By Cuellar of Webb H.B. No. 2445
74R6650 GCH-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the deposit, investment, safekeeping, and records and
1-3 reports of, and collateral requirements for the deposit of, funds
1-4 held by the state treasurer.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section 404.001, Government Code, is amended to
1-7 read as follows:
1-8 Sec. 404.001. Definitions. In this chapter:
1-9 (1) <"Board" means the State Depository Board.>
1-10 <(2)> "Demand deposit" means a deposit that is payable
1-11 on demand.
1-12 (2) <(3)> "Direct security repurchase agreement" means
1-13 an agreement under which the state buys, holds for a specified
1-14 time, and then sells back any of the following securities,
1-15 obligations, or participation certificates:
1-16 (A) United States government securities;
1-17 (B) direct obligations of or obligations the
1-18 principal and interest of which are guaranteed by the United
1-19 States; or
1-20 (C) direct obligations of or obligations
1-21 guaranteed by agencies or instrumentalities of the United States
1-22 government.
1-23 (3) <(4)> "Market value" means the fair and reasonable
1-24 prevailing price at which a security is being sold on the open
2-1 market at the time of the appraisement of the security by the
2-2 treasurer.
2-3 (4) <(5)> "Reverse security repurchase agreement"
2-4 means an agreement under which the state sells and after a
2-5 specified time buys back any of the securities, obligations, or
2-6 participation certificates listed in Paragraphs (A) through (C),
2-7 Subdivision (3).
2-8 (5) <(6)> "State depository" means an institution
2-9 designated as a state depository under Subchapter C.
2-10 (6) <(7)> "Time deposit" means a deposit for which
2-11 there is in force a contract providing that neither the whole nor a
2-12 part of the deposit may be withdrawn by check or otherwise before
2-13 the expiration of the period of notice that must be given in
2-14 writing in advance of a withdrawal.
2-15 (7) <(8)> "Treasurer" means the state treasurer.
2-16 (8) <(9)> "Treasury" means state funds subject to the
2-17 custody and control of the state treasurer and available for
2-18 appropriation by the legislature.
2-19 SECTION 2. The heading of Subchapter B, Chapter 404,
2-20 Government Code, is amended to read as follows:
2-21 SUBCHAPTER B. <STATE> DEPOSITORY RULES <BOARD>
2-22 SECTION 3. Section 404.013, Government Code, is amended to
2-23 read as follows:
2-24 Sec. 404.013. Rules. The treasurer <board> may adopt and
2-25 enforce rules governing the establishment and conduct of state
2-26 depositories, collateral requirements, and the investment of state
2-27 funds <in the depositories that the public interest requires and
3-1 that are not inconsistent with the law governing the depositories.
3-2 The rules must be entered in the minutes of the board>.
3-3 SECTION 4. Section 404.021, Government Code, is amended to
3-4 read as follows:
3-5 Sec. 404.021. Eligible Institutions. (a) Any state or
3-6 national bank doing business in the state may be designated by the
3-7 treasurer <board> as a state depository. Designation of a bank as
3-8 a depository includes all of the bank's branches within the state.
3-9 (b) Any savings and loan association doing business
3-10 <domiciled> in the state may be designated by the treasurer <board>
3-11 as a state depository.
3-12 (c) Deposits of eligible institutions designated as state
3-13 depositories must be covered by the Federal Deposit Insurance
3-14 Corporation. <Any institution in the state whose accounts or
3-15 deposits are insured according to the laws of the United States may
3-16 be designated by the board as a state depository and may accept
3-17 state funds to the extent of that insurance, regardless of the
3-18 amount of its paid-up capital stock and permanent surplus.>
3-19 SECTION 5. Section 404.022, Government Code, is repealed and
3-20 amended to read as follows:
3-21 Sec. 404.022. DEPOSITORY AGREEMENT <APPLICATIONS>. (a) The
3-22 treasurer shall mail to each eligible institution a letter stating
3-23 the conditions under which a state depository may hold state
3-24 deposits. The conditions must include requirements that:
3-25 (1) an eligible institution enter into a depository
3-26 agreement with the treasurer to hold state deposits;
3-27 (2) eligible institutions pledge collateral for
4-1 deposits in excess of Federal Deposit Insurance Corporation
4-2 insurance coverage consisting of investment securities described by
4-3 Section 404.0221; and
4-4 (3) the books and accounts of the institution, if it
4-5 is designated as a state depository, be open at all times for
4-6 inspection by the treasurer.
4-7 (b) The treasurer may enter into a short version of the
4-8 depository agreement with an eligible institution desiring to hold
4-9 $98,000 or less of state deposits that are fully insured by the
4-10 Federal Deposit Insurance Corporation.
4-11 (c) The treasurer may at any time during the year enter into
4-12 a depository agreement with an eligible institution that has
4-13 complied with all the conditions set by the treasurer.
4-14 (d) At the beginning of each biennium, the treasurer shall
4-15 mail a letter to each eligible institution that is not a state
4-16 depository stating the requirements for designation as a
4-17 depository.
4-18 (e) The treasurer shall designate one or more state
4-19 depositories in centrally located cities to be used for clearing
4-20 checks and other obligations due the state.
4-21 (f) A depository agreement remains in effect for a
4-22 continuous period unless the depository is otherwise notified by
4-23 the treasurer.
4-24 (g) The treasurer shall charge each depository a processing
4-25 fee of $25 and shall deposit all fees collected to the credit of
4-26 the general revenue fund. <The treasurer is the secretary of the
4-27 board.>
5-1 <(b) The board, through its secretary, on the second Tuesday
5-2 in June of each odd-numbered year shall mail to each eligible
5-3 institution a letter stating the conditions with which applicants
5-4 for designation as a state depository must comply. The treasurer
5-5 shall keep on file in the treasurer's office and make available for
5-6 inspection by any person a list of institutions to which letters
5-7 have been sent.>
5-8 <(c) The application for designation as a state depository
5-9 must include a statement:>
5-10 <(1) of the amount of the applicant's paid capital
5-11 stock and permanent surplus, if any, or if the applicant is a
5-12 private bank, the amount of net proprietorship;>
5-13 <(2) of the maximum amount of state funds the
5-14 applicant will accept;>
5-15 <(3) of the applicant's condition on the date the
5-16 application is submitted; and>
5-17 <(4) that the books and accounts of the institution,
5-18 if it is designated as a state depository, will be open at all
5-19 times for inspection by the board or a member or accredited
5-20 representative of the board.>
5-21 <(d) An application shall be mailed to the treasurer at
5-22 Austin and must be received before noon of the first day of August
5-23 of the year in which the letter is sent. An application received
5-24 after that time may be considered at the option of the board. The
5-25 board shall charge a processing fee of $25 for each application and
5-26 shall deposit the fees to the credit of the general revenue fund.>
5-27 <(e) On receipt of an application under this section, the
6-1 treasurer shall endorse on the application the date of its receipt.
