale transactions with counterparties located outside of this
400	400	state, suitable alternate arrangements for physical custody of the
401	401	precious metals inside this state have been established and are
402	402	available;
403	403	(4) extending credit to a person, including credit
404	404	secured by a depository account or other assets, except an
405	405	extension of credit incidental to the performance of the functions
406	406	and responsibilities otherwise provided by this chapter; or
407	407	(5) engaging in a business or activity that, if
408	408	conducted by a private person, would be subject to regulation in
409	409	this state as a banking or savings and loan function.
410	410	Sec. 2116.023. CONFISCATIONS, REQUISITIONS, SEIZURES, AND
411	411	OTHER ACTIONS VOID. (a) A purported confiscation, requisition,
412	412	seizure, or other attempt to control the ownership, disposition, or
413	413	proceeds of a withdrawal, transfer, liquidation, or settlement of a
414	414	depository account, including the precious metals represented by
415	415	the balance of a depository account, if effected by a governmental
416	416	or quasi-governmental authority other than an authority of this
417	417	state or by a financial institution or other person acting on behalf
418	418	of or pursuant to a directive or authorization issued by a
419	419	governmental or quasi-governmental authority other than an
420	420	authority of this state, in the course of a generalized declaration
421	421	of illegality or emergency relating to the ownership, possession,
422	422	or disposition of one or more precious metals, contracts, or other
423	423	rights to the precious metals or contracts or derivatives of the
424	424	ownership, possession, disposition, contracts, or other rights, is
425	425	void ab initio and of no force or effect.
426	426	(b) The depository in the case of receiving notice of a
427	427	purported confiscation, requisition, seizure, or other attempt to
428	428	control the ownership, disposition, or proceeds of a withdrawal,
429	429	transfer, liquidation, or settlement of a depository account,
430	430	including the precious metals represented by the balance of a
431	431	depository account, effected by a governmental or
432	432	quasi-governmental authority other than an authority of this state
433	433	or by a financial institution or other person acting on behalf of or
434	434	pursuant to a directive or authorization issued by a governmental
435	435	or quasi-governmental authority other than an authority of this
436	436	state, in the course of a generalized declaration of illegality or
437	437	emergency relating to the ownership, possession, or disposition of
438	438	one or more precious metals, contracts, or other rights to the
439	439	precious metals or contracts or derivatives of the ownership,
440	440	possession, disposition, contracts, or other rights, may not
441	441	recognize the governmental or quasi-governmental authority,
442	442	financial institution, or other person acting as the lawful
443	443	successor of the registered holder of a depository account in
444	444	question.
445	445	(c) On receipt of notice of any transaction described by
446	446	Subsection (a), with respect to all or any portion of the balance of
447	447	a depository account, the depository shall suspend withdrawal
448	448	privileges associated with the balances of the depository account
449	449	until suitable substitute arrangements may be effected in
450	450	accordance with rules of the comptroller to enable the registered
451	451	account holder to take delivery of the precious metals represented
452	452	by the account balances in question. A voluntary transfer of a
453	453	depository account balance or of a depository account among
454	454	depository account holders may continue to take place unaffected by
455	455	the suspension, and the depository shall recognize to the full
456	456	extent authorized by this chapter and rules adopted under this
457	457	chapter.
458	458	Sec. 2116.024. OFFICIAL EXCHANGE RATES. The comptroller by
459	459	rule shall establish the references by which the official exchange
460	460	rate for pricing precious metals transactions in terms of United
461	461	States dollars or other currency must be established at the time of
462	462	a depository transaction. The comptroller shall establish
463	463	procedures and facilities through which the rates are made
464	464	discoverable at all reasonable times by system participants, both
465	465	on a real-time basis and retrospectively.
466	466	Sec. 2116.025. FACILITATION OF ACCOUNTING AND REPORTING OF
467	467	TAXABLE GAINS. The comptroller by rule shall establish procedures
468	468	and requirements for the depository and depository agents designed
469	469	to minimize the burden to system participants of accounting for and
470	470	reporting taxable gains and losses arising out of depository
471	471	transactions as denominated in United States dollars or another
472	472	currency.
473	473	Sec. 2116.026. ANNUAL REPORT. The comptroller shall submit
474	474	to the governor and the legislature a report on the status,
475	475	condition, operations, and prospects for the depository and
476	476	depository participation each year not later than September 30.
