By Siebert H.B. No. 2380
75R8481 JRD-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the abolition of unnecessary governmental entities.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 ARTICLE 1. ABOLITION OF UNIFORM STATEWIDE ACCOUNTING
1-5 PROJECT ADVISORY COMMITTEE
1-6 SECTION 1.01. The uniform statewide accounting project
1-7 advisory committee is abolished.
1-8 SECTION 1.02. Section 2101.031(b), Government Code, is
1-9 amended to read as follows:
1-10 (b) The project includes each component of the uniform
1-11 statewide accounting system as designed in accordance with Chapter
1-12 852, Acts of the 70th Legislature, Regular Session, 1987, and as
1-13 defined by Section 1, Chapter 781, Acts of the 71st Legislature,
1-14 Regular Session, 1989, [and as developed or revised by the project
1-15 advisory committee,] including:
1-16 (1) the uniform statewide accounting system (USAS) and
1-17 related subsystems;
1-18 (2) the uniform statewide payroll system (USPS);
1-19 (3) the human resource information system (HRIS);
1-20 (4) the budget execution and monitoring system
1-21 (BEAMS); and
1-22 (5) the statewide telecommunication network system.
1-23 SECTION 1.03. Section 2101.035(d), Government Code, is
1-24 amended to read as follows:
2-1 (d) The comptroller shall ensure that the system encompasses
2-2 each state agency. The comptroller may[, after consulting with the
2-3 project advisory committee,] exclude any state agency from the
2-4 centralized computation function of the statewide payroll component
2-5 of the system.
2-6 SECTION 1.04. Section 2101.038, Government Code, is amended
2-7 to read as follows:
2-8 Sec. 2101.038. DUTIES OF STATE AUDITOR. The state auditor,
2-9 when reviewing the operation of a state agency, shall audit for
2-10 compliance with the uniform statewide accounting system, the
2-11 comptroller's rules, and the Legislative Budget Board's performance
2-12 and workload measures. The state auditor shall notify [the project
2-13 advisory committee,] the comptroller, the governor, and the
2-14 Legislative Budget Board as soon as practicable when a state agency
2-15 is not in compliance.
2-16 SECTION 1.05. Section 2101.039, Government Code, is amended
2-17 to read as follows:
2-18 Sec. 2101.039. CONTRACTS; EXEMPTION. [(a)] Contracts made
2-19 under this subchapter are not subject to:
2-20 (1) Subtitle D [the State Purchasing and General
2-21 Services Act (Article 601b, Vernon's Texas Civil Statutes)];
2-22 (2) Chapter 2254; or
2-23 (3) Chapter 2054.
2-24 [(b) The project director must submit all proposed contracts
2-25 for professional or consulting services and all proposed purchases
2-26 of computer equipment or software to the project advisory committee
2-27 for review and recommendation before procurement.]
3-1 SECTION 1.06. (a) Section 2101.032, Government Code, is
3-2 repealed.
3-3 (b) Section 2101.035(b), Government Code, is repealed.
3-4 ARTICLE 2. ABOLITION OF BOLL WEEVIL ADVISORY COMMITTEE
3-5 SECTION 2.01. The boll weevil advisory committee is
3-6 abolished.
3-7 SECTION 2.02. Section 74.108(a), Agriculture Code, is
3-8 amended to read as follows:
3-9 (a) The board may:
3-10 (1) conduct board elections;
3-11 (2) conduct eradication zone referenda;
3-12 (3) conduct assessment referenda under Section 74.113
3-13 of this code;
3-14 (4) conduct programs consistent with the declaration
3-15 of policy stated in Section 74.101 of this code;
3-16 (5) accept, as necessary to implement this chapter,
3-17 gifts and grants;
3-18 (6) borrow money as necessary to execute this chapter;
3-19 and
3-20 (7) take other action and exercise other authority as
3-21 necessary to execute any act authorized by this subchapter or the
3-22 Texas Non-Profit Corporation Act (Article 1396-1.01 et seq.,
3-23 Vernon's Texas Civil Statutes)[; and]
3-24 [(8) form an advisory committee composed of
3-25 individuals from this state, other states, or other countries and
3-26 change membership on the committee, as necessary. Any advisory
3-27 committee created under this subdivision for the purpose of
4-1 establishing treatment methods shall include among its members
4-2 persons with knowledge of the effects of different treatments on
4-3 the health of agricultural workers, the local population, and the
4-4 ecosystem, including but not limited to the effects of a particular
4-5 method of treatment on beneficial organisms and wildlife, the
4-6 potential for secondary infestations from nontarget pests, and the
4-7 potential for pest resistance to particular methods of treatment].
4-8 SECTION 2.03. Section 74.120(d), Agriculture Code, is
4-9 repealed.
4-10 ARTICLE 3. ABOLITION OF RUNNELS COUNTY
4-11 WATER AUTHORITY
4-12 SECTION 3.01. The Runnels County Water Authority is
4-13 abolished.
4-14 SECTION 3.02. Chapter 376, Acts of the 54th Legislature,
4-15 Regular Session, 1955 (Article 8280-176, Vernon's Texas Civil
4-16 Statutes), is repealed.
4-17 ARTICLE 4. ABOLITION OF STATE DEPOSITORY BOARD
4-18 SECTION 4.01. The State Depository Board is abolished. All
4-19 powers, duties, rights, and obligations of the board are
4-20 transferred to the comptroller. All records, funds, contracts, or
4-21 other property of the board are transferred to the comptroller.
4-22 SECTION 4.02. Sections 44.007(f)-(i), Agriculture Code, are
4-23 amended to read as follows:
4-24 (f) After reviewing each linked deposit loan application,
4-25 the board shall recommend to the comptroller [state treasurer] the
4-26 acceptance or rejection of the application.