6-2 The treasurer shall prepare a list of the names of the applicants
6-3 and the amount for which each has applied and shall furnish a copy
6-4 of the list to each board member.>
6-5 <(f) The board shall meet on the first Monday in August of
6-6 each odd-numbered year and at other appropriate times to consider
6-7 applications. The board may approve those applicants that are
6-8 acceptable and may reject those whose management or condition, in
6-9 the opinion of the board, does not warrant the placing of state
6-10 funds in their possession. An application for state funds may not
6-11 be granted if the applicant's liabilities for borrowed money are in
6-12 excess of its capital stock, but the board may in its discretion
6-13 waive this provision.>
6-14 <(g) The board may designate an applicant as a state
6-15 depository if the applicant has complied with all of the conditions
6-16 set by the board. The designation as a state depository is
6-17 effective for a period of not more than two years.>
6-18 <(h) As soon as practicable after the board has made its
6-19 designations, the treasurer shall inform all applicants whether
6-20 they have been designated as state depositories.>
6-21 <(i) If more depositories are required at any time, the
6-22 treasurer may send to all eligible institutions notice that further
6-23 applications for designation as a state depository for the
6-24 unexpired term will be accepted.>
6-25 SECTION 6. Subchapter C, Chapter 404, Government Code, is
6-26 amended by adding Section 404.0221 to read as follows:
6-27 Sec. 404.0221. ELIGIBLE COLLATERAL. (a) In this section,
7-1 "public agency" means a board, authority, agency, department,
7-2 commission, political subdivision, municipal corporation, district,
7-3 public corporation, body politic, instrumentality of this state, or
7-4 any other type of political or governmental entity of this state.
7-5 (b) For the purposes of Section 404.022, collateral eligible
7-6 to be pledged with the treasurer to secure state deposits includes:
7-7 (1) direct obligations of or obligations the principal
7-8 and interest of which are guaranteed by the United States
7-9 government;
7-10 (2) direct obligations of or obligations guaranteed by
7-11 agencies or instrumentalities of the United States government; and
7-12 (3) a general or special obligation issued by a public
7-13 agency and approved by the attorney general that is payable from
7-14 taxes, revenues, or both.
7-15 (c) If pledged collateral consists of securities with a
7-16 declining principal balance, the market value of the collateral
7-17 pledged may not be less than 125 percent of the amount of the state
7-18 deposits to be secured.
7-19 (d) Eligible collateral includes only a security with fixed,
7-20 stated rates.
7-21 (e) A loss sustained by a depository that has secured its
7-22 deposits by collateral may be enforced against the collateral.
7-23 (f) The treasurer may reject at any time collateral tendered
7-24 by a state depository without assigning a reason for the rejection,
7-25 and the treasurer's action is final and not subject to review.
7-26 (g) Collateral is not required for deposits to the extent
7-27 that the deposits are insured by the Federal Deposit Insurance
8-1 Corporation.
8-2 SECTION 7. Section 404.024, Government Code, is amended to
8-3 read as follows:
8-4 Sec. 404.024. Authorized Investments. (a) The treasurer
8-5 shall <board may determine and> designate the amount of state funds
8-6 to be deposited in time deposits in state depositories. <The
8-7 treasurer shall recommend to the board a maximum limit for state
8-8 funds deposited by the treasurer at approved state depositories.>
8-9 The percentage of state funds to be deposited in state depositories
8-10 shall be based on the interest rates available in competing
8-11 investments, the demand for funds from Texas banks, and the state's
8-12 liquidity requirements. <The treasurer shall provide periodic
8-13 investment reports to the board.>
8-14 (b) State funds not deposited in state depositories shall be
8-15 invested by the treasurer in:
8-16 (1) direct security repurchase agreements;
8-17 (2) reverse security repurchase agreements;
8-18 (3) direct obligations of or obligations the principal
8-19 and interest of which are guaranteed by the United States;
8-20 (4) direct obligations of or obligations guaranteed by
8-21 agencies or instrumentalities of the United States government;
8-22 (5) bankers' acceptances that:
8-23 (A) are eligible for purchase by the Federal
8-24 Reserve System;
8-25 (B) do not exceed 270 days to maturity; and
8-26 (C) are issued by a bank that has received the
8-27 highest short-term credit rating by a nationally recognized
9-1 investment rating firm;
9-2 (6) commercial paper that:
9-3 (A) does not exceed 270 days to maturity; and
9-4 (B) except as provided by Subsection (i) <(j)>,
9-5 has received the highest short-term credit rating by a nationally
9-6 recognized investment rating firm;
9-7 (7) contracts written by the treasury in which the
9-8 treasury grants the purchaser the right to purchase securities in
9-9 the treasury's marketable securities portfolio at a specified price
9-10 over a specified period and for which the treasury is paid a fee
9-11 and specifically prohibits naked-option or uncovered option
9-12 trading; <and>
9-13 (8) direct obligations of or obligations guaranteed by
9-14 the Inter-American Development Bank, the International Bank for
9-15 Reconstruction and Development (the World Bank), the African
9-16 Development Bank, the Asian Development Bank, and the International
9-17 Finance Corporation that have received the highest credit rating by
9-18 a nationally recognized investment rating firm; <and>
9-19 (9) bonds issued, assumed, or guaranteed by the State
9-20 of Israel;
9-21 (10) obligations of a state or an agency, county,
9-22 city, or other political subdivision of a state; and
9-23 (11) mutual funds or other investment pools secured by
9-24 obligations that are described by Subdivisions (1) through (6).
9-25 (c) Investments in direct security repurchase agreements and
9-26 reverse security repurchase agreements may be made with state or
9-27 national banks doing business <domiciled> in this state or with
10-1 primary dealers as approved by the Federal Reserve System.
10-2 (d) The treasurer <board> may contract with a depository for
10-3 the payment of interest on time or demand deposits at a rate not to
10-4 exceed a rate that is lawful under an Act of Congress and rules and
10-5 regulations of the board of governors of the Federal Reserve
10-6 System, the board of directors of the Federal Deposit Insurance
10-7 Corporation, <the Federal Savings and Loan Insurance Corporation,>
10-8 and the Federal Home Loan Banking Board.
