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INTRODUCED
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HOUSE COMMITTEE
SUBSTITUTE
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SECTION 1. Section
2116.001(9), Government Code, is amended to read as follows:
(9) "Depository
agent" means a person licensed in accordance with this chapter to
serve as an agent on behalf of a current or prospective [intermediary
between the] depository account holder [and a retail customer]
in making a retail transaction in precious metals bullion or specie.
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SECTION 1. Sections
2116.001(4), (9), and (10), Government Code, are amended to read as follows:
(4)
"Deposit" means the establishment of an executory obligation of
the depository to deliver to the order of the person establishing with the
depository the obligation, on demand, a quantity of a specified precious
metal, in bullion, specie, or other physical form [a combination
of bullion and specie], equal to the quantity of the same precious
metal delivered by or on behalf of the depositor into the custody of:
(A)
the depository; or
(B)
a depository agent.
(9) "Depository
agent" means a person licensed in accordance with this chapter to
serve as an agent on behalf of a current or prospective [intermediary
between the] depository account holder [and a retail customer]
in making a retail transaction in precious metals bullion or specie.
(10)
"Precious metal" means a metal, including gold, silver, and
platinum group metals, including platinum, palladium, ruthenium,
osmium, iridium, and rhodium, that:
(A)
bears a high value-to-weight ratio relative to common industrial metals;
and
(B)
may be [customarily is] formed into bullion, [or]
specie, or other physical form.
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SECTION 2. Section 2116.002,
Government Code, is amended by amending Subsection (a) and adding
Subsections (c)-(h) to read as follows:
(a) The Texas Bullion
Depository is established as a program [an agency of this state]
in the office of the comptroller to provide a bullion depository and
services for the public benefit relating
to bullion, specie, and precious metals.
(c) The comptroller may establish a special purpose corporation
or other legal entity, with all general corporate powers incident to its
operation as a corporate body, to operate the depository for the public
benefit and provide related services, as provided by this chapter. The
entity has all necessary and implied powers to accomplish the purposes of
the entity. The entity is subject to regulation only as provided by this
chapter.
(d) The depository may adopt and amend articles of incorporation,
bylaws, resolutions, and other documents necessary to carry out its
purposes.
(e) This state and the
comptroller may not be held liable for the depository or related activities
of the depository. This chapter may not be construed as creating financial
or other responsibilities to the state or to the comptroller. This state
does not pledge the full faith and credit of this state for the benefit of
the depository.
(f) The depository may enter into one or more contracts with a vendor
to operate the depository or provide any of the depository's services.
(g) Notwithstanding
Chapter 2113, Government Code, the depository may enter into contracts and
engage in marketing, the sale of promotional items, advertising, and other
activities to promote the depository. The comptroller may use appropriated
funds to pay for activities of the depository authorized under this
section.
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SECTION 2. Section 2116.002,
Government Code, is amended by amending Subsection (a) and adding
Subsections (c) through (i) to read as follows:
(a) The Texas Bullion
Depository is established as a program [an agency of this state]
in the office of the comptroller to provide a bullion depository and
services for the public benefit.
(c) The depository may establish and operate one or more branch
locations of the depository. Branch locations of the depository are
considered to be part of the depository.
(d) The depository may enter into contracts, as the comptroller
determines to be prudent and suitable, to facilitate the operations of the
depository and further the purposes of this chapter.
(e) This state and the
comptroller may not be held liable for the depository or related activities
of the depository. This chapter may not be construed as creating financial
or other responsibilities for the
depository to the state or to the comptroller. This state does not
pledge the full faith and credit of this state for the benefit of the
depository.
(See 2116.002(d) above.)
(f) Notwithstanding
Chapter 2113, the depository may enter into contracts and engage in
marketing, the sale of promotional items, advertising, and other activities
to promote, market, and advertise
the depository. The comptroller may use appropriated funds to pay for
activities of the depository authorized under this section.
(g) Notwithstanding any other provision of law, the depository
may enter into contracts for the design, manufacture, marketing, and
distribution of official commemorative items, including coins or other
items containing precious metal, to promote, market, and advertise the
depository. The depository shall establish the purchase price for any
commemorative items. The comptroller may use appropriated funds to pay for
depository activities authorized by this subsection.
(h) The depository shall deposit any funds received from the
sale of commemorative items described by Subsection (g) to the credit of
the general revenue fund. Money deposited to the general revenue fund under
this subsection may be appropriated to the comptroller to offset the costs of
the implementation, administration, promotion, marketing, advertising, and
operation of the depository.
(i) The comptroller may adopt rules necessary to implement this
chapter.
