Texas 2017 - 85th Regular

Texas House Bill HB3169 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	85R21070 MK/SMT-F
2	1		By: Capriglione H.B. No. 3169
3		-	Substitute the following for H.B. No. 3169:
4		-	By: Dean C.S.H.B. No. 3169
5	2
6	3
7	4		A BILL TO BE ENTITLED
8	5		AN ACT
9	6		relating to the operation and administration of the Texas Bullion
10	7		Depository, to depository agents, to the appropriation of money
11	8		from the fees, charges, penalties, and other amounts related to the
12	9		depository and deposited to the general revenue fund for that
13	10		purpose, and to the provision of a related ad valorem tax exemption.
14	11		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
15	12		SECTION 1. Sections 2116.001(4), (9), and (10), Government
16	13		Code, are amended to read as follows:
17	14		(4) "Deposit" means the establishment of an executory
18	15		obligation of the depository to deliver to the order of the person
19	16		establishing with the depository the obligation, on demand, a
20	17		quantity of a specified precious metal, in bullion, specie, or
21	18		other physical form [a combination of bullion and specie], equal to
22	19		the quantity of the same precious metal delivered by or on behalf of
23	20		the depositor into the custody of:
24	21		(A) the depository; or
25	22		(B) a depository agent.
26	23		(9) "Depository agent" means a person licensed in
27	24		accordance with this chapter to serve as an agent on behalf of a
28	25		current or prospective [intermediary between the] depository
29	26		account holder [and a retail customer] in making a retail
30	27		transaction in precious metals bullion or specie.
31	28		(10) "Precious metal" means a metal, including gold,
32	29		silver, and platinum group metals, including platinum, palladium,
33	30		ruthenium, osmium, iridium, and rhodium, that:
34	31		(A) bears a high value-to-weight ratio relative
35	32		to common industrial metals; and
36	33		(B) may be [customarily is] formed into bullion,
37	34		[or] specie, or other physical form.
38	35		SECTION 2. Section 2116.002, Government Code, is amended by
39	36		amending Subsection (a) and adding Subsections (c) through (i) to
40	37		read as follows:
41	38		(a) The Texas Bullion Depository is established as a program
42	39		[an agency of this state] in the office of the comptroller to
43	40		provide a bullion depository and services for the public benefit.
44	41		(c) The depository may establish and operate one or more
45	42		branch locations of the depository. Branch locations of the
46	43		depository are considered to be part of the depository.
47	44		(d) The depository may enter into contracts, as the
48	45		comptroller determines to be prudent and suitable, to facilitate
49	46		the operations of the depository and further the purposes of this
50	47		chapter.
51	48		(e) This state and the comptroller may not be held liable
52	49		for the depository or related activities of the depository. This
53	50		chapter may not be construed as creating financial or other
54	51		responsibilities for the depository to the state or to the
55	52		comptroller. This state does not pledge the full faith and credit
56	53		of this state for the benefit of the depository.
57	54		(f) Notwithstanding Chapter 2113, the depository may enter
58	55		into contracts and engage in marketing, the sale of promotional
59	56		items, advertising, and other activities to promote, market, and
60	57		advertise the depository. The comptroller may use appropriated
61	58		funds to pay for activities of the depository authorized under this
62	59		section.
63	60		(g) Notwithstanding any other provision of law, the
64	61		depository may enter into contracts for the design, manufacture,
65	62		marketing, and distribution of official commemorative items,
66	63		including coins or other items containing precious metal, to
67	64		promote, market, and advertise the depository. The depository shall
68	65		establish the purchase price for any commemorative items. The
69	66		comptroller may use appropriated funds to pay for depository
70	67		activities authorized by this subsection.
71	68		(h) The depository shall deposit any funds received from the
72	69		sale of commemorative items described by Subsection (g) to the
73	70		credit of the general revenue fund. Money deposited to the general
74	71		revenue fund under this subsection may be appropriated to the
75	72		comptroller to offset the costs of the implementation,
76	73		administration, promotion, marketing, advertising, and operation
77	74		of the depository.
78	75		(i) The comptroller may adopt rules necessary to implement
79	76		this chapter.
80	77		SECTION 3. Section 2116.003, Government Code, is amended to
81	78		read as follows:
82	79		Sec. 2116.003. DEPOSITORY ADMINISTRATION; ADMINISTRATOR.