10-9 (e) The treasury may not purchase derivatives in an amount
10-10 that at the time of purchase will cause derivatives to exceed five
10-11 percent of the treasury's total investments. The treasurer by rule
10-12 shall identify those derivatives that qualify as acceptable
10-13 investments. <Not more than 20 percent of the aggregate funds on
10-14 deposit in financial institutions at any time may be in depository
10-15 institutions other than banks.>
10-16 (f) The treasurer is authorized to enter into contracts with
10-17 registered investment advisors and other consultants to assist in
10-18 investment management and to pay fees directly from investment
10-19 earnings. <The treasurer may invest the gross proceeds from
10-20 obligations of this state or any agency of this state in:>
10-21 <(1) obligations of a state or an agency, county,
10-22 city, or other political subdivision of a state; and>
10-23 <(2) mutual funds composed of obligations described by
10-24 Subdivision (1).>
10-25 (g) To the extent practicable, the treasurer shall give
10-26 first consideration to Texas banks when investing in direct
10-27 security repurchase agreements.
11-1 (h) <The treasurer may not use state funds to invest in or
11-2 purchase obligations of a private corporation or other private
11-3 business entity doing business in the Republic of South Africa
11-4 unless the corporation or other entity:>
11-5 <(1) has:>
11-6 <(A) adopted the Statement of Principles for
11-7 South Africa as they existed in 1987, as described in the >þLReport on
11-8 the Signatory Companies to the Statement of Principles for South
11-9 Africaää< published by Arthur D. Little, Inc., Cambridge,
11-10 Massachusetts, and has obtained a performance rating in Category 1
11-11 or 2 of the Statement of Principles for South Africa rating system
11-12 as determined by Arthur D. Little, Inc.; or>
11-13 <(B) agreed to the Code of Conduct that is
11-14 enforced by the United States Department of State under Section
11-15 208, Comprehensive Anti-Apartheid Act of 1986 (Pub. L. No. 99-440)
11-16 and has received a rating of "Making Satisfactory Progress"; and>
11-17 <(2) does not supply strategic products or services
11-18 for use by the government, military, or police of the Republic of
11-19 South Africa.>
11-20 <(i) For the purposes of Subsection (h) of this section:>
11-21 <(1) "Doing business in the Republic of South Africa"
11-22 means conducting or performing manufacturing, assembly, or
11-23 warehousing operations within the Republic of South Africa or, if a
11-24 bank or other financial institution, lending money to the
11-25 government of the Republic of South Africa or any of its agencies
11-26 or instrumentalities.>
11-27 <(2) "Strategic products or services" means articles
12-1 designated as arms, ammunition, or implements of war as provided by
12-2 22 Code of Federal Regulations Part 121 or data processing
12-3 equipment or computers sold for military or police use or for use
12-4 in connection with restrictions on travel within the Republic of
12-5 South Africa by residents of that country.>
12-6 <(j)> The treasurer may not use state funds to invest in or
12-7 purchase obligations of a private corporation or other private
12-8 business entity doing business in Northern Ireland unless the
12-9 corporation or other entity:
12-10 (1) adheres to fair employment practices; and
12-11 (2) does not discriminate on the basis of race, color,
12-12 religion, sex, national origin, or disability.
12-13 (i) <(k)> Notwithstanding Subsection (b)(6)(B) <(a)(6)(B)>,
12-14 the treasurer may purchase commercial paper with a rating lower
12-15 than the rating required by that paragraph <subsection> to provide
12-16 liquidity for commercial paper issued by the treasurer or an agency
12-17 of the state.
12-18 SECTION 8. Section 404.0245, Government Code, is amended to
12-19 read as follows:
12-20 Sec. 404.0245. Crude Oil and Natural Gas Futures Contracts.
12-21 (a) In this section, "hedging" means the buying and selling of
12-22 crude oil and natural gas commodity futures or options on crude oil
12-23 and natural gas commodity futures as a protection against loss due
12-24 to price fluctuations. Hedging at all times shall comply with
12-25 Commodity Futures Trading Commission regulations.
12-26 (b) The treasurer shall <Subject to the limitations of
12-27 Subsection (c), the board may> determine and designate the amount
13-1 of state funds that shall be invested <by the treasurer> in hedging
13-2 transactions in crude oil and natural gas futures contracts and
13-3 options on crude oil and natural gas futures contracts that are
13-4 traded on an established exchange regulated by the Securities and
13-5 Exchange Commission or the Commodity Futures Trading Commission.
13-6 (c) <The principal amount of state funds invested and
13-7 outstanding in hedging transactions on any one day may not exceed
13-8 $500,000 with a maximum risk of loss of $5,000,000.> The total
13-9 principal amount of state funds that may be invested by the <state>
13-10 treasurer in hedging transactions during any one biennium may not
13-11 exceed the amount of money credited to the unclaimed money fund for
13-12 that biennium and attributable to the remittance of mineral
13-13 proceeds under Chapter 75, Property Code. Any premium incurred in
13-14 connection with hedging transactions may be paid only from funds
13-15 appropriated for that purpose.
13-16 (d) The treasurer <board> by rule shall regulate the
13-17 investment of state funds in crude oil and natural gas futures
13-18 contracts or options on crude oil and natural gas futures
13-19 contracts. The rules shall provide restrictions and procedures for
13-20 making the investments that persons of ordinary prudence,
13-21 discretion, and intelligence, exercising the judgment and care
13-22 under the circumstances then prevailing, would follow in the
13-23 management of their own affairs, not in regard to speculation but
13-24 in regard to the permanent disposition of their funds, considering
13-25 the probable income as well as the probable safety of their
13-26 capital. The investments may be made only for hedging purposes.
13-27 <(e) This section expires if the total cumulative losses
14-1 exceed $5,000,000.>
14-2 <(f) Any appropriation made for this program contingent upon
14-3 S.B. 736, 73rd Legislature, Regular Session, 1993, becoming law is
14-4 available for purposes of this program under this Act.>
14-5 SECTION 9. Section 404.026, Government Code, is amended to
14-6 read as follows:
14-7 Sec. 404.026. Eleemosynary Funds. The treasurer <board> may
14-8 invest the permanent funds of the Texas School for the Blind and
14-9 Visually Impaired, Texas School for the Deaf, Austin State
14-10 Hospital, and Corsicana State Home and may invest other permanent
14-11 funds, the investment of which is not otherwise provided for, that
14-12 have $1,000 or more on deposit with the treasurer that are not
14-13 invested. The treasurer <board> shall invest the funds in the same
14-14 classes of bonds as are authorized for investment of the permanent
14-15 school fund.