477	477	SUBCHAPTER B. DEPOSITORY AGENTS
478	478	Sec. 2116.051. USE OF DEPOSITORY AGENTS. The depository
479	479	shall use private, independently managed firms and institutions
480	480	licensed as depository agents as intermediaries to conduct retail
481	481	transactions in bullion and specie on behalf of the depository with
482	482	current and prospective depository account holders. In addition to
483	483	licensing requirements for a depository agent provided by Chapter
484	484	151, Finance Code, and rules adopted under that chapter, the
485	485	comptroller by rule may impose additional requirements to qualify a
486	486	depository agent to conduct transactions or take other action on
487	487	behalf of the depository.
488	488	Sec. 2116.052. ELECTRONIC INFORMATION SHARING SYSTEMS AND
489	489	PROCESSES. The comptroller by rule shall require a depository
490	490	agent to maintain suitable systems and processes for electronic
491	491	information sharing and communication with the comptroller and the
492	492	depository to ensure that all transactions effected on behalf of
493	493	the depository are reported to and integrated into the depository's
494	494	records not later than 11:59:59 p.m. on the date of each
495	495	transaction.
496	496	Sec. 2116.053. PERIODIC REPORTS. A depository agent shall
497	497	submit monthly, quarterly, and annual reports of all depository
498	498	transactions not later than the 15th day of the month following the
499	499	expiration of the period with respect to which such report is
500	500	submitted. The report must contain information and be in a form and
501	501	format as rules of the comptroller require.
502	502	SECTION 2. Section 151.002(a), Finance Code, is amended to
503	503	read as follows:
504	504	(a) This section defines general terms that apply to an
505	505	applicant for or holder of a money services license issued under
506	506	this chapter, regardless of whether the license is a money
507	507	transmission license, [or] a currency exchange license, or a
508	508	depository agent license. Additional terms that apply specifically
509	509	to money transmission are defined in Section 151.301. Additional
510	510	terms that apply specifically to currency exchange are defined in
511	511	Section 151.501. Additional terms that apply specifically to
512	512	depository agents are defined in Section 151.851.
513	513	SECTION 3. Section 151.002(b), Finance Code, is amended by
514	514	adding Subdivisions (9-a), (9-b), and (9-c) and amending
515	515	Subdivisions (11) and (14) to read as follows:
516	516	(9-a) "Depository agent" has the meaning assigned by
517	517	Section 151.851.
518	518	(9-b) "Depository agent license" means a license
519	519	issued under Subchapter J.
520	520	(9-c) "Depository agent services" means services
521	521	rendered to the general public for or on behalf of the Texas Bullion
522	522	Depository in the nature of purchasing, selling, transferring,
523	523	accepting, transporting, delivering, or otherwise dealing in
524	524	precious metals bullion or specie in connection with the creation,
525	525	transfer, clearing, settlement, or liquidation of the rights and
526	526	interests of a depository account holder and a direct or indirect
527	527	transferee of a depository account holder, as those terms are
528	528	defined by Subchapter J. The term "depository agent services" does
529	529	not include:
530	530	(A) participation as a party or counterparty to a
531	531	transaction, including an agreement with respect to a transaction,
532	532	in or in connection with a contract for the purchase or sale of a
533	533	person's rights and interests as a depository account holder, as a
534	534	cash contract for present delivery, a cash contract for deferred
535	535	shipment or delivery, or a contract for future delivery, where the
536	536	underlying deliverable consists of the depository account holder's
537	537	interest in the depository account, rather than the underlying
538	538	precious metal represented by the depository account balance;
539	539	(B) the opening, transfer, settlement, or
540	540	liquidation of any derivative of a contract described by Paragraph
541	541	(A), including a forward transaction, swap transaction, currency
542	542	transaction, future transaction, index transaction, or option on or
543	543	other derivative of a transaction of any of those types, in the
544	544	nature of a cap transaction, floor transaction, collar transaction,
545	545	repurchase transaction, reverse repurchase transaction,
546	546	buy-and-sell-back transaction, securities lending transaction, or
547	547	other financial instrument or interest, including an option with
548	548	respect to a transaction, or any combination of these transactions;
549	549	or
550	550	(C) the rendition of services exclusively in
551	551	support of the opening, transfer, settlement, or liquidation of
552	552	transaction derivatives described by Paragraph (B) through a
553	553	central counterparty, such as those customarily rendered by a
554	554	clearinghouse, clearing association, or clearing corporation, or
555	555	through an interbank payment system, physical or electronic trading
556	556	facility, broker or brokerage firm, or similar entity, facility,
557	557	system, or organization.