4-27 (g) After acceptance of the application, the comptroller
5-1 [state treasurer] shall place a linked deposit with the applicable
5-2 eligible lending institution for the period the comptroller
5-3 [treasurer] considers appropriate. The comptroller [state
5-4 treasurer] may not place a deposit for a period extending beyond
5-5 the state fiscal biennium in which it is placed. Subject to the
5-6 limitation described by Section 44.010 of this chapter, the
5-7 comptroller [treasurer] may place time deposits at an interest rate
5-8 described by Section 44.001(5)(A) of this chapter[,
5-9 notwithstanding any order of the State Depository Board to the
5-10 contrary].
5-11 (h) Before the placing of a linked deposit, the eligible
5-12 lending institution and the state, represented by the comptroller
5-13 [state treasurer] and the board, shall enter into a written deposit
5-14 agreement containing the conditions on which the linked deposit is
5-15 made.
5-16 (i) If a lending institution holding linked deposits ceases
5-17 to be a state depository, the comptroller [state treasurer] may
5-18 withdraw the linked deposits.
5-19 SECTION 4.03. Section 404.013, Government Code, is amended
5-20 to read as follows:
5-21 Sec. 404.013. RULES. The comptroller [board] may adopt and
5-22 enforce rules governing the establishment and conduct of state
5-23 depositories and the investment of state funds in the depositories
5-24 that the public interest requires and that are not inconsistent
5-25 with the law governing the depositories. [The rules must be entered
5-26 in the minutes of the board.]
5-27 SECTION 4.04. Sections 404.021(a)-(c), Government Code, are
6-1 amended to read as follows:
6-2 (a) Any state or national bank doing business in the state
6-3 may be designated by the comptroller [board] as a state depository.
6-4 Designation of a bank as a depository includes all of the bank's
6-5 branches within the state.
6-6 (b) Any savings and loan association doing business in the
6-7 state may be designated by the comptroller [board] as a state
6-8 depository.
6-9 (c) Any state or federal credit union doing business in the
6-10 state may be designated by the comptroller [board] as a state
6-11 depository.
6-12 SECTION 4.05. Sections 404.0212(b), (d), (e), and (f),
6-13 Government Code, are amended to read as follows:
6-14 (b) A regulated financial institution that accepts a deposit
6-15 from the comptroller [treasurer] shall report to the comptroller
6-16 [treasurer] the rating assigned to the financial institution under
6-17 12 U.S.C. Section 2906.
6-18 (d) The comptroller [board] may not select as a depository a
6-19 regulated financial institution that has been assigned a rating
6-20 below "outstanding record of meeting community credit needs" or
6-21 "satisfactory record of meeting community credit needs" under 12
6-22 U.S.C. Section 2906.
6-23 (e) On receipt of notice that the rating of a financial
6-24 institution is changed to a rating below that required by this
6-25 section, the comptroller [treasurer] shall take immediate action to
6-26 transfer all state funds subject to the custody or control of the
6-27 comptroller [treasurer] that are on deposit with the institution to
7-1 a qualified financial institution.
7-2 (f) The depository contract between a regulated financial
7-3 institution and the comptroller [board] must authorize the
7-4 withdrawal without penalty of the state funds subject to the
7-5 custody or control of the comptroller [treasurer] that are on
7-6 deposit with the institution if the rating of the institution is
7-7 changed to a rating below that required by Subsection (d).
7-8 SECTION 4.06. Section 404.022, Government Code, is amended
7-9 to read as follows:
7-10 Sec. 404.022. APPLICATIONS. (a) [The treasurer is the
7-11 secretary of the board.]
7-12 [(b)] The comptroller [board, through its secretary], on the
7-13 second Tuesday in June of each odd-numbered year, shall mail to
7-14 each eligible institution a letter stating the conditions with
7-15 which applicants for designation as a state depository must comply.
7-16 The comptroller [treasurer] shall keep on file in the comptroller's
7-17 [treasurer's] office and make available for inspection by any
7-18 person a list of institutions to which letters have been sent.
7-19 (b) [(c)] The application for designation as a state
7-20 depository must include a statement:
7-21 (1) of the amount of the applicant's paid capital
7-22 stock and permanent surplus, if any, or if the applicant is a
7-23 private bank, the amount of net proprietorship;
7-24 (2) of the maximum amount of state funds the applicant
7-25 will accept;
7-26 (3) of the applicant's condition on the date the
7-27 application is submitted; and
8-1 (4) that the books and accounts of the institution, if
8-2 it is designated as a state depository, will be open at all times
8-3 for inspection by the comptroller [board] or a [member or
8-4 accredited] representative of the comptroller [board].
8-5 (c) [(d)] An application shall be mailed to the comptroller
8-6 [treasurer] at Austin and must be received before noon of the
8-7 first day of August of the year in which the letter is sent. An
8-8 application received after that time may be considered at the
8-9 option of the comptroller [board]. The comptroller [board] shall
8-10 charge a processing fee of $25 for each application and shall
8-11 deposit the fees to the credit of the general revenue fund.
8-12 (d) [(e)] On receipt of an application under this section,
8-13 the comptroller [treasurer] shall endorse on the application the
8-14 date of its receipt. The comptroller [treasurer] shall prepare a
8-15 list of the names of the applicants and the amount for which each
8-16 has applied [and shall furnish a copy of the list to each board
8-17 member].
8-18 (e) [(f) The board shall meet on the first Monday in August
8-19 of each odd-numbered year and at other appropriate times to
8-20 consider applications.] The comptroller [board] may approve those
8-21 applicants that are acceptable and may reject those whose
8-22 management or condition, in the opinion of the comptroller
8-23 [board], does not warrant the placing of state funds in their
8-24 possession. An application for state funds may not be granted if
8-25 the applicant's liabilities for borrowed money are in excess of its
8-26 capital stock, but the comptroller [board] may in its discretion
8-27 waive this provision.
9-1 (f) [(g)] The comptroller [board] may designate an applicant
9-2 as a state depository if the applicant has complied with all of
9-3 the conditions set by the comptroller [board]. The designation as
9-4 a state depository is effective for a period of not more than two
9-5 years.
9-6 (g) [(h)] As soon as practicable after the comptroller
9-7 [board] has made its designations, the comptroller [treasurer]
9-8 shall inform all applicants whether they have been designated as
9-9 state depositories.