14-16 SECTION 10. The heading of Subchapter D, Chapter 404,
14-17 Government Code, is amended to read as follows:
14-18 SUBCHAPTER D. COLLATERAL, DEPOSITS, AND WITHDRAWALS <TREASURER AS
14-19 SECRETARY OF BOARD>
14-20 SECTION 11. The heading of Section 404.031, Government Code,
14-21 is amended to read as follows:
14-22 Sec. 404.031. COLLATERAL REQUIREMENTS.
14-23 SECTION 12. Sections 404.031(b), (e), (g), and (j),
14-24 Government Code, are amended to read as follows:
14-25 (b) If the market value of the securities pledged by a
14-26 depository becomes less than the amount of funds on deposit in the
14-27 depository, the treasurer shall require that additional collateral
15-1 be pledged immediately or deposits reduced <security>. If the
15-2 collateral pledged by a state depository is in excess of the amount
15-3 required by this chapter, the treasurer may permit the release of
15-4 the excess collateral <security>. If the balance of state funds in
15-5 a state depository is increased, the depository shall increase the
15-6 collateral <security> for the deposits to the amount required by
15-7 this chapter.
15-8 (e) Instead of depositing pledged securities with the
15-9 treasurer, a depository may deposit them with a custodian. The
15-10 custodian may be the Texas Treasury Safekeeping Trust Company or a
15-11 state or national bank that has a capital stock and permanent
15-12 surplus of not less than $5 million, is <has been designated> a
15-13 state depository, and has been designated as a custodian by the
15-14 treasurer. The state depository and the custodian of securities
15-15 pledged by that state depository may not be the same bank or be
15-16 owned by the same bank holding company. The securities shall be
15-17 held in trust by the custodian to secure funds deposited by the
15-18 treasurer in the state depository pledging the securities. On
15-19 receipt of the securities, the custodian shall immediately, by book
15-20 entry or otherwise, identify on its books and records the pledge of
15-21 the securities and shall promptly issue and deliver to the
15-22 treasurer controlled trust receipts for the securities pledged.
15-23 The security evidenced by the trust receipts is subject to
15-24 inspection by the treasurer <board or its agents> at any time. The
15-25 depository pledging the securities shall pay the charges, if any,
15-26 of the custodian bank for accepting and holding the securities.
15-27 The <A> custodian <bank>, acting alone or through a permitted
16-1 institution, is for all purposes under state law and
16-2 notwithstanding Chapters 8 and 9, Business & Commerce Code, the
16-3 bailee or agent of the treasurer. The security interest arising
16-4 out of a pledge of securities to secure deposits of the state is
16-5 created, attaches, and is perfected for all purposes under state
16-6 law from the time the custodian identifies the pledge of the
16-7 securities on its books and records and issues the trust receipts.
16-8 The security interest remains perfected as of that time in the
16-9 hands of all subsequent custodians and permitted institutions.
16-10 (g) In this section, "permitted institution" means a Federal
16-11 Reserve Bank, a Federal Home Loan Bank, a "clearing corporation" as
16-12 defined by Section 8.102(c), Business & Commerce Code, the Texas
16-13 Treasury Safekeeping Trust Company, a state depository, and any
16-14 state or nationally chartered bank or trust company that is
16-15 controlled by a bank holding company that controls a state
16-16 depository. Neither the state depository that pledges the
16-17 securities nor any bank that is controlled by a bank holding
16-18 company that controls that state depository may be the permitted
16-19 institution with respect to the particular securities pledged by
16-20 that state depository. A custodian holding in trust securities of
16-21 a state depository under Subsections <Subsection> (e) and (f) may
16-22 deposit the pledged securities with a permitted institution if the
16-23 permitted institution is the third party to the transaction. The
16-24 securities shall be held by the permitted institution to secure
16-25 funds deposited by the treasurer in the state depository pledging
16-26 the securities. On receipt of the securities, the permitted
16-27 institution shall immediately issue to the custodian an advice of
17-1 transaction or other document evidencing the deposit of the
17-2 securities. When the pledged securities held by a custodian are
17-3 deposited, the permitted institution may apply book entry
17-4 procedures to the securities. The records of the permitted
17-5 institution shall at all times reflect the name of the custodian
17-6 depositing the pledged securities. The custodian shall immediately
17-7 issue and deliver to the treasurer controlled trust receipts for
17-8 the pledged securities. The trust receipts shall indicate that the
17-9 custodian has deposited with the permitted institution the pledged
17-10 securities held in trust for the state depository pledging the
17-11 securities. A legal action or proceeding brought by or against the
17-12 state, arising out of or in connection with the duties of the state
17-13 depository, the custodian, or other permitted institution under
17-14 this subchapter must be brought and maintained in state district
17-15 court in Travis County. In this section, "control" and "bank
17-16 holding company" have the meanings assigned by Article 2, Chapter
17-17 I, The Texas Banking Code (Article 342-102, Vernon's Texas Civil
17-18 Statutes).
17-19 (j) If a state depository fails to credit <pay> a deposit or
17-20 part of a deposit made by <on the check of> the treasurer, the
17-21 treasurer may immediately sell or otherwise convert the securities
17-22 to money <and disburse the money, according to law, on warrants
17-23 drawn by the comptroller on the funds which the securities
17-24 secured>.
17-25 SECTION 13. The heading of Section 404.032, Government Code,
17-26 is amended to read as follows:
17-27 Sec. 404.032. Deposits <and Investments>.
18-1 SECTION 14. Sections 404.032(a) and (d), Government Code,
18-2 are amended to read as follows:
18-3 (a) The treasurer shall deposit state funds in depositories
18-4 that satisfy the collateral <security> requirements of this chapter
18-5 <or invest the funds in investments authorized by Section 404.024>.
18-6 The treasurer may deposit funds designated as demand deposits only
18-7 in banks designated as <centrally located depositories and in
18-8 other> depositories <authorized> by the treasurer <board>.
18-9 (d) The treasurer shall keep sufficient money on deposit in
18-10 demand deposit accounts in <depositories> designated <by the board
18-11 as> clearing banks <institutions> to meet all current claims on the
18-12 state. Items received by the treasurer for collection shall be
18-13 deposited with a clearing bank <institution> to be credited to the
18-14 demand deposit account in the bank <depository>. Checks, drafts,
18-15 or warrants drawn by the treasurer for the payment of obligations
18-16 due by the state may be drawn on such an account in such a
18-17 depository or on the demand deposit account in another state
18-18 depository so that the checks, drafts, or warrants of the state may
18-19 at all times pass current as cash.