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SECTION 3. Section 2116.003,
Government Code, is amended to read as follows:
Sec. 2116.003. DEPOSITORY
ADMINISTRATION; ADMINISTRATOR. (a) The depository is administered as a program
[division] of the office of the comptroller and under the direction
and supervision of a bullion depository administrator appointed by the comptroller
[with the advice and consent of the governor, lieutenant governor, and
senate].
(b) The administrator shall:
(1) administer, supervise,
and direct the operations and affairs of the depository and liaise with
depository agents; and
(2) liaise with the
comptroller and other divisions of the office of the comptroller to ensure
that each transaction with the depository that involves state money, that
involves an agency, a political subdivision, or another instrumentality of
this state, or that involves a private person is planned, administered, and
executed in a manner to achieve the purposes of this chapter.
(c) The administrator may
appoint, subject to the approval of the comptroller, a deputy administrator
or other subordinate officer or staff member
as necessary and appropriate to the efficient administration of the
depository. The depository may
contract with the comptroller's office to provide staff support.
(d) The administrator, the deputy administrator or another
subordinate officer, or a staff member of the depository is not personally
liable in the person's private capacity for any act performed or for any
contract or other obligation entered into or undertaken in an official
capacity in good faith and without intent to defraud in connection with the
administration, management, or conduct of the depository, its business, or
other related affairs.
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SECTION 3. Section 2116.003,
Government Code, is amended to read as follows:
Sec. 2116.003. DEPOSITORY
ADMINISTRATION; ADMINISTRATOR. (a) The depository is administered as a program
[division] of the office of the comptroller and under the direction
and supervision of a bullion depository administrator appointed by the
comptroller [with the advice and consent of the governor, lieutenant
governor, and senate].
(b) The administrator shall:
(1) administer, supervise,
and direct the operations and affairs of the depository and liaise with
depository agents; and
(2) liaise with the
comptroller and other divisions of the office of the comptroller to ensure
that each transaction with the depository that involves state money, that
involves an agency, a political subdivision, or another instrumentality of
this state, or that involves a private person is planned, administered, and
executed in a manner to achieve the purposes of this chapter.
(c) The administrator may
appoint, subject to the approval of the comptroller, a deputy administrator
or other subordinate officer or may
employ staff as necessary and appropriate to the efficient
administration of the depository.
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No
equivalent provision.
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SECTION 4. Sections
2116.004(a) and (b), Government Code, are amended to read as follows:
(a) The following are not
available for legislative appropriation:
(1) a deposit to the
depository;
(2) precious metal [bullion
or specie] held by or on behalf of the depository or a depository
agent;
(3) precious metal [bullion
or specie] in transit to or from the depository or a depository agent;
and
(4) a receivable or other
amount owed to the depository in settlement of a transaction in precious
metal [bullion or specie].
(b) Precious metal [Bullion,
specie,] and other assets described by Subsection (a) are subject to
redemption, liquidation, or transfer exclusively to discharge an obligation
of the depository to depository account holders, depository agents, bullion
banks, financial institutions, or other intermediaries in accordance with
this chapter and rules adopted under this chapter.
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No
equivalent provision.
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SECTION 5. Section 2116.005,
Government Code, is amended by amending Subsections (a), (c), and (d) and
adding Subsections (a-1) and (f) to read as follows:
(a) The depository may
receive a deposit of precious metal [bullion or specie] from
or on behalf of a person acting in the person's own right, as trustee, or
in another fiduciary capacity, in accordance with rules adopted by the
comptroller as appropriate to:
(1) ensure compliance with
law; and
(2) protect the interests
of:
(A) the depository;
(B) depository account
holders;
(C) this state and the
agencies, political subdivisions, and instrumentalities of this state; and
(D) the public at large.
(a-1) The comptroller
shall develop standards and processes for the shipping, handling, and
deposit of precious metals to the depository to ensure the integrity of and
verify any precious metals shipped to the depository for deposit.
(c) The comptroller [by
rule] shall develop [adopt] standards by which the
quantities of precious metals deposited are credited to a depositor's
depository account by reference to the particular form in which the metals
were deposited, classified by mint, denomination, weight, assay mark, or
other indicator, as applicable. The standards must conform to applicable
national and international standards of weights and measures.
(d) The comptroller [by
rule] may, if the comptroller determines that to do so is in the public
interest, restrict the forms in which deposits of precious metals may be
made to those forms that conveniently lend themselves to measurement and
accounting in units of troy ounces and standardized fractions of troy
ounces.
(f) A depository agent or
other person who is acting on behalf of an account holder or who is holding
the deposits or funds of an account holder may not commingle any deposits
or funds belonging to the depository agent or other person with the
deposits or funds of the account holder.
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No
equivalent provision.