83	80		(a) The depository is administered as a program [division] of the
84	81		office of the comptroller and under the direction and supervision
85	82		of a bullion depository administrator appointed by the comptroller
86	83		[with the advice and consent of the governor, lieutenant governor,
87	84		and senate].
88	85		(b) The administrator shall:
89	86		(1) administer, supervise, and direct the operations
90	87		and affairs of the depository and liaise with depository agents;
91	88		and
92	89		(2) liaise with the comptroller and other divisions of
93	90		the office of the comptroller to ensure that each transaction with
94	91		the depository that involves state money, that involves an agency,
95	92		a political subdivision, or another instrumentality of this state,
96	93		or that involves a private person is planned, administered, and
97	94		executed in a manner to achieve the purposes of this chapter.
98	95		(c) The administrator may appoint, subject to the approval
99	96		of the comptroller, a deputy administrator or other subordinate
100	97		officer or may employ staff as necessary and appropriate to the
101	98		efficient administration of the depository.
102	99		SECTION 4. Sections 2116.004(a) and (b), Government Code,
103	100		are amended to read as follows:
104	101		(a) The following are not available for legislative
105	102		appropriation:
106	103		(1) a deposit to the depository;
107	104		(2) precious metal [bullion or specie] held by or on
108	105		behalf of the depository or a depository agent;
109	106		(3) precious metal [bullion or specie] in transit to
110	107		or from the depository or a depository agent; and
111	108		(4) a receivable or other amount owed to the
112	109		depository in settlement of a transaction in precious metal
113	110		[bullion or specie].
114	111		(b) Precious metal [Bullion, specie,] and other assets
115	112		described by Subsection (a) are subject to redemption, liquidation,
116	113		or transfer exclusively to discharge an obligation of the
117	114		depository to depository account holders, depository agents,
118	115		bullion banks, financial institutions, or other intermediaries in
119	116		accordance with this chapter and rules adopted under this chapter.
120	117		SECTION 5. Section 2116.005, Government Code, is amended by
121	118		amending Subsections (a), (c), and (d) and adding Subsections (a-1)
122	119		and (f) to read as follows:
123	120		(a) The depository may receive a deposit of precious metal
124	121		[bullion or specie] from or on behalf of a person acting in the
125	122		person's own right, as trustee, or in another fiduciary capacity,
126	123		in accordance with rules adopted by the comptroller as appropriate
127	124		to:
128	125		(1) ensure compliance with law; and
129	126		(2) protect the interests of:
130	127		(A) the depository;
131	128		(B) depository account holders;
132	129		(C) this state and the agencies, political
133	130		subdivisions, and instrumentalities of this state; and
134	131		(D) the public at large.
135	132		(a-1) The comptroller shall develop standards and processes
136	133		for the shipping, handling, and deposit of precious metals to the
137	134		depository to ensure the integrity of and verify any precious
138	135		metals shipped to the depository for deposit.
139	136		(c) The comptroller [by rule] shall develop [adopt]
140	137		standards by which the quantities of precious metals deposited are
141	138		credited to a depositor's depository account by reference to the
142	139		particular form in which the metals were deposited, classified by
143	140		mint, denomination, weight, assay mark, or other indicator, as
144	141		applicable. The standards must conform to applicable national and
145	142		international standards of weights and measures.
146	143		(d) The comptroller [by rule] may, if the comptroller
147	144		determines that to do so is in the public interest, restrict the
148	145		forms in which deposits of precious metals may be made to those
149	146		forms that conveniently lend themselves to measurement and
150	147		accounting in units of troy ounces and standardized fractions of
151	148		troy ounces.
152	149		(f) A depository agent or other person who is acting on
153	150		behalf of an account holder or who is holding the deposits or funds
154	151		of an account holder may not commingle any deposits or funds
155	152		belonging to the depository agent or other person with the deposits
156	153		or funds of the account holder.
157	154		SECTION 6. Section 2116.006(b), Government Code, is amended
158	155		to read as follows:
159	156		(b) The depository shall make a delivery described by
160	157		Subsection (a) on demand by the presentment of a written demand
161	158		[suitable check, draft,] or digital electronic instruction to the
162	159		depository or a depository agent. The comptroller [by rule] shall
163	160		develop [adopt] the forms, standards, and processes through which
164	161		an order for delivery on demand may be made, presented, and honored.