18-20 SECTION 15. Section 404.033(b), Government Code, is amended
18-21 to read as follows:
18-22 (b) A remittance to the treasurer by a state depository or
18-23 another person may be made by any method authorized by the
18-24 treasurer, including cash, money order, or bank draft. The
18-25 liability of the depository or other person making the remittance
18-26 continues until the money is received by the treasurer. A
18-27 depository that refuses to make a remittance required by this
19-1 chapter forfeits its right to receive further deposits, on order of
19-2 the treasurer <board>. The treasurer <board> may withdraw all
19-3 funds from the depository, which after the withdrawal ceases to be
19-4 a state depository.
19-5 SECTION 16. Section 404.043, Government Code, is amended to
19-6 read as follows:
19-7 Sec. 404.043. Security Officers. The treasurer may <shall>
19-8 employ security officers to provide needed security services for
19-9 the treasury and may commission the officers as peace officers.
19-10 The security officers shall give bond in the same manner required
19-11 by this chapter for employees who handle money or other valuable
19-12 property as part of their duties.
19-13 SECTION 17. Section 404.047, Government Code, is amended to
19-14 read as follows:
19-15 Sec. 404.047. Accounts. The treasurer shall keep accounts
19-16 of the receipt and expenditure of the money in the treasury and
19-17 close the accounts on August 31 of each year. The treasurer shall
19-18 keep proper records <legal vouchers>, distinguishing between the
19-19 receipts and disbursements of each fiscal year.
19-20 SECTION 18. Section 404.048, Government Code, is amended to
19-21 read as follows:
19-22 Sec. 404.048. Report. In addition to the reports required
19-23 by the constitution, the treasurer shall, as required by <submit to
19-24 the governor on the first Monday in November of each year, and at
19-25 other times> the governor <requires>, submit <an exact statement of
19-26 the condition and situation of the treasury,> a statement of the
19-27 balance of money remaining in the treasury <to the credit of the
20-1 state,> and a summary of the receipts and disbursements recorded by
20-2 <of> the treasury <during the preceding year or for another period
20-3 of time that may be specially required>. The treasurer shall
20-4 exhibit all books, papers, and records <vouchers, and other matters
20-5 pertaining to the office for examination> on request by the
20-6 legislature or a branch or committee of the legislature.
20-7 SECTION 19. Sections 404.052(b), (d), and (f), Government
20-8 Code, are amended to read as follows:
20-9 (b) The <state> treasurer shall deposit money received by
20-10 the treasurer under this section and shall keep a separate account
20-11 for each municipality, district, or political subdivision. The
20-12 payment of interest and principal due on an obligation of the
20-13 municipality, district, or political subdivision must be on deposit
20-14 with the treasurer not later than five business days before the
20-15 date of maturity. Any charges incurred for late receipt of funds
20-16 shall be assessed to the municipality, district, or political
20-17 subdivision. <As payment of interest and principal becomes due on
20-18 an obligation, the treasurer of the municipality, district, or
20-19 political subdivision shall remit to the state treasurer, not later
20-20 than the 15th day before the date of maturity, the amounts due or
20-21 to become due on maturity.> On receipt of those amounts by the
20-22 <state> treasurer, the treasurer <of the municipality, district, or
20-23 political subdivision> shall request the comptroller to issue a
20-24 warrant <to the state treasurer> for the payment of amounts due<,
20-25 and the state treasurer shall pay the same at the office of the
20-26 state treasurer. The warrant shall state on its face:>
20-27 <(1) that the proceeds of the warrant are to be
21-1 applied by the state treasurer to the payment of certain specified
21-2 bonds or interest coupons described in the warrant;>
21-3 <(2) the name of the municipality, district, or
21-4 political subdivision that issued the obligations;>
21-5 <(3) the numbers, amounts, and dates of maturity of
21-6 the obligations and interest to be paid; and>
21-7 <(4) instructions to the state treasurer to return the
21-8 obligation to the treasurer of the municipality, district, or
21-9 political subdivision on receipt>.
21-10 (d) The <state> treasurer shall collect for the use of the
21-11 state from the municipality, district, or political subdivision a
21-12 fee in an amount established by rule of the <state> treasurer that
21-13 is sufficient to pay the <state> treasurer's cost of
21-14 administration. The treasurer of the municipality, district, or
21-15 political subdivision, at the time of the remittance for the
21-16 payment of the maturing obligation or interest, shall remit the fee
21-17 to the <state> treasurer as ex officio treasurer of the
21-18 municipality, district, or political subdivision. On receipt of
21-19 the fee, the <state> treasurer shall deposit <credit> it to the
21-20 appropriate fund <fees earned>. The amount of the fees earned, or
21-21 as much as necessary, is reserved to the <state> treasurer to be
21-22 used in the administration of this chapter. Any balance remaining
21-23 at the end of a fiscal year is available for use in the next fiscal
21-24 year.
21-25 (f) The <state> treasurer shall cancel and return to the
21-26 municipality, district, or political subdivision depositing funds
21-27 for the payment of interest coupons or the retirement of bonds the
22-1 coupons and bonds that have matured or been retired by purchase,
22-2 together with a statement of the account of the municipality,
22-3 district, or subdivision showing the amounts received and placed to
22-4 its credit, service charges, and amount of coupons or bonds
22-5 retired. At the request of the municipality, district, or
22-6 political subdivision, the <state> treasurer shall remit to the
22-7 municipality, district, or subdivision any balance remaining in
22-8 custody of the treasurer for more than two years for which bonds or
22-9 coupons have not been presented for payment. The municipality,
22-10 district, or political subdivision shall pay these coupons or bonds
22-11 when presented. A municipality, district, or political subdivision
22-12 is entitled at any reasonable time to a statement of its account
22-13 with the <state> treasurer.
22-14 SECTION 20. Section 404.055, Government Code, is amended to
22-15 read as follows:
22-16 Sec. 404.055. Time and Demand Deposits<; Records and Annual
22-17 Report>. <(a)> The treasurer shall maintain records of the daily
22-18 balances of and the interest income from funds deposited by the
22-19 treasurer <or the board> in time and demand deposit accounts in
22-20 each bank acting as a state depository. The treasurer shall
22-21 maintain and preserve those records according to the provisions of
22-22 Subchapter D, Chapter 441, <the Preservation of Essential Records
22-23 Act (Article 5441d, Vernon's Texas Civil Statutes)> and of the open
22-24 records law, Chapter 552 <424, Acts of the 63rd Legislature,
22-25 Regular Session, 1973 (Article 6252-17a, Vernon's Texas Civil
22-26 Statutes)>.