558	558	(11) "License holder" means a person that holds a
559	559	money transmission license, [or] a currency exchange license, or a
560	560	depository agent license.
561	561	(14) "Money services" means money transmission, [or]
562	562	currency exchange, or depository agent services.
563	563	SECTION 4. Section 151.003, Finance Code, is amended to
564	564	read as follows:
565	565	Sec. 151.003. EXCLUSIONS. Subject to Subchapter J, the
566	566	[The] following persons are not required to be licensed under this
567	567	chapter:
568	568	(1) the United States or an instrumentality of the
569	569	United States, including the United States Post Office or a
570	570	contractor acting on behalf of the United States Post Office;
571	571	(2) a state or an agency, political subdivision, or
572	572	other instrumentality of a state;
573	573	(3) a federally insured financial institution, as that
574	574	term is defined by Section 201.101, that is organized under the laws
575	575	of this state, another state, or the United States;
576	576	(4) a foreign bank branch or agency in the United
577	577	States established under the federal International Banking Act of
578	578	1978 (12 U.S.C. Section 3101 et seq.);
579	579	(5) a person acting as an agent for an entity excluded
580	580	under Subdivision (3) or (4), to the extent of the person's actions
581	581	in that capacity, provided that:
582	582	(A) the entity is liable for satisfying the money
583	583	services obligation owed to the purchaser on the person's receipt
584	584	of the purchaser's money; and
585	585	(B) the entity and person enter into a written
586	586	contract that appoints the person as the entity's agent and the
587	587	person acts only within the scope of authority conferred by the
588	588	contract;
589	589	(6) a person that, on behalf of the United States or a
590	590	department, agency, or instrumentality of the United States, or a
591	591	state or county, city, or any other governmental agency or
592	592	political subdivision of a state, provides electronic funds
593	593	transfer services of governmental benefits for a federal, state,
594	594	county, or local governmental agency;
595	595	(7) a person that acts as an intermediary on behalf of
596	596	and at the direction of a license holder in the process by which the
597	597	license holder, after receiving money or monetary value from a
598	598	purchaser, either directly or through an authorized delegate,
599	599	transmits the money or monetary value to the purchaser's designated
600	600	recipient, provided that the license holder is liable for
601	601	satisfying the obligation owed to the purchaser;
602	602	(8) an attorney or title company that in connection
603	603	with a real property transaction receives and disburses domestic
604	604	currency or issues an escrow or trust fund check only on behalf of a
605	605	party to the transaction;
606	606	(9) a person engaged in the business of currency
607	607	transportation who is both a registered motor carrier under Chapter
608	608	643, Transportation Code, and a licensed armored car company or
609	609	courier company under Chapter 1702, Occupations Code, provided that
610	610	the person does not engage in the money transmission or currency
611	611	exchange business or depository agent services business without a
612	612	license issued under this chapter; and
613	613	(10) any other person, transaction, or class of
614	614	persons or transactions exempted by commission rule or any other
615	615	person or transaction exempted by the commissioner's order on a
616	616	finding that the licensing of the person is not necessary to achieve
617	617	the purposes of this chapter.
618	618	SECTION 5. Section 151.201, Finance Code, is amended to
619	619	read as follows:
620	620	Sec. 151.201. SCOPE. This subchapter sets out the general
621	621	qualifications and provisions that apply to a money services
622	622	license, regardless of whether the license is a money transmission
623	623	license, [or] a currency exchange license, or a depository agent
624	624	license. Subchapters D and E set forth the additional
625	625	qualifications and provisions that apply specifically to a money
626	626	transmission license. Subchapter F sets forth the additional
627	627	qualifications and provisions that apply specifically to a currency
628	628	exchange license. Subchapter J sets forth the additional
629	629	qualifications and provisions that apply specifically to a
630	630	depository agent license.
631	631	SECTION 6. Sections 151.207(a), (b), and (d), Finance Code,
632	632	are amended to read as follows:
633	633	(a) If a license holder does not continue to meet the
634	634	qualifications or satisfy the requirements that apply to an
635	635	applicant for a new money transmission license, [or] currency
636	636	exchange license, or depository agent license, as applicable, the
637	637	commissioner may suspend or revoke the license holder's license.