165	162		SECTION 7. Section 2116.007, Government Code, is amended to
166	163		read as follows:
167	164		Sec. 2116.007. TRANSFER OF DEPOSITORY ACCOUNT BALANCE. (a)
168	165		The comptroller shall develop forms, standards, and processes by
169	166		which [In accordance with rules adopted under this chapter,] a
170	167		depository account holder may transfer any portion of the balance
171	168		of the holder's depository account by written demand [check,
172	169		draft,] or digital electronic instruction to another depository
173	170		account holder or to a person who at the time the transfer is
174	171		initiated is not a depository account holder.
175	172		(b) The depository shall adjust the depository account
176	173		balances of the depository accounts to reflect a transfer
177	174		transaction between depository account holders on presentment of
178	175		the written demand [check, draft,] or digital electronic [other]
179	176		instruction by reducing the payor's depository account balance and
180	177		increasing the depository account balance of the payee accordingly.
181	178		(c) If a depository account holder transfers to a payee who
182	179		is not a depository account holder any portion of the balance of the
183	180		holder's depository account, the depository may [shall] allow the
184	181		payee to establish a depository account by presentment of the
185	182		payor's written demand [check, draft,] or digital electronic
186	183		instruction to the depository or to a depository agent. The
187	184		depository shall credit a newly established account on behalf of
188	185		the payee and shall debit the payor's account accordingly.
189	186		SECTION 8. Section 2116.008(b), Government Code, is amended
190	187		to read as follows:
191	188		(b) The execution of a contract for a depository account
192	189		described by this section may be made [, as prescribed by rules
193	190		adopted under this chapter,] by electronic or digital transmission.
194	191		SECTION 9. The heading to Section 2116.009, Government
195	192		Code, is amended to read as follows:
196	193		Sec. 2116.009. ACCOUNT BALANCES [CAUSE OF ACTION FOR DENIAL
197	194		OF DEPOSIT LIABILITY].
198	195		SECTION 10. Section 2116.009, Government Code, is amended
199	196		by amending Subsection (b) and adding Subsections (b-1), (b-2),
200	197		and (b-3) to read as follows:
201	198		(b) The depository shall furnish depository account holders
202	199		with [depository's act of furnishing] an account statement or
203	200		passbook, whether in physical, digital, or electronic form[,
204	201		constitutes a denial of liability and the giving of such notice as
205	202		to any amount not shown on the statement or passbook].
206	203		(b-1) The depository account holder is responsible for:
207	204		(1) promptly examining each account statement
208	205		received from the depository; and
209	206		(2) giving notice of any discrepancy in the account
210	207		statement to the depository within the time frame established by
211	208		the comptroller.
212	209		(b-2) If a depository account holder does not report an
213	210		account balance discrepancy reflected on the account holder's
214	211		account statement or passbook in the appropriate time period
215	212		described by Subsection (b-1):
216	213		(1) the account holder is considered to have accepted
217	214		as accurate the account statement or passbook; and
218	215		(2) the depository account statement or passbook is
219	216		considered to be accurate.
220	217		(b-3) For purposes of this section, "account statement"
221	218		means a depository account holder's daily account balance, accessed
222	219		through the Internet website designated by the depository for that
223	220		purpose.
224	221		SECTION 11. Section 2116.010, Government Code, is amended
225	222		to read as follows:
226	223		Sec. 2116.010. FEES; SERVICE CHARGES; PAYMENTS; PENALTIES.
227	224		(a) The comptroller [by rule] may establish fees, service charges,
228	225		and penalties to be charged a depository account holder for a
229	226		service or activity regarding a depository account, including a fee
230	227		for an overdraft, an insufficient fund check or draft, or a stop
231	228		payment order.
232	229		(b) The comptroller may establish other fees and charges and
233	230		receive payments in the course of depository operations and
234	231		activities authorized by this chapter, including from transactions
235	232		and relationships authorized by Section 2116.021.
236	233		(c) The comptroller shall deposit revenue realized by the
237	234		depository under this section to the credit of the general revenue
238	235		fund.
239	236		(d) Money credited to the general revenue fund under this
240	237		section may be appropriated to the comptroller to offset the costs
241	238		of implementation, administration, promotion, marketing,
242	239		advertising, and operation of the depository.
243	240		SECTION 12. Section 2116.013, Government Code, is amended
244	241		to read as follows:
245	242		Sec. 2116.013. DEPOSITORY ACCOUNTS NOT INTEREST-BEARING.