9-10 (h) [(i)] If more depositories are required at any time, the
9-11 comptroller [treasurer] may send to all eligible institutions
9-12 notice that further applications for designation as a state
9-13 depository for the unexpired term will be accepted.
9-14 (i) [(j)] The comptroller [board] may execute a simplified
9-15 version of a depository agreement with an eligible institution
9-16 desiring to hold $98,000 or less in state deposits that are fully
9-17 insured by the Federal Deposit Insurance Corporation or the
9-18 National Credit Union Share Insurance Fund. [The treasurer may give
9-19 the institution contingent approval as a depository until the
9-20 board's next scheduled meeting.]
9-21 SECTION 4.07. Section 404.023, Government Code, is amended
9-22 to read as follows:
9-23 Sec. 404.023. DESIGNATION. The comptroller [board] shall
9-24 designate one or more state depository banks in centrally located
9-25 cities to be used for clearing checks and other obligations due the
9-26 state.
9-27 SECTION 4.08. Sections 404.024(a), (b), (d), and (f)-(i),
10-1 Government Code, are amended to read as follows:
10-2 (a) The comptroller [board] may determine and designate the
10-3 amount of state funds to be deposited in time deposits in state
10-4 depositories. [The treasurer shall recommend to the board a
10-5 maximum limit for state funds deposited by the treasurer at
10-6 approved state depositories.] The percentage of state funds to be
10-7 deposited in state depositories shall be based on the interest
10-8 rates available in competing investments, the demand for funds from
10-9 Texas banks, and the state's liquidity requirements. [The
10-10 treasurer shall provide periodic investment reports to the board.]
10-11 (b) State funds not deposited in state depositories shall be
10-12 invested by the comptroller [treasurer] in:
10-13 (1) direct security repurchase agreements;
10-14 (2) reverse security repurchase agreements;
10-15 (3) direct obligations of or obligations the principal
10-16 and interest of which are guaranteed by the United States;
10-17 (4) direct obligations of or obligations guaranteed by
10-18 agencies or instrumentalities of the United States government;
10-19 (5) bankers' acceptances that:
10-20 (A) are eligible for purchase by the Federal
10-21 Reserve System;
10-22 (B) do not exceed 270 days to maturity; and
10-23 (C) are issued by a bank that has received the
10-24 highest short-term credit rating by a nationally recognized
10-25 investment rating firm;
10-26 (6) commercial paper that:
10-27 (A) does not exceed 270 days to maturity; and
11-1 (B) except as provided by Subsection (i), has
11-2 received the highest short-term credit rating by a nationally
11-3 recognized investment rating firm;
11-4 (7) contracts written by the treasury in which the
11-5 treasury grants the purchaser the right to purchase securities in
11-6 the treasury's marketable securities portfolio at a specified price
11-7 over a specified period and for which the treasury is paid a fee
11-8 and specifically prohibits naked-option or uncovered option
11-9 trading;
11-10 (8) direct obligations of or obligations guaranteed by
11-11 the Inter-American Development Bank, the International Bank for
11-12 Reconstruction and Development (the World Bank), the African
11-13 Development Bank, the Asian Development Bank, and the International
11-14 Finance Corporation that have received the highest credit rating by
11-15 a nationally recognized investment rating firm;
11-16 (9) bonds issued, assumed, or guaranteed by the State
11-17 of Israel;
11-18 (10) obligations of a state or an agency, county,
11-19 city, or other political subdivision of a state; and
11-20 (11) mutual funds secured by obligations that are
11-21 described by Subdivisions (1) through (6).
11-22 (d) The comptroller [board] may contract with a depository
11-23 for the payment of interest on time or demand deposits at a rate
11-24 not to exceed a rate that is lawful under an Act of Congress and
11-25 rules and regulations of the board of governors of the Federal
11-26 Reserve System, the board of directors of the Federal Deposit
11-27 Insurance Corporation, the National Credit Union Administration
12-1 Board, and the Federal Home Loan Banking Board.
12-2 (f) The comptroller [treasurer] by rule may define
12-3 derivative investments other than those described by Subsection
12-4 (e). The treasury may not purchase investments defined by rule
12-5 adopted under this subsection in an amount that at the time of
12-6 purchase will cause the aggregate value of the investments to
12-7 exceed five percent of the treasury's total investments.
12-8 (g) To the extent practicable, the comptroller [treasurer]
12-9 shall give first consideration to Texas banks when investing in
12-10 direct security repurchase agreements.
12-11 (h) The comptroller [treasurer] may not use state funds to
12-12 invest in or purchase obligations of a private corporation or other
12-13 private business entity doing business in Northern Ireland unless
12-14 the corporation or other entity:
12-15 (1) adheres to fair employment practices; and
12-16 (2) does not discriminate on the basis of race, color,
12-17 religion, sex, national origin, or disability.
12-18 (i) Notwithstanding Subsection (b)(6)(B), the comptroller
12-19 [treasurer] may purchase commercial paper with a rating lower than
12-20 the rating required by that paragraph to provide liquidity for
12-21 commercial paper issued by the comptroller [treasurer] or an agency
12-22 of the state.
12-23 SECTION 4.09. Sections 404.0245(b)-(d), Government Code,
12-24 are amended to read as follows:
12-25 (b) Subject to the limitations of Subsection (c), the
12-26 comptroller [board] may determine and designate the amount of state
12-27 funds that shall be invested by the comptroller [treasurer] in
13-1 hedging transactions in crude oil and natural gas futures contracts
13-2 and options on crude oil and natural gas futures contracts that are
13-3 traded on an established exchange regulated by the Securities and
13-4 Exchange Commission or the Commodity Futures Trading Commission.
13-5 (c) The principal amount of state funds invested and
13-6 outstanding in hedging transactions on any one day may not exceed
13-7 $500,000 with a maximum risk of loss of $5,000,000 in a biennium.
13-8 The total principal amount of state funds that may be invested by
13-9 the comptroller [treasurer] in hedging transactions during any one
13-10 biennium may not exceed the amount of money credited to the
13-11 unclaimed money fund for that biennium and attributable to the
13-12 remittance of mineral proceeds under Chapter 75, Property Code.