22-27 <(b) The treasurer annually shall make a complete report to
23-1 the legislature and to the governor of the amounts of interest
23-2 income earned on funds deposited by the treasurer or the board in
23-3 each state depository. The report must contain the following:>
23-4 <(1) the name of each institution serving as a state
23-5 depository during the fiscal year;>
23-6 <(2) for each institution, the balance at the
23-7 beginning of the fiscal year, the balance at the end of the fiscal
23-8 year, and the average daily balance in demand deposit accounts
23-9 placed by the treasurer or the board;>
23-10 <(3) for each institution, the balance at the
23-11 beginning of the fiscal year, the balance at the end of the fiscal
23-12 year, the average daily balance in time deposit accounts placed by
23-13 the treasurer or the board, and the amount of interest income
23-14 earned on those accounts; and>
23-15 <(4) the totals of those amounts aggregated for all
23-16 state depositories.>
23-17 SECTION 21. Section 404.060, Government Code, is amended to
23-18 read as follows:
23-19 Sec. 404.060. Priority of Warrants. Warrants on the
23-20 treasury shall be on an equal basis with each other, except that if
23-21 a question arises concerning the priority of payment of the
23-22 warrants the treasurer shall determine the priority of payment <and
23-23 necessity requires, they shall be paid in order of their serial
23-24 number within each account.>
23-25 <This section does not apply to:>
23-26 <(1) warrants drawn on the game, fish, and water
23-27 safety account or on funds collected for and appropriated to the
24-1 Texas State Department of Transportation;>
24-2 <(2) a special fund created or provided for in the
24-3 constitution; or>
24-4 <(3) a special fund or account consisting of taxes set
24-5 aside and remitted or donated by the legislature to a county or
24-6 municipality>.
24-7 SECTION 22. Section 404.062, Government Code, is amended to
24-8 read as follows:
24-9 Sec. 404.062. UNDETERMINED REMITTANCES <Daily Statement>.
24-10 (a) <The head of each department shall send to the treasurer daily
24-11 a detailed list of persons remitting money the status of which is
24-12 undetermined or that is awaiting the time when it can be taken into
24-13 the treasury and the departments' remittances to the treasury. The
24-14 treasurer shall cash the remittances and place them in the treasury
24-15 vaults or in legally authorized depository banks if the necessity
24-16 arises.>
24-17 <(b) The report from the General Land Office shall include
24-18 all money for interest, principal, and leases of school,
24-19 university, asylum, and other lands.>
24-20 <(c)> This subsection applies to money the status of which
24-21 is undetermined or that is awaiting the time when it can be taken
24-22 into the treasury. The money shall be placed with the treasurer
24-23 and credited to the suspense account. The treasurer shall request
24-24 and maintain information about the deposit of funds into the
24-25 suspense account in accordance with Section 403.052.
24-26 (b) <(d)> When the status of money placed in the suspense
24-27 account is determined, the money shall be transferred from the
25-1 suspense account by placing the portion of it belonging to the
25-2 state in the appropriate fund in the treasury, and the part not
25-3 belonging to the state shall be refunded. The refund shall be made
25-4 either to the payor of the money or to the payor's estate,
25-5 assignee, devisee, or other successor-in-interest.
25-6 (c) <(e)> When a deposit is made, it and any refunds shall
25-7 be entered in the suspense cash book, and the balance shall
25-8 represent the aggregate of the items still in suspense. Warrants
25-9 shall be used for making refunds. The warrants shall be charged
25-10 against the suspense funds to which they apply.
25-11 SECTION 23. Section 404.064, Government Code, is amended to
25-12 read as follows:
25-13 Sec. 404.064. OFFICE FEES <FEE BOOK>. The treasurer shall
25-14 keep records of <an office fee book in which the treasurer shall
25-15 enter in detail> the fees earned by the treasury department. Those
25-16 fees shall be deposited to the appropriate fund in the treasury <at
25-17 the end of each month to the credit of the general revenue fund>.
25-18 SECTION 24. Section 404.065, Government Code, is amended to
25-19 read as follows:
25-20 Sec. 404.065. CASH BALANCING <BOOK>. The treasurer shall
25-21 keep records <a book, to be called the cash balancing book,> for
25-22 the purpose of arriving at the daily cash balance. The daily
25-23 totals of receipts and disbursements and the amount of cash on hand
25-24 and in depository banks shall be recorded <entered in the book. A
25-25 copy of the book entry for each day shall be furnished daily to the
25-26 comptroller>.
25-27 SECTION 25. Section 404.067, Government Code, is amended to
26-1 read as follows:
26-2 Sec. 404.067. SAFEKEEPING; INVESTMENT AGENCIES <BOND BOOK>.
26-3 (a) The treasurer shall keep custodial records that <a bond book
26-4 in which> shall reflect all deposits and releases of securities <be
26-5 entered warrants or authorizations to receive or relinquish bonds>
26-6 held by the treasurer and belonging to a state investment agency
26-7 <fund>.
26-8 (b) The treasurer shall keep appropriate ledger accounts
26-9 that include a short description <of the essential features> of
26-10 each security held in safekeeping for certain investment agencies
26-11 of the state <, of each bond, or of each purchase of similar bonds
26-12 or other securities purchased by and belonging to the permanent
26-13 school fund and other funds of the state. Those accounts shall be
26-14 charged with the principal of the bond or purchase and with each
26-15 separate item of interest to accrue to the principal and shall be
26-16 credited with payments as made>.
26-17 (c) The treasurer shall keep controlling or total accounts
26-18 of <bonds or other> securities in the general ledger. Those
26-19 accounts shall be kept with respect to the total amount of bonds or
26-20 other securities belonging to each separate fund.
26-21 (d) <The treasurer shall keep controlling accounts for
26-22 interest to accrue on the bonds. The accounts shall be set up at
26-23 the beginning of the fiscal year for bonds or other securities
26-24 owned at that time and for subsequent purchases when the bonds or
26-25 securities are purchased.>
26-26 <(e)> Those controlling accounts shall be balanced monthly
26-27 with the sum of the individual accounts for <bonds or> securities,
27-1 which also shall be balanced monthly, and shall correspond to
27-2 similar accounts kept by the comptroller.
27-3 SECTION 26. Section 404.068, Government Code, is amended to
27-4 read as follows:
27-5 Sec. 404.068. STATE REGULATORY AGENCIES SAFEKEEPING AND
27-6 PLEDGED COLLATERAL <Securities Register>. (a) The treasurer shall
27-7 keep a suitable system <register> in which shall be entered all
27-8 <bonds, cash, and other> securities deposited with the treasurer by
27-9 <bond investment, surety, and insurance companies and> state
27-10 depositories <depository banks> and other state agencies <all other
27-11 bonds or securities deposited with the treasurer under a statute if
27-12 the registration of the bonds or securities is not otherwise
27-13 provided for by law>. The treasurer shall enter in the system
27-14 <register> the authorizations to deposit <receive> or release
27-15 <relinquish> the <bonds or> securities.