246	243		The depository may not pay on a depository account or on any funds
247	244		held on behalf of a depository account holder:
248	245		(1) interest;
249	246		(2) an amount in the nature of interest; or
250	247		(3) a fee or other payment for the use or forbearance
251	248		of use of money, bullion, specie, or precious metals deposited to a
252	249		depository account.
253	250		SECTION 13. Subchapter A, Chapter 2116, Government Code, is
254	251		amended by adding Section 2116.0145 to read as follows:
255	252		Sec. 2116.0145. EXEMPTION FROM CREDITORS' CLAIMS. (a)
256	253		Deposits of bullion or specie held in the depository in accordance
257	254		with this chapter are exempt from claims of creditors, including
258	255		claims of creditors of a depository account holder or a successor in
259	256		interest of a depository account holder.
260	257		(b) Except as provided by Subsection (c), the rights of a
261	258		depository account holder in regard to any deposits of bullion or
262	259		specie held in the depository are exempt from attachment, levy,
263	260		garnishment, execution, and seizure for the satisfaction of any
264	261		debt, judgment, or claim against a depository account holder or
265	262		successor in interest of a depository account holder.
266	263		(c) This section does not apply to the claim of a creditor of
267	264		a depository account holder or a successor in interest of a
268	265		depository account holder for a debt, judgment, lien, or claim,
269	266		including a tax delinquency, asserted by or owed to:
270	267		(1) the state;
271	268		(2) a person who has perfected a pledge made under
272	269		Section 2116.014(d); or
273	270		(3) a person who is owed child support arrearages by
274	271		the depository account holder, reflected in a child support lien
275	272		notice that complies with the requirements of Section 157.313,
276	273		Family Code.
277	274		(d) The depository may take any necessary and appropriate
278	275		action to effectuate the transfer of a depository account, or all or
279	276		part of a depository account balance, to a creditor with a claim
280	277		described by Subsection (c).
281	278		(e) This section does not permit a debtor to exempt bullion
282	279		or specie held in a depository account from property of the estate
283	280		in a bankruptcy proceeding.
284	281		SECTION 14. Section 2116.021, Government Code, is amended
285	282		to read as follows:
286	283		Sec. 2116.021. TRANSACTIONS AND RELATIONSHIPS. The
287	284		depository may [shall] enter into transactions and relationships
288	285		with bullion banks, depositories, dealers, central banks, banks
289		-	approved by the Internal Revenue Service or ~~non-banks~~ acting as
	286	+	approved by the Internal Revenue Service or nonbanks acting as
290	287		custodians for individual retirement accounts, sovereign wealth
291	288		funds, financial institutions, precious metals exchanges,
292	289		international nongovernmental organizations, intermediaries, and
293	290		other persons, located inside or outside of this state or inside or
294	291		outside of the United States, as the comptroller determines to be
295	292		prudent and suitable to facilitate the operations of the depository
296	293		and to further the purposes of this chapter.
297	294		SECTION 15. Section 2116.023, Government Code, is amended
298	295		by amending Subsection (c) and adding Subsection (d) to read as
299	296		follows:
300	297		(c) On receipt of notice of any transaction described by
301	298		Subsection (a), with respect to all or any portion of the balance of
302	299		a depository account, and on direction of the attorney general, the
303	300		depository shall suspend withdrawal privileges associated with the
304	301		balances of the depository account until suitable substitute
305	302		arrangements may be effected in accordance with the representation
306	303		of the depository by the attorney general and rules of the
307	304		comptroller to enable the registered account holder to take
308	305		delivery of the precious metals represented by the account balances
309	306		in question. A voluntary transfer of a depository account balance
310	307		or of a depository account among depository account holders may
311	308		continue to take place unaffected by the suspension, and the
312	309		depository shall recognize the transfer to the full extent
313	310		authorized by this chapter, the representation of the depository by
314	311		the attorney general, and rules adopted under this chapter.
315	312		(d) On receipt of notice of any transaction described by
316	313		Subsection (a), the depository shall refer the notice to the
317	314		attorney general for representation, and the attorney general shall
318	315		represent the depository in any matter described by Subsection (a).
319	316		SECTION 16. Section 2116.024, Government Code, is amended
320	317		to read as follows:
321	318		Sec. 2116.024. OFFICIAL EXCHANGE RATES. The comptroller
322	319		[by rule] shall establish the references by which the official
323	320		exchange rate for pricing precious metals transactions in terms of
324	321		United States dollars or other currency must be established at the
325	322		time of a depository transaction. The comptroller shall establish
326	323		procedures and facilities through which the rates are made
327	324		discoverable at all reasonable times by system participants, both
328	325		on a real-time basis and retrospectively.