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SECTION 6. Section
2116.006(b), Government Code, is amended to read as follows:
(b) The depository shall
make a delivery described by Subsection (a) on demand by the presentment of
a written demand [suitable check, draft,] or digital
electronic instruction to the depository or a depository agent. The
comptroller [by rule] shall develop [adopt] the forms,
standards, and processes through which an order for delivery on demand may
be made, presented, and honored.
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No
equivalent provision.
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SECTION 7. Section 2116.007,
Government Code, is amended to read as follows:
Sec. 2116.007. TRANSFER OF
DEPOSITORY ACCOUNT BALANCE. (a) The comptroller shall develop forms,
standards, and processes by which [In accordance with rules adopted
under this chapter,] a depository account holder may transfer any
portion of the balance of the holder's depository account by written
demand [check, draft,] or digital electronic instruction to
another depository account holder or to a person who at the time the
transfer is initiated is not a depository account holder.
(b) The depository shall
adjust the depository account balances of the depository accounts to
reflect a transfer transaction between depository account holders on
presentment of the written demand [check, draft,] or digital
electronic [other] instruction by reducing the payor's
depository account balance and increasing the depository account balance of
the payee accordingly.
(c) If a depository account
holder transfers to a payee who is not a depository account holder any
portion of the balance of the holder's depository account, the depository may
[shall] allow the payee to establish a depository account by
presentment of the payor's written demand [check, draft,] or digital
electronic instruction to the depository or to a depository agent. The
depository shall credit a newly established account on behalf of the payee
and shall debit the payor's account accordingly.
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No
equivalent provision.
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SECTION 8. Section
2116.008(b), Government Code, is amended to read as follows:
(b) The execution of a
contract for a depository account described by this section may be made [,
as prescribed by rules adopted under this chapter,] by electronic or
digital transmission.
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SECTION 4. The heading to
Section 2116.009, Government Code, is amended.
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SECTION 9. Same as introduced
version.
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SECTION 5. Section 2116.009,
Government Code, is amended by amending Subsection (b) and adding
Subsections (b-1), (b-2), (b-3), and (b-4) to read as follows:
(b) The depository shall
furnish depository account holders with [depository's act of
furnishing] an account statement or passbook, whether in physical,
digital, or electronic form[, constitutes a denial of liability and the
giving of such notice as to any amount not shown on the statement or
passbook].
(b-1) The depository
account holder is responsible for:
(1) promptly examining
each account statement received from the depository; and
(2) reporting any
discrepancy in the account statement to the depository not later than the 60th day after the
depository sent the account statement.
(b-2) The depository may establish a process to resolve any
disputed depository account balance.
(b-3) If the depository
account holder fails to report any account balance discrepancy reflected on
the account balance statement or passbook to
the depository within 60 days of the date the depository sent the statement
or passbook, then:
(1) the depository
account holder will be deemed to have accepted the account statement or
passbook as accurate;
(2)
the depository account holder may not dispute the account balance; and
(3) the depository shall
deem the depository account statement or passbook as accurate and undisputed by the depository account
holder.
(b-4) The comptroller may adopt rules to implement this
section.
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SECTION 10. Section
2116.009, Government Code, is amended by amending Subsection (b) and adding
Subsections (b-1), (b-2), and (b-3) to read as follows:
(b) The depository shall
furnish depository account holders with [depository's act of
furnishing] an account statement or passbook, whether in physical,
digital, or electronic form[, constitutes a denial of liability and the
giving of such notice as to any amount not shown on the statement or
passbook].
(b-1) The depository
account holder is responsible for:
(1) promptly examining
each account statement received from the depository; and
(2) giving notice of any
discrepancy in the account statement to the depository within the time frame established by the
comptroller.
(b-2) If a depository
account holder does not report an account balance discrepancy reflected on
the account holder's account statement or passbook in the appropriate time period described by Subsection (b-1):
(1) the account holder is
considered to have accepted as accurate the account statement or passbook;
and
(2) the depository
account statement or passbook is considered to be accurate.
(b-3) For purposes of this section, "account
statement" means a depository account holder's daily account balance,
accessed through the Internet website designated by the depository for that
purpose.
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SECTION 6. Section 2116.010,
Government Code, is amended to read as follows:
Sec. 2116.010. FEES; SERVICE
CHARGES; PAYMENTS; PENALTIES. (a) The comptroller [by
rule] may establish fees, service charges, and penalties to be charged
a depository account holder for a service or activity regarding a
depository account, including a fee for an overdraft, an insufficient fund
check or draft, or a stop payment order.
(b) The comptroller may
establish other charges and receive payments in the course of depository
operations and activities, including from transactions and relationships
authorized by Section 2116.021.
(c) The comptroller shall
deposit revenue realized by the depository under this section to the credit
of the general revenue fund.
