Texas 2019 - 86th Regular

Texas Senate Bill SB1138 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	S.B. No. 1138
	1	+	86R33176 BRG-D
	2	+	By: Watson S.B. No. 1138
	3	+	(Wray)
	4	+	Substitute the following for S.B. No. 1138: No.
2	5
3	6
	7	+	A BILL TO BE ENTITLED
4	8		AN ACT
5	9		relating to securities contracts entered into by the Texas Treasury
6	10		Safekeeping Trust Company.
7	11		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	12		SECTION 1. Section 404.103, Government Code, is amended by
9	13		amending Subsection (b) and adding Subsection (b-1) to read as
10	14		follows:
11	15		(b) The trust company may enter into contracts, trust
12	16		agreements, or other fiduciary instruments with the comptroller,
13	17		the Federal Reserve System, a depository trust company, and other
14	18		third parties. The trust company shall be liable under those
15	19		contracts in accordance with the terms contained in the contracts.
16	20		Notwithstanding any other statute to the contrary, to the extent
17	21		permitted by the Texas Constitution and the contracts, trust
18	22		agreements, or other fiduciary instruments between the trust
19	23		company, the Federal Reserve System, and a depository trust
20	24		company, the trust company's obligations shall be guaranteed by the
21	25		state, and the state expressly waives all defenses of governmental
22	26		immunity by and on behalf of the trust company, the comptroller, and
23	27		the state, and expressly consents to sue and be sued in federal
24	28		court or in any court of competent jurisdiction. However, this
25	29		provision does not alter or affect the immunity accorded to state
26	30		officials and employees under state law. The trust company may
27	31		enter into contracts with the comptroller and the Federal Reserve
28	32		System to provide any services that the Federal Reserve System
29	33		makes available, including:
30	34		(1) safekeeping book-entry United States Treasury and
31	35		agency securities owned by the state and its agencies;
32	36		(2) using the federal reserve wire transfer system to
33	37		transfer money and book-entry securities and to settle securities
34	38		transactions involving book-entry United States Treasury and
35	39		agency securities owned by the state and its agencies;
36	40		(3) collecting, through the Federal Reserve System,
37	41		checks deposited with the treasury;
38	42		(4) receiving payments from and making payments to the
39	43		federal government on behalf of the state and its agencies;
40	44		(5) originating automated clearinghouse transactions
41	45		or other electronic transfers to make payments on behalf of the
42	46		state and its agencies, collecting revenues due the state and its
43	47		agencies, and transferring money between state depositories;
44	48		(6) paying warrants drawn on the treasury and
45	49		presented through the Federal Reserve System for payment; and
46	50		(7) safekeeping collateral pledged to secure deposits
47	51		of public funds.
48	52		(b-1) In this subsection, "securities contract" includes
49	53		direct security repurchase agreements, reverse security repurchase
50	54		agreements, and related custody agreements. The trust company may
51	55		enter into trust agreements, fiduciary instruments, or other
52	56		contracts as principal or as trustee, with the comptroller and
53	57		other third parties. The trust company shall be liable under the
54	58		agreements, instruments, or contracts in accordance with the terms
55	59		contained in the agreements, instruments, or contracts.
56	60		Notwithstanding any other statute to the contrary, to the extent
57	61		permitted by the Texas Constitution and the contracts, the trust
58	62		company's obligations under securities contracts between the trust
59	63		company and third parties shall be guaranteed by the state with, and
60	64		only to the extent of, the reserve balances held by the trust
61	65		company under Section 404.105, and for those securities contracts,
62	66		the state expressly waives all defenses of governmental immunity by
63	67		and on behalf of the trust company, and expressly consents by and on
64	68		behalf of the trust company to sue and be sued in federal court or in
65	69		any court of competent jurisdiction. However, this provision does
66	70		not alter or affect the immunity accorded to state officials and
67	71		employees under state law.
68	72		SECTION 2. Section 404.104(b), Government Code, is amended
69	73		to read as follows:
70	74		(b) The comptroller may enter into contracts, trust
71	75		agreements, and other instruments with the trust company as
72	76		provided by Section 404.103 [404.103(b)].
73	77		SECTION 3. The changes in law made by this Act apply only to
74	78		an agreement, instrument, or contract entered into on or after the
75	79		effective date of this Act. An agreement, instrument, or contract
76	80		entered into before the effective date of this Act is subject to the
77	81		law in effect on the date that the agreement, instrument, or
78	82		contract was entered into, and that law is continued in effect for
79	83		that purpose.
80	84		SECTION 4. This Act takes effect immediately if it receives
81	85		a vote of two-thirds of all the members elected to each house, as
82	86		provided by Section 39, Article III, Texas Constitution. If this
83	87		Act does not receive the vote necessary for immediate effect, this
84	88		Act takes effect September 1, 2019.
85		-	______________________________ ______________________________
86		-	President of the Senate Speaker of the House
87		-	I hereby certify that S.B. No. 1138 passed the Senate on
88		-	April 26, 2019, by the following vote: Yeas 30, Nays 0; and that
89		-	the Senate concurred in House amendment on May 25, 2019, by the
90		-	following vote: Yeas 30, Nays 0.
91		-	______________________________
92		-	Secretary of the Senate
93		-	I hereby certify that S.B. No. 1138 passed the House, with
94		-	amendment, on May 22, 2019, by the following vote: Yeas 135,
95		-	Nays 9, two present not voting.
96		-	______________________________
97		-	Chief Clerk of the House
98		-	Approved:
99		-	______________________________
100		-	Date
101		-	______________________________
102		-	Governor