By: Watson S.B. No. 1138
A BILL TO BE ENTITLED
AN ACT
relating to the management of certain state and local funds,
investments, and obligations.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 404.103(b), Government Code, is amended
to read as follows:
(b) The trust company may enter into contracts, trust
agreements, or other fiduciary instruments with the comptroller,
the Federal Reserve System, a depository trust company, and other
third parties. The trust company shall be liable under those
contracts in accordance with the terms contained in the contracts.
Notwithstanding any other statute to the contrary, to the extent
permitted by the Texas Constitution and the contracts, trust
agreements, or other fiduciary instruments between the trust
company, the Federal Reserve System, and a depository trust
company, the trust company's obligations shall be guaranteed by the
state, and the state expressly waives all defenses of governmental
immunity by and on behalf of the trust company, the comptroller, and
the state, and expressly consents to sue and be sued in federal
court or in any court of competent jurisdiction. Notwithstanding
any other statute to the contrary, to the extent permitted by the
Texas Constitution and the contracts, trust agreements, or other
fiduciary instruments between the trust company and other third
parties, the trust company's obligations shall be guaranteed only
by the reserve balances held pursuant to Section 404.105, and the
state expressly waives all defenses of governmental immunity by and
on behalf of the trust company, and the state expressly consents by
and on behalf of the trust company to sue and be sued in federal
court or in any court of competent jurisdiction. However, this
provision does not alter or affect the immunity accorded to state
officials and employees under state law. The trust company may
enter into contracts with the comptroller and the Federal Reserve
System to provide any services that the Federal Reserve System
makes available, including:
(1) safekeeping book-entry United States Treasury and
agency securities owned by the state and its agencies;
(2) using the federal reserve wire transfer system to
transfer money and book-entry securities and to settle securities
transactions involving book-entry United States Treasury and
agency securities owned by the state and its agencies;
(3) collecting, through the Federal Reserve System,
checks deposited with the treasury;
(4) receiving payments from and making payments to the
federal government on behalf of the state and its agencies;
(5) originating automated clearinghouse transactions
or other electronic transfers to make payments on behalf of the
state and its agencies, collecting revenues due the state and its
agencies, and transferring money between state depositories;
(6) paying warrants drawn on the treasury and
presented through the Federal Reserve System for payment; and
(7) safekeeping collateral pledged to secure deposits
of public funds.
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2019.