(d) Money credited to the
general revenue fund under this section may be appropriated to the
comptroller to offset the costs of implementation, administration,
promotion, marketing, advertising, and operation of the depository.
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SECTION 11. Section
2116.010, Government Code, is amended to read as follows:
Sec. 2116.010. FEES; SERVICE
CHARGES; PAYMENTS; PENALTIES. (a) The comptroller [by
rule] may establish fees, service charges, and penalties to be charged
a depository account holder for a service or activity regarding a
depository account, including a fee for an overdraft, an insufficient fund
check or draft, or a stop payment order.
(b) The comptroller may
establish other fees and charges
and receive payments in the course of depository operations and activities authorized by this chapter, including
from transactions and relationships authorized by Section 2116.021.
(c) The comptroller shall
deposit revenue realized by the depository under this section to the credit
of the general revenue fund.
(d) Money credited to the
general revenue fund under this section may be appropriated to the
comptroller to offset the costs of implementation, administration,
promotion, marketing, advertising, and operation of the depository.
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No
equivalent provision.
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SECTION 12. Section
2116.013, Government Code, is amended to read as follows:
Sec. 2116.013. DEPOSITORY
ACCOUNTS NOT INTEREST-BEARING. The depository may not pay on a depository
account or on any funds held on behalf of a depository account holder:
(1) interest;
(2) an amount in the nature
of interest; or
(3) a fee or other payment
for the use or forbearance of use of money, bullion, specie, or precious
metals deposited to a depository account.
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No
equivalent provision.
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SECTION 13. Subchapter A,
Chapter 2116, Government Code, is amended by adding Section 2116.0145 to
read as follows:
Sec. 2116.0145. EXEMPTION
FROM CREDITORS' CLAIMS. (a) Deposits of bullion or specie held in the
depository in accordance with this chapter are exempt from claims of
creditors, including claims of creditors of a depository account holder or
a successor in interest of a depository account holder.
(b) Except as provided by
Subsection (c), the rights of a depository account holder in regard to any
deposits of bullion or specie held in the depository are exempt from
attachment, levy, garnishment, execution, and seizure for the satisfaction
of any debt, judgment, or claim against a depository account holder or
successor in interest of a depository account holder.
(c) This section does not
apply to the claim of a creditor of a depository account holder or a
successor in interest of a depository account holder for a debt, judgment,
lien, or claim, including a tax delinquency, asserted by or owed to:
(1) the state;
(2) a person who has
perfected a pledge made under Section 2116.014(d); or
(3) a person who is owed
child support arrearages by the depository account holder, reflected in a
child support lien notice that complies with the requirements of Section 157.313,
Family Code.
(d) The depository may
take any necessary and appropriate action to effectuate the transfer of a
depository account, or all or part of a depository account balance, to a
creditor with a claim described by Subsection (c).
(e) This section does not
permit a debtor to exempt bullion or specie held in a depository account
from property of the estate in a bankruptcy proceeding.
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SECTION 7. Section 2116.021,
Government Code, is amended to read as follows:
Sec. 2116.021. TRANSACTIONS
AND RELATIONSHIPS. The depository may [shall] enter into
transactions and relationships with bullion banks, depositories, dealers,
central banks, an IRS approved bank or non-bank acting as custodian for Individual
Retirement Accounts, sovereign wealth funds, financial institutions,
international nongovernmental organizations, intermediaries, and
other persons, located inside or outside of this state or inside or outside
of the United States, as the comptroller determines to be prudent and
suitable to facilitate the operations of the depository and to further the
purposes of this chapter.
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SECTION 14. Section
2116.021, Government Code, is amended to read as follows:
Sec. 2116.021. TRANSACTIONS
AND RELATIONSHIPS. The depository may [shall] enter into
transactions and relationships with bullion banks, depositories, dealers,
central banks, banks approved by the Internal Revenue Service or non-banks
acting as custodians for individual retirement accounts, sovereign
wealth funds, financial institutions, precious
metals exchanges, international nongovernmental
organizations, intermediaries, and other persons, located inside or
outside of this state or inside or outside of the United States, as the
comptroller determines to be prudent and suitable to facilitate the operations
of the depository and to further the purposes of this chapter.
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SECTION 8. Section 2116.023,
Government Code, is amended by amending Subsection (c) and adding
Subsection (d) to read as follows:
(c) On receipt of notice of
any transaction described by Subsection (a), with respect to all or any
portion of the balance of a depository account,
the depository shall suspend
withdrawal privileges associated with the balances of the depository
account until suitable substitute arrangements may be effected in
accordance with the representation of the depository by the attorney
general and rules of the comptroller to enable the registered account
holder to take delivery of the precious metals represented by the account
balances in question. A voluntary transfer of a depository account balance
or of a depository account among depository account holders may continue to
take place unaffected by the suspension, and the depository shall recognize
the transfer to the full extent authorized by this chapter, the
representation of the depository by the attorney general, and rules
adopted under this chapter.