329	326		SECTION 17. Section 2116.025, Government Code, is amended
330	327		to read as follows:
331	328		Sec. 2116.025. FACILITATION OF ACCOUNTING AND REPORTING OF
332	329		TAXABLE GAINS. The comptroller [by rule] shall establish
333	330		procedures and requirements for the depository and depository
334	331		agents designed to minimize the burden to system participants of
335	332		accounting for and reporting taxable gains and losses arising out
336	333		of depository transactions as denominated in United States dollars
337	334		or another currency.
338	335		SECTION 18. Subchapter A, Chapter 2116, Government Code, is
339	336		amended by adding Sections 2116.027, 2116.028, and 2116.029 to read
340	337		as follows:
341	338		Sec. 2116.027. CONFIDENTIALITY OF RECORDS. (a) Except as
342	339		otherwise provided by Section 2116.028 and this section, the
343	340		depository's records are subject to public inspection to the extent
344	341		authorized by Chapter 552.
345	342		(b) The following information is confidential and is exempt
346	343		from disclosure under Chapter 552:
347	344		(1) records and information related to the
348	345		depository's physical security, information security, or
349	346		information designed to ensure the integrity and security of the
350	347		depository, including:
351	348		(A) access codes;
352	349		(B) passwords;
353	350		(C) signatures;
354	351		(D) specifications;
355	352		(E) technical details;
356	353		(F) operating procedures;
357	354		(G) locations; and
358	355		(H) financial information on expenditures for
359	356		depository security;
360	357		(2) records relating to individual accounts or to
361	358		current or prospective depository account holders that are in the
362	359		custody of the depository or in the custody of a vendor performing
363	360		services related to the depository;
364	361		(3) records related to setting depository fees,
365	362		service charges, penalties, or other charges or payments;
366	363		(4) records related to establishing standards under
367	364		Sections 2116.005(c) and (d); and
368	365		(5) operational information, or other information,
369	366		that would give advantage to competitors or bidders.
370	367		(c) Notwithstanding Subsection (b)(2), depository account
371	368		information may be disclosed:
372	369		(1) to a depository account holder regarding the
373	370		depository account holder's account;
374	371		(2) to a state or federal agency as necessary to
375	372		administer the program or as required by applicable law;
376	373		(3) to a vendor providing services to the depository
377	374		or to a current or prospective depository account holder;
378	375		(4) in response to a subpoena issued under applicable
379	376		law;
380	377		(5) if compiled as collective information that does
381	378		not include any identifying information about a person; or
382	379		(6) with the express written permission of a
383	380		depository account holder.
384	381		Sec. 2116.028. INTELLECTUAL PROPERTY. (a) The depository
385	382		may:
386	383		(1) apply for, register, secure, hold, and protect
387	384		under the laws of the United States or any state or nation:
388	385		(A) a patent for the invention, discovery, or
389	386		improvement of any process, machine, manufacture, or composition of
390	387		matter;
391	388		(B) a copyright for an original work of
392	389		authorship fixed in any tangible medium of expression, known or
393	390		later developed, from which it can be perceived, reproduced, or
394	391		otherwise communicated, either directly or with the aid of a
395	392		machine or device;
396	393		(C) a trademark, service mark, collective mark,
397	394		or certification mark for a word, name, symbol, device, or slogan
398	395		that the depository uses to identify and distinguish the
399	396		depository's goods and services from other goods and services; or
400	397		(D) other evidence of protection or exclusivity
401	398		issued for intellectual property;
402	399		(2) contract with a person for the reproduction,
403	400		public performance, display, distribution, advertising, sale,
404	401		lease, marketing, licensing, sale, use, or other distribution of
405	402		the depository's intellectual property;
406	403		(3) obtain under a contract described in Subdivision
407	404		(2) a royalty, license right, or other appropriate means of
408	405		securing reasonable compensation for the exercise of the
409	406		depository's intellectual property rights; and
410	407		(4) waive or reduce the amount of compensation secured
411	408		by contract under Subdivision (3) if the depository determines that
412	409		the waiver or reduction will:
413	410		(A) further a goal or mission of the depository;
414	411		and
415	412		(B) result in a net benefit to the depository.