638	638	(b) In addition to complying with Subsection (a), a license
639	639	holder must annually:
640	640	(1) pay a license fee in an amount established by
641	641	commission rule; and
642	642	(2) submit a report that is under oath, is in the form
643	643	and medium required by the commissioner, and contains:
644	644	(A) if the license is a money transmission
645	645	license or depository agent license, an audited unconsolidated
646	646	financial statement dated as of the last day of the license holder's
647	647	fiscal year that ended in the immediately preceding calendar year;
648	648	(B) if the license is a currency exchange
649	649	license, a financial statement, audited or unaudited, dated as of
650	650	the last day of the license holder's fiscal year that ended in the
651	651	immediately preceding calendar year; and
652	652	(C) documentation and certification, or any
653	653	other information the commissioner reasonably requires to
654	654	determine the security, net worth, permissible investments, and
655	655	other requirements the license holder must satisfy and whether the
656	656	license holder continues to meet the qualifications and
657	657	requirements for licensure.
658	658	(d) If the license holder fails to submit the completed
659	659	annual report and pay the annual license fee and any late fee due
660	660	within the time prescribed by Subsection (c)(1), the license
661	661	expires, and the license holder must cease and desist from engaging
662	662	in the business of money transmission, [or] currency exchange, or
663	663	depository agent services, as applicable, as of that date. The
664	664	expiration of a license is not subject to appeal.
665	665	SECTION 7. Section 151.602(a), Finance Code, is amended to
666	666	read as follows:
667	667	(a) A license holder must prepare, maintain, and preserve
668	668	the following books, accounts, and other records for at least five
669	669	years or another period as may be prescribed by rule of the
670	670	commission:
671	671	(1) a record of each money transmission transaction,
672	672	[or] currency exchange transaction, or depository agent services
673	673	transaction, as applicable;
674	674	(2) a general ledger posted in accordance with
675	675	generally accepted accounting principles containing all asset,
676	676	liability, capital, income, and expense accounts, unless directed
677	677	otherwise by the commissioner;
678	678	(3) bank statements and bank reconciliation records;
679	679	(4) all records and reports required by applicable
680	680	state and federal law, including the reporting and recordkeeping
681	681	requirements imposed by the Bank Secrecy Act, the USA PATRIOT ACT,
682	682	and Chapter 271, and other federal and state laws pertaining to
683	683	money laundering, drug trafficking, or terrorist funding; and
684	684	(5) any other records required by commission rule or
685	685	reasonably requested by the commissioner to determine compliance
686	686	with this chapter.
687	687	SECTION 8. Section 151.603, Finance Code, is amended by
688	688	adding Subsection (c-1) to read as follows:
689	689	(c-1) A depository agent license holder shall prepare
690	690	written reports and statements as follows:
691	691	(1) the renewal report required by Section
692	692	151.207(b)(2), including an audited unconsolidated financial
693	693	statement that is dated as of the last day of the license holder's
694	694	fiscal year that ended in the immediately preceding calendar year;
695	695	(2) a quarterly interim financial statement and report
696	696	regarding the permissible investments required to be maintained
697	697	under applicable rules that reflect the license holder's financial
698	698	condition and permissible investments as of the last day of the
699	699	calendar quarter to which the statement and report relate and that
700	700	are prepared not later than the 45th day after the last day of the
701	701	calendar quarter; and
702	702	(3) any other report required by commission rule or
703	703	reasonably requested by the commissioner to determine compliance
704	704	with this chapter.
705	705	SECTION 9. Section 151.604(b), Finance Code, is amended to
706	706	read as follows:
707	707	(b) A license holder must file a written report with the
708	708	commissioner not later than 24 hours after the license holder knows
709	709	or has reason to know of:
710	710	(1) the filing of a petition by or against the license
711	711	holder for bankruptcy or reorganization;
712	712	(2) the filing of a petition by or against the license
713	713	holder for receivership, the commencement of any other judicial or
714	714	administrative proceeding for its dissolution or reorganization,
715	715	or the making of a general assignment for the benefit of the license
716	716	holder's creditors;
717	717	(3) the institution of a proceeding to revoke or
718	718	suspend the license holder's license, or to enjoin or otherwise
719	719	require the license holder to cease and desist from engaging in an
720	720	activity related to a business activity that, if conducted in this
721	721	state, would be subject to this chapter [money transmission], by a
722	722	state or country in which the license holder engages in business or
723	723	is licensed;
724	724	(4) the felony indictment or conviction of the license
725	725	holder or a principal of, person in control of, responsible
726	726	individual of, or authorized delegate of the license holder for an
727	727	offense identified in Section 151.202(e);
728	728	(5) the cancellation or other impairment of the
729	729	license holder's security; or
730	730	(6) the inability to meet the license holder's
731	731	transmission obligations under this chapter for a period of 24
732	732	hours or longer.
