1-1 By: Siebert (Senate Sponsor - Carona) H.B. No. 2380
1-2 (In the Senate - Received from the House May 16, 1997;
1-3 May 16, 1997, read first time and referred to Committee on State
1-4 Affairs; May 18, 1997, reported favorably by the following vote:
1-5 Yeas 12, Nays 0; May 18, 1997, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the abolition of unnecessary governmental entities.
1-9 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-10 ARTICLE 1. ABOLITION OF UNIFORM STATEWIDE ACCOUNTING
1-11 PROJECT ADVISORY COMMITTEE
1-12 SECTION 1.01. The uniform statewide accounting project
1-13 advisory committee is abolished.
1-14 SECTION 1.02. Section 2101.031(b), Government Code, is
1-15 amended to read as follows:
1-16 (b) The project includes each component of the uniform
1-17 statewide accounting system as designed in accordance with Chapter
1-18 852, Acts of the 70th Legislature, Regular Session, 1987, and as
1-19 defined by Section 1, Chapter 781, Acts of the 71st Legislature,
1-20 Regular Session, 1989, [and as developed or revised by the project
1-21 advisory committee,] including:
1-22 (1) the uniform statewide accounting system (USAS) and
1-23 related subsystems;
1-24 (2) the uniform statewide payroll system (USPS);
1-25 (3) the human resource information system (HRIS);
1-26 (4) the budget execution and monitoring system
1-27 (BEAMS); and
1-28 (5) the statewide telecommunication network system.
1-29 SECTION 1.03. Section 2101.035(d), Government Code, is
1-30 amended to read as follows:
1-31 (d) The comptroller shall ensure that the system encompasses
1-32 each state agency. The comptroller may[, after consulting with the
1-33 project advisory committee,] exclude any state agency from the
1-34 centralized computation function of the statewide payroll component
1-35 of the system.
1-36 SECTION 1.04. Section 2101.038, Government Code, is amended
1-37 to read as follows:
1-38 Sec. 2101.038. DUTIES OF STATE AUDITOR. The state auditor,
1-39 when reviewing the operation of a state agency, shall audit for
1-40 compliance with the uniform statewide accounting system, the
1-41 comptroller's rules, and the Legislative Budget Board's performance
1-42 and workload measures. The state auditor shall notify [the project
1-43 advisory committee,] the comptroller, the governor, and the
1-44 Legislative Budget Board as soon as practicable when a state agency
1-45 is not in compliance.
1-46 SECTION 1.05. Section 2101.039, Government Code, is amended
1-47 to read as follows:
1-48 Sec. 2101.039. CONTRACTS; EXEMPTION. [(a)] Contracts made
1-49 under this subchapter are not subject to:
1-50 (1) Subtitle D [the State Purchasing and General
1-51 Services Act (Article 601b, Vernon's Texas Civil Statutes)];
1-52 (2) Chapter 2254; or
1-53 (3) Chapter 2054.
1-54 [(b) The project director must submit all proposed contracts
1-55 for professional or consulting services and all proposed purchases
1-56 of computer equipment or software to the project advisory committee
1-57 for review and recommendation before procurement.]
1-58 SECTION 1.06. (a) Section 2101.032, Government Code, is
1-59 repealed.
1-60 (b) Section 2101.035(b), Government Code, is repealed.
1-61 ARTICLE 2. ABOLITION OF BOLL WEEVIL ADVISORY COMMITTEE
1-62 SECTION 2.01. The boll weevil advisory committee is
1-63 abolished.
1-64 SECTION 2.02. Section 74.108(a), Agriculture Code, is
2-1 amended to read as follows:
2-2 (a) The board may:
2-3 (1) conduct board elections;
2-4 (2) conduct eradication zone referenda;
2-5 (3) conduct assessment referenda under Section 74.113
2-6 of this code;
2-7 (4) conduct programs consistent with the declaration
2-8 of policy stated in Section 74.101 of this code;
2-9 (5) accept, as necessary to implement this chapter,
2-10 gifts and grants;
2-11 (6) borrow money as necessary to execute this chapter;
2-12 and
2-13 (7) take other action and exercise other authority as
2-14 necessary to execute any act authorized by this subchapter or the
2-15 Texas Non-Profit Corporation Act (Article 1396-1.01 et seq.,
2-16 Vernon's Texas Civil Statutes)[; and]
2-17 [(8) form an advisory committee composed of
2-18 individuals from this state, other states, or other countries and
2-19 change membership on the committee, as necessary. Any advisory
2-20 committee created under this subdivision for the purpose of
2-21 establishing treatment methods shall include among its members
2-22 persons with knowledge of the effects of different treatments on
2-23 the health of agricultural workers, the local population, and the
2-24 ecosystem, including but not limited to the effects of a particular
2-25 method of treatment on beneficial organisms and wildlife, the
2-26 potential for secondary infestations from nontarget pests, and the
2-27 potential for pest resistance to particular methods of treatment].
2-28 SECTION 2.03. Section 74.120(d), Agriculture Code, is
2-29 repealed.
2-30 ARTICLE 3. ABOLITION OF RUNNELS COUNTY
2-31 WATER AUTHORITY
2-32 SECTION 3.01. The Runnels County Water Authority is
2-33 abolished.
2-34 SECTION 3.02. Chapter 376, Acts of the 54th Legislature,
2-35 Regular Session, 1955 (Article 8280-176, Vernon's Texas Civil
2-36 Statutes), is repealed.
2-37 ARTICLE 4. ABOLITION OF STATE DEPOSITORY BOARD
2-38 SECTION 4.01. The State Depository Board is abolished. All
2-39 powers, duties, rights, and obligations of the board are
2-40 transferred to the comptroller. All records, funds, contracts, or
2-41 other property of the board are transferred to the comptroller.
2-42 SECTION 4.02. Sections 44.007(f)-(i), Agriculture Code, are
2-43 amended to read as follows:
2-44 (f) After reviewing each linked deposit loan application,
2-45 the board shall recommend to the comptroller [state treasurer] the
2-46 acceptance or rejection of the application.