416	413		(b) Intellectual property of the depository is excepted
417	414		from required disclosure under Chapter 552:
418	415		(1) beginning on the date the depository decides to
419	416		seek a patent, trademark, service mark, collective mark,
420	417		certification mark, or other evidence of protection of exclusivity
421	418		concerning the property; and
422	419		(2) ending on the date the depository receives a
423	420		decision on the depository's application for a patent, trademark,
424	421		service mark, collective mark, certification mark, or other
425	422		evidence of protection of exclusivity concerning the property.
426	423		(c) The comptroller shall deposit to the credit of the
427	424		general revenue fund revenue realized by the depository under this
428	425		section.
429	426		(d) Money credited to the general revenue fund under this
430	427		section may be appropriated to the comptroller to offset the costs
431	428		of implementation, administration, promotion, marketing,
432	429		advertising, and operation of the depository.
433	430		(e) The comptroller may establish intellectual property
434	431		policies.
435	432		Sec. 2116.029. ADVERTISING, SIGNAGE, AND DISCLOSURES BY
436	433		THIRD PARTIES. (a) In this section, "third party" means a person
437	434		who is authorized to provide a service relating to the depository,
438	435		including a depository agent, a person who enters into a
439	436		transactional or other relationship with the depository, or a
440	437		person selected to operate or provide services to the depository
441	438		under this chapter.
442	439		(b) Third party advertising, marketing, promotional or
443	440		written material, or signage created or used for commercial
444	441		purposes related to the depository, in written form or in any other
445	442		form, may not be used until the comptroller has approved its use.
446	443		(c) The comptroller may require that a third party who
447	444		creates advertising, marketing, promotional or written material,
448	445		or signage created or used for commercial purposes related to the
449	446		depository include certain approved disclosures or identifying
450	447		marks, as the commissioner determines to be appropriate, in the
451	448		entity's advertising, marketing, promotional or written material,
452	449		or signage.
453	450		SECTION 19. Section 2116.051, Government Code, is amended
454	451		to read as follows:
455	452		Sec. 2116.051. USE OF DEPOSITORY AGENTS. Current and
456	453		prospective [The] depository account holders may [shall] use
457	454		private, independently managed firms and institutions licensed as
458	455		depository agents [as intermediaries] to conduct [retail]
459	456		transactions in bullion and specie on behalf of [the depository
460	457		with] current and prospective depository account holders.
461	458		SECTION 20. Section 2116.052, Government Code, is amended
462	459		to read as follows:
463	460		Sec. 2116.052. ELECTRONIC INFORMATION SHARING SYSTEMS AND
464	461		PROCESSES. A [The comptroller by rule shall require a] depository
465	462		agent shall [to] maintain suitable systems and processes for
466	463		electronic information sharing and communication with the
467	464		comptroller and the depository to ensure that all transactions
468	465		effected on behalf of current and prospective [the] depository
469	466		account holders are reported to and integrated into the
470	467		depository's records not later than 11:59:59 p.m. on the date of
471	468		each transaction.
472	469		SECTION 21. Section 151.002(b)(9-c), Finance Code, is
473	470		amended to read as follows:
474	471		(9-c) "Depository agent services" means services
475	472		rendered [to the general public] for or on behalf of current or
476	473		prospective depository account holders of the Texas Bullion
477	474		Depository in the nature of purchasing, selling, transferring,
478	475		accepting, transporting, delivering, or otherwise dealing in
479	476		precious metals bullion or specie in connection with the creation,
480	477		transfer, clearing, settlement, or liquidation of the rights and
481	478		interests of a depository account holder and a direct or indirect
482	479		transferee of a depository account holder, as those terms are
483	480		defined by Subchapter J. The term "depository agent services" does
484	481		not include:
485	482		(A) participation as a party or counterparty to a
486	483		transaction, including an agreement with respect to a transaction,
487	484		in or in connection with a contract for the purchase or sale of a
488	485		person's rights and interests as a depository account holder, as a
489	486		cash contract for present delivery, a cash contract for deferred
490	487		shipment or delivery, or a contract for future delivery, where the
491	488		underlying deliverable consists of the depository account holder's
492	489		interest in the depository account, rather than the underlying
493	490		precious metal represented by the depository account balance;
494	491		(B) the opening, transfer, settlement, or
495	492		liquidation of any derivative of a contract described by Paragraph
496	493		(A), including a forward transaction, swap transaction, currency
497	494		transaction, future transaction, index transaction, or option on or
498	495		other derivative of a transaction of any of those types, in the
499	496		nature of a cap transaction, floor transaction, collar transaction,
500	497		repurchase transaction, reverse repurchase transaction,
501	498		buy-and-sell-back transaction, securities lending transaction, or
502	499		other financial instrument or interest, including an option with
503	500		respect to a transaction, or any combination of these transactions;
504	501		or
505	502		(C) the rendition of services exclusively in
506	503		support of the opening, transfer, settlement, or liquidation of
507	504		transaction derivatives described by Paragraph (B) through a
508	505		central counterparty, such as those customarily rendered by a
509	506		clearinghouse, clearing association, or clearing corporation, or
510	507		through an interbank payment system, physical or electronic trading
511	508		facility, broker or brokerage firm, or similar entity, facility,
512	509		system, or organization.
