By Siebert H.B. No. 2380
75R2372 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, Title 10 [the State Purchasing and
2-21 General Services Act (Article 601b, Vernon's Texas Civil
2-22 Statutes)];
2-23 (2) Chapter 2254; or
2-24 (3) Chapter 2054.
2-25 [(b) The project director must submit all proposed contracts
2-26 for professional or consulting services and all proposed purchases
2-27 of computer equipment or software to the project advisory committee
3-1 for review and recommendation before procurement.]
3-2 SECTION 1.06. (a) Section 2101.032, Government Code, is
3-3 repealed.
3-4 (b) Section 2101.035(b), Government Code, is repealed.
3-5
3-6 ARTICLE 2. ABOLITION OF BOLL WEEVIL ADVISORY COMMITTEE
3-7 SECTION 2.01. The boll weevil advisory committee is
3-8 abolished.
3-9 SECTION 2.02. Section 74.108(a), Agriculture Code, is
3-10 amended to read as follows:
3-11 (a) The board may:
3-12 (1) conduct board elections;
3-13 (2) conduct eradication zone referenda;
3-14 (3) conduct assessment referenda under Section 74.113
3-15 of this code;
3-16 (4) conduct programs consistent with the declaration
3-17 of policy stated in Section 74.101 of this code;
3-18 (5) accept, as necessary to implement this chapter,
3-19 gifts and grants;
3-20 (6) borrow money as necessary to execute this chapter;
3-21 and
3-22 (7) take other action and exercise other authority as
3-23 necessary to execute any act authorized by this subchapter or the
3-24 Texas Non-Profit Corporation Act (Article 1396-1.01 et seq.,
3-25 Vernon's Texas Civil Statutes)[; and]
3-26 [(8) form an advisory committee composed of
3-27 individuals from this state, other states, or other countries and
4-1 change membership on the committee, as necessary. Any advisory
4-2 committee created under this subdivision for the purpose of
4-3 establishing treatment methods shall include among its members
4-4 persons with knowledge of the effects of different treatments on
4-5 the health of agricultural workers, the local population, and the
4-6 ecosystem, including but not limited to the effects of a particular
4-7 method of treatment on beneficial organisms and wildlife, the
4-8 potential for secondary infestations from nontarget pests, and the
4-9 potential for pest resistance to particular methods of treatment].
4-10 SECTION 2.03. Section 74.120(d), Agriculture Code, is
4-11 repealed.
4-12 ARTICLE 3. ABOLITION OF STATE EMPLOYEE CHARITABLE CAMPAIGN
4-13 ADVISORY COMMITTEE
4-14 SECTION 3.01. The state employee charitable campaign
4-15 advisory committee is abolished.
4-16 SECTION 3.02. Section 659.140(e), Government Code, is
4-17 amended to read as follows:
4-18 (e) The state policy committee shall:
4-19 (1) establish local campaign areas [based on
4-20 recommendations by the state advisory committee];
4-21 (2) select an eligible federated community campaign
4-22 organization to be the state campaign manager;
4-23 (3) determine the eligibility of a federation or fund
4-24 and its affiliated agencies for statewide participation in the
4-25 state employee charitable campaign;
4-26 (4) approve the recommended campaign plan, budget, and
4-27 generic materials to be used by campaign managers;
5-1 (5) oversee the state employee charitable campaign to
5-2 ensure that all campaign activities are conducted fairly and
5-3 equitably to promote unified solicitation on behalf of all
5-4 participants; and
5-5 (6) perform other duties prescribed by the
5-6 comptroller's rules.
5-7 SECTION 3.03. (a) Section 659.142, Government Code, is
5-8 repealed.
5-9 (b) Section 659.131(15), Government Code, is repealed.
5-10 ARTICLE 4. ABOLITION OF STATE DEPOSITORY BOARD
5-11 SECTION 4.01. The State Depository Board is abolished. All
5-12 powers, duties, rights, and obligations of the board are
5-13 transferred to the comptroller. All records, funds, contracts, or
5-14 other property of the board are transferred to the comptroller.
5-15 SECTION 4.02. Sections 44.007(f)-(i), Agriculture Code, are
5-16 amended to read as follows:
5-17 (f) After reviewing each linked deposit loan application,
5-18 the board shall recommend to the comptroller [state treasurer] the
5-19 acceptance or rejection of the application.
5-20 (g) After acceptance of the application, the comptroller
5-21 [state treasurer] shall place a linked deposit with the applicable
5-22 eligible lending institution for the period the comptroller
5-23 [treasurer] considers appropriate. The comptroller [state
5-24 treasurer] may not place a deposit for a period extending beyond
5-25 the state fiscal biennium in which it is placed. Subject to the
5-26 limitation described by Section 44.010 of this chapter, the
5-27 comptroller [treasurer] may place time deposits at an interest rate
6-1 described by Section 44.001(5)(A) of this chapter[,
6-2 notwithstanding any order of the State Depository Board to the
6-3 contrary].
6-4 (h) Before the placing of a linked deposit, the eligible
6-5 lending institution and the state, represented by the comptroller
6-6 [state treasurer] and the board, shall enter into a written deposit
6-7 agreement containing the conditions on which the linked deposit is
6-8 made.
6-9 (i) If a lending institution holding linked deposits ceases
6-10 to be a state depository, the comptroller [state treasurer] may
6-11 withdraw the linked deposits.
6-12 SECTION 4.03. Section 404.013, Government Code, is amended
6-13 to read as follows:
6-14 Sec. 404.013. RULES. The comptroller [board] may adopt and
6-15 enforce rules governing the establishment and conduct of state
6-16 depositories and the investment of state funds in the depositories
6-17 that the public interest requires and that are not inconsistent
6-18 with the law governing the depositories. [The rules must be entered
6-19 in the minutes of the board.]