(d) On receipt of notice
of any transaction described by Subsection (a), the depository shall refer
the notice to the attorney general for representation, and the attorney
general shall represent the depository in any action
related to the notice.
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SECTION 15. Section
2116.023, Government Code, is amended by amending Subsection (c) and adding
Subsection (d) to read as follows:
(c) On receipt of notice of
any transaction described by Subsection (a), with respect to all or any
portion of the balance of a depository account, and on direction of the attorney general,
the depository shall suspend
withdrawal privileges associated with the balances of the depository
account until suitable substitute arrangements may be effected in
accordance with the representation of the depository by the attorney
general and rules of the comptroller to enable the registered account
holder to take delivery of the precious metals represented by the account
balances in question. A voluntary transfer of a depository account balance
or of a depository account among depository account holders may continue to
take place unaffected by the suspension, and the depository shall recognize
the transfer to the full extent authorized by this chapter, the
representation of the depository by the attorney general, and rules
adopted under this chapter.
(d) On receipt of notice
of any transaction described by Subsection (a), the depository shall refer
the notice to the attorney general for representation, and the attorney
general shall represent the depository in any matter
described by Subsection (a).
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No
equivalent provision.
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SECTION 16. Section
2116.024, Government Code, is amended to read as follows:
Sec. 2116.024. OFFICIAL
EXCHANGE RATES. The comptroller [by rule] shall establish the
references by which the official exchange rate for pricing precious metals
transactions in terms of United States dollars or other currency must be
established at the time of a depository transaction. The comptroller shall
establish procedures and facilities through which the rates are made
discoverable at all reasonable times by system participants, both on a
real-time basis and retrospectively.
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No
equivalent provision.
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SECTION 17. Section
2116.025, Government Code, is amended to read as follows:
Sec. 2116.025. FACILITATION
OF ACCOUNTING AND REPORTING OF TAXABLE GAINS. The comptroller [by rule]
shall establish procedures and requirements for the depository and
depository agents designed to minimize the burden to system participants of
accounting for and reporting taxable gains and losses arising out of
depository transactions as denominated in United States dollars or another
currency.
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SECTION 9. Subchapter A,
Chapter 2116, Government Code, is amended by adding Sections 2116.027 and
2116.028 to read as follows:
Sec. 2116.027.
CONFIDENTIALITY OF RECORDS. (a) Except as otherwise provided by Section
2116.028 and this section, the depository's records are subject to public
inspection to the extent authorized by Chapter 552.
(b) The following
information is confidential and is exempt from disclosure under Chapter
552:
(1) records and
information related to the depository's physical security, information
security, or designed to ensure the integrity and security of the
depository including without limitation
access codes,
passwords,
signatures,
specifications,
technical details,
operating procedures,
locations, and
financial information on
expenditures for depository security;
(2) records relating to
individual accounts or to current or prospective depository account holders
that are in the custody of the depository or in the custody of a vendor
performing services related to the depository;
(3) records related to
setting depository fees, service charges, penalties, or other charges or
payments;
(4) records related to
establishing standards under Sections 2116.005(c) and (d); and
(5) operational or other
information that would give advantage to competitors or bidders.
(c) Notwithstanding
Subsection (b)(2), depository account information may be disclosed:
(1) to a depository
account holder regarding the depository account holder's account;
(2) to a state or federal
agency as necessary to administer the program or as required by applicable
law;
(3) to a vendor providing
services to the depository or to a current or prospective depository
account holder;
(4) in response to a
subpoena issued under applicable law;
(5) if compiled as
collective information that does not include any identifying information
about a person; or
(6) with the express
written permission of a depository account holder.
Sec. 2116.028.
INTELLECTUAL PROPERTY. (a) The depository may:
(1) apply for, register,
secure, hold, and protect under the laws of the United States or any state
or nation:
(A) a patent for the
invention, discovery, or improvement of any process, machine, manufacture,
or composition of matter;
(B) a copyright for an
original work of authorship fixed in any tangible medium of expression,
known or later developed, from which it can be perceived, reproduced, or
otherwise communicated, either directly or with the aid of a machine or
device;
(C) a trademark, service
mark, collective mark, or certification mark for a word, name, symbol,
device, or slogan that the depository uses to identify and distinguish the
depository's goods and services from other goods and services; or
(D) other evidence of
protection or exclusivity issued for intellectual property;
(2) contract with a
person for the reproduction, public performance, display, distribution,
advertising, sale, lease, marketing, licensing, sale, use, or other
distribution of the depository's intellectual property;
(3) obtain under a
contract described in Subdivision (2) a royalty, license right, or other
appropriate means of securing reasonable compensation for the exercise of
the depository's intellectual property rights; and
(4) waive or reduce the
amount of compensation secured by contract under Subdivision (3) if the
depository determines that the waiver or reduction will:
(A) further a goal or
mission of the depository; and
(B) result in a net
benefit to the depository.