27-16 (b) The treasurer shall keep a securities ledger in which
27-17 appropriate accounts for each custodial agency are kept <all
27-18 matters for which those authorizations are issued shall be kept>.
27-19 That ledger shall be balanced monthly against control accounts kept
27-20 in the general ledger and against corresponding accounts kept by
27-21 the comptroller.
27-22 SECTION 27. Section 404.070, Government Code, is amended to
27-23 read as follows:
27-24 Sec. 404.070. Validity of VOIDED Warrants <Payable From a
27-25 Suspense or Trust Fund>. (a) A warrant issued by the comptroller
27-26 in payment of refunds from a <suspense or trust> fund in the
27-27 treasury becomes void unless presented to the treasurer for payment
28-1 before two years after the end of the fiscal year in which the
28-2 warrant was issued. The sum of money represented by a warrant
28-3 voided under this section shall be transferred by the comptroller
28-4 from the <suspense> fund from which the warrant was originally
28-5 issued to the general revenue fund. Claims for the payment of a
28-6 voided warrant may be presented to the legislature for
28-7 appropriation from which the warrant may be paid. This section
28-8 does not affect the laws regulating the payment of other warrants
28-9 issued by the comptroller.
28-10 (b) When a transfer of money under this section is made, the
28-11 treasurer shall prepare a list of the outstanding warrants
28-12 representing the transfer. The list must show <the name of the
28-13 payee,> the date of the original warrant, the departmental suspense
28-14 account against which the warrant was originally drawn, the
28-15 original warrant number, and the amount of the original warrant.
28-16 The list shall be maintained as a permanent record in the office of
28-17 the treasurer <and proper notation shall be made on each entry on
28-18 the list when the legislature makes appropriation for the refund of
28-19 the amount listed>.
28-20 SECTION 28. Section 404.071(e), Government Code, is amended
28-21 to read as follows:
28-22 (e) The treasurer shall provide the comptroller information
28-23 necessary for <notify> the comptroller to compute <of> the amount
28-24 of interest to be paid from the general revenue fund as a result of
28-25 the federal Cash Management Improvement Act of 1990 (31 U.S.C.
28-26 Section 6501 et seq.). The treasurer shall provide the information
28-27 <notifications> in accordance with the comptroller's requirements
29-1 for frequency, method, and format.
29-2 SECTION 29. Section 404.095, Government Code, is amended to
29-3 read as follows:
29-4 Sec. 404.095. Electronic Transfer of Certain Payments.
29-5 (a) This section applies only to a state agency that during the
29-6 preceding state fiscal year collected or received more than $50
29-7 million in fees, fines, penalties, taxes, charges, gifts, grants,
29-8 donations, and other funds, excluding federal grants and interest
29-9 and dividend income.
29-10 (b) If during the preceding state fiscal year a person paid
29-11 a state agency a total of $500,000 or more in a category of
29-12 payments and the agency reasonably anticipates that during the
29-13 current state fiscal year the person will pay the agency $500,000
29-14 or more in a category of payments, the state agency shall require
29-15 the person to transfer payment amounts <of $25,000 or more> due to
29-16 the agency in that category, on or before the date the payment is
29-17 due, by one <or more> of the means of electronic funds transfer
29-18 approved by the treasurer. For the purposes of this section, each
29-19 of the following is a separate category of payments to a state
29-20 agency:
29-21 (1) fees;
29-22 (2) fines;
29-23 (3) civil penalties;
29-24 (4) taxes, with each type of tax specified by the
29-25 treasurer being considered a separate category; and
29-26 (5) other payments to the state agency, excluding
29-27 extraordinary payments such as gifts, grants, donations, interest
30-1 and dividend income, and one time surcharges.
30-2 (c) A state agency by rule may require a person other than a
30-3 person subject to Subsection (b) to transfer all payment amounts
30-4 <of $10,000 or more> due in a category of payments to the agency on
30-5 or before the date the payment is due by electronic funds transfer
30-6 <if the person paid the agency a total of $250,000 or more in that
30-7 category of payments>.
30-8 (d) A person's failure to transfer payment amounts by one of
30-9 the means of electronic funds transfer approved by the treasurer
30-10 shall result in the assessment of a penalty by the state agency
30-11 equal to the amount assessed by the state agency if the payment
30-12 were received one day late.
30-13 (e) The treasurer shall adopt rules specifying approved
30-14 means of electronic funds transfer and specifying the types of
30-15 taxes constituting separate categories. A person's failure to
30-16 comply with the rules shall result in the assessment of a penalty
30-17 by the state agency equal to the amount assessed by the state
30-18 agency if the payment were received one day late.
30-19 (f) An agency may waive a penalty imposed by this section
30-20 if, in the opinion of the agency head, the person exercised
30-21 reasonable diligence to comply with this section.
30-22 (g) <(e)> To the extent of any conflict between this section
30-23 and another law specifying the time or manner of making a payment
30-24 to the agency, this section controls. This section does not affect
30-25 a law specifying the time for the filing of a return or other
30-26 report related to the payment.
30-27 (h) <(f)> A state agency may not require payment by
31-1 electronic funds transfer of a protested tax payment.
31-2 SECTION 30. Section 404.105, Government Code, is amended to
31-3 read as follows:
31-4 Sec. 404.105. Capital or Reserve Requirements. The trust
31-5 company shall have capital stock or reserve balances in an amount
31-6 required by applicable regulatory bodies for eligibility for
31-7 federal reserve services, but the amount may not be more than $1
31-8 million. The stock of the trust company is an authorized
31-9 investment for state funds and<,> shall be held by the treasurer<,
31-10 and shall be acquired by the treasurer on an order of the state
31-11 depository board>.
31-12 SECTION 31. Section 404.106, Government Code, is amended by
31-13 adding Subsection (c) to read as follows:
31-14 (c) With respect to specific funds held by the trust company
31-15 for a particular participant, the trust company has the same
31-16 investment authority as that participant for those specific funds.