2-47 (g) After acceptance of the application, the comptroller
2-48 [state treasurer] shall place a linked deposit with the applicable
2-49 eligible lending institution for the period the comptroller
2-50 [treasurer] considers appropriate. The comptroller [state
2-51 treasurer] may not place a deposit for a period extending beyond
2-52 the state fiscal biennium in which it is placed. Subject to the
2-53 limitation described by Section 44.010 of this chapter, the
2-54 comptroller [treasurer] may place time deposits at an interest rate
2-55 described by Section 44.001(5)(A) of this chapter[,
2-56 notwithstanding any order of the State Depository Board to the
2-57 contrary].
2-58 (h) Before the placing of a linked deposit, the eligible
2-59 lending institution and the state, represented by the comptroller
2-60 [state treasurer] and the board, shall enter into a written deposit
2-61 agreement containing the conditions on which the linked deposit is
2-62 made.
2-63 (i) If a lending institution holding linked deposits ceases
2-64 to be a state depository, the comptroller [state treasurer] may
2-65 withdraw the linked deposits.
2-66 SECTION 4.03. Section 404.013, Government Code, is amended
2-67 to read as follows:
2-68 Sec. 404.013. RULES. The comptroller [board] may adopt and
2-69 enforce rules governing the establishment and conduct of state
3-1 depositories and the investment of state funds in the depositories
3-2 that the public interest requires and that are not inconsistent
3-3 with the law governing the depositories. [The rules must be entered
3-4 in the minutes of the board.]
3-5 SECTION 4.04. Sections 404.021(a)-(c), Government Code, are
3-6 amended to read as follows:
3-7 (a) Any state or national bank doing business in the state
3-8 may be designated by the comptroller [board] as a state depository.
3-9 Designation of a bank as a depository includes all of the bank's
3-10 branches within the state.
3-11 (b) Any savings and loan association doing business in the
3-12 state may be designated by the comptroller [board] as a state
3-13 depository.
3-14 (c) Any state or federal credit union doing business in the
3-15 state may be designated by the comptroller [board] as a state
3-16 depository.
3-17 SECTION 4.05. Sections 404.0212(b), (d), (e), and (f),
3-18 Government Code, are amended to read as follows:
3-19 (b) A regulated financial institution that accepts a deposit
3-20 from the comptroller [treasurer] shall report to the comptroller
3-21 [treasurer] the rating assigned to the financial institution under
3-22 12 U.S.C. Section 2906.
3-23 (d) The comptroller [board] may not select as a depository a
3-24 regulated financial institution that has been assigned a rating
3-25 below "outstanding record of meeting community credit needs" or
3-26 "satisfactory record of meeting community credit needs" under 12
3-27 U.S.C. Section 2906.
3-28 (e) On receipt of notice that the rating of a financial
3-29 institution is changed to a rating below that required by this
3-30 section, the comptroller [treasurer] shall take immediate action to
3-31 transfer all state funds subject to the custody or control of the
3-32 comptroller [treasurer] that are on deposit with the institution to
3-33 a qualified financial institution.
3-34 (f) The depository contract between a regulated financial
3-35 institution and the comptroller [board] must authorize the
3-36 withdrawal without penalty of the state funds subject to the
3-37 custody or control of the comptroller [treasurer] that are on
3-38 deposit with the institution if the rating of the institution is
3-39 changed to a rating below that required by Subsection (d).
3-40 SECTION 4.06. Section 404.022, Government Code, is amended
3-41 to read as follows:
3-42 Sec. 404.022. APPLICATIONS. (a) [The treasurer is the
3-43 secretary of the board.]
3-44 [(b)] The comptroller [board, through its secretary], on the
3-45 second Tuesday in June of each odd-numbered year, shall mail to
3-46 each eligible institution a letter stating the conditions with
3-47 which applicants for designation as a state depository must comply.
3-48 The comptroller [treasurer] shall keep on file in the comptroller's
3-49 [treasurer's] office and make available for inspection by any
3-50 person a list of institutions to which letters have been sent.
3-51 (b) [(c)] The application for designation as a state
3-52 depository must include a statement:
3-53 (1) of the amount of the applicant's paid capital
3-54 stock and permanent surplus, if any, or if the applicant is a
3-55 private bank, the amount of net proprietorship;
3-56 (2) of the maximum amount of state funds the applicant
3-57 will accept;
3-58 (3) of the applicant's condition on the date the
3-59 application is submitted; and
3-60 (4) that the books and accounts of the institution, if
3-61 it is designated as a state depository, will be open at all times
3-62 for inspection by the comptroller [board] or a [member or
3-63 accredited] representative of the comptroller [board].
3-64 (c) [(d)] An application shall be mailed to the comptroller
3-65 [treasurer] at Austin and must be received before noon of the
3-66 first day of August of the year in which the letter is sent. An
3-67 application received after that time may be considered at the
3-68 option of the comptroller [board]. The comptroller [board] shall
3-69 charge a processing fee of $25 for each application and shall
4-1 deposit the fees to the credit of the general revenue fund.
4-2 (d) [(e)] On receipt of an application under this section,
4-3 the comptroller [treasurer] shall endorse on the application the
4-4 date of its receipt. The comptroller [treasurer] shall prepare a
4-5 list of the names of the applicants and the amount for which each
4-6 has applied [and shall furnish a copy of the list to each board
4-7 member].
4-8 (e) [(f) The board shall meet on the first Monday in August
4-9 of each odd-numbered year and at other appropriate times to
4-10 consider applications.] The comptroller [board] may approve those
4-11 applicants that are acceptable and may reject those whose
4-12 management or condition, in the opinion of the comptroller
4-13 [board], does not warrant the placing of state funds in their
4-14 possession. An application for state funds may not be granted if
4-15 the applicant's liabilities for borrowed money are in excess of its
4-16 capital stock, but the comptroller [board] may in its discretion
4-17 waive this provision.
4-18 (f) [(g)] The comptroller [board] may designate an applicant
4-19 as a state depository if the applicant has complied with all of
4-20 the conditions set by the comptroller [board]. The designation as
4-21 a state depository is effective for a period of not more than two
4-22 years.