13-13 Any premium incurred in connection with hedging transactions may be
13-14 paid only from funds appropriated for that purpose.
13-15 (d) The comptroller [board by rule] shall invest [regulate
13-16 the investment of] state funds in crude oil and natural gas
13-17 futures contracts or options on crude oil and natural gas futures
13-18 contracts under the[. The rules shall provide] restrictions and
13-19 procedures for making [the] investments that persons of ordinary
13-20 prudence, discretion, and intelligence, exercising the judgment and
13-21 care under the circumstances then prevailing, would follow in the
13-22 management of their own affairs, not in regard to speculation but
13-23 in regard to the permanent disposition of their funds, considering
13-24 the probable income as well as the probable safety of their
13-25 capital. The investments may be made only for hedging purposes.
13-26 SECTION 4.10. Section 404.026, Government Code, is amended
13-27 to read as follows:
14-1 Sec. 404.026. ELEEMOSYNARY FUNDS. The comptroller [board]
14-2 may invest the permanent funds of the Texas School for the Blind
14-3 and Visually Impaired, Texas School for the Deaf, Austin State
14-4 Hospital, and Corsicana State Home and may invest other permanent
14-5 funds, the investment of which is not otherwise provided for, that
14-6 have $1,000 or more on deposit with the comptroller [treasurer]
14-7 that are not invested. The comptroller [board] shall invest the
14-8 funds in the same classes of bonds as are authorized for
14-9 investment of the permanent school fund.
14-10 SECTION 4.11. Section 404.032, Government Code, is amended
14-11 to read as follows:
14-12 Sec. 404.032. DEPOSITS. (a) The comptroller [treasurer]
14-13 shall deposit state funds in depositories that satisfy the
14-14 collateral requirements of this chapter. The comptroller
14-15 [treasurer] may deposit funds designated as demand deposits only in
14-16 institutions designated as depositories by the comptroller [board].
14-17 (b) The comptroller [treasurer] shall monitor the financial
14-18 stability of state depositories in which state deposits are held
14-19 and take appropriate action to protect state funds.
14-20 (c) A state depository shall collect all checks, drafts, and
14-21 demands for money deposited with it by the comptroller [treasurer].
14-22 If the depository uses due diligence, it is not liable for the
14-23 collections until the proceeds of the collections are duly received
14-24 by the depository bank. An expense incurred in collection that the
14-25 depository is not permitted to pay by reason of an Act of Congress
14-26 or a rule or regulation adopted under such an Act by the board of
14-27 governors of the Federal Reserve System or the board of directors
15-1 of the Federal Deposit Insurance Corporation shall be charged to
15-2 and paid by the comptroller [treasurer] out of money appropriated
15-3 by the legislature for that purpose.
15-4 (d) The comptroller [treasurer] shall keep sufficient money
15-5 on deposit in demand deposit accounts in depositories designated by
15-6 the comptroller [board] as clearing institutions to meet all
15-7 current claims on the state. Items received by the comptroller
15-8 [treasurer] for collection shall be deposited with a clearing
15-9 institution to be credited to the demand deposit account in the
15-10 depository. Checks, drafts, or warrants drawn by the comptroller
15-11 [treasurer] for the payment of obligations due by the state may be
15-12 drawn on such an account in such a depository or on the demand
15-13 deposit account in another state depository so that the checks,
15-14 drafts, or warrants of the state may at all times pass current as
15-15 cash.
15-16 SECTION 4.12. Section 404.033, Government Code, is amended
15-17 to read as follows:
15-18 Sec. 404.033. WITHDRAWALS AND REMITTANCES. (a) Funds on
15-19 deposit with a depository are subject to withdrawal at any time by
15-20 the comptroller [treasurer], except funds designated as time
15-21 deposits, which may be withdrawn in the manner agreed on in the
15-22 contract under which the funds were deposited. The depository
15-23 shall remit the withdrawal on demand and free of charge, except
15-24 charges that the depository is not permitted to pay by reason of an
15-25 Act of Congress or a rule or regulation adopted under such an Act
15-26 by the board of governors of the Federal Reserve System or the
15-27 board of directors of the Federal Deposit Insurance Corporation.
16-1 (b) A remittance to the comptroller [treasurer] by a state
16-2 depository or another person may be made by any method authorized
16-3 by the comptroller [treasurer], including cash, money order, or
16-4 bank draft. The liability of the depository or other person making
16-5 the remittance continues until the money is received by the
16-6 comptroller [treasurer]. A depository that refuses to make a
16-7 remittance required by this chapter forfeits its right to receive
16-8 further deposits, on order of the comptroller [board]. The
16-9 comptroller [board] may withdraw all funds from the depository,
16-10 which after the withdrawal ceases to be a state depository.
16-11 SECTION 4.13. Sections 481.193(f)-(i), Government Code, are
16-12 amended to read as follows:
16-13 (f) After reviewing each linked deposit loan application,
16-14 the executive director of the department shall recommend to the
16-15 comptroller [state treasurer] the acceptance or rejection of the
16-16 application.
16-17 (g) After the comptroller's [state treasurer's] acceptance
16-18 of the application and the lending institution originates a loan to
16-19 an eligible borrower, the comptroller [state treasurer] shall place
16-20 a linked deposit with the applicable eligible lending institution
16-21 for the period the comptroller [treasurer] considers appropriate.
16-22 The comptroller [state treasurer] may not place a deposit for a
16-23 period extending beyond the state fiscal biennium in which it is
16-24 placed. Subject to the limitation described by Section 481.197,
16-25 the comptroller [treasurer] may place time deposits at an interest
16-26 rate described by Section 481.192[, notwithstanding any order of
16-27 the State Depository Board to the contrary].
17-1 (h) Before the placing of a linked deposit, the eligible
17-2 lending institution and the state, represented by the comptroller
17-3 [state treasurer] and the department, shall enter into a written
17-4 deposit agreement containing the conditions on which the linked
17-5 deposit is made. The deposit agreement must provide that:
17-6 (1) the lending institution notify the comptroller
17-7 [state treasurer] if the borrower to which the deposit is linked
17-8 defaults on the loan; and
17-9 (2) in the event of a default the comptroller [state
17-10 treasurer] may withdraw the linked deposit.