31-17 SECTION 32. Section 404.123(d), Government Code, is amended
31-18 to read as follows:
31-19 (d) All notes must mature and be paid in full during the
31-20 fiscal biennium in which they were issued. The notes must be
31-21 signed by the governor. <The interest rate on the notes must be
31-22 set so that the amount equal to the total amount of interest to be
31-23 paid on the notes plus the costs of issuance of the notes does not
31-24 exceed the amount of interest that would be paid on the notes if
31-25 the interest rate on the notes were one percent less than one of
31-26 the following, as computed by the treasurer:>
31-27 <(1) the average interest yield being earned on funds
32-1 invested by the treasurer as of the date of the notes' issuance; or>
32-2 <(2) the projected average interest yield to be earned
32-3 on funds invested by the treasurer over the life of the note
32-4 issue.>
32-5 SECTION 33. Section 44.007(g), Agriculture Code, is amended
32-6 to read as follows:
32-7 (g) After acceptance of the application, the state treasurer
32-8 shall place a linked deposit with the applicable eligible lending
32-9 institution for the period the treasurer considers appropriate.
32-10 The state treasurer may not place a deposit for a period extending
32-11 beyond the state fiscal biennium in which it is placed. Subject to
32-12 the limitation described by Section 44.010 of this chapter, the
32-13 treasurer may place time deposits at an interest rate described by
32-14 Section 44.001(5)(A) of this chapter<, notwithstanding any order of
32-15 the State Depository Board to the contrary>.
32-16 SECTION 34. Section 481.193(g), Government Code, is amended
32-17 to read as follows:
32-18 (g) After the state treasurer's acceptance of the
32-19 application and the lending institution originates a loan to an
32-20 eligible borrower, the state treasurer shall place a linked deposit
32-21 with the applicable eligible lending institution for the period the
32-22 treasurer considers appropriate. The state treasurer may not place
32-23 a deposit for a period extending beyond the state fiscal biennium
32-24 in which it is placed. Subject to the limitation described by
32-25 Section 481.197, the treasurer may place time deposits at an
32-26 interest rate described by Section 481.192<, notwithstanding any
32-27 order of the State Depository Board to the contrary>.
33-1 SECTION 35. Section 845.103(b), Government Code, is amended
33-2 to read as follows:
33-3 (b) In handling the funds of the retirement system, the
33-4 board of trustees has all powers and duties granted to the
33-5 treasurer by Subchapter C of Chapter 404 <State Depository Board>.
33-6 SECTION 36. Section 855.103(b), Government Code, is amended
33-7 to read as follows:
33-8 (b) In handling the funds of the retirement system, the
33-9 board of trustees has all powers and duties granted to the
33-10 treasurer by Subchapter C of Chapter 404 <State Depository Board>.
33-11 SECTION 37. Section 2257.002, Government Code, is amended to
33-12 conform to Section 2, Chapter 234, Acts of the 73rd Legislature,
33-13 1993, and to read as follows:
33-14 Sec. 2257.002. Definitions. In this chapter:
33-15 (1) "Bank holding company" has the meaning assigned by
33-16 Article 2, Chapter I, The Texas Banking Code (Article 342-102,
33-17 Vernon's Texas Civil Statutes).
33-18 (2) <"Board" means the State Depository Board.>
33-19 <(3)> "Control" has the meaning assigned by Article 2,
33-20 Chapter I, The Texas Banking Code (Article 342-102, Vernon's Texas
33-21 Civil Statutes).
33-22 (3) <(4)> "Deposit of public funds" means public funds
33-23 of a public entity that:
33-24 (A) the state treasurer does not manage under
33-25 Chapter 404; and
33-26 (B) are held as a demand or time deposit by a
33-27 depository institution expressly authorized by law to accept a
34-1 public entity's demand or time deposit.
34-2 (4) <(5)> "Eligible security" means:
34-3 (A) a surety bond;
34-4 (B) an investment security; or
34-5 (C) an ownership or beneficial interest in an
34-6 investment security, other than an option contract to purchase or
34-7 sell an investment security.
34-8 (5) <(6)> "Investment security" means:
34-9 (A) an obligation that in the opinion of the
34-10 attorney general of the United States is a general obligation of
34-11 the United States and backed by its full faith and credit;
34-12 (B) a general or special obligation issued by a
34-13 public agency that is payable from taxes, revenues, or a
34-14 combination of taxes and revenues; or
34-15 (C) a security in which a public entity may
34-16 invest under Subchapter A, Chapter 2256.
34-17 (6) <(7)> "Permitted institution" means:
34-18 (A) a Federal Reserve Bank;
34-19 (B) a clearing corporation, as defined by
34-20 Section 8.102(c), Business & Commerce Code;
34-21 (C) a bank eligible to be a custodian under
34-22 Section 2257.041; or
34-23 (D) a state or nationally chartered bank that is
34-24 controlled by a bank holding company that controls a bank eligible
34-25 to be a custodian under Section 2257.041.
34-26 (7) <(8)> "Public agency" means a state or a political
34-27 or governmental entity, agency, instrumentality, or subdivision of
35-1 a state, including a municipality, an institution of higher
35-2 education, as defined by Section 61.003, Education Code, a junior
35-3 college, a district created under Article XVI, Section 59, of the
35-4 Texas Constitution, and a public hospital.
35-5 (8) <(9)> "Public entity" means a public agency in
35-6 this state, but does not include an institution of higher
35-7 education, as defined by Section 61.003, Education Code.
35-8 (9) <(10)> "State agency" means a public entity that:
35-9 (A) has authority that is not limited to a
35-10 geographic portion of the state; and
35-11 (B) was created by the constitution or a
35-12 statute.
35-13 (10) <(11)> "Trust receipt" means evidence of receipt,
35-14 identification, and recording, including:
35-15 (A) a physical controlled trust receipt; or
35-16 (B) a written or electronically transmitted
35-17 advice of transaction.
35-18 SECTION 38. The following provisions are repealed:
35-19 (1) Sections 404.011, 404.012, 404.0211, 404.023,
35-20 404.025, 404.031(k), and 404.061, Government Code; and
35-21 (2) Section 2, Chapter 234, Acts of the 73rd
35-22 Legislature, 1993.
35-23 SECTION 39. This Act takes effect immediately, except that a
35-24 state depository approved before the effective date of this Act and
35-25 operating as a state depository on the effective date of this Act
35-26 is not required to meet a requirement of Chapter 404, Government
35-27 Code, as amended or added by this Act, until January 1, 1996.
36-1 SECTION 40. The importance of this legislation and the
36-2 crowded condition of the calendars in both houses create an
36-3 emergency and an imperative public necessity that the
36-4 constitutional rule requiring bills to be read on three several
36-5 days in each house be suspended, and this rule is hereby suspended,
36-6 and that this Act take effect and be in force from and after its
36-7 passage, and it is so enacted.