6-20 SECTION 4.04. Section 404.021, Government Code, is amended
6-21 to read as follows:
6-22 Sec. 404.021. ELIGIBLE INSTITUTIONS. (a) Any state or
6-23 national bank doing business in the state may be designated by the
6-24 comptroller [board] as a state depository. Designation of a bank
6-25 as a depository includes all of the bank's branches within the
6-26 state.
6-27 (b) Any savings and loan association doing business in the
7-1 state may be designated by the comptroller [board] as a state
7-2 depository.
7-3 (c) Any state or federal credit union doing business in the
7-4 state may be designated by the comptroller [board] as a state
7-5 depository.
7-6 (d) Deposits of eligible institutions designated as state
7-7 depositories must be covered by the Federal Deposit Insurance
7-8 Corporation or the National Credit Union Share Insurance Fund.
7-9 SECTION 4.05. Section 404.0212, Government Code, is amended
7-10 to read as follows:
7-11 Sec. 404.0212. DEPOSITORY RATING UNDER CERTAIN FEDERAL LAW.
7-12 (a) In this section, "regulated financial institution" has the
7-13 meaning assigned by 12 U.S.C. Section 2902.
7-14 (b) A regulated financial institution that accepts a deposit
7-15 from the comptroller [treasurer] shall report to the comptroller
7-16 [treasurer] the rating assigned to the financial institution under
7-17 12 U.S.C. Section 2906.
7-18 (c) A regulated financial institution shall make a report
7-19 required by this section:
7-20 (1) annually, not later than August 1 of each year;
7-21 and
7-22 (2) not later than the 30th day after the date the
7-23 financial institution is notified that the assigned rating has been
7-24 changed.
7-25 (d) The comptroller [board] may not select as a depository a
7-26 regulated financial institution that has been assigned a rating
7-27 below "outstanding record of meeting community credit needs" or
8-1 "satisfactory record of meeting community credit needs" under 12
8-2 U.S.C. Section 2906.
8-3 (e) On receipt of notice that the rating of a financial
8-4 institution is changed to a rating below that required by this
8-5 section, the comptroller [treasurer] shall take immediate action to
8-6 transfer all state funds subject to the custody or control of the
8-7 comptroller [treasurer] that are on deposit with the institution to
8-8 a qualified financial institution.
8-9 (f) The depository contract between a regulated financial
8-10 institution and the comptroller [board] must authorize the
8-11 withdrawal without penalty of the state funds subject to the
8-12 custody or control of the comptroller [treasurer] that are on
8-13 deposit with the institution if the rating of the institution is
8-14 changed to a rating below that required by Subsection (d).
8-15 SECTION 4.06. Section 404.022, Government Code, is amended
8-16 to read as follows:
8-17 Sec. 404.022. APPLICATIONS. (a) [The treasurer is the
8-18 secretary of the board.]
8-19 [(b)] The comptroller [board], through its secretary, on the
8-20 second Tuesday in June of each odd-numbered year shall mail to each
8-21 eligible institution a letter stating the conditions with which
8-22 applicants for designation as a state depository must comply. The
8-23 comptroller [treasurer] shall keep on file in the comptroller's
8-24 [treasurer's] office and make available for inspection by any
8-25 person a list of institutions to which letters have been sent.
8-26 (b) [(c)] The application for designation as a state
8-27 depository must include a statement:
9-1 (1) of the amount of the applicant's paid capital
9-2 stock and permanent surplus, if any, or if the applicant is a
9-3 private bank, the amount of net proprietorship;
9-4 (2) of the maximum amount of state funds the applicant
9-5 will accept;
9-6 (3) of the applicant's condition on the date the
9-7 application is submitted; and
9-8 (4) that the books and accounts of the institution, if
9-9 it is designated as a state depository, will be open at all times
9-10 for inspection by the comptroller [board] or a [member or
9-11 accredited] representative of the comptroller [board].
9-12 (c) [(d)] An application shall be mailed to the comptroller
9-13 [treasurer] at Austin and must be received before noon of the
9-14 first day of August of the year in which the letter is sent. An
9-15 application received after that time may be considered at the
9-16 option of the comptroller [board]. The comptroller [board] shall
9-17 charge a processing fee of $25 for each application and shall
9-18 deposit the fees to the credit of the general revenue fund.
9-19 (d) [(e)] On receipt of an application under this section,
9-20 the comptroller [treasurer] shall endorse on the application the
9-21 date of its receipt. The comptroller [treasurer] shall prepare a
9-22 list of the names of the applicants and the amount for which each
9-23 has applied [and shall furnish a copy of the list to each board
9-24 member].
9-25 (e) [(f) The board shall meet on the first Monday in August
9-26 of each odd-numbered year and at other appropriate times to
9-27 consider applications.] The comptroller [board] may approve those
10-1 applicants that are acceptable and may reject those whose
10-2 management or condition, in the opinion of the comptroller
10-3 [board], does not warrant the placing of state funds in their
10-4 possession. An application for state funds may not be granted if
10-5 the applicant's liabilities for borrowed money are in excess of its
10-6 capital stock, but the comptroller [board] may in its discretion
10-7 waive this provision.
10-8 (f) [(g)] The comptroller [board] may designate an applicant
10-9 as a state depository if the applicant has complied with all of
10-10 the conditions set by the comptroller [board]. The designation as
10-11 a state depository is effective for a period of not more than two
10-12 years.
10-13 (g) [(h)] As soon as practicable after the comptroller
10-14 [board] has made its designations, the comptroller [treasurer]
10-15 shall inform all applicants whether they have been designated as
10-16 state depositories.
10-17 (h) [(i)] If more depositories are required at any time, the
10-18 comptroller [treasurer] may send to all eligible institutions
10-19 notice that further applications for designation as a state
10-20 depository for the unexpired term will be accepted.