4-23 (g) [(h)] As soon as practicable after the comptroller
4-24 [board] has made its designations, the comptroller [treasurer]
4-25 shall inform all applicants whether they have been designated as
4-26 state depositories.
4-27 (h) [(i)] If more depositories are required at any time, the
4-28 comptroller [treasurer] may send to all eligible institutions
4-29 notice that further applications for designation as a state
4-30 depository for the unexpired term will be accepted.
4-31 (i) [(j)] The comptroller [board] may execute a simplified
4-32 version of a depository agreement with an eligible institution
4-33 desiring to hold $98,000 or less in state deposits that are fully
4-34 insured by the Federal Deposit Insurance Corporation or the
4-35 National Credit Union Share Insurance Fund. [The treasurer may give
4-36 the institution contingent approval as a depository until the
4-37 board's next scheduled meeting.]
4-38 SECTION 4.07. Section 404.023, Government Code, is amended
4-39 to read as follows:
4-40 Sec. 404.023. DESIGNATION. The comptroller [board] shall
4-41 designate one or more state depository banks in centrally located
4-42 cities to be used for clearing checks and other obligations due the
4-43 state.
4-44 SECTION 4.08. Sections 404.024(a), (b), (d), and (f)-(i),
4-45 Government Code, are amended to read as follows:
4-46 (a) The comptroller [board] may determine and designate the
4-47 amount of state funds to be deposited in time deposits in state
4-48 depositories. [The treasurer shall recommend to the board a
4-49 maximum limit for state funds deposited by the treasurer at
4-50 approved state depositories.] The percentage of state funds to be
4-51 deposited in state depositories shall be based on the interest
4-52 rates available in competing investments, the demand for funds from
4-53 Texas banks, and the state's liquidity requirements. [The
4-54 treasurer shall provide periodic investment reports to the board.]
4-55 (b) State funds not deposited in state depositories shall be
4-56 invested by the comptroller [treasurer] in:
4-57 (1) direct security repurchase agreements;
4-58 (2) reverse security repurchase agreements;
4-59 (3) direct obligations of or obligations the principal
4-60 and interest of which are guaranteed by the United States;
4-61 (4) direct obligations of or obligations guaranteed by
4-62 agencies or instrumentalities of the United States government;
4-63 (5) bankers' acceptances that:
4-64 (A) are eligible for purchase by the Federal
4-65 Reserve System;
4-66 (B) do not exceed 270 days to maturity; and
4-67 (C) are issued by a bank that has received the
4-68 highest short-term credit rating by a nationally recognized
4-69 investment rating firm;
5-1 (6) commercial paper that:
5-2 (A) does not exceed 270 days to maturity; and
5-3 (B) except as provided by Subsection (i), has
5-4 received the highest short-term credit rating by a nationally
5-5 recognized investment rating firm;
5-6 (7) contracts written by the treasury in which the
5-7 treasury grants the purchaser the right to purchase securities in
5-8 the treasury's marketable securities portfolio at a specified price
5-9 over a specified period and for which the treasury is paid a fee
5-10 and specifically prohibits naked-option or uncovered option
5-11 trading;
5-12 (8) direct obligations of or obligations guaranteed by
5-13 the Inter-American Development Bank, the International Bank for
5-14 Reconstruction and Development (the World Bank), the African
5-15 Development Bank, the Asian Development Bank, and the International
5-16 Finance Corporation that have received the highest credit rating by
5-17 a nationally recognized investment rating firm;
5-18 (9) bonds issued, assumed, or guaranteed by the State
5-19 of Israel;
5-20 (10) obligations of a state or an agency, county,
5-21 city, or other political subdivision of a state; and
5-22 (11) mutual funds secured by obligations that are
5-23 described by Subdivisions (1) through (6).
5-24 (d) The comptroller [board] may contract with a depository
5-25 for the payment of interest on time or demand deposits at a rate
5-26 not to exceed a rate that is lawful under an Act of Congress and
5-27 rules and regulations of the board of governors of the Federal
5-28 Reserve System, the board of directors of the Federal Deposit
5-29 Insurance Corporation, the National Credit Union Administration
5-30 Board, and the Federal Home Loan Banking Board.
5-31 (f) The comptroller [treasurer] by rule may define
5-32 derivative investments other than those described by Subsection
5-33 (e). The treasury may not purchase investments defined by rule
5-34 adopted under this subsection in an amount that at the time of
5-35 purchase will cause the aggregate value of the investments to
5-36 exceed five percent of the treasury's total investments.
5-37 (g) To the extent practicable, the comptroller [treasurer]
5-38 shall give first consideration to Texas banks when investing in
5-39 direct security repurchase agreements.
5-40 (h) The comptroller [treasurer] may not use state funds to
5-41 invest in or purchase obligations of a private corporation or other
5-42 private business entity doing business in Northern Ireland unless
5-43 the corporation or other entity:
5-44 (1) adheres to fair employment practices; and
5-45 (2) does not discriminate on the basis of race, color,
5-46 religion, sex, national origin, or disability.
5-47 (i) Notwithstanding Subsection (b)(6)(B), the comptroller
5-48 [treasurer] may purchase commercial paper with a rating lower than
5-49 the rating required by that paragraph to provide liquidity for
5-50 commercial paper issued by the comptroller [treasurer] or an agency
5-51 of the state.
5-52 SECTION 4.09. Sections 404.0245(b)-(d), Government Code,
5-53 are amended to read as follows:
5-54 (b) Subject to the limitations of Subsection (c), the
5-55 comptroller [board] may determine and designate the amount of state
5-56 funds that shall be invested by the comptroller [treasurer] in
5-57 hedging transactions in crude oil and natural gas futures contracts
5-58 and options on crude oil and natural gas futures contracts that are
5-59 traded on an established exchange regulated by the Securities and
5-60 Exchange Commission or the Commodity Futures Trading Commission.
5-61 (c) The principal amount of state funds invested and
5-62 outstanding in hedging transactions on any one day may not exceed
5-63 $500,000 with a maximum risk of loss of $5,000,000 in a biennium.