513	510		SECTION 22. Subchapter J, Chapter 151, Finance Code, is
514	511		amended by adding Section 151.8521 to read as follows:
515	512		Sec. 151.8521. LICENSE CATEGORIES; EXEMPTIONS FROM
516	513		LICENSING. (a) The commissioner, in consultation with and subject
517	514		to approval by the comptroller, shall create defined categories of
518	515		licenses for depository agents, with specific application
519	516		requirements for each different category of license. The licensing
520	517		categories created under this subsection may be differentiated on
521	518		the basis of the type and value of authorized precious metal
522	519		transactions for a depository agent in each category.
523	520		(b) Requirements for each category of depository agent
524	521		license created under Subsection (a) may differ on the basis of:
525	522		(1) capital and security requirements;
526	523		(2) insurance requirements;
527	524		(3) type of depository agent services provided;
528	525		(4) availability of safe and secure storage and
529	526		transport of precious metals;
530	527		(5) other licensing requirements; or
531	528		(6) qualifications, as appropriate, to fulfill the
532	529		requirements of Chapter 2116, Government Code.
533	530		(c) In adopting application requirements for the depository
534	531		agent license categories created by the commissioner under
535	532		Subsection (a), the commissioner shall ensure that the
536	533		requirements, including any licensing fees, enable qualified
537	534		individuals and firms to apply for a license and provide for the
538	535		safety and security of depository account holders and the
539	536		depository.
540	537		(d) The commissioner, in consultation with and subject to
541	538		the approval of the comptroller, shall determine whether any
542	539		person, transaction, or class of persons is exempt from depository
543	540		agent licensing under Section 151.003(10).
544	541		SECTION 23. Section 151.853(a), Finance Code, is amended to
545	542		read as follows:
546	543		(a) A person may not engage in the business of rendering
547	544		depository agent services or advertise, solicit, or hold itself out
548	545		as a person that engages in the business of depository agent
549	546		services unless the person:
550	547		(1) is licensed under this subchapter [and has
551	548		received the requisite certifications from the comptroller of its
552	549		facilities, systems, processes, and procedures as required by
553	550		Chapter 2116, Government Code, or rules adopted under that
554	551		chapter]; or
555	552		(2) is excluded from licensing requirements under
556	553		Section 151.003, or as otherwise determined under Section
557	554		151.8521(d).
558	555		SECTION 24. Section 151.855, Finance Code, is amended to
559	556		read as follows:
560	557		Sec. 151.855. APPLICATION AND ACCOMPANYING FEE,
561	558		STATEMENTS, AND SECURITY. (a) An applicant for a depository agent
562	559		license must submit an application in accordance with Section
563	560		151.203 and applicable requirements adopted under Section
564	561		151.8521.
565	562		(b) At the time an application for a depository agent
566	563		license is submitted, an applicant must file with the department
567	564		any fee, information, documentation, or security required as
568	565		provided by Section 151.8521 for the category of license for which
569	566		the person is applying, which may include:
570	567		(1) an application fee in the amount established by
571	568		commission rule;
572	569		(2) audited financial statements and other financial
573	570		documentation that is determined to be reliable that are
574	571		satisfactory to the commissioner for purposes of determining
575	572		whether the applicant has the minimum net worth required under
576	573		applicable rules and is likely to maintain the required minimum net
577	574		worth if a license is issued; [and]
578	575		(3) security in an [the] amount not to exceed [of]
579	576		$500,000 that meets the requirements of applicable rules and an
580	577		undertaking or agreement that the applicant will increase or
581	578		supplement the security to equal the aggregate security required by
582	579		the commissioner before the issuance of the license and the start of
583	580		operations; and
584	581		(4) additional security that may be required by the
585	582		commissioner in the form of permissible investments, additional
586	583		surety, or in any other form considered appropriate to protect
587	584		depository account holders and the depository and to comply with
588	585		applicable regulatory requirements.