733	733	SECTION 10. Chapter 151, Finance Code, is amended by adding
734	734	Subchapter J to read as follows:
735	735	SUBCHAPTER J. DEPOSITORY AGENT LICENSE
736	736	Sec. 151.851. DEFINITIONS. In this subchapter, "bullion,"
737	737	"deposit," "depository," "depository account," "depository account
738	738	holder," "depository agent," "precious metal," and "specie" have
739	739	the meanings assigned by Section 2116.001, Government Code.
740	740	Sec. 151.852. APPLICABILITY TO DEPOSITORY AGENT SERVICES.
741	741	(a) Notwithstanding any other provision of this chapter, a money
742	742	service that constitutes both a depository agent service and a
743	743	money transmission service, or both a depository agent service and
744	744	a currency exchange service, for purposes of this chapter
745	745	constitutes a depository agent service only.
746	746	(b) A depository agent service described by Subsection (a)
747	747	is not subject to a provision of this chapter applicable uniquely to
748	748	money transmission services or currency exchange services.
749	749	(c) A person who renders a service that constitutes a
750	750	depository agent service, including a depository agent service
751	751	described by Subsection (a), and renders another service that
752	752	constitutes money transmission or currency exchange service only,
753	753	is subject to the requirements of this chapter applicable to each
754	754	type of service rendered.
755	755	Sec. 151.853. LICENSE REQUIRED. (a) A person may not
756	756	engage in the business of rendering depository agent services or
757	757	advertise, solicit, or hold itself out as a person that engages in
758	758	the business of depository agent services unless the person:
759	759	(1) is licensed under this subchapter and has received
760	760	the requisite certifications from the comptroller of its
761	761	facilities, systems, processes, and procedures as required by
762	762	Chapter 2116, Government Code, or rules adopted under that chapter;
763	763	or
764	764	(2) is exempted from licensing requirements under
765	765	Section 151.003(2).
766	766	(b) Notwithstanding any other provision of this chapter, a
767	767	person described by Section 151.003(1), (6), (7), (8), or (9) is not
768	768	eligible for a license under this subchapter.
769	769	(c) For purposes of this chapter:
770	770	(1) a person engages in the business of depository
771	771	agent services if the person renders a depository agent service,
772	772	regardless of whether:
773	773	(A) compensation is sought or received for the
774	774	service, directly or indirectly; and
775	775	(B) the service is incidental to any other
776	776	business in which the person is primarily engaged; and
777	777	(2) a person solicits, advertises, or holds the person
778	778	out as a person that engages in the business of depository agent
779	779	services if the person represents that the person will conduct
780	780	depository agent services.
781	781	(d) Notwithstanding Subsection (c), a person does not
782	782	engage in the business of depository agent services by engaging in a
783	783	transaction for the person's own depository account or for the
784	784	account of another person acting as a fiduciary that would
785	785	constitute depository agent services if conducted for another
786	786	person.
787	787	(e) A depository agent license holder may engage in
788	788	depository agent services business at one or more locations in this
789	789	state owned directly or indirectly by the license holder under a
790	790	single license.
791	791	Sec. 151.854. ADDITIONAL QUALIFICATIONS. In addition to
792	792	the general qualifications for licensure set forth in Section
793	793	151.202, an applicant for a depository agent license must
794	794	demonstrate to the satisfaction of the commissioner that:
795	795	(1) the applicant has and will maintain the
796	796	capitalization, minimum net worth, and other applicable financial
797	797	requirements established by rules of the comptroller;
798	798	(2) the applicant's financial condition will enable
799	799	the applicant to safely and soundly engage in the business of
800	800	depository agent services; and
801	801	(3) the applicant does not engage in any activity or
802	802	practice that adversely affects the applicant's safety and
803	803	soundness.
804	804	Sec. 151.855. APPLICATION AND ACCOMPANYING FEE,
805	805	STATEMENTS, AND SECURITY. (a) An applicant for a depository agent
806	806	license must submit an application in accordance with Section
807	807	151.203.