17-11 (i) If a lending institution holding linked deposits ceases
17-12 to be a state depository, the comptroller [state treasurer] may
17-13 withdraw the linked deposits.
17-14 SECTION 4.14. Section 845.103(b), Government Code, is
17-15 amended to read as follows:
17-16 (b) In handling the funds of the retirement system, the
17-17 board of trustees has all powers and duties granted to the
17-18 comptroller that formerly were granted to the State Depository
17-19 Board.
17-20 SECTION 4.15. Section 855.103(b), Government Code, is
17-21 amended to read as follows:
17-22 (b) In handling the funds of the retirement system, the
17-23 board of trustees has all powers and duties granted to the
17-24 comptroller that formerly were granted to the State Depository
17-25 Board.
17-26 SECTION 4.16. Section 2257.025(b), Government Code, is
17-27 amended to read as follows:
18-1 (b) The comptroller [board] or the public entity may examine
18-2 and verify at any reasonable time a pledged investment security or
18-3 a record a depository maintains under this section.
18-4 SECTION 4.17. Section 2257.041(d), Government Code, is
18-5 amended to read as follows:
18-6 (d) A custodian must be approved by the public entity and
18-7 be:
18-8 (1) a state or national bank that:
18-9 (A) is designated by the comptroller [board] as
18-10 a state depository;
18-11 (B) is domiciled in this state; and
18-12 (C) has a capital stock and permanent surplus of
18-13 $5 million or more;
18-14 (2) the Texas Treasury Safekeeping Trust Company;
18-15 (3) a Federal Reserve Bank or a branch of a Federal
18-16 Reserve Bank; or
18-17 (4) a federal home loan bank.
18-18 SECTION 4.18. Sections 2257.046(b) and (c), Government Code,
18-19 are amended to read as follows:
18-20 (b) The comptroller [board] or the public entity may examine
18-21 and verify at any reasonable time a pledged investment security or
18-22 a record a custodian maintains under this section. The public
18-23 entity or its agent may inspect at any time an investment security
18-24 evidenced by a trust receipt.
18-25 (c) The public entity's custodian shall file a collateral
18-26 report with the comptroller [board] in the manner and on the dates
18-27 prescribed by the comptroller [board].
19-1 SECTION 4.19. Sections 2257.061, 2257.062, 2257.063, and
19-2 2257.064, Government Code, are amended to read as follows:
19-3 Sec. 2257.061. AUDITS AND EXAMINATIONS. As part of an audit
19-4 or regulatory examination of a public entity's depository or
19-5 custodian, the auditor or examiner shall:
19-6 (1) examine and verify pledged investment securities
19-7 and records maintained under Section 2257.025 or 2257.046; and
19-8 (2) report any significant or material noncompliance
19-9 with this chapter to the comptroller [board].
19-10 Sec. 2257.062. PENALTIES. (a) The comptroller [board] may
19-11 revoke a depository's designation as a state depository for one
19-12 year if, after notice and a hearing, the comptroller [board] makes
19-13 a written finding that the depository, while acting as either a
19-14 depository or a custodian:
19-15 (1) did not maintain reasonable compliance with this
19-16 chapter; and
19-17 (2) failed to remedy a violation of this chapter
19-18 within a reasonable time after receiving written notice of the
19-19 violation.
19-20 (b) The comptroller [board] may permanently revoke a
19-21 depository's designation as a state depository if the comptroller
19-22 [board] makes a written finding that the depository:
19-23 (1) has not maintained reasonable compliance with this
19-24 chapter; and
19-25 (2) has acted in bad faith by not remedying a
19-26 violation of this chapter.
19-27 Sec. 2257.063. MITIGATING CIRCUMSTANCES. (a) The
20-1 comptroller [board] shall consider the total circumstances relating
20-2 to the performance of a depository or custodian when the
20-3 comptroller [board] makes a finding required by Section 2257.062,
20-4 including the extent to which the noncompliance is minor, isolated,
20-5 temporary, or nonrecurrent.
20-6 (b) The comptroller [board] may not find that a depository
20-7 or custodian did not maintain reasonable compliance with this
20-8 chapter if the noncompliance results from the public entity's
20-9 failure to comply with Section 2257.026.
20-10 (c) This section does not relieve a depository or custodian
20-11 of the obligation to secure a deposit of public funds with eligible
20-12 security in the amount and manner required by this chapter within a
20-13 reasonable time after the public entity deposits the deposit of
20-14 public funds with the depository.
20-15 Sec. 2257.064. REINSTATEMENT. The comptroller [board] may
20-16 reinstate a depository's designation as a state depository if:
20-17 (1) the comptroller [board] determines that the
20-18 depository has remedied all violations of this chapter; and
20-19 (2) the depository assures the comptroller [board] to
20-20 the comptroller's [board's] satisfaction that the depository will
20-21 maintain reasonable compliance with this chapter.
20-22 SECTION 4.20. Section 154.051, Tax Code, is amended to read
20-23 as follows:
20-24 Sec. 154.051. CIGARETTE TAX RECOVERY TRUST FUND. (a) The
20-25 cigarette tax recovery trust fund is a private trust fund
20-26 established outside the state treasury and as provided by this
20-27 section secures the payment of cigarette taxes by distributors who
21-1 contribute to the fund. The fund is composed of the total amount
21-2 in the separate accounts maintained in trust for all contributing
21-3 distributors as provided by this section. The assets of the fund,
21-4 including interest earned by those assets, are to be held in trust
21-5 for the benefit and protection of the state treasury, and may not
21-6 be diverted, distributed, or appropriated for any purpose other
21-7 than as provided by this section. Interest earned by a
21-8 distributor's account but not yet refunded to the distributor
21-9 pursuant to Subsection (d) shall, on a monthly basis, be paid to
21-10 the comptroller [treasurer] as provided by Subsection (b) or
21-11 credited to the distributor's account.
