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.