5-64 The total principal amount of state funds that may be invested by
5-65 the comptroller [treasurer] in hedging transactions during any one
5-66 biennium may not exceed the amount of money credited to the
5-67 unclaimed money fund for that biennium and attributable to the
5-68 remittance of mineral proceeds under Chapter 75, Property Code.
5-69 Any premium incurred in connection with hedging transactions may be
6-1 paid only from funds appropriated for that purpose.
6-2 (d) The comptroller [board by rule] shall invest [regulate
6-3 the investment of] state funds in crude oil and natural gas
6-4 futures contracts or options on crude oil and natural gas futures
6-5 contracts under the[. The rules shall provide] restrictions and
6-6 procedures for making [the] investments that persons of ordinary
6-7 prudence, discretion, and intelligence, exercising the judgment and
6-8 care under the circumstances then prevailing, would follow in the
6-9 management of their own affairs, not in regard to speculation but
6-10 in regard to the permanent disposition of their funds, considering
6-11 the probable income as well as the probable safety of their
6-12 capital. The investments may be made only for hedging purposes.
6-13 SECTION 4.10. Section 404.026, Government Code, is amended
6-14 to read as follows:
6-15 Sec. 404.026. ELEEMOSYNARY FUNDS. The comptroller [board]
6-16 may invest the permanent funds of the Texas School for the Blind
6-17 and Visually Impaired, Texas School for the Deaf, Austin State
6-18 Hospital, and Corsicana State Home and may invest other permanent
6-19 funds, the investment of which is not otherwise provided for, that
6-20 have $1,000 or more on deposit with the comptroller [treasurer]
6-21 that are not invested. The comptroller [board] shall invest the
6-22 funds in the same classes of bonds as are authorized for
6-23 investment of the permanent school fund.
6-24 SECTION 4.11. Section 404.032, Government Code, is amended
6-25 to read as follows:
6-26 Sec. 404.032. DEPOSITS. (a) The comptroller [treasurer]
6-27 shall deposit state funds in depositories that satisfy the
6-28 collateral requirements of this chapter. The comptroller
6-29 [treasurer] may deposit funds designated as demand deposits only in
6-30 institutions designated as depositories by the comptroller [board].
6-31 (b) The comptroller [treasurer] shall monitor the financial
6-32 stability of state depositories in which state deposits are held
6-33 and take appropriate action to protect state funds.
6-34 (c) A state depository shall collect all checks, drafts, and
6-35 demands for money deposited with it by the comptroller [treasurer].
6-36 If the depository uses due diligence, it is not liable for the
6-37 collections until the proceeds of the collections are duly received
6-38 by the depository bank. An expense incurred in collection that the
6-39 depository is not permitted to pay by reason of an Act of Congress
6-40 or a rule or regulation adopted under such an Act by the board of
6-41 governors of the Federal Reserve System or the board of directors
6-42 of the Federal Deposit Insurance Corporation shall be charged to
6-43 and paid by the comptroller [treasurer] out of money appropriated
6-44 by the legislature for that purpose.
6-45 (d) The comptroller [treasurer] shall keep sufficient money
6-46 on deposit in demand deposit accounts in depositories designated by
6-47 the comptroller [board] as clearing institutions to meet all
6-48 current claims on the state. Items received by the comptroller
6-49 [treasurer] for collection shall be deposited with a clearing
6-50 institution to be credited to the demand deposit account in the
6-51 depository. Checks, drafts, or warrants drawn by the comptroller
6-52 [treasurer] for the payment of obligations due by the state may be
6-53 drawn on such an account in such a depository or on the demand
6-54 deposit account in another state depository so that the checks,
6-55 drafts, or warrants of the state may at all times pass current as
6-56 cash.
6-57 SECTION 4.12. Section 404.033, Government Code, is amended
6-58 to read as follows:
6-59 Sec. 404.033. WITHDRAWALS AND REMITTANCES. (a) Funds on
6-60 deposit with a depository are subject to withdrawal at any time by
6-61 the comptroller [treasurer], except funds designated as time
6-62 deposits, which may be withdrawn in the manner agreed on in the
6-63 contract under which the funds were deposited. The depository
6-64 shall remit the withdrawal on demand and free of charge, except
6-65 charges that the depository is not permitted to pay by reason of an
6-66 Act of Congress or a rule or regulation adopted under such an Act
6-67 by the board of governors of the Federal Reserve System or the
6-68 board of directors of the Federal Deposit Insurance Corporation.
6-69 (b) A remittance to the comptroller [treasurer] by a state
7-1 depository or another person may be made by any method authorized
7-2 by the comptroller [treasurer], including cash, money order, or
7-3 bank draft. The liability of the depository or other person making
7-4 the remittance continues until the money is received by the
7-5 comptroller [treasurer]. A depository that refuses to make a
7-6 remittance required by this chapter forfeits its right to receive
7-7 further deposits, on order of the comptroller [board]. The
7-8 comptroller [board] may withdraw all funds from the depository,
7-9 which after the withdrawal ceases to be a state depository.
7-10 SECTION 4.13. Sections 481.193(f)-(i), Government Code, are
7-11 amended to read as follows:
7-12 (f) After reviewing each linked deposit loan application,
7-13 the executive director of the department shall recommend to the
7-14 comptroller [state treasurer] the acceptance or rejection of the
7-15 application.
7-16 (g) After the comptroller's [state treasurer's] acceptance
7-17 of the application and the lending institution originates a loan to
7-18 an eligible borrower, the comptroller [state treasurer] shall place
7-19 a linked deposit with the applicable eligible lending institution
7-20 for the period the comptroller [treasurer] considers appropriate.
7-21 The comptroller [state treasurer] may not place a deposit for a
7-22 period extending beyond the state fiscal biennium in which it is
7-23 placed. Subject to the limitation described by Section 481.197,
7-24 the comptroller [treasurer] may place time deposits at an interest
7-25 rate described by Section 481.192[, notwithstanding any order of
7-26 the State Depository Board to the contrary].