21-12 (b) The comptroller [treasurer] is the trustee of the fund
21-13 as provided by Section 404.073, Government Code, and shall manage
21-14 the fund as provided by this section. In investing the assets of
21-15 the fund, the comptroller [treasurer] has the obligations, duties,
21-16 and powers provided for the investment of state funds by Sections
21-17 404.021 through 404.025, Government Code[, and by the orders of the
21-18 State Depository Board]. The comptroller [treasurer] shall receive
21-19 five percent of the interest earned on all assets of the fund as
21-20 compensation for serving as trustee of the fund.
21-21 (c) A distributor who orders stamps or requests a meter
21-22 setting from the comptroller [state treasurer] under this chapter
21-23 without advance payment shall contribute to an account maintained
21-24 in the distributor's name in the fund money in the amount of each
21-25 discount to which the distributor is entitled under Section 154.052
21-26 of this code. When the money in the distributor's account equals
21-27 20 percent of the designated amount of stamps and meter setting
22-1 requested by the distributor and approved by the comptroller
22-2 [treasurer] to be purchased in any one month, the distributor's
22-3 interest in the fund becomes vested.
22-4 (d) Except as provided by Subsection (g) of this section, on
22-5 the last day of each quarter after the quarter in which a
22-6 distributor's interest in the fund becomes vested, the comptroller
22-7 [treasurer] shall refund to the distributor all money contributed
22-8 to the fund by the distributor under Subsection (c) of this section
22-9 in the earliest preceding quarter for which a refund has not been
22-10 paid, plus interest earned on that amount, as long as the
22-11 distributor's interest in the fund remains vested.
22-12 (e) Until a distributor who orders stamps or requests a
22-13 meter setting without advance payment acquires a vested interest in
22-14 the fund, the comptroller [treasurer] may require the distributor
22-15 to post with the comptroller [treasurer] an irrevocable letter of
22-16 credit drawn in the form and amount specified by the comptroller
22-17 [treasurer] to secure the payment of cigarette taxes by that
22-18 distributor. The comptroller [treasurer] may not ship stamps to or
22-19 set a meter for a distributor not having a vested interest in the
22-20 fund without advance payment until the distributor posts the
22-21 required letter of credit.
22-22 (f) In addition to any other requirement under this section,
22-23 the comptroller [treasurer] as a condition for shipping stamps or
22-24 setting a meter without advance payment may:
22-25 (1) require a fiscal-year-end financial statement,
22-26 including a balance sheet and income statement verifiable as to its
22-27 accuracy or other financial information acceptable to the
23-1 comptroller [treasurer] and verifiable as to its accuracy;
23-2 (2) require indemnification from each officer,
23-3 director, and stockholder owning 10 percent or more of outstanding
23-4 stock, if the distributor is a corporation, from each partner, if
23-5 the distributor is a partnership, from each member or owner of a
23-6 joint venture or syndication, and from the owner of a sole
23-7 proprietorship;
23-8 (3) require the distributor to obtain and provide the
23-9 comptroller [treasurer] with a credit report from a credit
23-10 reporting agency acceptable to the comptroller [treasurer];
23-11 (4) require a distributor to increase the balance in
23-12 its account in the fund;
23-13 (5) require a distributor to post a letter of credit;
23-14 (6) reduce a distributor's credit time or amount; or
23-15 (7) take any other reasonable and necessary action to
23-16 protect the state treasury from loss due to the nonpayment of
23-17 cigarette taxes.
23-18 (g) If a distributor who has an account in the fund fails to
23-19 pay in full a tax imposed by this chapter by the due date, the
23-20 comptroller [treasurer], without prior notice to the distributor or
23-21 any other preliminary procedure, may seize any unaffixed stamps and
23-22 any stamped cigarette packages, up to and including the full amount
23-23 of unpaid tax. If the proceeds from the seizure do not satisfy the
23-24 total tax deficiency or the comptroller [treasurer] does not seize
23-25 any unaffixed stamps or stamped cigarette packages, the comptroller
23-26 [treasurer] may withdraw immediately from the fund an amount equal
23-27 to the amount of unpaid taxes due. The comptroller [treasurer]
24-1 shall first withdraw the amount from the account of the defaulting
24-2 distributor. The comptroller [treasurer] shall use the
24-3 comptroller's [treasurer's] best efforts to collect the tax due
24-4 from the defaulting distributor before withdrawing money from the
24-5 other accounts in the fund to satisfy the tax liability. If that
24-6 distributor's account does not contain sufficient money to satisfy
24-7 the tax liability in full, the comptroller [treasurer] shall
24-8 withdraw the additional amount necessary to satisfy that liability
24-9 from the other accounts in the fund in proportion to the balance of
24-10 each account, except that the withdrawal from any other
24-11 distributor's account in the fund is limited to an amount not
24-12 greater than 50 percent of the designated amount of stamps and
24-13 meter settings requested by the distributor under Subsection (c) or
24-14 of the amount required by the comptroller [treasurer] under
24-15 Subsection (f)(4). Not later than the fifth day after the date of
24-16 a withdrawal, the comptroller [treasurer] shall notify each
24-17 distributor of the withdrawal from its account and the amount
24-18 withdrawn. If as a result of a withdrawal made under this
24-19 subsection a distributor's balance in its account is reduced to an
24-20 amount less than the minimum required under this section, the
24-21 distributor's interest in the fund is no longer vested, and the
24-22 comptroller [treasurer] may discontinue refunds to the distributor
24-23 under Subsection (d) until the distributor again acquires a vested
24-24 interest in the fund. The comptroller [treasurer] may require a
24-25 distributor whose interest in the fund is no longer vested to post
24-26 an irrevocable letter of credit with the comptroller [treasurer] to
24-27 secure the payment of cigarette taxes by the distributor. To
25-1 protect the fund, each distributor having an account in the fund
25-2 must indemnify the fund against any amount withdrawn from the fund
25-3 under this subsection because of the failure of the distributor to
25-4 pay in full a tax imposed by this chapter by the due date.