589	586		(c) The commissioner may adopt rules to implement
590	587		Subsection (b)(4).
591	588		SECTION 25. Section 151.858, Finance Code, is amended to
592	589		read as follows:
593	590		Sec. 151.858. LIABILITY OF LICENSE HOLDER. A depository
594	591		agent license holder is liable for the delivery to or for the
595	592		depository account of [the depository or] each depositor, as
596	593		applicable, of all bullion, specie, and money payable or
597	594		deliverable in connection with the transactions in which the
598	595		license holder engages on behalf of the depositor [depository].
599	596		SECTION 26. The heading to Section 151.860, Finance Code,
600	597		is amended to read as follows:
601	598		Sec. 151.860. DISCLOSURE AND OTHER REQUIREMENTS.
602	599		SECTION 27. Section 151.860, Finance Code, is amended by
603	600		adding Subsections (c), (d), and (e) to read as follows:
604	601		(c) A depository agent license holder must comply with the
605	602		requirements of Section 2116.029, Government Code.
606	603		(d) The commissioner, in consultation with the comptroller,
607	604		shall adopt processes and procedures for interactions between a
608	605		depository agent license holder and a depository account holder to
609	606		ensure compliance with this chapter, Chapter 2116, Government Code,
610	607		and other applicable regulatory requirements.
611	608		(e) A depository agent license holder or other person who is
612	609		acting on behalf of an account holder may not commingle deposits or
613	610		funds belonging to the depository agent or other person with the
614	611		deposits or funds of a depository account holder.
615	612		SECTION 28. Subchapter B, Chapter 11, Tax Code, is amended
616	613		by adding Section 11.141 to read as follows:
617	614		Sec. 11.141. PRECIOUS METAL HELD IN TEXAS BULLION
618	615		DEPOSITORY. (a) For purposes of this section, "precious metal" has
619	616		the meaning assigned by Section 2116.001, Government Code.
620	617		(b) A person is entitled to an exemption from taxation of
621	618		the precious metal that the person owns and that is held in the
622	619		Texas Bullion Depository established under Chapter 2116,
623	620		Government Code, regardless of whether the precious metal is held
624	621		or used by the person for the production of income.
625	622		(c) Notwithstanding Section 11.14(c), the governing body of
626	623		a taxing unit may not provide for the taxation of precious metal
627	624		exempted from taxation under Subsection (b).
628	625		SECTION 29. Section 11.42(b), Tax Code, is amended to read
629	626		as follows:
630	627		(b) An exemption authorized by Section 11.11 or 11.141 is
631	628		effective immediately on qualification for the exemption.
632	629		SECTION 30. Section 11.43(a), Tax Code, is amended to read
633	630		as follows:
634	631		(a) To receive an exemption, a person claiming the
635	632		exemption, other than an exemption authorized by Section 11.11,
636	633		11.12, 11.14, 11.141, 11.145, 11.146, 11.15, 11.16, 11.161, or
637	634		11.25 [of this code], must apply for the exemption. To apply for an
638	635		exemption, a person must file an exemption application form with
639	636		the chief appraiser for each appraisal district in which the
640	637		property subject to the claimed exemption has situs.
641	638		SECTION 31. Sections 2116.009(a), (c), (d), (e), and (f),
642	639		Government Code, are repealed.
643	640		SECTION 32. (a) Except as provided by Subsection (b) of
644	641		this section:
645	642		(1) this Act takes effect immediately if it receives a
646	643		vote of two-thirds of all the members elected to each house, as
647	644		provided by Section 39, Article III, Texas Constitution; and
648	645		(2) if this Act does not receive the vote necessary for
649	646		immediate effect, this Act takes effect September 1, 2017.
650	647		(b) Section 11.141, Tax Code, as added by this Act, and
651	648		Sections 11.42(b) and 11.43(a), Tax Code, as amended by this Act,
652	649		take effect January 1, 2018, but only if the constitutional
653	650		amendment proposed by the 85th Legislature, Regular Session, 2017,
654	651		authorizing the legislature to exempt from ad valorem taxation
655	652		precious metal held in the Texas Bullion Depository is approved by
656	653		the voters. If that amendment is not approved by the voters, those
657	654		sections have no effect.