7-27 (h) Before the placing of a linked deposit, the eligible
7-28 lending institution and the state, represented by the comptroller
7-29 [state treasurer] and the department, shall enter into a written
7-30 deposit agreement containing the conditions on which the linked
7-31 deposit is made. The deposit agreement must provide that:
7-32 (1) the lending institution notify the comptroller
7-33 [state treasurer] if the borrower to which the deposit is linked
7-34 defaults on the loan; and
7-35 (2) in the event of a default the comptroller [state
7-36 treasurer] may withdraw the linked deposit.
7-37 (i) If a lending institution holding linked deposits ceases
7-38 to be a state depository, the comptroller [state treasurer] may
7-39 withdraw the linked deposits.
7-40 SECTION 4.14. Section 845.103(b), Government Code, is
7-41 amended to read as follows:
7-42 (b) In handling the funds of the retirement system, the
7-43 board of trustees has all powers and duties granted to the
7-44 comptroller that formerly were granted to the State Depository
7-45 Board.
7-46 SECTION 4.15. Section 855.103(b), Government Code, is
7-47 amended to read as follows:
7-48 (b) In handling the funds of the retirement system, the
7-49 board of trustees has all powers and duties granted to the
7-50 comptroller that formerly were granted to the State Depository
7-51 Board.
7-52 SECTION 4.16. Section 2257.025(b), Government Code, is
7-53 amended to read as follows:
7-54 (b) The comptroller [board] or the public entity may examine
7-55 and verify at any reasonable time a pledged investment security or
7-56 a record a depository maintains under this section.
7-57 SECTION 4.17. Section 2257.041(d), Government Code, is
7-58 amended to read as follows:
7-59 (d) A custodian must be approved by the public entity and
7-60 be:
7-61 (1) a state or national bank that:
7-62 (A) is designated by the comptroller [board] as
7-63 a state depository;
7-64 (B) is domiciled in this state; and
7-65 (C) has a capital stock and permanent surplus of
7-66 $5 million or more;
7-67 (2) the Texas Treasury Safekeeping Trust Company;
7-68 (3) a Federal Reserve Bank or a branch of a Federal
7-69 Reserve Bank; or
8-1 (4) a federal home loan bank.
8-2 SECTION 4.18. Sections 2257.046(b) and (c), Government Code,
8-3 are amended to read as follows:
8-4 (b) The comptroller [board] or the public entity may examine
8-5 and verify at any reasonable time a pledged investment security or
8-6 a record a custodian maintains under this section. The public
8-7 entity or its agent may inspect at any time an investment security
8-8 evidenced by a trust receipt.
8-9 (c) The public entity's custodian shall file a collateral
8-10 report with the comptroller [board] in the manner and on the dates
8-11 prescribed by the comptroller [board].
8-12 SECTION 4.19. Sections 2257.061, 2257.062, 2257.063, and
8-13 2257.064, Government Code, are amended to read as follows:
8-14 Sec. 2257.061. AUDITS AND EXAMINATIONS. As part of an audit
8-15 or regulatory examination of a public entity's depository or
8-16 custodian, the auditor or examiner shall:
8-17 (1) examine and verify pledged investment securities
8-18 and records maintained under Section 2257.025 or 2257.046; and
8-19 (2) report any significant or material noncompliance
8-20 with this chapter to the comptroller [board].
8-21 Sec. 2257.062. PENALTIES. (a) The comptroller [board] may
8-22 revoke a depository's designation as a state depository for one
8-23 year if, after notice and a hearing, the comptroller [board] makes
8-24 a written finding that the depository, while acting as either a
8-25 depository or a custodian:
8-26 (1) did not maintain reasonable compliance with this
8-27 chapter; and
8-28 (2) failed to remedy a violation of this chapter
8-29 within a reasonable time after receiving written notice of the
8-30 violation.
8-31 (b) The comptroller [board] may permanently revoke a
8-32 depository's designation as a state depository if the comptroller
8-33 [board] makes a written finding that the depository:
8-34 (1) has not maintained reasonable compliance with this
8-35 chapter; and
8-36 (2) has acted in bad faith by not remedying a
8-37 violation of this chapter.
8-38 Sec. 2257.063. MITIGATING CIRCUMSTANCES. (a) The
8-39 comptroller [board] shall consider the total circumstances relating
8-40 to the performance of a depository or custodian when the
8-41 comptroller [board] makes a finding required by Section 2257.062,
8-42 including the extent to which the noncompliance is minor, isolated,
8-43 temporary, or nonrecurrent.
8-44 (b) The comptroller [board] may not find that a depository
8-45 or custodian did not maintain reasonable compliance with this
8-46 chapter if the noncompliance results from the public entity's
8-47 failure to comply with Section 2257.026.
8-48 (c) This section does not relieve a depository or custodian
8-49 of the obligation to secure a deposit of public funds with eligible
8-50 security in the amount and manner required by this chapter within a
8-51 reasonable time after the public entity deposits the deposit of
8-52 public funds with the depository.
8-53 Sec. 2257.064. REINSTATEMENT. The comptroller [board] may
8-54 reinstate a depository's designation as a state depository if:
8-55 (1) the comptroller [board] determines that the
8-56 depository has remedied all violations of this chapter; and
8-57 (2) the depository assures the comptroller [board] to
8-58 the comptroller's [board's] satisfaction that the depository will
8-59 maintain reasonable compliance with this chapter.
8-60 SECTION 4.20. Section 154.051, Tax Code, is amended to read
8-61 as follows:
8-62 Sec. 154.051. CIGARETTE TAX RECOVERY TRUST FUND. (a) The
8-63 cigarette tax recovery trust fund is a private trust fund
8-64 established outside the state treasury and as provided by this
8-65 section secures the payment of cigarette taxes by distributors who
8-66 contribute to the fund. The fund is composed of the total amount
8-67 in the separate accounts maintained in trust for all contributing
8-68 distributors as provided by this section. The assets of the fund,
8-69 including interest earned by those assets, are to be held in trust
9-1 for the benefit and protection of the state treasury, and may not
9-2 be diverted, distributed, or appropriated for any purpose other
9-3 than as provided by this section. Interest earned by a
9-4 distributor's account but not yet refunded to the distributor
9-5 pursuant to Subsection (d) shall, on a monthly basis, be paid to
9-6 the comptroller [treasurer] as provided by Subsection (b) or
9-7 credited to the distributor's account.