25-5 (h) If distributor accounts, other than a defaulting
25-6 distributor account, are drawn pursuant to Subsection (g) of this
25-7 section, each affected, nondefaulting distributor shall have a
25-8 claim against the defaulting distributor for the amount so drawn.
25-9 The comptroller [treasurer] is hereby appointed trustee, agent, and
25-10 assignee of each affected, nondefaulting distributor for purposes
25-11 of seeking recovery of the amount so drawn. The comptroller
25-12 [treasurer] shall have the sole judgment and discretion in deciding
25-13 whether or not to pursue such a claim and shall have discretion to
25-14 handle any such claim on any basis that in the opinion of the
25-15 comptroller [treasurer] is in the best interest of the fund. The
25-16 comptroller [treasurer] is released from any liability related to
25-17 the handling of the claims described in this section except for
25-18 intentional or wilful misconduct.
25-19 (i) A distributor or person authorized to act on behalf of a
25-20 distributor may notify the comptroller [treasurer] in writing that
25-21 the distributor no longer desires to have stamps shipped or a meter
25-22 set without advance payment, and may request that the money in the
25-23 distributor's account in the fund be paid to the distributor or the
25-24 distributor's heirs or assigns. The comptroller [treasurer] shall
25-25 pay the money in the distributor's account as requested at the end
25-26 of the next quarter after all outstanding taxes owed to the state
25-27 by the distributor have been paid.
26-1 (j) Under no circumstances shall the comptroller [treasurer]
26-2 return to any distributor an amount greater than the balance in the
26-3 distributor's account within the cigarette tax recovery trust fund
26-4 less any sums drawn pursuant to Subsection (g) of this section.
26-5 The State of Texas' liability to any distributor pursuant to this
26-6 section is expressly limited to the sums on deposit in the
26-7 distributor's account at the time the request for return of funds
26-8 is made.
26-9 (k) The comptroller [treasurer] may adopt and enforce rules
26-10 necessary to carry out this section.
26-11 (l) For purposes of this section, "quarter" refers to a
26-12 quarter of the state's fiscal year.
26-13 (m) Information provided under Subsection (f) is
26-14 confidential and not subject to Chapter 552, Government Code.
26-15 (n) The comptroller [treasurer] shall regularly distribute
26-16 financial information regarding the performance of the fund to
26-17 participating distributors on a regular basis. On the written
26-18 request of a participating distributor, the comptroller [treasurer]
26-19 shall provide the distributor with the name and address of each
26-20 distributor participating in the fund, the percentage of the total
26-21 fund represented by each distributor's account, and the total
26-22 amount of money in the fund.
26-23 (o) In lieu of participation in the cigarette tax recovery
26-24 trust fund to secure payment for stamps or meter settings and in
26-25 lieu of advance payment for stamps or meter settings, a distributor
26-26 may pledge to the comptroller [treasurer] sufficient collateral to
26-27 secure payment for stamps or meter settings. Such pledge shall be
27-1 evidenced by a pledge agreement in a form promulgated by the
27-2 comptroller [treasurer], and such collateral shall consist of
27-3 certificates of deposit, treasury notes, treasury bills, or other
27-4 similar types of collateral acceptable to the comptroller
27-5 [treasurer] and held in a separate trust fund established in the
27-6 Texas Treasury Safekeeping Trust Company. All interest earned on
27-7 such collateral shall belong to the distributor. The comptroller
27-8 [treasurer] may require the pledge of additional collateral in the
27-9 event the comptroller [treasurer] determines that the fair market
27-10 value of the pledged collateral is less than the amount due the
27-11 comptroller [treasurer] for stamps or meter settings. On the
27-12 written request of the distributor, the comptroller [treasurer]
27-13 shall release collateral from the pledge agreement or allow the
27-14 substitution of collateral subject to the pledge agreement if after
27-15 such release or substitution the fair market value of the
27-16 collateral subject to the pledge will be equal to or greater than
27-17 the amount due the comptroller [treasurer] for stamps or meter
27-18 settings. If a distributor fails to pay tax in full when due, the
27-19 comptroller [treasurer] may, if the distributor does not pay such
27-20 past due tax and any penalty related thereto within three days
27-21 after receipt of written notice of such failure from the
27-22 comptroller [treasurer], sell or dispose of the collateral and
27-23 apply the proceeds to the payment of taxes, interest, penalties,
27-24 and costs due to the comptroller [treasurer] by the distributor,
27-25 with any remaining proceeds being refunded to the distributor.
27-26 SECTION 4.21. Section 20.002(2), Water Code, is amended to
27-27 read as follows:
28-1 (2) "Authorized investments" means:
28-2 (A) direct obligations of or obligations the
28-3 principal of and interest on which are guaranteed by the United
28-4 States;
28-5 (B) direct obligations of or participation
28-6 certificates guaranteed by the Federal Intermediate Credit Bank,
28-7 Federal Land Banks, Federal National Mortgage Association, Federal
28-8 Home Loan Banks, and Banks for Cooperatives;
28-9 (C) direct obligations of or obligations the
28-10 principal of and interest on which are guaranteed by the State of
28-11 Texas;
28-12 (D) bonds of cities, counties, and other
28-13 political subdivisions of this state, other than bonds issued by a
28-14 political subdivision to finance a project covered by this chapter;
28-15 (E) certificates of deposit of state and
28-16 national banks that satisfy the requirements of Section 2.015,
28-17 Chapter 240, Acts of the 69th Legislature, Regular Session, 1985
28-18 (Article 4393-1, Vernon's Texas Civil Statutes), and the rules of
28-19 the comptroller [State Depository Board] and if the authority or a
28-20 financial institution acting solely as agent for the authority
28-21 possesses the collateral securing those deposits; and
28-22 (F) direct security repurchase agreements made
28-23 only with state or national banks domiciled in the state under
28-24 which the authority buys, holds in its possession or the possession
28-25 of a financial institution acting solely as agent for the authority
28-26 for a specified time, and then sells back any of the following
28-27 securities, obligations, or participation certificates:
29-1 (i) United States government securities;
29-2 (ii) direct obligations of or obligations
29-3 the principal of and interest on which are guaranteed by the United
29-4 States; and
29-5 (iii) direct obligations of or
29-6 participation certificates guaranteed by the Federal Intermediate
29-7 Credit Bank, Federal Land Banks, Federal National Mortgage
29-8 Association, Federal Home Loan Banks, and Banks for Cooperatives.