(b) Intellectual property
of the depository is excepted from required disclosure under Chapter 552:
(1) beginning on the date
the depository decides to seek a patent, trademark, service mark,
collective mark, certification mark, or other evidence of protection of
exclusivity concerning the property; and
(2) ending on the date
the depository receives a decision on the depository's application for a
patent, trademark, service mark, collective mark, certification mark, or
other evidence of protection of exclusivity concerning the property.
(c) The comptroller shall
deposit revenue realized by the depository under this section to the credit
of the general revenue fund.
(d) Money credited to the
general revenue fund under this section may be appropriated only to the comptroller to offset the
costs of implementation, administration, promotion, marketing, advertising,
and operation of the depository.
(e) The comptroller may
establish intellectual property policies.
No
equivalent provision.
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SECTION 18. Subchapter A,
Chapter 2116, Government Code, is amended by adding Sections 2116.027,
2116.028, and 2116.029 to read as follows:
Sec. 2116.027.
CONFIDENTIALITY OF RECORDS. (a) Except as otherwise provided by Section
2116.028 and this section, the depository's records are subject to public
inspection to the extent authorized by Chapter 552.
(b) The following
information is confidential and is exempt from disclosure under Chapter
552:
(1) records and
information related to the depository's physical security, information
security, or information designed to ensure the integrity and security of
the depository, including:
(A) access codes;
(B) passwords;
(C) signatures;
(D) specifications;
(E) technical details;
(F) operating procedures;
(G) locations; and
(H) financial information
on expenditures for depository security;
(2) records relating to
individual accounts or to current or prospective depository account holders
that are in the custody of the depository or in the custody of a vendor
performing services related to the depository;
(3) records related to
setting depository fees, service charges, penalties, or other charges or
payments;
(4) records related to
establishing standards under Sections 2116.005(c) and (d); and
(5) operational information,
or other information, that would give advantage to competitors or bidders.
(c) Notwithstanding
Subsection (b)(2), depository account information may be disclosed:
(1) to a depository
account holder regarding the depository account holder's account;
(2) to a state or federal
agency as necessary to administer the program or as required by applicable
law;
(3) to a vendor providing
services to the depository or to a current or prospective depository
account holder;
(4) in response to a
subpoena issued under applicable law;
(5) if compiled as
collective information that does not include any identifying information
about a person; or
(6) with the express
written permission of a depository account holder.
Sec. 2116.028.
INTELLECTUAL PROPERTY. (a) The depository may:
(1) apply for, register,
secure, hold, and protect under the laws of the United States or any state
or nation:
(A) a patent for the
invention, discovery, or improvement of any process, machine, manufacture,
or composition of matter;
(B) a copyright for an
original work of authorship fixed in any tangible medium of expression,
known or later developed, from which it can be perceived, reproduced, or
otherwise communicated, either directly or with the aid of a machine or
device;
(C) a trademark, service
mark, collective mark, or certification mark for a word, name, symbol,
device, or slogan that the depository uses to identify and distinguish the
depository's goods and services from other goods and services; or
(D) other evidence of
protection or exclusivity issued for intellectual property;
(2) contract with a
person for the reproduction, public performance, display, distribution,
advertising, sale, lease, marketing, licensing, sale, use, or other
distribution of the depository's intellectual property;
(3) obtain under a
contract described in Subdivision (2) a royalty, license right, or other
appropriate means of securing reasonable compensation for the exercise of
the depository's intellectual property rights; and
(4) waive or reduce the
amount of compensation secured by contract under Subdivision (3) if the
depository determines that the waiver or reduction will:
(A) further a goal or
mission of the depository; and
(B) result in a net
benefit to the depository.
(b) Intellectual property
of the depository is excepted from required disclosure under Chapter 552:
(1) beginning on the date
the depository decides to seek a patent, trademark, service mark,
collective mark, certification mark, or other evidence of protection of
exclusivity concerning the property; and
(2) ending on the date
the depository receives a decision on the depository's application for a
patent, trademark, service mark, collective mark, certification mark, or
other evidence of protection of exclusivity concerning the property.
(c) The comptroller shall
deposit to the credit of the general revenue fund revenue realized by the
depository under this section.
(d) Money credited to the
general revenue fund under this section may be appropriated to the
comptroller to offset the costs of implementation, administration,
promotion, marketing, advertising, and operation of the depository.
(e) The comptroller may
establish intellectual property policies.