9-8 (b) The comptroller [treasurer] is the trustee of the fund
9-9 as provided by Section 404.073, Government Code, and shall manage
9-10 the fund as provided by this section. In investing the assets of
9-11 the fund, the comptroller [treasurer] has the obligations, duties,
9-12 and powers provided for the investment of state funds by Sections
9-13 404.021 through 404.025, Government Code[, and by the orders of the
9-14 State Depository Board]. The comptroller [treasurer] shall receive
9-15 five percent of the interest earned on all assets of the fund as
9-16 compensation for serving as trustee of the fund.
9-17 (c) A distributor who orders stamps or requests a meter
9-18 setting from the comptroller [state treasurer] under this chapter
9-19 without advance payment shall contribute to an account maintained
9-20 in the distributor's name in the fund money in the amount of each
9-21 discount to which the distributor is entitled under Section 154.052
9-22 of this code. When the money in the distributor's account equals
9-23 20 percent of the designated amount of stamps and meter setting
9-24 requested by the distributor and approved by the comptroller
9-25 [treasurer] to be purchased in any one month, the distributor's
9-26 interest in the fund becomes vested.
9-27 (d) Except as provided by Subsection (g) of this section, on
9-28 the last day of each quarter after the quarter in which a
9-29 distributor's interest in the fund becomes vested, the comptroller
9-30 [treasurer] shall refund to the distributor all money contributed
9-31 to the fund by the distributor under Subsection (c) of this section
9-32 in the earliest preceding quarter for which a refund has not been
9-33 paid, plus interest earned on that amount, as long as the
9-34 distributor's interest in the fund remains vested.
9-35 (e) Until a distributor who orders stamps or requests a
9-36 meter setting without advance payment acquires a vested interest in
9-37 the fund, the comptroller [treasurer] may require the distributor
9-38 to post with the comptroller [treasurer] an irrevocable letter of
9-39 credit drawn in the form and amount specified by the comptroller
9-40 [treasurer] to secure the payment of cigarette taxes by that
9-41 distributor. The comptroller [treasurer] may not ship stamps to or
9-42 set a meter for a distributor not having a vested interest in the
9-43 fund without advance payment until the distributor posts the
9-44 required letter of credit.
9-45 (f) In addition to any other requirement under this section,
9-46 the comptroller [treasurer] as a condition for shipping stamps or
9-47 setting a meter without advance payment may:
9-48 (1) require a fiscal-year-end financial statement,
9-49 including a balance sheet and income statement verifiable as to its
9-50 accuracy or other financial information acceptable to the
9-51 comptroller [treasurer] and verifiable as to its accuracy;
9-52 (2) require indemnification from each officer,
9-53 director, and stockholder owning 10 percent or more of outstanding
9-54 stock, if the distributor is a corporation, from each partner, if
9-55 the distributor is a partnership, from each member or owner of a
9-56 joint venture or syndication, and from the owner of a sole
9-57 proprietorship;
9-58 (3) require the distributor to obtain and provide the
9-59 comptroller [treasurer] with a credit report from a credit
9-60 reporting agency acceptable to the comptroller [treasurer];
9-61 (4) require a distributor to increase the balance in
9-62 its account in the fund;
9-63 (5) require a distributor to post a letter of credit;
9-64 (6) reduce a distributor's credit time or amount; or
9-65 (7) take any other reasonable and necessary action to
9-66 protect the state treasury from loss due to the nonpayment of
9-67 cigarette taxes.
9-68 (g) If a distributor who has an account in the fund fails to
9-69 pay in full a tax imposed by this chapter by the due date, the
10-1 comptroller [treasurer], without prior notice to the distributor or
10-2 any other preliminary procedure, may seize any unaffixed stamps and
10-3 any stamped cigarette packages, up to and including the full amount
10-4 of unpaid tax. If the proceeds from the seizure do not satisfy the
10-5 total tax deficiency or the comptroller [treasurer] does not seize
10-6 any unaffixed stamps or stamped cigarette packages, the comptroller
10-7 [treasurer] may withdraw immediately from the fund an amount equal
10-8 to the amount of unpaid taxes due. The comptroller [treasurer]
10-9 shall first withdraw the amount from the account of the defaulting
10-10 distributor. The comptroller [treasurer] shall use the
10-11 comptroller's [treasurer's] best efforts to collect the tax due
10-12 from the defaulting distributor before withdrawing money from the
10-13 other accounts in the fund to satisfy the tax liability. If that
10-14 distributor's account does not contain sufficient money to satisfy
10-15 the tax liability in full, the comptroller [treasurer] shall
10-16 withdraw the additional amount necessary to satisfy that liability
10-17 from the other accounts in the fund in proportion to the balance of
10-18 each account, except that the withdrawal from any other
10-19 distributor's account in the fund is limited to an amount not
10-20 greater than 50 percent of the designated amount of stamps and
10-21 meter settings requested by the distributor under Subsection (c) or
10-22 of the amount required by the comptroller [treasurer] under
10-23 Subsection (f)(4). Not later than the fifth day after the date of
10-24 a withdrawal, the comptroller [treasurer] shall notify each
10-25 distributor of the withdrawal from its account and the amount
10-26 withdrawn. If as a result of a withdrawal made under this
10-27 subsection a distributor's balance in its account is reduced to an
10-28 amount less than the minimum required under this section, the
10-29 distributor's interest in the fund is no longer vested, and the
10-30 comptroller [treasurer] may discontinue refunds to the distributor
10-31 under Subsection (d) until the distributor again acquires a vested
10-32 interest in the fund. The comptroller [treasurer] may require a
10-33 distributor whose interest in the fund is no longer vested to post
10-34 an irrevocable letter of credit with the comptroller [treasurer] to
10-35 secure the payment of cigarette taxes by the distributor. To
10-36 protect the fund, each distributor having an account in the fund
10-37 must indemnify the fund against any amount withdrawn from the fund
10-38 under this subsection because of the failure of the distributor to
10-39 pay in full a tax imposed by this chapter by the due date.