10-21 (i) [(j)] The comptroller [board] may execute a simplified
10-22 version of a depository agreement with an eligible institution
10-23 desiring to hold $98,000 or less in state deposits that are fully
10-24 insured by the Federal Deposit Insurance Corporation or the
10-25 National Credit Union Share Insurance Fund. [The treasurer may give
10-26 the institution contingent approval as a depository until the
10-27 board's next scheduled meeting.]
11-1 SECTION 4.07. Section 404.023, Government Code, is amended
11-2 to read as follows:
11-3 Sec. 404.023. DESIGNATION. The comptroller [board] shall
11-4 designate one or more state depository banks in centrally located
11-5 cities to be used for clearing checks and other obligations due the
11-6 state.
11-7 SECTION 4.08. Sections 404.024(a), (b), (d), and (f)-(i),
11-8 Government Code, are amended to read as follows:
11-9 (a) The comptroller [board] may determine and designate the
11-10 amount of state funds to be deposited in time deposits in state
11-11 depositories. [The treasurer shall recommend to the board a
11-12 maximum limit for state funds deposited by the treasurer at
11-13 approved state depositories.] The percentage of state funds to be
11-14 deposited in state depositories shall be based on the interest
11-15 rates available in competing investments, the demand for funds from
11-16 Texas banks, and the state's liquidity requirements. [The
11-17 treasurer shall provide periodic investment reports to the board.]
11-18 (b) State funds not deposited in state depositories shall be
11-19 invested by the comptroller [treasurer] in:
11-20 (1) direct security repurchase agreements;
11-21 (2) reverse security repurchase agreements;
11-22 (3) direct obligations of or obligations the principal
11-23 and interest of which are guaranteed by the United States;
11-24 (4) direct obligations of or obligations guaranteed by
11-25 agencies or instrumentalities of the United States government;
11-26 (5) bankers' acceptances that:
11-27 (A) are eligible for purchase by the Federal
12-1 Reserve System;
12-2 (B) do not exceed 270 days to maturity; and
12-3 (C) are issued by a bank that has received the
12-4 highest short-term credit rating by a nationally recognized
12-5 investment rating firm;
12-6 (6) commercial paper that:
12-7 (A) does not exceed 270 days to maturity; and
12-8 (B) except as provided by Subsection (i), has
12-9 received the highest short-term credit rating by a nationally
12-10 recognized investment rating firm;
12-11 (7) contracts written by the treasury in which the
12-12 treasury grants the purchaser the right to purchase securities in
12-13 the treasury's marketable securities portfolio at a specified price
12-14 over a specified period and for which the treasury is paid a fee
12-15 and specifically prohibits naked-option or uncovered option
12-16 trading;
12-17 (8) direct obligations of or obligations guaranteed by
12-18 the Inter-American Development Bank, the International Bank for
12-19 Reconstruction and Development (the World Bank), the African
12-20 Development Bank, the Asian Development Bank, and the International
12-21 Finance Corporation that have received the highest credit rating by
12-22 a nationally recognized investment rating firm;
12-23 (9) bonds issued, assumed, or guaranteed by the State
12-24 of Israel;
12-25 (10) obligations of a state or an agency, county,
12-26 city, or other political subdivision of a state; and
12-27 (11) mutual funds secured by obligations that are
13-1 described by Subdivisions (1) through (6).
13-2 (d) The comptroller [board] may contract with a depository
13-3 for the payment of interest on time or demand deposits at a rate
13-4 not to exceed a rate that is lawful under an Act of Congress and
13-5 rules and regulations of the board of governors of the Federal
13-6 Reserve System, the board of directors of the Federal Deposit
13-7 Insurance Corporation, the National Credit Union Administration
13-8 Board, and the Federal Home Loan Banking Board.
13-9 (f) The comptroller [treasurer] by rule may define
13-10 derivative investments other than those described by Subsection
13-11 (e). The treasury may not purchase investments defined by rule
13-12 adopted under this subsection in an amount that at the time of
13-13 purchase will cause the aggregate value of the investments to
13-14 exceed five percent of the treasury's total investments.
13-15 (g) To the extent practicable, the comptroller [treasurer]
13-16 shall give first consideration to Texas banks when investing in
13-17 direct security repurchase agreements.
13-18 (h) The comptroller [treasurer] may not use state funds to
13-19 invest in or purchase obligations of a private corporation or other
13-20 private business entity doing business in Northern Ireland unless
13-21 the corporation or other entity:
13-22 (1) adheres to fair employment practices; and
13-23 (2) does not discriminate on the basis of race, color,
13-24 religion, sex, national origin, or disability.
13-25 (i) Notwithstanding Subsection (b)(6)(B), the comptroller
13-26 [treasurer] may purchase commercial paper with a rating lower than
13-27 the rating required by that subsection to provide liquidity for
14-1 commercial paper issued by the comptroller [treasurer] or an agency
14-2 of the state.
14-3 SECTION 4.09. Sections 404.0245(b)-(d), Government Code,
14-4 are amended to read as follows:
14-5 (b) Subject to the limitations of Subsection (c), the
14-6 comptroller [board] may determine and designate the amount of state
14-7 funds that shall be invested by the comptroller [treasurer] in
14-8 hedging transactions in crude oil and natural gas futures contracts
14-9 and options on crude oil and natural gas futures contracts that are
14-10 traded on an established exchange regulated by the Securities and
14-11 Exchange Commission or the Commodity Futures Trading Commission.
14-12 (c) The principal amount of state funds invested and
14-13 outstanding in hedging transactions on any one day may not exceed
14-14 $500,000 with a maximum risk of loss of $5,000,000 in a biennium.
14-15 The total principal amount of state funds that may be invested by
14-16 the comptroller [treasurer] in hedging transactions during any one
14-17 biennium may not exceed the amount of money credited to the
14-18 unclaimed money fund for that biennium and attributable to the
14-19 remittance of mineral proceeds under Chapter 75, Property Code.
14-20 Any premium incurred in connection with hedging transactions may be
14-21 paid only from funds appropriated for that purpose.
