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A BILL TO BE ENTITLED
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AN ACT
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relating to the management of certain state and local funds, |
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investments, and obligations. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 404.103(b), Government Code, is amended |
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to read as follows: |
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(b) The trust company may enter into contracts, trust |
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agreements, or other fiduciary instruments with the comptroller, |
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the Federal Reserve System, a depository trust company, and other |
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third parties. The trust company shall be liable under those |
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contracts in accordance with the terms contained in the contracts. |
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Notwithstanding any other statute to the contrary, to the extent |
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permitted by the Texas Constitution and the contracts, trust |
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agreements, or other fiduciary instruments between the trust |
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company, the Federal Reserve System, and a depository trust |
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company, the trust company's obligations shall be guaranteed by the |
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state, and the state expressly waives all defenses of governmental |
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immunity by and on behalf of the trust company, the comptroller, and |
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the state, and expressly consents to sue and be sued in federal |
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court or in any court of competent jurisdiction. Notwithstanding |
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any other statute to the contrary, to the extent permitted by the |
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Texas Constitution and the contracts, trust agreements, or other |
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fiduciary instruments between the trust company and other third |
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parties, the trust company's obligations shall be guaranteed only |
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by the reserve balances held pursuant to Section 404.105, and the |
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state expressly waives all defenses of governmental immunity by and |
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on behalf of the trust company, and the state expressly consents by |
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and on behalf of the trust company to sue and be sued in federal |
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court or in any court of competent jurisdiction. However, this |
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provision does not alter or affect the immunity accorded to state |
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officials and employees under state law. The trust company may |
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enter into contracts with the comptroller and the Federal Reserve |
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System to provide any services that the Federal Reserve System |
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makes available, including: |
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(1) safekeeping book-entry United States Treasury and |
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agency securities owned by the state and its agencies; |
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(2) using the federal reserve wire transfer system to |
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transfer money and book-entry securities and to settle securities |
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transactions involving book-entry United States Treasury and |
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agency securities owned by the state and its agencies; |
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(3) collecting, through the Federal Reserve System, |
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checks deposited with the treasury; |
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(4) receiving payments from and making payments to the |
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federal government on behalf of the state and its agencies; |
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(5) originating automated clearinghouse transactions |
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or other electronic transfers to make payments on behalf of the |
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state and its agencies, collecting revenues due the state and its |
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agencies, and transferring money between state depositories; |
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(6) paying warrants drawn on the treasury and |
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presented through the Federal Reserve System for payment; and |
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(7) safekeeping collateral pledged to secure deposits |
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of public funds. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2019. |