10-40 (h) If distributor accounts, other than a defaulting
10-41 distributor account, are drawn pursuant to Subsection (g) of this
10-42 section, each affected, nondefaulting distributor shall have a
10-43 claim against the defaulting distributor for the amount so drawn.
10-44 The comptroller [treasurer] is hereby appointed trustee, agent, and
10-45 assignee of each affected, nondefaulting distributor for purposes
10-46 of seeking recovery of the amount so drawn. The comptroller
10-47 [treasurer] shall have the sole judgment and discretion in deciding
10-48 whether or not to pursue such a claim and shall have discretion to
10-49 handle any such claim on any basis that in the opinion of the
10-50 comptroller [treasurer] is in the best interest of the fund. The
10-51 comptroller [treasurer] is released from any liability related to
10-52 the handling of the claims described in this section except for
10-53 intentional or wilful misconduct.
10-54 (i) A distributor or person authorized to act on behalf of a
10-55 distributor may notify the comptroller [treasurer] in writing that
10-56 the distributor no longer desires to have stamps shipped or a meter
10-57 set without advance payment, and may request that the money in the
10-58 distributor's account in the fund be paid to the distributor or the
10-59 distributor's heirs or assigns. The comptroller [treasurer] shall
10-60 pay the money in the distributor's account as requested at the end
10-61 of the next quarter after all outstanding taxes owed to the state
10-62 by the distributor have been paid.
10-63 (j) Under no circumstances shall the comptroller [treasurer]
10-64 return to any distributor an amount greater than the balance in the
10-65 distributor's account within the cigarette tax recovery trust fund
10-66 less any sums drawn pursuant to Subsection (g) of this section.
10-67 The State of Texas' liability to any distributor pursuant to this
10-68 section is expressly limited to the sums on deposit in the
10-69 distributor's account at the time the request for return of funds
11-1 is made.
11-2 (k) The comptroller [treasurer] may adopt and enforce rules
11-3 necessary to carry out this section.
11-4 (l) For purposes of this section, "quarter" refers to a
11-5 quarter of the state's fiscal year.
11-6 (m) Information provided under Subsection (f) is
11-7 confidential and not subject to Chapter 552, Government Code.
11-8 (n) The comptroller [treasurer] shall regularly distribute
11-9 financial information regarding the performance of the fund to
11-10 participating distributors on a regular basis. On the written
11-11 request of a participating distributor, the comptroller [treasurer]
11-12 shall provide the distributor with the name and address of each
11-13 distributor participating in the fund, the percentage of the total
11-14 fund represented by each distributor's account, and the total
11-15 amount of money in the fund.
11-16 (o) In lieu of participation in the cigarette tax recovery
11-17 trust fund to secure payment for stamps or meter settings and in
11-18 lieu of advance payment for stamps or meter settings, a distributor
11-19 may pledge to the comptroller [treasurer] sufficient collateral to
11-20 secure payment for stamps or meter settings. Such pledge shall be
11-21 evidenced by a pledge agreement in a form promulgated by the
11-22 comptroller [treasurer], and such collateral shall consist of
11-23 certificates of deposit, treasury notes, treasury bills, or other
11-24 similar types of collateral acceptable to the comptroller
11-25 [treasurer] and held in a separate trust fund established in the
11-26 Texas Treasury Safekeeping Trust Company. All interest earned on
11-27 such collateral shall belong to the distributor. The comptroller
11-28 [treasurer] may require the pledge of additional collateral in the
11-29 event the comptroller [treasurer] determines that the fair market
11-30 value of the pledged collateral is less than the amount due the
11-31 comptroller [treasurer] for stamps or meter settings. On the
11-32 written request of the distributor, the comptroller [treasurer]
11-33 shall release collateral from the pledge agreement or allow the
11-34 substitution of collateral subject to the pledge agreement if after
11-35 such release or substitution the fair market value of the
11-36 collateral subject to the pledge will be equal to or greater than
11-37 the amount due the comptroller [treasurer] for stamps or meter
11-38 settings. If a distributor fails to pay tax in full when due, the
11-39 comptroller [treasurer] may, if the distributor does not pay such
11-40 past due tax and any penalty related thereto within three days
11-41 after receipt of written notice of such failure from the
11-42 comptroller [treasurer], sell or dispose of the collateral and
11-43 apply the proceeds to the payment of taxes, interest, penalties,
11-44 and costs due to the comptroller [treasurer] by the distributor,
11-45 with any remaining proceeds being refunded to the distributor.
11-46 SECTION 4.21. Section 20.002(2), Water Code, is amended to
11-47 read as follows:
11-48 (2) "Authorized investments" means:
11-49 (A) direct obligations of or obligations the
11-50 principal of and interest on which are guaranteed by the United
11-51 States;
11-52 (B) direct obligations of or participation
11-53 certificates guaranteed by the Federal Intermediate Credit Bank,
11-54 Federal Land Banks, Federal National Mortgage Association, Federal
11-55 Home Loan Banks, and Banks for Cooperatives;
11-56 (C) direct obligations of or obligations the
11-57 principal of and interest on which are guaranteed by the State of
11-58 Texas;
11-59 (D) bonds of cities, counties, and other
11-60 political subdivisions of this state, other than bonds issued by a
11-61 political subdivision to finance a project covered by this chapter;
11-62 (E) certificates of deposit of state and
11-63 national banks that satisfy the requirements of Section 2.015,
11-64 Chapter 240, Acts of the 69th Legislature, Regular Session, 1985
11-65 (Article 4393-1, Vernon's Texas Civil Statutes), and the rules of
11-66 the comptroller [State Depository Board] and if the authority or a
11-67 financial institution acting solely as agent for the authority
11-68 possesses the collateral securing those deposits; and
11-69 (F) direct security repurchase agreements made
12-1 only with state or national banks domiciled in the state under
12-2 which the authority buys, holds in its possession or the possession
12-3 of a financial institution acting solely as agent for the authority
12-4 for a specified time, and then sells back any of the following
12-5 securities, obligations, or participation certificates:
12-6 (i) United States government securities;
12-7 (ii) direct obligations of or obligations
12-8 the principal of and interest on which are guaranteed by the United
12-9 States; and
12-10 (iii) direct obligations of or
12-11 participation certificates guaranteed by the Federal Intermediate
12-12 Credit Bank, Federal Land Banks, Federal National Mortgage
12-13 Association, Federal Home Loan Banks, and Banks for Cooperatives.