14-22 (d) The comptroller [board by rule] shall invest [regulate
14-23 the investment of] state funds in crude oil and natural gas
14-24 futures contracts or options on crude oil and natural gas futures
14-25 contracts under the[. The rules shall provide] restrictions and
14-26 procedures for making [the] investments that persons of ordinary
14-27 prudence, discretion, and intelligence, exercising the judgment and
15-1 care under the circumstances then prevailing, would follow in the
15-2 management of their own affairs, not in regard to speculation but
15-3 in regard to the permanent disposition of their funds, considering
15-4 the probable income as well as the probable safety of their
15-5 capital. The investments may be made only for hedging purposes.
15-6 SECTION 4.10. Section 404.026, Government Code, is amended
15-7 to read as follows:
15-8 Sec. 404.026. ELEEMOSYNARY FUNDS. The comptroller [board]
15-9 may invest the permanent funds of the Texas School for the Blind
15-10 and Visually Impaired, Texas School for the Deaf, Austin State
15-11 Hospital, and Corsicana State Home and may invest other permanent
15-12 funds, the investment of which is not otherwise provided for, that
15-13 have $1,000 or more on deposit with the comptroller [treasurer]
15-14 that are not invested. The comptroller [board] shall invest the
15-15 funds in the same classes of bonds as are authorized for
15-16 investment of the permanent school fund.
15-17 SECTION 4.11. Section 404.032, Government Code, is amended
15-18 to read as follows:
15-19 Sec. 404.032. DEPOSITS. (a) The comptroller [treasurer]
15-20 shall deposit state funds in depositories that satisfy the
15-21 collateral requirements of this chapter. The comptroller
15-22 [treasurer] may deposit funds designated as demand deposits only in
15-23 institutions designated as depositories by the comptroller [board].
15-24 (b) The comptroller [treasurer] shall monitor the financial
15-25 stability of state depositories in which state deposits are held
15-26 and take appropriate action to protect state funds.
15-27 (c) A state depository shall collect all checks, drafts, and
16-1 demands for money deposited with it by the comptroller [treasurer].
16-2 If the depository uses due diligence, it is not liable for the
16-3 collections until the proceeds of the collections are duly received
16-4 by the depository bank. An expense incurred in collection that the
16-5 depository is not permitted to pay by reason of an Act of Congress
16-6 or a rule or regulation adopted under such an Act by the board of
16-7 governors of the Federal Reserve System or the board of directors
16-8 of the Federal Deposit Insurance Corporation shall be charged to
16-9 and paid by the comptroller [treasurer] out of money appropriated
16-10 by the legislature for that purpose.
16-11 (d) The comptroller [treasurer] shall keep sufficient money
16-12 on deposit in demand deposit accounts in depositories designated by
16-13 the comptroller [board] as clearing institutions to meet all
16-14 current claims on the state. Items received by the comptroller
16-15 [treasurer] for collection shall be deposited with a clearing
16-16 institution to be credited to the demand deposit account in the
16-17 depository. Checks, drafts, or warrants drawn by the comptroller
16-18 [treasurer] for the payment of obligations due by the state may be
16-19 drawn on such an account in such a depository or on the demand
16-20 deposit account in another state depository so that the checks,
16-21 drafts, or warrants of the state may at all times pass current as
16-22 cash.
16-23 SECTION 4.12. Section 404.033, Government Code, is amended
16-24 to read as follows:
16-25 Sec. 404.033. WITHDRAWALS AND REMITTANCES. (a) Funds on
16-26 deposit with a depository are subject to withdrawal at any time by
16-27 the comptroller [treasurer], except funds designated as time
17-1 deposits, which may be withdrawn in the manner agreed on in the
17-2 contract under which the funds were deposited. The depository
17-3 shall remit the withdrawal on demand and free of charge, except
17-4 charges that the depository is not permitted to pay by reason of an
17-5 Act of Congress or a rule or regulation adopted under such an Act
17-6 by the board of governors of the Federal Reserve System or the
17-7 board of directors of the Federal Deposit Insurance Corporation.
17-8 (b) A remittance to the comptroller [treasurer] by a state
17-9 depository or another person may be made by any method authorized
17-10 by the comptroller [treasurer], including cash, money order, or
17-11 bank draft. The liability of the depository or other person making
17-12 the remittance continues until the money is received by the
17-13 comptroller [treasurer]. A depository that refuses to make a
17-14 remittance required by this chapter forfeits its right to receive
17-15 further deposits, on order of the comptroller [board]. The
17-16 comptroller [board] may withdraw all funds from the depository,
17-17 which after the withdrawal ceases to be a state depository.
17-18 SECTION 4.13. Sections 481.193(f)-(i), Government Code, are
17-19 amended to read as follows:
17-20 (f) After reviewing each linked deposit loan application,
17-21 the executive director of the department shall recommend to the
17-22 comptroller [state treasurer] the acceptance or rejection of the
17-23 application.
17-24 (g) After the comptroller's [state treasurer's] acceptance
17-25 of the application and the lending institution originates a loan to
17-26 an eligible borrower, the comptroller [state treasurer] shall place
17-27 a linked deposit with the applicable eligible lending institution
18-1 for the period the comptroller [treasurer] considers appropriate.
18-2 The comptroller [state treasurer] may not place a deposit for a
18-3 period extending beyond the state fiscal biennium in which it is
18-4 placed. Subject to the limitation described by Section 481.197,
18-5 the comptroller [treasurer] may place time deposits at an interest
18-6 rate described by Section 481.192[, notwithstanding any order of
18-7 the State Depository Board to the contrary].
18-8 (h) Before the placing of a linked deposit, the eligible
18-9 lending institution and the state, represented by the comptroller
18-10 [state treasurer] and the department, shall enter into a written
18-11 deposit agreement containing the conditions on which the linked
18-12 deposit is made. The deposit agreement must provide that:
18-13 (1) the lending institution notify the comptroller
18-14 [state treasurer] if the borrower to which the deposit is linked
18-15 defaults on the loan; and
18-16 (2) in the event of a default the comptroller [state
18-17 treasurer] may withdraw the linked deposit.