Sec. 2116.029.
ADVERTISING, SIGNAGE, AND DISCLOSURES BY THIRD PARTIES. (a) In this
section, "third party" means a person who is authorized to
provide a service relating to the depository, including a depository agent,
a person who enters into a transactional or other relationship with the
depository, or a person selected to operate or provide services to the
depository under this chapter.
(b) Third party
advertising, marketing, promotional or written material, or signage created
or used for commercial purposes related to the depository, in written form
or in any other form, may not be used until the comptroller has approved
its use.
(c) The comptroller may
require that a third party who creates advertising, marketing, promotional
or written material, or signage created or used for commercial purposes
related to the depository include certain approved disclosures or
identifying marks, as the commissioner determines to be appropriate, in the
entity's advertising, marketing, promotional or written material, or
signage.
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SECTION 10. Section
2116.051, Government Code, is amended to read as follows:
Sec. 2116.051. USE OF
DEPOSITORY AGENTS. The depository shall
use private, independently managed firms and institutions licensed as
depository agents as intermediaries
to conduct retail transactions in
bullion and specie on behalf of [the depository with] current and
prospective depository account holders.
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SECTION 19. Section
2116.051, Government Code, is amended to read as follows:
Sec. 2116.051. USE OF
DEPOSITORY AGENTS. Current and
prospective [The] depository account holders may
[shall] use private, independently managed firms and
institutions licensed as depository agents [as
intermediaries] to conduct [retail]
transactions in bullion and specie on behalf of [the depository with]
current and prospective depository account holders.
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SECTION 11. Section
2116.052, Government Code, is amended.
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SECTION 20. Same as
introduced version.
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SECTION 12. Section
151.002(b)(9-c), Finance Code, is amended.
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SECTION 21. Same as
introduced version.
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No
equivalent provision.
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SECTION 22. Subchapter J,
Chapter 151, Finance Code, is amended by adding Section 151.8521 to read as
follows:
Sec. 151.8521. LICENSE
CATEGORIES; EXEMPTIONS FROM LICENSING. (a) The commissioner, in
consultation with and subject to approval by the comptroller, shall create
defined categories of licenses for depository agents, with specific
application requirements for each different category of license. The
licensing categories created under this subsection may be differentiated on
the basis of the type and value of authorized precious metal transactions
for a depository agent in each category.
(b) Requirements for each
category of depository agent license created under Subsection (a) may
differ on the basis of:
(1) capital and security
requirements;
(2) insurance
requirements;
(3) type of depository
agent services provided;
(4) availability of safe
and secure storage and transport of precious metals;
(5) other licensing
requirements; or
(6) qualifications, as
appropriate, to fulfill the requirements of Chapter 2116, Government Code.
(c) In adopting
application requirements for the depository agent license categories
created by the commissioner under Subsection (a), the commissioner shall
ensure that the requirements, including any licensing fees, enable
qualified individuals and firms to apply for a license and provide for the
safety and security of depository account holders and the depository.
(d) The commissioner, in
consultation with and subject to the approval of the comptroller, shall
determine whether any person, transaction, or class of persons is exempt
from depository agent licensing under Section 151.003(10).
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No
equivalent provision.
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SECTION 23. Section
151.853(a), Finance Code, is amended to read as follows:
(a) A person may not engage
in the business of rendering depository agent services or advertise,
solicit, or hold itself out as a person that engages in the business of
depository agent services unless the person:
(1) is licensed under this
subchapter [and has received the requisite certifications from the
comptroller of its facilities, systems, processes, and procedures as
required by Chapter 2116, Government Code, or rules adopted under that
chapter]; or
(2) is excluded from
licensing requirements under Section 151.003, or as otherwise determined
under Section 151.8521(d).
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No
equivalent provision.
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SECTION 24. Section 151.855,
Finance Code, is amended to read as follows:
Sec. 151.855. APPLICATION
AND ACCOMPANYING FEE, STATEMENTS, AND SECURITY. (a) An applicant for a
depository agent license must submit an application in accordance with
Section 151.203 and applicable requirements adopted under Section
151.8521.
(b) At the time an
application for a depository agent license is submitted, an applicant must
file with the department any fee, information, documentation, or
security required as provided by Section 151.8521 for the category of
license for which the person is applying, which may include:
(1) an application fee in
the amount established by commission rule;
(2) audited financial
statements and other financial documentation that is determined to be
reliable that are satisfactory to the commissioner for purposes of
determining whether the applicant has the minimum net worth required under
applicable rules and is likely to maintain the required minimum net worth
if a license is issued; [and]
(3) security in an [the]
amount not to exceed [of] $500,000 that meets the
requirements of applicable rules and an undertaking or agreement that the
applicant will increase or supplement the security to equal the aggregate
security required by the commissioner before the issuance of the license
and the start of operations; and
(4) additional security
that may be required by the commissioner in the form of permissible
investments, additional surety, or in any other form considered appropriate
to protect depository account holders and the depository and to comply with
applicable regulatory requirements.