12-14 SECTION 4.22. The following laws are repealed:
12-15 (1) Sections 404.011 and 404.012, Government Code;
12-16 (2) Section 404.001(1), Government Code;
12-17 (3) Section 404.031(k), Government Code; and
12-18 (4) Section 2257.002(2), Government Code.
12-19 ARTICLE 5. ABOLITION OF EGG MARKETING ADVISORY BOARD
12-20 SECTION 5.01. The Egg Marketing Advisory Board is abolished.
12-21 SECTION 5.02. Section 132.007, Agriculture Code, is
12-22 repealed.
12-23 ARTICLE 6. ABOLITION OF ELECTRONIC DATA BASE ADVISORY COMMITTEE
12-24 SECTION 6.01. The electronic data base advisory committee is
12-25 abolished.
12-26 SECTION 6.02. Section 481.060, Government Code, is amended
12-27 to read as follows:
12-28 Sec. 481.060. ELECTRONIC DATA BASE. (a) In cooperation
12-29 with other state agencies, the international trade division of the
12-30 department shall develop an electronic data base to compile
12-31 international trade information, including information on economic,
12-32 educational, and other opportunities in the public and private
12-33 sectors. The division shall connect that data base with
12-34 appropriate state, federal, and international communication
12-35 networks.
12-36 (b) [The electronic data base advisory committee is composed
12-37 of:]
12-38 [(1) a representative from the center for border
12-39 economic and enterprise development at The University of Texas at
12-40 El Paso, appointed by the president of the university;]
12-41 [(2) a representative from the University of North
12-42 Texas Institute for Regional Industrialization and Manufacturing
12-43 Technology, appointed by the president of the university;]
12-44 [(3) a representative from the Bureau of Business
12-45 Research at The University of Texas at Austin, appointed by the
12-46 president of the university;]
12-47 [(4) a representative from the Texas Agriculture
12-48 Market and Research Center, appointed by the president of Texas A&M
12-49 University;]
12-50 [(5) a representative from The University of Texas at
12-51 San Antonio, College of Business, division of management and
12-52 marketing, appointed by the president of the university;]
12-53 [(6) a representative from The University of Texas-Pan
12-54 American, appointed by the president of the university;]
12-55 [(7) a representative from Texas A&M International
12-56 University, appointed by the president of the university;]
12-57 [(8) a representative from Texas Tech University,
12-58 appointed by the president of the university;]
12-59 [(9) a representative from the University of Houston,
12-60 appointed by the president of the university;]
12-61 [(10) a representative from Lamar University,
12-62 appointed by the president of the university;]
12-63 [(11) a representative from Sul Ross State University,
12-64 appointed by the president of the university; and]
12-65 [(12) persons appointed by the governor or the
12-66 executive director of the department.]
12-67 [(c) If a member of the advisory committee who represents a
12-68 university ceases to be employed by the university, the member's
12-69 position on the advisory committee becomes vacant on the day
13-1 employment ceases. A vacancy shall be filled by the president of
13-2 the university that the member represents.]
13-3 [(d) The advisory committee shall recommend to the
13-4 department procedures for the dissemination of the data base.]
13-5 [(e)] The department may accept gifts, grants, and donations
13-6 from any source for the operation of the data base.
13-7 ARTICLE 7. ABOLITION OF ENERGY ADVISORY COMMITTEE
13-8 SECTION 7.01. The energy advisory committee is abolished.
13-9 SECTION 7.02. Section 761.006, Government Code, is repealed.
13-10 ARTICLE 8. ABOLITION OF RIO GRANDE VALLEY
13-11 MUNICIPAL WATER AUTHORITY
13-12 SECTION 8.01. The Rio Grande Valley Municipal Water
13-13 Authority is abolished.
13-14 SECTION 8.02. Chapter 623, Acts of the 61st Legislature,
13-15 Regular Session, 1969 (Article 8280-455, Vernon's Texas Civil
13-16 Statutes), is repealed.
13-17 ARTICLE 9. ABOLITION OF RIO GRANDE VALLEY
13-18 POLLUTION CONTROL AUTHORITY
13-19 SECTION 9.01. The Rio Grande Valley Pollution Control
13-20 Authority is abolished.
13-21 SECTION 9.02. Chapter 648, Acts of the 60th Legislature,
13-22 Regular Session, 1967 (Article 8280-389, Vernon's Texas Civil
13-23 Statutes), is repealed.
13-24 ARTICLE 10. TRANSITION; EFFECTIVE DATE; EMERGENCY
13-25 SECTION 10.01. (a) If an entity that is abolished by this
13-26 Act has property, records, or other assets and the article of this
13-27 Act that abolishes the entity does not provide for their
13-28 disposition, the General Services Commission shall take custody of
13-29 the property, records, or other assets of the entity unless the
13-30 governor designates another appropriate governmental entity to take
13-31 custody of the property, records, or other assets.
13-32 (b) If an entity that is abolished by this Act has a
13-33 continuing valid and enforceable obligation, including bonded
13-34 indebtedness, Section 325.017(f), Government Code, applies in
13-35 relation to the continuing obligation of the abolished entity. If
13-36 the abolished entity is not a state agency, the governor may
13-37 designate an appropriate state agency or another appropriate
13-38 governmental entity created under the laws of this state to perform
13-39 the functions assigned under Section 325.017(f), Government Code.
13-40 SECTION 10.02. This Act takes effect September 1, 1997.
13-41 SECTION 10.03. The importance of this legislation and the
13-42 crowded condition of the calendars in both houses create an
13-43 emergency and an imperative public necessity that the
13-44 constitutional rule requiring bills to be read on three several
13-45 days in each house be suspended, and this rule is hereby suspended.
13-46 * * * * *