18-18 (i) If a lending institution holding linked deposits ceases
18-19 to be a state depository, the comptroller [state treasurer] may
18-20 withdraw the linked deposits.
18-21 SECTION 4.14. Section 845.103(b), Government Code, is
18-22 amended to read as follows:
18-23 (b) In handling the funds of the retirement system, the
18-24 board of trustees has all powers and duties granted to the
18-25 comptroller that formerly were granted to the State Depository
18-26 Board.
18-27 SECTION 4.15. Section 855.103(b), Government Code, is
19-1 amended to read as follows:
19-2 (b) In handling the funds of the retirement system, the
19-3 board of trustees has all powers and duties granted to the
19-4 comptroller that formerly were granted to the State Depository
19-5 Board.
19-6 SECTION 4.16. Section 2257.025(b), Government Code, is
19-7 amended to read as follows:
19-8 (b) The comptroller [board] or the public entity may examine
19-9 and verify at any reasonable time a pledged investment security or
19-10 a record a depository maintains under this section.
19-11 SECTION 4.17. Section 2257.041(d), Government Code, is
19-12 amended to read as follows:
19-13 (d) A custodian must be approved by the public entity and
19-14 be:
19-15 (1) a state or national bank that:
19-16 (A) is designated by the comptroller [board] as
19-17 a state depository;
19-18 (B) is domiciled in this state; and
19-19 (C) has a capital stock and permanent surplus of
19-20 $5 million or more;
19-21 (2) the Texas Treasury Safekeeping Trust Company;
19-22 (3) a Federal Reserve Bank or a branch of a Federal
19-23 Reserve Bank; or
19-24 (4) a federal home loan bank.
19-25 SECTION 4.18. Sections 2257.046(b) and (c), Government Code,
19-26 are amended to read as follows:
19-27 (b) The comptroller [board] or the public entity may examine
20-1 and verify at any reasonable time a pledged investment security or
20-2 a record a custodian maintains under this section. The public
20-3 entity or its agent may inspect at any time an investment security
20-4 evidenced by a trust receipt.
20-5 (c) The public entity's custodian shall file a collateral
20-6 report with the comptroller [board] in the manner and on the dates
20-7 prescribed by the comptroller [board].
20-8 SECTION 4.19. Sections 2257.061, 2257.062, 2257.063, and
20-9 2257.064, Government Code, are amended to read as follows:
20-10 Sec. 2257.061. AUDITS AND EXAMINATIONS. As part of an audit
20-11 or regulatory examination of a public entity's depository or
20-12 custodian, the auditor or examiner shall:
20-13 (1) examine and verify pledged investment securities
20-14 and records maintained under Section 2257.025 or 2257.046; and
20-15 (2) report any significant or material noncompliance
20-16 with this chapter to the comptroller [board].
20-17 Sec. 2257.062. PENALTIES. (a) The comptroller [board] may
20-18 revoke a depository's designation as a state depository for one
20-19 year if, after notice and a hearing, the comptroller [board] makes
20-20 a written finding that the depository, while acting as either a
20-21 depository or a custodian:
20-22 (1) did not maintain reasonable compliance with this
20-23 chapter; and
20-24 (2) failed to remedy a violation of this chapter
20-25 within a reasonable time after receiving written notice of the
20-26 violation.
20-27 (b) The comptroller [board] may permanently revoke a
21-1 depository's designation as a state depository if the comptroller
21-2 [board] makes a written finding that the depository:
21-3 (1) has not maintained reasonable compliance with this
21-4 chapter; and
21-5 (2) has acted in bad faith by not remedying a
21-6 violation of this chapter.
21-7 Sec. 2257.063. MITIGATING CIRCUMSTANCES. (a) The
21-8 comptroller [board] shall consider the total circumstances relating
21-9 to the performance of a depository or custodian when the
21-10 comptroller [board] makes a finding required by Section 2257.062,
21-11 including the extent to which the noncompliance is minor, isolated,
21-12 temporary, or nonrecurrent.
21-13 (b) The comptroller [board] may not find that a depository
21-14 or custodian did not maintain reasonable compliance with this
21-15 chapter if the noncompliance results from the public entity's
21-16 failure to comply with Section 2257.026.
21-17 (c) This section does not relieve a depository or custodian
21-18 of the obligation to secure a deposit of public funds with eligible
21-19 security in the amount and manner required by this chapter within a
21-20 reasonable time after the public entity deposits the deposit of
21-21 public funds with the depository.
21-22 Sec. 2257.064. REINSTATEMENT. The comptroller [board] may
21-23 reinstate a depository's designation as a state depository if:
21-24 (1) the comptroller [board] determines that the
21-25 depository has remedied all violations of this chapter; and
21-26 (2) the depository assures the comptroller [board] to
21-27 the comptroller's [board's] satisfaction that the depository will
22-1 maintain reasonable compliance with this chapter.
22-2 SECTION 4.20. Section 154.051, Tax Code, is amended to read
22-3 as follows:
22-4 Sec. 154.051. CIGARETTE TAX RECOVERY TRUST FUND. (a) The
22-5 cigarette tax recovery trust fund is a private trust fund
22-6 established outside the state treasury and as provided by this
22-7 section secures the payment of cigarette taxes by distributors who
22-8 contribute to the fund. The fund is composed of the total amount
22-9 in the separate accounts maintained in trust for all contributing
22-10 distributors as provided by this section. The assets of the fund,
22-11 including interest earned by those assets, are to be held in trust
22-12 for the benefit and protection of the state treasury, and may not
22-13 be diverted, distributed, or appropriated for any purpose other
22-14 than as provided by this section. Interest earned by a
22-15 distributor's account but not yet refunded to the distributor
22-16 pursuant to Subsection (d) shall, on a monthly basis, be paid to
22-17 the comptroller [treasurer] as provided by Subsection (b) or
22-18 credited to the distributor's account.