29-9 SECTION 4.22. The following laws are repealed:
29-10 (1) Sections 404.011 and 404.012, Government Code;
29-11 (2) Section 404.001(1), Government Code;
29-12 (3) Section 404.031(k), Government Code; and
29-13 (4) Section 2257.002(2), Government Code.
29-14 ARTICLE 5. ABOLITION OF EGG MARKETING ADVISORY BOARD
29-15 SECTION 5.01. The Egg Marketing Advisory Board is abolished.
29-16 SECTION 5.02. Section 132.007, Agriculture Code, is
29-17 repealed.
29-18 ARTICLE 6. ABOLITION OF ELECTRONIC DATA BASE ADVISORY COMMITTEE
29-19 SECTION 6.01. The electronic data base advisory committee is
29-20 abolished.
29-21 SECTION 6.02. Section 481.060, Government Code, is amended
29-22 to read as follows:
29-23 Sec. 481.060. ELECTRONIC DATA BASE. (a) In cooperation
29-24 with other state agencies, the international trade division of the
29-25 department shall develop an electronic data base to compile
29-26 international trade information, including information on economic,
29-27 educational, and other opportunities in the public and private
30-1 sectors. The division shall connect that data base with
30-2 appropriate state, federal, and international communication
30-3 networks.
30-4 (b) [The electronic data base advisory committee is composed
30-5 of:]
30-6 [(1) a representative from the center for border
30-7 economic and enterprise development at The University of Texas at
30-8 El Paso, appointed by the president of the university;]
30-9 [(2) a representative from the University of North
30-10 Texas Institute for Regional Industrialization and Manufacturing
30-11 Technology, appointed by the president of the university;]
30-12 [(3) a representative from the Bureau of Business
30-13 Research at The University of Texas at Austin, appointed by the
30-14 president of the university;]
30-15 [(4) a representative from the Texas Agriculture
30-16 Market and Research Center, appointed by the president of Texas A&M
30-17 University;]
30-18 [(5) a representative from The University of Texas at
30-19 San Antonio, College of Business, division of management and
30-20 marketing, appointed by the president of the university;]
30-21 [(6) a representative from The University of Texas-Pan
30-22 American, appointed by the president of the university;]
30-23 [(7) a representative from Texas A&M International
30-24 University, appointed by the president of the university;]
30-25 [(8) a representative from Texas Tech University,
30-26 appointed by the president of the university;]
30-27 [(9) a representative from the University of Houston,
31-1 appointed by the president of the university;]
31-2 [(10) a representative from Lamar University,
31-3 appointed by the president of the university;]
31-4 [(11) a representative from Sul Ross State University,
31-5 appointed by the president of the university; and]
31-6 [(12) persons appointed by the governor or the
31-7 executive director of the department.]
31-8 [(c) If a member of the advisory committee who represents a
31-9 university ceases to be employed by the university, the member's
31-10 position on the advisory committee becomes vacant on the day
31-11 employment ceases. A vacancy shall be filled by the president of
31-12 the university that the member represents.]
31-13 [(d) The advisory committee shall recommend to the
31-14 department procedures for the dissemination of the data base.]
31-15 [(e)] The department may accept gifts, grants, and donations
31-16 from any source for the operation of the data base.
31-17 ARTICLE 7. ABOLITION OF ENERGY ADVISORY COMMITTEE
31-18 SECTION 7.01. The energy advisory committee is abolished.
31-19 SECTION 7.02. Section 761.006, Government Code, is repealed.
31-20 ARTICLE 8. ABOLITION OF RIO GRANDE VALLEY
31-21 MUNICIPAL WATER AUTHORITY
31-22 SECTION 8.01. The Rio Grande Valley Municipal Water
31-23 Authority is abolished.
31-24 SECTION 8.02. Chapter 623, Acts of the 61st Legislature,
31-25 Regular Session, 1969 (Article 8280-455, Vernon's Texas Civil
31-26 Statutes), is repealed.
32-1 ARTICLE 9. ABOLITION OF RIO GRANDE VALLEY
32-2 POLLUTION CONTROL AUTHORITY
32-3 SECTION 9.01. The Rio Grande Valley Pollution Control
32-4 Authority is abolished.
32-5 SECTION 9.02. Chapter 648, Acts of the 60th Legislature,
32-6 Regular Session, 1967 (Article 8280-389, Vernon's Texas Civil
32-7 Statutes), is repealed.
32-8 ARTICLE 10. TRANSITION; EFFECTIVE DATE; EMERGENCY
32-9 SECTION 10.01. (a) If an entity that is abolished by this
32-10 Act has property, records, or other assets and the article of this
32-11 Act that abolishes the entity does not provide for their
32-12 disposition, the General Services Commission shall take custody of
32-13 the property, records, or other assets of the entity unless the
32-14 governor designates another appropriate governmental entity to take
32-15 custody of the property, records, or other assets.
32-16 (b) If an entity that is abolished by this Act has a
32-17 continuing valid and enforceable obligation, including bonded
32-18 indebtedness, Section 325.017(f), Government Code, applies in
32-19 relation to the continuing obligation of the abolished entity. If
32-20 the abolished entity is not a state agency, the governor may
32-21 designate an appropriate state agency or another appropriate
32-22 governmental entity created under the laws of this state to perform
32-23 the functions assigned under Section 325.017(f), Government Code.
32-24 SECTION 10.02. This Act takes effect September 1, 1997.
32-25 SECTION 10.03. The importance of this legislation and the
32-26 crowded condition of the calendars in both houses create an
32-27 emergency and an imperative public necessity that the
33-1 constitutional rule requiring bills to be read on three several
33-2 days in each house be suspended, and this rule is hereby suspended.