(c) The commissioner may
adopt rules to implement Subsection (b)(4).
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SECTION 13. Section 151.858,
Finance Code, is amended to read as follows:
Sec. 151.858. LIABILITY OF
LICENSE HOLDER. A depository agent license holder is liable for the
delivery to or for the depository account of [the depository or]
each current or prospective
depository account holder [depositor],
as applicable,
of all bullion, specie, and
money payable or deliverable in connection with the transactions in which
the license holder engages on behalf of the
current or prospective depositor who is entitled to depository agent
services.
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SECTION 25. Section 151.858,
Finance Code, is amended to read as follows:
Sec. 151.858. LIABILITY OF
LICENSE HOLDER. A depository agent license holder is liable for the
delivery to or for the depository account of [the depository or]
each depositor, as applicable,
of all bullion, specie, and
money payable or deliverable in connection with the transactions in which
the license holder engages on behalf of the
depositor [depository].
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No
equivalent provision.
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SECTION 26. The heading to
Section 151.860, Finance Code, is amended to read as follows:
Sec. 151.860. DISCLOSURE AND
OTHER REQUIREMENTS.
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No
equivalent provision.
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SECTION 27. Section 151.860,
Finance Code, is amended by adding Subsections (c), (d), and (e) to read as
follows:
(c) A depository agent
license holder must comply with the requirements of Section 2116.029,
Government Code.
(d) The commissioner, in
consultation with the comptroller, shall adopt processes and procedures for
interactions between a depository agent license holder and a depository
account holder to ensure compliance with this chapter, Chapter 2116,
Government Code, and other applicable regulatory requirements.
(e) A depository agent
license holder or other person who is acting on behalf of an account holder
may not commingle deposits or funds belonging to the depository agent or
other person with the deposits or funds of a depository account holder.
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No
equivalent provision.
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SECTION 28. Subchapter B,
Chapter 11, Tax Code, is amended by adding Section 11.141 to read as
follows:
Sec. 11.141. PRECIOUS
METAL HELD IN TEXAS BULLION DEPOSITORY. (a) For purposes of this section,
"precious metal" has the meaning assigned by Section 2116.001,
Government Code.
(b) A person is entitled
to an exemption from taxation of the precious metal that the person owns
and that is held in the Texas Bullion Depository established under Chapter
2116, Government Code, regardless of whether the precious metal is held or
used by the person for the production of income.
(c) Notwithstanding
Section 11.14(c), the governing body of a taxing unit may not provide for
the taxation of precious metal exempted from taxation under Subsection (b).
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No
equivalent provision.
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SECTION 29. Section
11.42(b), Tax Code, is amended to read as follows:
(b) An exemption authorized
by Section 11.11 or 11.141 is effective immediately on qualification
for the exemption.
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No
equivalent provision.
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SECTION 30. Section
11.43(a), Tax Code, is amended to read as follows:
(a) To receive an exemption,
a person claiming the exemption, other than an exemption authorized by
Section 11.11, 11.12, 11.14, 11.141, 11.145, 11.146, 11.15, 11.16,
11.161, or 11.25 [of this code], must apply for the exemption. To
apply for an exemption, a person must file an exemption application form
with the chief appraiser for each appraisal district in which the property
subject to the claimed exemption has situs.
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SECTION 14. Sections
2116.009(a), (c), (d), (e), and (f), Government Code, are repealed.
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SECTION 31. Same as
introduced version.
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SECTION 15.
This Act takes effect
immediately if it receives a vote of two-thirds of all the members elected
to each house, as provided by Section 39, Article III, Texas Constitution.
If this Act does not receive
the vote necessary for immediate effect, this Act takes effect September 1,
2017.
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SECTION 32. (a) Except as provided by Subsection (b) of this
section:
(1) this Act takes effect
immediately if it receives a vote of two-thirds of all the members elected
to each house, as provided by Section 39, Article III, Texas Constitution;
and
(2) if this Act does not
receive the vote necessary for immediate effect, this Act takes effect
September 1, 2017.
(b)
Section 11.141, Tax Code, as added by this Act, and Sections 11.42(b) and
11.43(a), Tax Code, as amended by this Act, take effect January 1, 2018,
but only if the constitutional amendment proposed by the 85th Legislature,
Regular Session, 2017, authorizing the legislature to exempt from ad
valorem taxation precious metal held in the Texas Bullion Depository is approved
by the voters. If that amendment is not approved by the voters, those
sections have no effect.
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