22-19 (b) The comptroller [treasurer] is the trustee of the fund
22-20 as provided by Section 404.073, Government Code, and shall manage
22-21 the fund as provided by this section. In investing the assets of
22-22 the fund, the comptroller [treasurer] has the obligations, duties,
22-23 and powers provided for the investment of state funds by Sections
22-24 404.021 through 404.025, Government Code[, and by the orders of the
22-25 State Depository Board]. The comptroller [treasurer] shall receive
22-26 five percent of the interest earned on all assets of the fund as
22-27 compensation for serving as trustee of the fund.
23-1 (c) A distributor who orders stamps or requests a meter
23-2 setting from the comptroller [state treasurer] under this chapter
23-3 without advance payment shall contribute to an account maintained
23-4 in the distributor's name in the fund money in the amount of each
23-5 discount to which the distributor is entitled under Section 154.052
23-6 of this code. When the money in the distributor's account equals
23-7 20 percent of the designated amount of stamps and meter setting
23-8 requested by the distributor and approved by the comptroller
23-9 [treasurer] to be purchased in any one month, the distributor's
23-10 interest in the fund becomes vested.
23-11 (d) Except as provided by Subsection (g) of this section, on
23-12 the last day of each quarter after the quarter in which a
23-13 distributor's interest in the fund becomes vested, the comptroller
23-14 [treasurer] shall refund to the distributor all money contributed
23-15 to the fund by the distributor under Subsection (c) of this section
23-16 in the earliest preceding quarter for which a refund has not been
23-17 paid, plus interest earned on that amount, as long as the
23-18 distributor's interest in the fund remains vested.
23-19 (e) Until a distributor who orders stamps or requests a
23-20 meter setting without advance payment acquires a vested interest in
23-21 the fund, the comptroller [treasurer] may require the distributor
23-22 to post with the comptroller [treasurer] an irrevocable letter of
23-23 credit drawn in the form and amount specified by the comptroller
23-24 [treasurer] to secure the payment of cigarette taxes by that
23-25 distributor. The comptroller [treasurer] may not ship stamps to or
23-26 set a meter for a distributor not having a vested interest in the
23-27 fund without advance payment until the distributor posts the
24-1 required letter of credit.
24-2 (f) In addition to any other requirement under this section,
24-3 the comptroller [treasurer] as a condition for shipping stamps or
24-4 setting a meter without advance payment may:
24-5 (1) require a fiscal-year-end financial statement,
24-6 including a balance sheet and income statement verifiable as to its
24-7 accuracy or other financial information acceptable to the
24-8 comptroller [treasurer] and verifiable as to its accuracy;
24-9 (2) require indemnification from each officer,
24-10 director, and stockholder owning 10 percent or more of outstanding
24-11 stock, if the distributor is a corporation, from each partner, if
24-12 the distributor is a partnership, from each member or owner of a
24-13 joint venture or syndication, and from the owner of a sole
24-14 proprietorship;
24-15 (3) require the distributor to obtain and provide the
24-16 comptroller [treasurer] with a credit report from a credit
24-17 reporting agency acceptable to the comptroller [treasurer];
24-18 (4) require a distributor to increase the balance in
24-19 its account in the fund;
24-20 (5) require a distributor to post a letter of credit;
24-21 (6) reduce a distributor's credit time or amount; or
24-22 (7) take any other reasonable and necessary action to
24-23 protect the state treasury from loss due to the nonpayment of
24-24 cigarette taxes.
24-25 (g) If a distributor who has an account in the fund fails to
24-26 pay in full a tax imposed by this chapter by the due date, the
24-27 comptroller [treasurer], without prior notice to the distributor or
25-1 any other preliminary procedure, may seize any unaffixed stamps and
25-2 any stamped cigarette packages, up to and including the full amount
25-3 of unpaid tax. If the proceeds from the seizure do not satisfy the
25-4 total tax deficiency or the comptroller [treasurer] does not seize
25-5 any unaffixed stamps or stamped cigarette packages, the comptroller
25-6 [treasurer] may withdraw immediately from the fund an amount equal
25-7 to the amount of unpaid taxes due. The comptroller [treasurer]
25-8 shall first withdraw the amount from the account of the defaulting
25-9 distributor. The comptroller [treasurer] shall use the
25-10 comptroller's [treasurer's] best efforts to collect the tax due
25-11 from the defaulting distributor before withdrawing money from the
25-12 other accounts in the fund to satisfy the tax liability. If that
25-13 distributor's account does not contain sufficient money to satisfy
25-14 the tax liability in full, the comptroller [treasurer] shall
25-15 withdraw the additional amount necessary to satisfy that liability
25-16 from the other accounts in the fund in proportion to the balance of
25-17 each account, except that the withdrawal from any other
25-18 distributor's account in the fund is limited to an amount not
25-19 greater than 50 percent of the designated amount of stamps and
25-20 meter settings requested by the distributor under Subsection (c) or
25-21 of the amount required by the comptroller [treasurer] under
25-22 Subsection (f)(4). Not later than the fifth day after the date of
25-23 a withdrawal, the comptroller [treasurer] shall notify each
25-24 distributor of the withdrawal from its account and the amount
25-25 withdrawn. If as a result of a withdrawal made under this
25-26 subsection a distributor's balance in its account is reduced to an
25-27 amount less than the minimum required under this section, the
26-1 distributor's interest in the fund is no longer vested, and the
26-2 comptroller [treasurer] may discontinue refunds to the distributor
26-3 under Subsection (d) until the distributor again acquires a vested
26-4 interest in the fund. The comptroller [treasurer] may require a
26-5 distributor whose interest in the fund is no longer vested to post
26-6 an irrevocable letter of credit with the comptroller [treasurer] to
26-7 secure the payment of cigarette taxes by the distributor. To
26-8 protect the fund, each distributor having an account in the fund
26-9 must indemnify the fund against any amount withdrawn from the fund
26-10 under this subsection because of the failure of the distributor to
26-11 pay in full a tax imposed by this chapter by the due date.