808	808	(b) At the time an application for a depository agent
809	809	license is submitted, an applicant must file with the department:
810	810	(1) an application fee in the amount established by
811	811	commission rule;
812	812	(2) audited financial statements that are
813	813	satisfactory to the commissioner for purposes of determining
814	814	whether the applicant has the minimum net worth required under
815	815	applicable rules and is likely to maintain the required minimum net
816	816	worth if a license is issued; and
817	817	(3) security in the amount of $500,000 that meets the
818	818	requirements of applicable rules and an undertaking or agreement
819	819	that the applicant will increase or supplement the security to
820	820	equal the aggregate security required by the commissioner before
821	821	the issuance of the license and the start of operations.
822	822	Sec. 151.856. INVESTIGATION AND ACTION ON APPLICATION. The
823	823	commissioner shall investigate the applicant and act on the
824	824	application in accordance with Sections 151.204 and 151.205.
825	825	Sec. 151.857. TEMPORARY LICENSE. (a) The commissioner may
826	826	issue a temporary depository agent license to a person that is
827	827	engaging in depository agent services, but has not obtained a
828	828	license under this subchapter, if the person:
829	829	(1) certifies in writing that the person qualifies for
830	830	the license and will submit a completed license application not
831	831	later than the 60th day after the date the temporary license is
832	832	issued;
833	833	(2) submits a recent financial statement acceptable to
834	834	the commissioner that reflects the minimum net worth required under
835	835	applicable regulations;
836	836	(3) provides security that meets the requirements
837	837	specified by the commissioner, but not less than $500,000;
838	838	(4) agrees in writing that, until a permanent license
839	839	is issued, the person will engage only in activities being
840	840	conducted at existing locations; and
841	841	(5) pays the application fee and a nonrefundable
842	842	temporary license fee in the amount established by commission rule.
843	843	(b) The effective period for a temporary depository agent
844	844	license may not exceed 90 days after the date the license is issued.
845	845	The commissioner may extend the effective period for not more than
846	846	30 days if necessary to complete the processing of a timely filed
847	847	application for which approval is likely.
848	848	Sec. 151.858. LIABILITY OF LICENSE HOLDER. A depository
849	849	agent license holder is liable for the delivery to or for the
850	850	account of the depository or each depositor, as applicable, of all
851	851	bullion, specie, and money payable or deliverable in connection
852	852	with the transactions in which the license holder engages on behalf
853	853	of the depository.
854	854	Sec. 151.859. TRUST IMPOSED. (a) A depository agent
855	855	license holder shall hold in trust all cash, bullion, specie, and
856	856	other assets received in the ordinary course of its business until
857	857	the time the delivery obligation is discharged. A trust resulting
858	858	from the depository agent license holder's actions is in favor of
859	859	the persons to whom such delivery obligations are owed.
860	860	(b) If a depository agent license holder commingles any
861	861	money or other property received for delivery with money or other
862	862	property owned or controlled by the depository agent license
863	863	holder, all commingled money and other property are impressed with
864	864	a trust as provided by this section in an amount equal to the amount
865	865	of money or property received for delivery, less the amount of fees
866	866	paid for the delivery.
867	867	(c) If the commissioner revokes a depository agent license,
868	868	all money and other property held in trust by the depository agent
869	869	license holder is assigned to the commissioner for the benefit of
870	870	the persons to whom the related delivery obligations are owed.
871	871	(d) Money or other property of a depository agent license
872	872	holder impressed with a trust under this section may not be
873	873	considered an asset or property of the license holder in the event
874	874	of bankruptcy, receivership, or a claim against the license holder
875	875	unrelated to the license holder's obligations under this chapter.
876	876	Sec. 151.860. DISCLOSURE REQUIREMENTS. (a) A depository
877	877	agent license holder's name and mailing address or telephone number
878	878	must be provided to the purchaser in connection with each
879	879	depository agent services transaction conducted by the depository
880	880	agent license holder.
881	881	(b) A depository agent license holder receiving currency or
882	882	an instrument payable in currency for transmission must comply with
883	883	Chapter 278.
884	884	SECTION 11. This Act takes effect immediately if it
885	885	receives a vote of two-thirds of all the members elected to each
886	886	house, as provided by Section 39, Article III, Texas Constitution.
887	887	If this Act does not receive the vote necessary for immediate
888	888	effect, this Act takes effect September 1, 2015.