26-12 (h) If distributor accounts, other than a defaulting
26-13 distributor account, are drawn pursuant to Subsection (g) of this
26-14 section, each affected, nondefaulting distributor shall have a
26-15 claim against the defaulting distributor for the amount so drawn.
26-16 The comptroller [treasurer] is hereby appointed trustee, agent, and
26-17 assignee of each affected, nondefaulting distributor for purposes
26-18 of seeking recovery of the amount so drawn. The comptroller
26-19 [treasurer] shall have the sole judgment and discretion in deciding
26-20 whether or not to pursue such a claim and shall have discretion to
26-21 handle any such claim on any basis that in the opinion of the
26-22 comptroller [treasurer] is in the best interest of the fund. The
26-23 comptroller [treasurer] is released from any liability related to
26-24 the handling of the claims described in this section except for
26-25 intentional or wilful misconduct.
26-26 (i) A distributor or person authorized to act on behalf of a
26-27 distributor may notify the comptroller [treasurer] in writing that
27-1 the distributor no longer desires to have stamps shipped or a meter
27-2 set without advance payment, and may request that the money in the
27-3 distributor's account in the fund be paid to the distributor or the
27-4 distributor's heirs or assigns. The comptroller [treasurer] shall
27-5 pay the money in the distributor's account as requested at the end
27-6 of the next quarter after all outstanding taxes owed to the state
27-7 by the distributor have been paid.
27-8 (j) Under no circumstances shall the comptroller [treasurer]
27-9 return to any distributor an amount greater than the balance in the
27-10 distributor's account within the cigarette tax recovery trust fund
27-11 less any sums drawn pursuant to Subsection (g) of this section.
27-12 The State of Texas' liability to any distributor pursuant to this
27-13 section is expressly limited to the sums on deposit in the
27-14 distributor's account at the time the request for return of funds
27-15 is made.
27-16 (k) The comptroller [treasurer] may adopt and enforce rules
27-17 necessary to carry out this section.
27-18 (l) For purposes of this section, "quarter" refers to a
27-19 quarter of the state's fiscal year.
27-20 (m) Information provided under Subsection (f) is
27-21 confidential and not subject to Chapter 552, Government Code.
27-22 (n) The comptroller [treasurer] shall regularly distribute
27-23 financial information regarding the performance of the fund to
27-24 participating distributors on a regular basis. On the written
27-25 request of a participating distributor, the comptroller [treasurer]
27-26 shall provide the distributor with the name and address of each
27-27 distributor participating in the fund, the percentage of the total
28-1 fund represented by each distributor's account, and the total
28-2 amount of money in the fund.
28-3 (o) In lieu of participation in the cigarette tax recovery
28-4 trust fund to secure payment for stamps or meter settings and in
28-5 lieu of advance payment for stamps or meter settings, a distributor
28-6 may pledge to the comptroller [treasurer] sufficient collateral to
28-7 secure payment for stamps or meter settings. Such pledge shall be
28-8 evidenced by a pledge agreement in a form promulgated by the
28-9 comptroller [treasurer], and such collateral shall consist of
28-10 certificates of deposit, treasury notes, treasury bills, or other
28-11 similar types of collateral acceptable to the comptroller
28-12 [treasurer] and held in a separate trust fund established in the
28-13 Texas Treasury Safekeeping Trust Company. All interest earned on
28-14 such collateral shall belong to the distributor. The comptroller
28-15 [treasurer] may require the pledge of additional collateral in the
28-16 event the comptroller [treasurer] determines that the fair market
28-17 value of the pledged collateral is less than the amount due the
28-18 comptroller [treasurer] for stamps or meter settings. On the
28-19 written request of the distributor, the comptroller [treasurer]
28-20 shall release collateral from the pledge agreement or allow the
28-21 substitution of collateral subject to the pledge agreement if after
28-22 such release or substitution the fair market value of the
28-23 collateral subject to the pledge will be equal to or greater than
28-24 the amount due the comptroller [treasurer] for stamps or meter
28-25 settings. If a distributor fails to pay tax in full when due, the
28-26 comptroller [treasurer] may, if the distributor does not pay such
28-27 past due tax and any penalty related thereto within three days
29-1 after receipt of written notice of such failure from the
29-2 comptroller [treasurer], sell or dispose of the collateral and
29-3 apply the proceeds to the payment of taxes, interest, penalties,
29-4 and costs due to the comptroller [treasurer] by the distributor,
29-5 with any remaining proceeds being refunded to the distributor.
29-6 SECTION 4.21. Section 20.002(2), Water Code, is amended to
29-7 read as follows:
29-8 (2) "Authorized investments" means:
29-9 (A) direct obligations of or obligations the
29-10 principal of and interest on which are guaranteed by the United
29-11 States;
29-12 (B) direct obligations of or participation
29-13 certificates guaranteed by the Federal Intermediate Credit Bank,
29-14 Federal Land Banks, Federal National Mortgage Association, Federal
29-15 Home Loan Banks, and Banks for Cooperatives;
29-16 (C) direct obligations of or obligations the
29-17 principal of and interest on which are guaranteed by the State of
29-18 Texas;
29-19 (D) bonds of cities, counties, and other
29-20 political subdivisions of this state, other than bonds issued by a
29-21 political subdivision to finance a project covered by this chapter;
29-22 (E) certificates of deposit of state and
29-23 national banks that satisfy the requirements of Section 2.015,
29-24 Chapter 240, Acts of the 69th Legislature, Regular Session, 1985
29-25 (Article 4393-1, Vernon's Texas Civil Statutes), and the rules of
29-26 the comptroller [State Depository Board] and if the authority or a
29-27 financial institution acting solely as agent for the authority
30-1 possesses the collateral securing those deposits; and
30-2 (F) direct security repurchase agreements made
30-3 only with state or national banks domiciled in the state under
30-4 which the authority buys, holds in its possession or the possession
30-5 of a financial institution acting solely as agent for the authority
30-6 for a specified time, and then sells back any of the following
30-7 securities, obligations, or participation certificates:
30-8 (i) United States government securities;
30-9 (ii) direct obligations of or obligations
30-10 the principal of and interest on which are guaranteed by the United
30-11 States; and
30-12 (iii) direct obligations of or
30-13 participation certificates guaranteed by the Federal Intermediate
30-14 Credit Bank, Federal Land Banks, Federal National Mortgage
30-15 Association, Federal Home Loan Banks, and Banks for Cooperatives.
30-16 SECTION 4.22. The following laws are repealed:
30-17 (1) Sections 404.011 and 404.012, Government Code;
30-18 (2) Section 404.001(1), Government Code;
30-19 (3) Section 404.031(k), Government Code; and
30-20 (4) Section 2257.002(2), Government Code.
30-21 ARTICLE 5. ABOLITION OF EGG MARKETING ADVISORY BOARD
30-22 SECTION 5.01. The Egg Marketing Advisory Board is abolished.
30-23 SECTION 5.02. Section 132.007, Agriculture Code, is
30-24 repealed.
30-25 ARTICLE 6. ABOLITION OF ELECTRONIC DATA BASE ADVISORY COMMITTEE
30-26 SECTION 6.01. The electronic data base advisory committee is
30-27 abolished.
31-1 SECTION 6.02. Section 481.060, Government Code, is amended
31-2 to read as follows:
31-3 Sec. 481.060. ELECTRONIC DATA BASE. (a) In cooperation
31-4 with other state agencies, the international trade division of the
31-5 department shall develop an electronic data base to compile
31-6 international trade information, including information on economic,
31-7 educational, and other opportunities in the public and private
31-8 sectors. The division shall connect that data base with
31-9 appropriate state, federal, and international communication
31-10 networks.
31-11 (b) [The electronic data base advisory committee is composed
31-12 of:]
31-13 [(1) a representative from the center for border
31-14 economic and enterprise development at The University of Texas at
31-15 El Paso, appointed by the president of the university;]
31-16 [(2) a representative from the University of North
31-17 Texas Institute for Regional Industrialization and Manufacturing
31-18 Technology, appointed by the president of the university;]
31-19 [(3) a representative from the Bureau of Business
31-20 Research at The University of Texas at Austin, appointed by the
31-21 president of the university;]
31-22 [(4) a representative from the Texas Agriculture
31-23 Market and Research Center, appointed by the president of Texas A&M
31-24 University;]
31-25 [(5) a representative from The University of Texas at
31-26 San Antonio, College of Business, division of management and
31-27 marketing, appointed by the president of the university;]
32-1 [(6) a representative from The University of Texas-Pan
32-2 American, appointed by the president of the university;]
32-3 [(7) a representative from Texas A&M International
32-4 University, appointed by the president of the university;]
32-5 [(8) a representative from Texas Tech University,
32-6 appointed by the president of the university;]
32-7 [(9) a representative from the University of Houston,
32-8 appointed by the president of the university;]
32-9 [(10) a representative from Lamar University,
32-10 appointed by the president of the university;]
32-11 [(11) a representative from Sul Ross State University,
32-12 appointed by the president of the university; and]
32-13 [(12) persons appointed by the governor or the
32-14 executive director of the department.]
32-15 [(c) If a member of the advisory committee who represents a
32-16 university ceases to be employed by the university, the member's
32-17 position on the advisory committee becomes vacant on the day
32-18 employment ceases. A vacancy shall be filled by the president of
32-19 the university that the member represents.]
32-20 [(d) The advisory committee shall recommend to the
32-21 department procedures for the dissemination of the data base.]
32-22 [(e)] The department may accept gifts, grants, and donations
32-23 from any source for the operation of the data base.
32-24 ARTICLE 7. ABOLITION OF ENERGY ADVISORY COMMITTEE
32-25 SECTION 7.01. The energy advisory committee is abolished.
32-26 SECTION 7.02. Section 761.006, Government Code, is repealed.
32-27 ARTICLE 8. ABOLITION OF STATE MEDICAL EDUCATION BOARD
33-1 SECTION 8.01. The State Medical Education Board is
33-2 abolished. All powers, duties, obligations, contracts, funds, and
33-3 any personnel or property of the board are transferred to the Texas
33-4 Department of Health for the limited purpose of allowing the
33-5 department to administer any outstanding loans administered by the
33-6 board, including attempting to collect amounts owed on any loans in
33-7 default, and taking any other action necessary to finish the
33-8 business of the board.
33-9 SECTION 8.02. The State Medical Education Act (Article
33-10 4498c, Vernon's Texas Civil Statutes) is repealed, except that that
33-11 law is continued in effect for the limited purpose described by
33-12 Section 8.01 of this article.
33-13 ARTICLE 9. TRANSITION; EFFECTIVE DATE; EMERGENCY
33-14 SECTION 9.01. If an entity that is abolished by this Act has
33-15 property, records, or other assets and the article of this Act that
33-16 abolishes the entity does not provide for their disposition, the
33-17 General Services Commission shall take custody of the property,
33-18 records, or other assets of the entity unless the governor
33-19 designates another appropriate governmental entity to take custody
33-20 of the property, records, or other assets.
33-21 SECTION 9.02. This Act takes effect September 1, 1997.
33-22 SECTION 9.03. The importance of this legislation and the
33-23 crowded condition of the calendars in both houses create an
33-24 emergency and an imperative public necessity that the
33-25 constitutional rule requiring bills to be read on three several
33-26 days in each house be suspended, and this rule is hereby suspended.